AFFILIATED MANAGERS GROUP, INC. (AMG)

CIK: 0001004434. SIC: 6282 Investment Advice. Latest 10-K as of: 2026-02-17.

SIC breadcrumb: Finance, Insurance, And Real Estate > Security And Commodity Brokers, Dealers, Exchanges, And Services > SIC 6282 Investment Advice

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1004434. Latest filing source: 0001628280-26-008665.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001004434.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001004434.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001628280-26-032153.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-07. Report date: 2026-03-31.

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain matters discussed in this Quarterly Report on Form 10-Q, in our other filings with the Securities and Exchange

Commission, in our press releases, and in oral statements made with the approval of an executive officer may constitute

“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements

include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial

results, our liquidity and capital resources, and other non-historical statements, and may be prefaced with words such as

“outlook,” “guidance,” “believes,” “expects,” “potential,” “preliminary,” “continues,” “may,” “will,” “should,” “seeks,”

“approximately,” “predicts,” “projects,” “positioned,” “prospects,” “intends,” “plans,” “estimates,” “pending

investments,” “anticipates,” or the negative version of these words or other comparable words.  Such statements are subject to

certain risks and uncertainties, including, among others, the factors discussed under the caption “Item 1A. Risk Factors” in our

Annual Report on Form 10-K for the year ended December 31, 2025, and from time to time, as applicable, our Quarterly

Reports on Form 10-Q .  These factors (among others) could affect our financial condition, business activities, results of

operations, cash flows, or overall financial performance and cause actual results and business activities to differ materially

from historical periods and those presently anticipated and projected.  Forward-looking statements speak only as of the date

they are made, and we will not undertake and we specifically disclaim any obligation to release publicly the result of any

revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such

statements or to reflect the occurrence of events, whether or not anticipated.  In that respect, we caution readers not to place

undue reliance on any such forward-looking statements.

Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction

with our Consolidated Financial Statements and the notes thereto contained elsewhere in this Quarterly Report on Form 10-Q.

References throughout this report to “AMG,” “we,” “us,” “our,” the “Company,” and similar references refer to

Affiliated Managers Group, Inc., unless otherwise stated or the context otherwise requires.

Executive Overview

AMG is a strategic partner to leading independent investment firms globally.  Our strategy is to generate long-term value

by investing in high-quality independent partner-owned firms, which we refer to as “Affiliates,” through a proven partnership

approach, and allocating resources across our unique opportunity set to the areas of highest growth and return.  With their

entrepreneurial, investment-centric cultures and alignment of interests with clients through direct equity ownership by firm

principals, independent firms have fundamental competitive advantages in offering unique return streams to the marketplace. 

Through AMG’s distinctive approach, we enhance these advantages to magnify the long-term success of our Affiliates and

actively support their independence.  Our innovative model enables each Affiliate’s management team to retain autonomy

and significant equity ownership in their firm, while they leverage our strategic capabilities and insight, including access to

growth capital, product strategy and development, capital formation capabilities, incentive alignment and succession

planning, and strategic advisory to expand their reach, diversify their business, and enhance their long-term success.  As of

March 31, 2026, our aggregate assets under management were approximately $882 billion across a diverse range of private

markets, liquid alternative, and differentiated long-only investment strategies.

In the first quarter of 2026, we completed our agreement with Brown Brothers Harriman (“BBH”) to acquire a minority

equity interest in BBH Credit Partners, BBH’s taxable fixed income and credit franchise, our additional minority investment

in Garda Capital Partners LP (“Garda”), a liquid alternatives manager specializing in fixed income relative value strategies

and an Affiliate since 2019, and our minority investment in HighBrook Investors (“HighBrook”), a private markets manager

specializing in real estate assets.  Following the close of the transactions, Affiliate management continues to hold a majority

of the equity of the respective businesses and directs the day-to-day operations, and, with respect to Garda, our investment

continues to be accounted for under the equity method.

Operating Performance Measures

Under accounting principles generally accepted in the U.S. (“GAAP”), we are required to consolidate certain of our

Affiliates and use the equity method of accounting for others.  Whether we consolidate an Affiliate or use the equity method of

accounting, we maintain the same innovative partnership approach and provide support and assistance in substantially the same

manner for all of our Affiliates.  Furthermore, all of our Affiliates are investment managers and are impacted by similar

marketplace factors and industry trends.  Therefore, certain key aggregate operating performance measures are important in

providing management with a comprehensive view of the operating performance and material trends across our entire business.

25

Table of Contents

The following table presents our key aggregate operating performance measures:

As of and for the Three

Months Ended March 31,

(in billions, except as noted)

2025

2026

% Change

Assets under management

$712.2

$882.0

24%

Average assets under management

712.1

881.7

24%

Aggregate fees (in millions)

1,270.4

1,909.9

50%

Assets under management, and therefore average assets under management, include the assets under management of our

consolidated and equity method Affiliates.  Assets under management is presented on a current basis without regard to the

timing of the inclusion of an Affiliate’s financial results in our operating performance measures and Consolidated Financial

Statements.  Average assets under management reflects the timing of the inclusion of an Affiliate’s financial results in our

operating performance measures and Consolidated Financial Statements.  Average assets under management for equities and

similar investment products generally represents an average of the daily net assets under management, while for liquid

alternatives and multi-asset and fixed income products, average assets under management generally represents an average of the

assets at the beginning or end of each month during the applicable period.  Average assets under management for private

markets products generally represents total commitments or invested assets under management.

Aggregate fees consist of the total asset- and performance-based fees earned by all of our consolidated and equity method

Affiliates.  In the case of our equity method Affiliates, asset- and performance-based fees are presented net of certain expense

reimbursements paid by the underlying products. For certain of our Affiliates accounted for under the equity method, we report

the Affiliate’s aggregate fees one quarter in arrears.  Aggregate fees are provided in addition to, but not as a substitute for,

Consolidated revenue or other GAAP performance measures.

Assets Under Management

Our Affiliates manage capital on behalf of clients across a diverse range of investment strategies.  Our Affiliates earn asset-

based fees on the capital that they manage and certain of our Affiliate’s strategies earn performance-based fees based on the

performance generated by their investment products.  For the three months ended March 31, 2026, assets under management

increased $68.7 billion or 8.4% driven by net client cash inflows and the addition of assets associated with new partnerships. 

We continue to see client demand for alternative strategies with broad-based demand for our Affiliates’ liquid alternative and

private markets strategies generating strong net inflows in the quarter, while our equity strategies experienced net outflows in

line with trends across the industry. As we continue to execute our growth strategy by investing in new and existing Affiliates,

as well as in AMG’s strategic capabilities, we expect our business mix to further evolve, expanding our exposure to in-demand

strategies in both private markets and liquid alternatives, better positioning AMG to continue to benefit from industry growth

trends with an increasingly diversified business profile.

26

Table of Contents

The following table presents changes in our assets under management by strategy for the three months ended March 31,

2026:

Alternatives

Differentiated Long-Only

(in billions)

Private

Markets

Liquid

Alternatives

Equities

Multi-Asset &

Fixed Income

Total

December 31, 2025

$146.0

$227.2

$312.1

$128.0

$813.3

    Client cash inflows and commitments

4.3

30.9

15.0

12.5

62.7

    Client cash outflows

(0.1)

(6.3)

(24.1)

(9.7)

(40.2)

        Net client cash flows

4.2

24.6

(9.1)

2.8

22.5

    New investments(1)

2.6

10.1

—

47.1

59.8

    Market changes

(0.4)

(1.0)

(3.4)

(1.1)

(5.9)

    Foreign exchange(2)

(0.3)

(1.0)

(1.7)

(0.4)

(3.4)

    Realizations and distributions (net)

(1.8)

(0.0)

(0.0)

(0.2)

(2.0)

    Other(3)

(2.3)

1.6

(0.1)

(1.5)

(2.3)

March 31, 2026

$148.0

$261.5

$297.8

$174.7

$882.0

_________________________

(1)Attributable to BBH Credit Partners and HighBrook as of their respective closing dates.

(2)Foreign exchange reflects the impact of translating the assets under management of our Affiliates whose functional

currency is not the U.S. dollar into our functional currency.

(3)Other includes product transitions and reclassifications.

The following tables present performance of our investment strategies, where available, measured by the percentage of

assets under management ahead of their relevant benchmark:

AUM Weight

% of AUM Ahead of Benchmark(1)

IRR Latest Vintage

IRR Last Three Vintages

Private markets(2)

17%

84%

86%

AUM Weight

% of AUM Ahead of Benchmark(1)

3-year

5-year

10-year

Liquid alternatives(3)

29%

92%

92%

92%

Equities(3)

34%

41%

43%

59%

Multi-asset and fixed income(4)

20%

N/A

N/A

N/A

___________________________

(1)Past performance is not indicative of future results.  Performance and AUM information is as of March 31, 2026 and is

based on data available at the time of calculation.  Product returns are sourced from Affiliates while benchmark returns are

generally sourced via third-party subscriptions. 

(2)For private markets products, performance is reported as the percentage of assets that have outperformed benchmarks on a

since-inception internal rate of return basis.  Benchmarks utilized include a combination of public market equivalents, peer

medians, and absolute returns where benchmarks are not available.  For purposes of investment performance comparisons,

the latest vintage comparison includes the most recent vehicles and strategies (traditional long-duration investment funds,

customized vehicles, and other evergreen vehicles and product structures) where meaningful performance is available and

calculable.  In order to illustrate the performance of our private markets product category over a longer period of history,

the last three vintages comparison incorporates the latest vintage vehicles and the prior two vintages for traditional long-

duration investment funds, as well as additional vehicles and strategies launched during the equivalent time period as the

last three vintages of traditional long-duration i

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-17. Report date: 2025-12-31.

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following executive overview, which summarizes the significant trends affecting our results of operations and financial

condition, as well as the remainder of this Management’s Discussion and Analysis of Financial Condition and Results of

Operations of Affiliated Managers Group, Inc. and its subsidiaries, should be read in conjunction with the “Forward-Looking

Statements” section set forth in Part I, the “Risk Factors” section set forth in Item 1A of Part I and with our Consolidated

Financial Statements and the notes thereto contained elsewhere in this Annual Report on Form 10-K, and in any more recent

filings with the SEC.

Our discussion and analysis of the key operating performance measures and financial results for fiscal year 2025

compared to fiscal year 2024 is included herein.  For discussion and analysis of fiscal year 2024 compared to fiscal year 2023,

please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of Part II

in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on

February 14, 2025. 

Executive Overview

AMG is a strategic partner to leading independent investment firms globally.  Our strategy is to generate long-term value

by investing in high-quality independent partner-owned firms, which we refer to as “Affiliates,” through a proven partnership

approach, and allocating resources across our unique opportunity set to the areas of highest growth and return.  With their

entrepreneurial, investment-centric cultures and alignment of interests with clients through direct equity ownership by firm

principals, independent firms have fundamental competitive advantages in offering unique return streams to the marketplace. 

Through AMG’s distinctive approach, we enhance these advantages to magnify the long-term success of our Affiliates and

actively support their independence.  Our innovative model enables each Affiliate’s management team to retain autonomy

and significant equity ownership in their firm, while they leverage our strategic capabilities and insight, including access to

growth capital, product strategy and development, capital formation capabilities, incentive alignment and succession

planning, and strategic advisory to expand their reach, diversify their businesses, and enhance their long-term success.  As of

December 31, 2025, our aggregate assets under management were approximately $813 billion across a diverse range of

private markets, liquid alternative, and differentiated long-only investment strategies.

In 2025, we advanced our strategy of allocating capital to areas of durable client demand by entering into four new

partnerships with independent firms collectively managing approximately $23 billion in alternative strategies, announcing a

strategic partnership with Brown Brothers Harriman (“BBH”), and further expanding our U.S. wealth platform.

In the first quarter of 2025, we completed our minority investment in NorthBridge Partners, LLC (“NorthBridge”), a

private markets manager specializing in industrial logistics real estate assets, and in the second quarter of 2025, we completed

our minority investment in Verition Fund Management LLC (“Verition”), a global multi-strategy investment firm. 

In the fourth quarter of 2025, we completed our minority investments in Montefiore Investment (“Montefiore”), a

European private equity firm focused on the services sector, and Qualitas Energy, a renewables-focused global infrastructure

manager specializing in energy transition.  We also announced a strategic partnership with BBH, a privately held global

financial services firm, to acquire a minority equity interest in BBH Credit Partners, a newly formed subsidiary of BBH

focused on structured and alternative credit investment strategies.  The transaction was completed in January 2026. 

Following the close of these transactions, Affiliate management continues to hold a significant majority of the equity of the

respective businesses and directs the day-to-day operations.

On February 12, 2026, we announced the completion of our additional minority investment in Garda Capital Partners LP

(“Garda”), a liquid alternatives manager specializing in fixed income relative value strategies and an Affiliate since 2019, and

our minority investment in HighBrook Investors (“HighBrook”), a private markets manager specializing in real estate assets. 

Following the close of the transactions, our investment in Garda continues to be accounted for under the equity method and

Affiliate management continues to hold a majority of the equity of the respective businesses and directs the day-to-day

operations.

While Affiliates typically partner with AMG to preserve their independence and partnership culture, evolving conditions

may lead an Affiliate to consider strategic alternatives; consistent with our partnership approach, in such instances, we

collaborate with Affiliates to evaluate these options.  When strategic transactions occur, they typically enhance our flexibility

to execute our growth strategy and return capital to shareholders, as we deploy the resulting proceeds in accordance with our

disciplined capital allocation framework.

25

Table of Contents

In the third quarter of 2025, we completed the sale of our minority equity interest in Peppertree Capital Management,

Inc. (“Peppertree”), as part of the announced acquisition of Peppertree by TPG Inc. (“TPG”), a public company listed on the

Nasdaq Global Select Market (the “Peppertree Transaction”).  Pursuant to the terms of the agreement with TPG, under which

we and each of the other owners agreed to sell our respective equity interests in Peppertree, we received total consideration of

$253.2 million, net of transaction costs, which included $99.8 million in cash and 2.9 million TPG Class A common shares,

all of which we have since sold.  Our gain from the transaction was $127.6 million.

In November 2025, Comvest Partners (“Comvest”) completed the previously announced agreement to sell its private

credit business to Manulife Financial Corporation (the “Comvest Transaction”).  Pursuant to the terms of the agreement, we

received total cash consideration of $282.0 million for our portion of Comvest’s private credit business and our gain from the

transaction was $227.6 million.

In December 2025, we completed the sale of our minority equity interest in Montrusco Bolton Investments Inc.

(“Montrusco Bolton”) to Walter Global Asset Management Inc. (the “Montrusco Bolton Transaction”).  Pursuant to the terms

of the agreement, we received total cash consideration of $22.0 million and our gain from the transaction was $16.2 million.

Operating Performance Measures

Under accounting principles generally accepted in the U.S. (“GAAP”), we are required to consolidate certain of our

Affiliates and use the equity method of accounting for others.  Whether we consolidate an Affiliate or use the equity method of

accounting, we maintain the same innovative partnership approach and provide support and assistance in substantially the same

manner for all of our Affiliates.  Furthermore, all of our Affiliates are investment managers and are impacted by similar

marketplace factors and industry trends.  Therefore, certain key aggregate operating performance measures are important in

providing management with a comprehensive view of the operating performance and material trends across our entire business.

The following table presents our key aggregate operating performance measures:

As of and for the Years Ended December 31,

(in billions, except as noted)

2023

2024

% Change

2025

% Change

Assets under management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$672.7

$707.9

5%

$813.3

15%

Average assets under management . . . . . . . . . . . . . . . . . . . . . . . . .

660.3

700.5

6%

764.2

9%

Aggregate fees (in millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,066.6

5,236.0

3%

6,167.5

18%

Assets under management, and therefore average assets under management, include the assets under management of our

consolidated and equity method Affiliates.  Assets under management is presented on a current basis without regard to the

timing of the inclusion of an Affiliate’s financial results in our operating performance measures and Consolidated Financial

Statements.  Average assets under management reflects the timing of the inclusion of an Affiliate’s financial results in our

operating performance measures and Consolidated Financial Statements.  Average assets under management for equities and

similar investment products generally represents an average of the daily net assets under management, while for liquid

alternatives and multi-asset and fixed income products, average assets under management generally represents an average of the

assets at the beginning or end of each month during the applicable period.  Average assets under management for private

markets products generally represents total commitments or invested assets under management.

Aggregate fees consist of the total asset- and performance-based fees earned by all of our consolidated and equity method

Affiliates.  In the case of our equity method Affiliates, asset- and performance-based fees are presented net of certain expense

reimbursements paid by the underlying products.  For certain of our Affiliates accounted for under the equity method, we report

the Affiliate’s aggregate fees one quarter in arrears.  Aggregate fees are provided in addition to, but not as a substitute for,

Consolidated revenue or other GAAP performance measures.

Assets Under Management

Our Affiliates manage capital on behalf of clients across a diverse range of investment strategies.  Our Affiliates earn asset-

based fees on the capital that they manage and certain of our Affiliate’s strategies earn performance-based fees based on the

performance generated by their investment products.  For the year ended December 31, 2025, assets under management

increased $105.4 billion or 15% driven by a combination of investment performance generated across our Affiliates, net client

cash inflows, and the addition of assets associated with new partnerships with Affiliates operating in growing areas within

alternative strategies.  Client demand for alternative strategies continued in 2025, with strong net inflows into liquid alternative

strategies and momentum in private markets fundraising, which more than offset net outflows in equity strategies — an area

26

Table of Contents

that continues to face headwinds in line with industry trends — and the removal of assets under management associated with

the sale of certain minority equity interests in Affiliates completed during the year.  As we continue to execute our growth

strategy by investing in new and existing Affiliates, as well as in AMG’s strategic capabilities, we expect our business mix to

further evolve, expanding our exposure to in-demand strategies in both private markets and liquid alternatives, better

positioning AMG to continue to benefit from industry growth trends with an increasingly diversified business profile.

The following table presents changes in our assets under management by strategy:

Alternatives

Differentiated Long-Only

(in billions)

Private

Markets

Liquid

Alternatives

Equities

Multi-Asset &

Fixed Income

Total

December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$135.4

$140.7

$316.2

$115.6

$707.9

Client cash inflows and commitments . . . . . . . . . . . .

24.1

73.6

42.5

20.7

160.9

Client cash outflows . . . . . . . . . . . . . . . . . . . . . . . . . .

(0.2)

(23.1)

(87.8)

(21.1)

(132.2)

Net client cash flows . . . . . . . . . . . . . . . . . . . . . . .

23.9

50.5

(45.3)

(0.4)

28.7

New investments(1) . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.6

12.4

—

—

23.0

Affiliate transactions(2) . . . . . . . . . . . . . . . . . . . . . . . .

(20.4)

(0.0)

(11.4)

(0.7)

(32.5)

Market changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.3

21.4

48.8

12.8

85.3

Foreign exchange(3) . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.0

3.7

5.8

1.4

11.9

Realizations and distributions (net) . . . . . . . . . . . . . .

(5.4)

(0.4)

(2.0)

(0.4)

(8.2)

Other(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1.4)

(1.1)

(0.0)

(0.3)

(2.8)

December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$146.0

$227.2

$312.1

$128.0

$813.3

___________________________

(1)Attributable to NorthBridge, Verition, Montefiore, and Qualitas Energy as of their respective closing dates.

(2)Attributable to Peppertree, Comvest’s private credit business, and Montrusco Bolton as of their respective closing dates.

(3)Foreign exchange reflects the impact of translating the assets under management of our Affiliates whose functional

currency is not the U.S. dollar into our functional currency.

(4)Other includes product transitions and reclassifications.

The following tables present performance of our investment strategies, where available, measured by the percentage of

assets under management ahead of their relevant benchmark:

AUM Weight

% of AUM Ahead of Benchmark(1)

IRR Latest Vintage

IRR Last Three Vintages

Private markets(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18%

86%

86%

AUM Weight

% of AUM Ahead of Benchmark(1)

3-year

5-year

10-year

Liquid alternatives(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28%

93%

97%

90%

Equities(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38%

38%

44%

55%

Multi-asset and fixed income(4) . . . . . . . . . . . . . . . . . . . . . . . .

16%

N/A

N/A

N/A

___________________________

(1)Past performance is not indicative of future results.  Performance and AUM information is as of December 31, 2025 and is

based on data available at the time of calculation.  Product returns are sourced from Affiliates while benchmark returns are

generally sourced via third-party subscriptions. 

(2)For private markets products, performance is reported as the percentage of assets that have outperformed benchmarks on a

since-inception internal rate of return basis.  Benchmarks utilized include a combination of public market equivalents, peer

medians, and absolute returns where benchmarks are not available.  For purposes of investment performance comparisons,

the latest vintage comparison includes the most recent vehicles and strategies (traditional long-duration investment funds,

27

Table of Contents

customized vehicles, and other evergreen vehicles and product structures) where meaningful performance is available and

calculable.  In order to illustrate the performance of our private markets product category over a longer period of history,

the last three vintages comparison incorporates the latest vintage vehicles and the prior two vintages for traditional long-

duration investment funds, as well as additional vehicles and strategies launched during the equivalent time period as the

last three vintages of traditional long-duration investment funds.  Due to the nature of these investments and vehicles,

reported performance is typically on a three- to six-month lag basis.

(3)For liquid alternative and equity products, performance is reported as the percentage of assets that have outperformed

benchmarks across the indicated periods, and excludes market-hedging products.  For purposes of investment performance

comparisons, products are an aggregation of portfolios (separate accounts, investment funds, and other products) that each

represent a particular investment objective, using the most representative portfolio for the performance comparison. 

Performance is presented for products with a three-, five-, and/or ten-year track record and is measured on a consistent

basis relative to the most appropriate benchmarks.  Benchmark appropriateness is generally reviewed annually to reflect

any changes in how underlying portfolios/mandates are managed.  Product and benchmark performance is reflected as total

return and is annualized.  Reported product performance is gross-of-fees for institutional and high-net-worth separate

accounts, and generally net-of-fees across retail funds and other commingled vehicles such as hedge funds.

(4)Multi-asset and fixed income products are mainly our wealth management and solutions offerings.  These investment

products are primarily customized toward wealth preservation, estate planning, and liability and tax management, and

therefore are typically not measured against a benchmark.

Aggregate Fees

Aggregate fees consist of asset- and performance-based fees of our consolidated and equity method Affiliates.  In the case

of our equity method Affiliates, asset- and performance-based fees are presented net of certain expense reimbursements paid by

the underlying products.  Asset-based fees include advisory and other fees earned by our Affiliates for services provided to their

clients and are typically determined as a percentage of the value of a client’s assets under management, generally inclusive of

uncalled commitments.  Asset-based fees are generally impacted by the level of average assets under management and the

composition of these assets across our strategies with different asset-based fee ratios.  Our asset-based fee ratio is calculated as

asset-based fees divided by average assets under management.

In some cases, if product returns exceed certain performance thresholds, we will participate in performance-based fees. 

Performance-based fees are based on investment performance, typically on an absolute basis or relative to a benchmark or

hurdle rate, and are generally recognized when it is improbable that there will be a significant reversal in the amount of revenue

recognized.  Performance-based fees are generally recognized less frequently than asset-based fees and will vary from period to

period because they inherently depend on investment performance.  As of December 31, 2025, approximately 28% of our total

assets under management could potentially earn performance-based fees.  These percentages were approximately 10% and 47%

of our assets under management for our consolidated Affiliates and Affiliates accounted for under the equity method,

respectively.  We anticipate performance-based fees will be a recurring component of aggregate fees; however we do not

anticipate these fees to be a significant component of Consolidated revenue as these fees are predominately earned by our

Affiliates accounted for under the equity method.

Aggregate fees were $6,167.5 million in 2025, an increase of $931.5 million or 18% as compared to 2024.  The increase in

aggregate fees was due to a $660.2 million or 13% increase from asset-based fees and a $271.3 million or 5% increase from

performance-based fees, primarily in liquid alternative strategies.  The increase in asset-based fees was principally due to an

increase in our Affiliates’ average assets under management, primarily in liquid alternative and private markets strategies, and

changes in the composition of our assets under management, including net client cash flows from our Affiliates managing

alternative strategies, which typically have higher fee rates and the impact of our investments in new Affiliates primarily

managing alternative strategies.

28

Table of Contents

Financial and Supplemental Financial Performance Measures

The following table presents our key financial and supplemental financial performance measures:

For the Years Ended December 31,

(in millions)

2023

2024

% Change

2025

% Change

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$906.1

$740.6

(18)%

$904.0

22%

Net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . .

672.9

511.6

(24)%

716.6

40%

Adjusted EBITDA (controlling interest)(1) . . . . . . . . . . . . . . . . . . .

935.7

973.1

4%

1,076.8

11%

Economic net income (controlling interest)(1) . . . . . . . . . . . . . . . . .

717.8

701.6

(2)%

769.3

10%

___________________________

(1)Adjusted EBITDA (controlling interest) and Economic net income (controlling interest) are non-GAAP performance

measures and are discussed in “Supplemental Financial Performance Measures.”

Net income (controlling interest) increased $205.0 million or 40% in 2025.  This increase was primarily due to $371.3

million of Affiliate transaction gains and a $150.2 million increase in Equity method income (net).  These increases were

partially offset by a $97.4 million increase in Income tax expense attributable to the controlling interest, primarily due to

Affiliate transaction gains, a $97.1 million increase in Intangible amortization and impairments attributable to the controlling

interest, and a $91.2 million increase in Affiliate equity expense attributable to the controlling interest.

Adjusted EBITDA (controlling interest) is an important supplemental financial performance measure for management as it

provides a comprehensive view of our share of the financial performance of our business.  Adjusted EBITDA (controlling

interest) increased $103.7 million or 11% in 2025, primarily due to a $931.5 million or 18% increase in aggregate fees. 

Adjusted EBITDA (controlling interest) increased less than aggregate fees on a percentage basis primarily due to an increase in

earnings at certain Affiliates, many of which manage alternative strategies and are accounted for under the equity method, and

therefore we own less of an economic interest.

We believe Economic net income (controlling interest) is an important supplemental financial performance measure

because it represents our performance before non-cash expenses primarily related to our acquisition of interests in Affiliates and

improves comparability of performance between periods.  Economic net income (controlling interest) increased $67.7 million

or 10% in 2025, primarily due to a $103.7 million or 11% increase in Adjusted EBITDA (controlling interest).

Results of Operations

The following discussion includes the key operating performance measures and financial results of our consolidated and

equity method Affiliates.  Our consolidated Affiliates’ financial results are included in Consolidated revenue, Consolidated

expenses, and Investment and other income, and our share of our equity method Affiliates’ financial results is reported, net of

intangible amortization and impairments and tax, in Equity method income (net) in our Consolidated Statements of Income.

Consolidated Revenue

Consolidated revenue is derived primarily from asset-based fees from investment management services earned by our

consolidated Affiliates.  For these Affiliates, we typically use operating structures where we contractually share in the

Affiliate’s revenue without regard to expenses.  Consolidated revenue is generally determined by the level of our consolidated

Affiliates’ average assets under management and the composition of these assets across our consolidated Affiliates’ investment

strategies with different asset-based fee ratios and performance-based fees.

The following table presents our consolidated Affiliates’ average assets under management and Consolidated revenue:

For the Years Ended December 31,

(in millions, except as noted)

2023

2024

% Change

2025

% Change

Consolidated Affiliate average assets under management (in

billions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$393.7

$399.3

1%

$411.0

3%

Consolidated revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,057.8

$2,040.9

(1)%

$2,074.4

2%

Consolidated revenue increased $33.5 million or 2% in 2025, due to a $26.1 million or 1% increase from asset-based fees

and a $7.4 million or 1% increase from performance-based fees, primarily in private markets strategies.  The increase in asset-

29

Table of Contents

based fees was principally due to an increase in our consolidated Affiliates’ average assets under management, primarily in

private markets strategies, partially offset by changes in the composition of our assets under management.

Consolidated Expenses

The following table presents our Consolidated expenses:

For the Years Ended December 31,

(in millions)

2023

2024

% Change

2025

% Change

Compensation and related expenses . . . . . . . . . . . . . . . . . . . . . . . .

$907.5

$915.3

1%

$1,019.8

11%

Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . . . .

358.2

376.5

5%

408.6

9%

Intangible amortization and impairments . . . . . . . . . . . . . . . . . . . .

48.3

29.0

(40)%

160.3

N.M.(1)

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

123.8

133.3

8%

136.5

2%

Depreciation and other amortization . . . . . . . . . . . . . . . . . . . . . . .

13.0

13.4

3%

10.4

(22)%

Other expenses (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45.8

40.3

(12)%

69.8

73%

Total consolidated expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$1,496.6

$1,507.8

1%

$1,805.4

20%

___________________________

(1)Percent change is not meaningful.

Compensation and related expenses increased $104.5 million or 11% in 2025, primarily due to an $83.9 million increase in

Affiliate equity-related activities and a $7.2 million increase in share-based compensation.

Selling, general and administrative expenses increased $32.1 million or 9% in 2025, primarily due to a $23.8 million

increase in professional fees and an $8.5 million increase in investment-related expenses driven by an increase in average assets

under management on which these expenses are incurred.

Intangible amortization and impairments increased $131.3 million in 2025, primarily due to expenses of $135.0 million to

reduce the carrying value of indefinite-lived acquired client relationships for certain mutual fund assets to fair value.  This

increase was partially offset by a $3.7 million decrease in amortization expense due to certain definite-lived assets being fully

amortized.

Interest expense increased $3.2 million or 2% in 2025, primarily due to a $14.4 million increase from our 5.50% senior

unsecured notes issued in August 2024 (the “2034 senior notes”), a $6.7 million increase from our 6.75% junior subordinated

notes issued in March 2024 (the “2064 junior subordinated notes”), and a $3.6 million increase from borrowings under our

senior unsecured multicurrency revolving credit facility (the “revolver”).  These increases were partially offset by a $13.0

million decrease due to the repayment of our senior unsecured term loan facility in the third quarter of 2024, a $5.3 million

decrease due to the maturity of our 3.50% senior notes in August 2025, and a $2.2 million decrease due to the maturity of our

4.25% senior notes in February 2024.

There were no significant changes to Depreciation and other amortization in 2025.

Other expenses (net) increased $29.5 million or 73% in 2025, primarily due to a $9.2 million increase in expenses related

to the settlement of conversions with respect to our junior convertible securities (see Note 5) and an $8.2 million increase in

expenses related to changes in the values of contingent payment obligations.

Equity Method Income (Net)

When we do not own a controlling equity interest in an Affiliate, but have significant influence, we account for our interest

in the Affiliate under the equity method.  Our share of pre-tax earnings or losses from Affiliates accounted for under the equity

method (“pre-tax equity method earnings”), net of intangible amortization and impairments and tax, is included in Equity

method income (net).  For certain of our Affiliates accounted for under the equity method, we report the Affiliate’s financial

results in our Consolidated Financial Statements one quarter in arrears.

For a majority of these Affiliates, we use operating structures where we contractually share in the Affiliate’s revenue less

agreed-upon expenses.  We also use operating structures where we contractually share in the Affiliate’s revenue without regard

to expenses.

30

Table of Contents

Equity method revenue, net is derived primarily from asset- and performance-based fees from investment management

services earned by our equity method Affiliates, net of certain expense reimbursements paid by the underlying products.  Equity

method revenue, net is generally determined by the level of our equity method Affiliates’ average assets under management and

the composition of these assets across our equity method Affiliates’ investment strategies with different asset-based fee ratios

and performance-based fees.  Our Affiliates accounted for under the equity method manage a greater proportion of assets

subject to performance-based fees than our consolidated Affiliates and, as a result, equity method revenue, net will generally

have more performance-based fees than Consolidated revenue.

The following table presents our equity method Affiliates’ average assets under management and equity method Affiliate

revenue, net, as well as pre-tax equity method earnings, equity method intangible amortization, equity method intangible

impairments, if any, and equity method income tax, which in aggregate form Equity method income (net):

For the Years Ended December 31,

(in millions, except as noted)

2023

2024

% Change

2025

% Change

Operating Performance Measures

Equity method Affiliate average assets under management (in

billions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$266.6

$301.2

13%

$353.2

17%

Equity method revenue, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$3,008.8

$3,195.1

6%

$4,093.1

28%

Financial Performance Measures

Pre-tax equity method earnings . . . . . . . . . . . . . . . . . . . . . . . . . . .

$382.5

$455.7

19%

$578.1

27%

Equity method intangible amortization . . . . . . . . . . . . . . . . . . . . .

(86.0)

(90.1)

5%

(98.1)

9%

Equity method intangible impairments . . . . . . . . . . . . . . . . . . . . . .

(9.6)

(39.9)

N.M.(1)

—

N.M.(1)

Equity method income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6.9)

(13.0)

88%

(17.1)

32%

Equity method income (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$280.0

$312.7

12%

$462.9

48%

___________________________

(1)Percent change is not meaningful.

Equity method revenue, net increased $898.0 million or 28% in 2025, due to a $634.1 million or 20% increase from asset-

based fees and a $263.9 million or 8% increase from performance-based fees, primarily in liquid alternative strategies.  The

increase in asset-based fees was principally due to an increase in our equity method Affiliates’ average assets under

management, primarily in liquid alternative strategies, and changes in the composition of our assets under management,

including net client cash flows from our equity method Affiliates managing alternative strategies, which typically have higher

fee rates and the impact of our investments in new Affiliates primarily managing alternative strategies.

Pre-tax equity method earnings increased $122.4 million or 27% in 2025, primarily due to an $898.0 million or 28%

increase in equity method revenue, net.

Equity method intangible amortization increased $8.0 million or 9% in 2025, primarily due to a $17.6 million increase in

amortization expense due to investments in new Affiliates.  This increase was partially offset by a $4.6 million decrease in

amortization expense related to certain definite-lived assets being fully amortized and a $3.9 million decrease in amortization

expense due to a decrease in actual and expected client attrition for certain definite-lived acquired client relationships.

For the year ended December 31, 2024, we recorded a $39.9 million impairment on equity method investments.  For the

year ended December 31, 2025, no equity method intangible impairments were recorded.  See Note 8 of our Consolidated

Financial Statements.

Affiliate Transaction Gains

The following table presents our Affiliate transaction gains:

For the Years Ended December 31,

(in millions)

2023

2024

% Change

2025

% Change

Affiliate transaction gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$133.1

$—

N.M.(1)

$371.3

N.M.(1)

31

Table of Contents

___________________________

(1)Percent change is not meaningful.

For the years ended December 31, 2023 and 2025, we recorded a gain of $133.1 million on the sale of our equity interest in

Veritable, LP (“Veritable”) (the “Veritable Transaction”), and total gains of $371.3 million related to the sale of our equity

interests in Peppertree, Comvest’s private credit business, and Montrusco Bolton, respectively.  See Notes 7 and 8 of our

Consolidated Financial Statements.

Investment and Other Income

The following table presents our Investment and other income:

For the Years Ended December 31,

(in millions)

2023

2024

% Change

2025

% Change

Investment and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$117.1

$77.4

(34)%

$83.1

7%

Investment and other income increased $5.7 million or 7% in 2025, primarily due to increases in net realized and

unrealized gains on other investments and marketable securities of $17.4 million and $5.8 million, respectively.  These

increases were partially offset by a $16.6 million decrease in interest income.

Income Tax Expense

The following table presents our Income tax expense:

For the Years Ended December 31,

(in millions)

2023

2024

% Change

2025

% Change

Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$185.3

$182.6

(1)%

$282.3

55%

Our consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes

attributable to the non-controlling interests.

Income tax expense increased $99.7 million or 55% in 2025.  Our effective tax rate (controlling interest) for the year ended

December 31, 2025 was 27.5% as compared to 25.5% for the year ended December 31, 2024.  The increase in the effective tax

rate (controlling interest) was primarily due to unrecognized tax benefits and non-deductible compensation expense, partially

offset by higher tax windfalls attributable to share-based compensation for the year ended December 31, 2025.                                                                                                                                                                                                             

Net Income

The following table presents Net income, Net income (non-controlling interests), and Net income (controlling interest):

For the Years Ended December 31,

(in millions)

2023

2024

% Change

2025

% Change

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$906.1

$740.6

(18)%

$904.0

22%

Net income (non-controlling interests) . . . . . . . . . . . . . . . . . . . . . .

233.2

229.0

(2)%

187.4

(18)%

Net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . .

672.9

511.6

(24)%

716.6

40%

Net income (controlling interest) increased $205.0 million or 40% in 2025, primarily due to Affiliate transaction gains and

an increase in Equity method income (net).  These increases to Net income (controlling interest) were partially offset by

increases in Income tax expense attributable to the controlling interest, primarily due to Affiliate transaction gains, Intangible

amortization and impairments attributable to the controlling interest, and Affiliate equity expense attributable to the controlling

interest.

Supplemental Financial Performance Measures

As supplemental information to our GAAP performance measures, including Net income (see Note 21 of our Consolidated

Financial Statements), we provide non-GAAP performance measures of Adjusted EBITDA (controlling interest), Economic net

income (controlling interest), and Economic earnings per share.  We believe that many investors use our Adjusted EBITDA

(controlling interest) when comparing our financial performance to other companies in the investment management industry. 

32

Table of Contents

Management utilizes these non-GAAP performance measures to assess our performance before our share of certain non-cash

GAAP expenses primarily related to the acquisition of interests in Affiliates and to improve comparability between periods. 

Economic net income (controlling interest) and Economic earnings per share are used by management and our Board of

Directors as our principal performance benchmarks, including as one of the measures for determining executive compensation. 

These non-GAAP performance measures are provided in addition to, but not as a substitute for, Net income, Net income

(controlling interest), Earnings per share, or other GAAP performance measures.

Adjusted EBITDA (controlling interest)

Adjusted EBITDA (controlling interest) represents our performance before our share of interest expense, income and

certain non-income based taxes, depreciation, amortization, impairments, gains and losses related to Affiliate transactions, and

non-cash items such as certain Affiliate equity-related activities, gains and losses on our contingent payment obligations, and

unrealized gains and losses on seed capital, general partner commitments, and other strategic investments.  Adjusted EBITDA

(controlling interest) is also adjusted to include realized economic gains and losses related to these seed capital, general partner

commitments, and other strategic investments.

The following table presents a reconciliation of Net income (controlling interest) to Adjusted EBITDA (controlling

interest):

For the Years Ended December 31,

(in millions)

2023

2024

2025

Net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$672.9

$511.6

$716.6

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

123.8

133.3

136.3

Income taxes(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

185.2

187.9

289.3

Intangible amortization and impairments(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

128.5

149.2

214.4

Affiliate transactions(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(162.7)

—

(377.5)

Other items(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12.0)

(8.9)

97.7

Adjusted EBITDA (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$935.7

$973.1

$1,076.8

___________________________

(1)Includes equity method income tax.

(2)Intangible amortization and impairments in our Consolidated Statements of Income include amortization attributable to the

non-controlling interests of our consolidated Affiliates.  For our Affiliates accounted for under the equity method, we do

not separately report intangible amortization and impairments in our Consolidated Statements of Income.  Our share of

these Affiliates’ amortization and impairments is included in Equity method income (net).  The following table presents the

Intangible amortization and impairments shown above:

For the Years Ended December 31,

(in millions)

2023

2024

2025

Consolidated intangible amortization and impairments . . . . . . . . . . . . . . . . . . . . . . . . .

$48.3

$29.0

$160.3

Consolidated intangible amortization and impairments (non-controlling interests) . . .

(15.4)

(9.8)

(44.0)

Equity method intangible amortization and impairments . . . . . . . . . . . . . . . . . . . . . . .

95.6

130.0

98.1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$128.5

$149.2

$214.4

(3)The year ended December 31, 2023 includes a gain of $133.1 million related to the Veritable Transaction and realized

gains of $29.6 million on ordinary shares of EQT AB (“EQT”), a public company listed on the Nasdaq Stockholm

(EQT.ST), which we received in connection with the sale of our equity interest in Baring Private Equity Asia (“BPEA”) in

the fourth quarter of 2022 (the “BPEA Transaction”).  The year ended December 31, 2025 includes total gains of

$371.3 million related to the Peppertree, Comvest, and Montrusco Bolton Transactions and realized gains of $6.2 million

on TPG Class A common shares.  See Notes 7 and 8 of our Consolidated Financial Statements.  Veritable, Peppertree,

Comvest, and Montrusco Bolton Transaction gains are recorded in Affiliate transaction gains, and realized gains on EQT

ordinary shares and TPG Class A common shares are recorded in Investment and other income in our Consolidated

Statements of Income.

33

Table of Contents

(4)Other items include certain non-income based taxes, depreciation, and non-cash items such as certain Affiliate equity-

related activities, gains and losses on our contingent payment obligations, unrealized gains and losses on seed capital,

general partner commitments, and other strategic investments, and realized economic gains and losses related to these seed

capital, general partner commitments, and other strategic investments.  For the year ended December 31, 2025, the increase

in other items was predominantly the result of Affiliate equity-related activities.

Economic Net Income (controlling interest) and Economic Earnings Per Share

Under our Economic net income (controlling interest) definition, we adjust Net income (controlling interest) for our share

of pre-tax intangible amortization and impairments related to intangible assets (including the portion attributable to equity

method investments in Affiliates) because these expenses do not correspond to the changes in the value of these assets, which

do not diminish predictably over time.  We also adjust for deferred taxes attributable to intangible assets because we believe it

is unlikely these accruals will be used to settle material tax obligations.  Further, we adjust for gains and losses related to

Affiliate transactions, net of tax, and other economic items.

Economic earnings per share represents Economic net income (controlling interest) divided by the Average shares

outstanding (adjusted diluted).  In this calculation, we exclude the potential shares issued upon settlement of Redeemable non-

controlling interests from Average shares outstanding (adjusted diluted) because we intend to settle those obligations without

issuing shares, consistent with all prior Affiliate equity purchase transactions.  The potential share issuance in connection with

our junior convertible securities is measured using a “treasury stock” method.  Under this method, only the net number of

shares of common stock equal to the value of these junior convertible securities in excess of par, if any, are deemed to be

outstanding.  We believe the inclusion of net shares under a treasury stock method best reflects the benefit of the increase in

available capital resources (which could be used to repurchase shares of our common stock) that occurs when these securities

are converted and we are relieved of our debt obligation.

The following table presents a reconciliation of Net income (controlling interest) to Economic net income (controlling

interest) and Economic earnings per share:

For the Years Ended December 31,

(in millions, except per share data)

2023

2024

2025

Net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$672.9

$511.6

$716.6

Intangible amortization and impairments(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

128.5

149.2

214.4

Intangible-related deferred taxes(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57.3

61.9

45.1

Affiliate transactions(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(122.1)

—

(284.4)

Other economic items(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(18.8)

(21.1)

77.6

Economic net income (controlling interest) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$717.8

$701.6

$769.3

Average shares outstanding (diluted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42.2

36.1

33.0

Hypothetical issuance of shares to settle Redeemable non-controlling interests . . . . . . . .

(3.7)

(1.6)

(1.9)

Assumed issuance of junior convertible securities shares . . . . . . . . . . . . . . . . . . . . . . . . .

(1.7)

(1.7)

(1.7)

Dilutive impact of junior convertible securities shares . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

—

0.1

Average shares outstanding (adjusted diluted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36.8

32.8

29.5

Economic earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$19.48

$21.36

$26.05

___________________________

(1)See note (2) to the table in “Adjusted EBITDA (controlling interest).”

(2)Includes equity method deferred taxes.  For the year ended December 31, 2023, intangible-related deferred taxes have been

adjusted to eliminate benefits of $28.9 million related to the Veritable Transaction.  For the year ended December 31, 2025,

intangible-related deferred taxes have been adjusted to eliminate net expenses of $4.4 million related to the Peppertree and

Comvest Transactions.

(3)The year ended December 31, 2023 includes a gain of $133.1 million related to the Veritable Transaction and realized

gains of $29.6 million on EQT ordinary shares related to the BPEA Transaction, net of $40.6 million income tax expense. 

The year ended December 31, 2025 includes total gains of $371.3 million related to the Peppertree, Comvest, and

34

Table of Contents

Montrusco Bolton Transactions and realized gains of $6.2 million on TPG Class A common shares, net of $93.1 million of

income tax expense.  See Notes 7 and 8 of our Consolidated Financial Statements.

(4)Other economic items include certain Affiliate equity-related activities, gains and losses related to contingent payment

obligations, tax windfalls and shortfalls from share-based compensation, unrealized gains and losses on seed capital,

general partner commitments, and other strategic investments, and realized economic gains and losses related to these seed

capital, general partner commitments, and other strategic investments.  For the year ended December 31, 2025, the increase

in other economic items was predominantly the result of Affiliate equity-related activities. 

Liquidity and Capital Resources

We generate long-term value by investing in new Affiliate partnerships, existing Affiliates, and strategic value-add

capabilities through which we can leverage our scale and resources to benefit our Affiliates and enhance their long-term growth

prospects.  Given our annual cash generation from operations, in addition to investing for growth in our business, we are also

able to return excess capital to shareholders primarily through share repurchases.  We continue to manage our capital structure

consistent with an investment grade company and are currently rated A3 by Moody’s Investors Service and BBB+ by S&P

Global Ratings.

Cash and cash equivalents were $586.0 million as of December 31, 2025 and were attributable to both our controlling and

the non-controlling interests.  In 2025, we met our cash requirements primarily through cash generated by operating activities,

senior bank debt borrowings, and an issuance of senior notes.  In addition, during the year ended December 31, 2025, we

received total after-tax net proceeds of approximately $490 million from the Peppertree, Comvest, and Montrusco Bolton

Transactions.  Our principal uses of cash in 2025 were for investments in new Affiliates, the return of excess capital through

share repurchases, repayment of debt, and distributions to Affiliate equity holders.

We expect investments in new Affiliates, investments in existing Affiliates, primarily through purchases of Affiliate equity

interests and general partner and seed capital investments, the return of capital through share repurchases and the payment of

cash dividends on our common stock, repayment of debt, distributions to Affiliate equity holders, payment of income taxes, and

general working capital to be the primary uses of cash on a consolidated basis for the foreseeable future.  In addition, in January

2026, we settled each of our conversion obligations with respect to our junior convertible securities in cash for an aggregate

amount of $514.6 million.  We anticipate that our current cash balance, cash flows from operations, and borrowings under our

revolver will be sufficient to support our uses of cash for the foreseeable future.  In addition, we may draw funding from the

debt and equity capital markets, and our credit ratings, among other factors, allow us to access these sources of funding on

favorable terms.

The following table presents operating, investing, and financing cash flow activities:

For the Years Ended December 31,

(in millions)

2023

2024

2025

Operating cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$874.3

$932.1

$973.2

Investing cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

264.5

379.1

(206.1)

Financing cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(758.3)

(1,175.9)

(1,148.7)

Operating Cash Flow

Operating cash flows are calculated by adjusting Net income for other significant sources and uses of cash, significant non-

cash items, and timing differences in the cash settlement of assets and liabilities. 

For the year ended December 31, 2025, Cash flows from operating activities were $973.2 million, primarily from Net

income of $904.0 million adjusted for non-cash items of $424.5 million and distributions of earnings received from equity

method investments of $467.8 million.  In 2025, operating cash flows were primarily attributable to the controlling interest.

Investing Cash Flow

For the year ended December 31, 2025, Cash flows used in investing activities were $206.1 million, primarily due to

$776.0 million of investments in Affiliates and $103.8 million of purchases of investment securities.  These items were partially

offset by $403.8 million of cash proceeds from Affiliate transactions and $266.2 million of maturities and sales of investment

securities.  In 2025, investing cash flows were primarily attributable to the controlling interest.

35

Table of Contents

Financing Cash Flow

For the year ended December 31, 2025, Cash flows used in financing activities were $1,148.7 million, primarily due to

repayment of senior bank debt borrowings and matured senior notes of $826.1 million, $706.3 million of repurchases of

common stock, net, $252.3 million of distributions to non-controlling interests, $170.3 million of Affiliate equity purchases, net

of issuances, and $108.0 million of taxes paid on shares withheld for share-based awards.  These items were partially offset by

senior bank debt borrowings and an issuance of senior notes of $899.3 million.  In 2025, financing cash flows were primarily

attributable to the controlling interest.

Affiliate Equity

We periodically purchase Affiliate equity from and issue Affiliate equity to our consolidated Affiliate partners and other

parties under agreements that provide us with a conditional right to call and Affiliate equity holders with a conditional right to

put their Affiliate equity interests to us at certain intervals.  We have the right to settle a portion of these purchases in shares of

our common stock.  For Affiliates accounted for under the equity method, we do not typically have such put and call

arrangements.  The purchase price of these conditional purchases is generally calculated based upon a multiple of the Affiliate’s

cash flow distributions, which is intended to represent fair value.  In certain cases, Affiliate equity holders are also permitted to

sell their equity interests to Affiliate partners or other parties, subject to our approval or other restrictions.

As of December 31, 2025, the current redemption value of Affiliate equity interests was $408.0 million, of which $246.8

million was presented as Redeemable non-controlling interests (including $32.2 million of consolidated Affiliate sponsored

investment products primarily attributable to third-party investors), and $161.2 million was included in Other liabilities on the

Consolidated Balance Sheets.  Although the timing and amounts of these purchases are difficult to predict, we paid $176.7

million for Affiliate equity purchases and received $6.4 million for Affiliate equity issuances in 2025, and we expect net

purchases of approximately $100 million of Affiliate equity in 2026.  In the event of a purchase, we become the owner of the

cash flow associated with the purchased equity.  See Notes 13 and 14 of our Consolidated Financial Statements.

Share Repurchases

Our Board of Directors authorized share repurchase programs in July 2024 and January 2026 to repurchase up to 5.4

million and 4.2 million shares of our common stock, respectively, and these authorizations have no expiry.  Purchases may be

made from time to time, at management’s discretion, in the open market or in privately negotiated transactions, including

through the use of trading plans, as well as pursuant to accelerated share repurchase programs or other share repurchase

strategies that may include derivative financial instruments.  For the year ended December 31, 2025, we repurchased 3.3 million

shares of our common stock at an average price per share of $212.92.  As of the January 26, 2026 authorization, there were a

total of 6.0 million shares available for repurchase under our share repurchase programs.

Debt

The following table presents the carrying value of our outstanding indebtedness and a reconciliation to Debt as presented

on our Consolidated Balance Sheets:

December 31,

(in millions)

2024

2025

Senior bank debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$—

$—

Senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,097.4

1,172.0

Junior subordinated notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,216.0

1,216.1

Junior convertible securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

341.7

340.6

Total carrying value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,655.1

2,728.7

Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(34.9)

(37.4)

Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,620.2

$2,691.3

As of December 31, 2025, the weighted average maturity of our outstanding senior and junior subordinated notes is 22

years, all of which is maturing in 2030 and beyond.  Our nearest term maturity with respect to our senior and junior

subordinated notes relates to our $350.0 million senior notes due June 2030 (“the 2030 senior notes”).  See Note 5 of our

Consolidated Financial Statements.

36

Table of Contents

Senior Bank Debt

As of December 31, 2025, we had a $1.25 billion revolver which matures on November 15, 2029.  Subject to certain

conditions, we may increase the commitments under the revolver by up to an additional $500.0 million.

Under the terms of the revolver we are required to meet two financial ratio covenants.  The first of these covenants is a

maximum ratio of debt to EBITDA (the “bank leverage ratio”) of 3.25x.  The second covenant is a minimum ratio of EBITDA

to cash interest expense (the “bank interest coverage ratio”) of 3.00x.  For purposes of calculating these ratios, share-based

compensation and certain Affiliate equity expenses, among other specified expenses, charges, and costs, are added back to

Adjusted EBITDA.  As of December 31, 2025, our bank leverage and bank interest coverage ratios were 0.9x and 8.5x,

respectively.

As of December 31, 2025, we had no outstanding borrowings under the revolver, and we could borrow all remaining

capacity and maintain compliance with all of the terms of the revolver.  As of the date of this Annual Report on Form 10-K, we

had outstanding borrowings of $475.0 million under the revolver.

Senior Notes

In the third quarter of 2025, our $350.0 million 3.50% senior notes matured and were fully repaid.

As of December 31, 2025, we had senior notes outstanding, the respective principal terms of which are presented and

described below:

2030

Senior Notes

2034

Senior Notes

2036

Senior Notes

Issue date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

June 2020

August 2024

December 2025

Maturity date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

June 2030

August 2034

February 2036

Par value (in millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$350.0

$400.0

$425.0

Stated coupon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.30%

5.50%

5.50%

Coupon frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Semi-annually

Semi-annually

Semi-annually

On December 11, 2025, we issued $425.0 million of 2036 senior unsecured notes with a maturity date of February 15,

2036 (the “2036 senior notes”).  Interest is payable beginning August 15, 2026. 

In addition to customary event of default provisions, the indenture governing the senior notes, including the applicable

supplemental indentures with respect to the 2030, 2034, and 2036 senior notes, limits our ability to consolidate, merge, or sell

all or substantially all of our assets, and requires us to make an offer to repurchase the applicable senior notes at 101% of the

principal amount (plus any accrued and unpaid interest), upon certain change of control triggering events.  The senior notes

may be redeemed, in whole or in part, at a make-whole redemption price (plus accrued and unpaid interest), at any time prior to

March 15, 2030, in the case of the 2030 senior notes, at any time prior to May 20, 2034, in the case of the 2034 senior notes,

and at any time prior to November 15, 2035, in the case of the 2036 senior notes. In addition, the 2030, 2034, and 2036 senior

notes may be redeemed at par (plus accrued and unpaid interest), in whole or in part, at any time, on or after March 15, 2030,

May 20, 2034, and November 15, 2035, respectively.  We may also repurchase senior notes in the open market or in privately

negotiated transactions from time to time at management’s discretion.

We used a majority of the net proceeds from the 2036 senior notes to settle our conversion obligations with respect to our

junior convertible securities in January 2026, as further described below.

37

Table of Contents

Junior Subordinated Notes

As of December 31, 2025, we had junior subordinated notes outstanding, the respective principal terms of which are

presented and described below: 

2059

Junior Subordinated

Notes

2060

Junior Subordinated

Notes

2061

Junior Subordinated

Notes

2064

Junior Subordinated

Notes

Issue date . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 2019

September 2020

July 2021

March 2024

Maturity date . . . . . . . . . . . . . . . . . . . . . . . . .

March 2059

September 2060

September 2061

March 2064

Par value (in millions) . . . . . . . . . . . . . . . . . .

$300.0

$275.0

$200.0

$450.0

Stated coupon . . . . . . . . . . . . . . . . . . . . . . . . .

5.875%

4.75%

4.20%

6.75%

Coupon frequency . . . . . . . . . . . . . . . . . . . . .

Quarterly

Quarterly

Quarterly

Quarterly

NYSE Symbol . . . . . . . . . . . . . . . . . . . . . . . .

MGR

MGRB

MGRD

MGRE

As of December 31, 2025, each of the 2059 and 2060 junior subordinated notes could be redeemed at any time, in whole or

in part.  The other junior subordinated notes may be redeemed at any time, in whole or in part, on or after September 30, 2026,

in the case of the 2061 junior subordinated notes, and on or after March 30, 2029, in the case of the 2064 junior subordinated

notes.  In each case, the junior subordinated notes may be redeemed at 100% of the principal amount of the notes being

redeemed, plus any accrued and unpaid interest thereon.  Prior to the applicable redemption date, at our option, the applicable

junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any accrued

and unpaid interest, if certain changes in tax laws, regulations, or interpretations occur; or at 102% of the principal amount, plus

any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with

features similar to the applicable notes.

Junior Convertible Securities

As of December 31, 2025, we had $340.6 million of principal outstanding on our junior convertible trust preferred

securities outstanding (the “junior convertible securities”).  Prior to their redemption, as described below, the junior convertible

securities bore interest at a rate of 5.15% per annum, which interest payments were payable quarterly in cash.  The junior

convertible securities were considered contingent payment debt instruments under federal income tax regulations, which

required us to deduct interest in an amount greater than its reported interest expense (“excess interest expense deductions”). 

In November 2025, pursuant to the terms of the junior convertible securities, we adjusted the conversion rate of the

securities to 0.2582 shares of common stock per $50.00 junior convertible security, equivalent to an adjusted conversion price

of $193.65 per share.  The adjustment was the result of our cumulative declared dividends on our common stock since the prior

adjustment.

On December 8, 2025, we delivered notice that we had elected to redeem all of the outstanding junior convertible securities

on December 29, 2025 (the “Redemption Date”), and announced our intention to settle any and all conversion obligations in

cash.  Substantially all holders of the junior convertible securities delivered requests to convert their securities prior to the

Redemption Date.  On December 15, 2025, we made an irrevocable election to settle our conversion obligations in cash by

reference to the daily volume weighted average price of our common stock during each applicable ten trading day conversion

reference period.  These conversions resulted in a settlement value in excess of the associated carrying value (the “conversion

premium”).  As of December 31, 2025, the conversion premium of $155.5 million was recorded within Other liabilities, with a

corresponding reduction to Additional paid-in capital on the Consolidated Balance Sheets.  In addition, the conversion resulted

in a reduction to Deferred tax liability (net) on the Consolidated Balance Sheets of $38.9 million, with a corresponding increase

to Additional paid-in capital.  Our election to settle each applicable conversion premium in cash using a ten-day reference

period was accounted for as a forward sale contract, which resulted in a $9.2 million expense recorded in Other expenses (net)

in our Consolidated Statements of Income, in the fourth quarter of 2025.

On the Redemption Date, we redeemed $1.1 million of junior convertible securities which were not converted, reflecting

the principal amount of the redeemed securities, plus accrued and unpaid interest, up to, but not including, the Redemption

Date.

In January 2026, we settled each of our applicable conversion obligations in cash for an aggregate amount of

$514.6 million which resulted in an incremental expense related to the forward sale contract of $9.3 million.  As a result of the

settlement of these securities, we expect to incur a current cash tax liability of approximately $56.0 million in 2026, reflective

38

Table of Contents

of the recapture of excess interest expense deductions.  As of the date of this Annual Report on Form 10-K, no junior

convertible securities are outstanding.

Equity Distribution Program

In the first quarter of 2025, we entered into an equity distribution agreement and forward sale agreements with several

major securities firms under which we may, from time to time, issue and sell shares of our common stock (immediately or on a

forward basis) having an aggregate sales price of up to $500.0 million (the “equity distribution program”).  This equity

distribution program superseded and replaced our prior equity distribution program.  As of December 31, 2025, no sales had

occurred under the equity distribution program.

Commitments

See Note 6 of our Consolidated Financial Statements. 

Other Contingent Commitments

See Notes 3 and 6 of our Consolidated Financial Statements.

Leases

As of December 31, 2025, our lease obligations were $30.8 million through 2026, $53.4 million from 2027 through 2028,

$48.0 million from 2029 through 2030, and $48.5 million thereafter.  The portion of these lease obligations attributable to the

controlling interest were $5.8 million through 2026, $6.7 million from 2027 through 2028, $6.6 million from 2029 through

2030, and $11.3 million thereafter.  See Note 9 of our Consolidated Financial Statements.

Recent Accounting Developments

See Note 1 of our Consolidated Financial Statements.

Critical Accounting Estimates and Judgments

The preparation of financial statements and related disclosures in conformity with GAAP requires us to make judgments,

assumptions, and estimates that affect the amounts reported in our Consolidated Financial Statements and accompanying notes. 

See Note 1 of our Consolidated Financial Statements for a discussion of our significant accounting policies.

The following are our critical accounting estimates and judgments used in the preparation of our Consolidated Financial

Statements, and due to their subjectivity, actual results could differ materially from the amounts reported.

Fair Value Measurements

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in

the principal or most advantageous market in an orderly transaction between market participants at the measurement date. 

These standards establish a fair value hierarchy that gives the highest priority to quoted prices in active markets for identical

assets or liabilities and the lowest priority to unobservable inputs.

We make judgments to determine the fair value of certain assets, liabilities, and equity interests when allocating the

purchase price of our new investments, when revaluing our contingent payment obligations, when we issue or purchase

Affiliate equity interests, and when we test our goodwill, indefinite- and definite-lived acquired client relationships, or equity

method investments for impairment.

In determining fair values that reflect our own assumptions concerning unobservable inputs, we typically use valuation

techniques, including probability-weighted discounted cash flow analyses and Monte Carlo simulations, where we make

assumptions about growth rates of assets under management, client attrition, asset- and performance-based fee rates, and

expenses.  In these analyses, we also consider historical and current market multiples, tax benefits, credit risk, interest rates, tax

rates, discount rates, volatility, and discounts for lack of marketability.  We consider the reasonableness of our assumptions by

comparing our valuation conclusions to observed market transactions and, in certain instances, by consulting with third-party

valuation firms.  Changes in the assumptions used could significantly impact fair values.

39

Table of Contents

Indefinite-Lived Acquired Client Relationships

Indefinite-lived acquired client relationships include investment advisory contracts between our Affiliates and their mutual

funds and other retail-oriented investment products.  Because these contracts are with the investment products themselves, and

not with the underlying investors, and the contracts between our Affiliates and the investment products are typically renewed on

an annual basis, industry practice under GAAP is to consider the contract life to be indefinite and, as a result, not amortizable.

We perform indefinite-lived acquired client relationship impairment assessments annually, or more frequently should

circumstances indicate fair value has declined below the related carrying value.  For purposes of our assessments, we consider

various qualitative and quantitative factors to determine if it is more-likely-than-not that the fair value of each asset group is

greater than its carrying amount.  If we determine that it is likely that the fair value has declined below our related carrying

value, we perform discounted cash flow analyses to determine the fair value of the asset group and record an expense in

Intangible amortization and impairments to reduce the carrying value to its fair value.  In these analyses, the most relevant

assumptions are revenue growth rates and discount rates. 

In the first quarter of 2025, we completed an impairment assessment of the indefinite-lived acquired client relationships for

certain mutual fund assets and determined that the fair value of the assets had declined below their carrying values. 

Accordingly, we recorded an expense in Intangible amortization and impairments of $59.2 million attributable to the controlling

interest ($70.0 million in aggregate) to reduce the carrying value of the assets to fair value.  The decline in the fair value was a

result of current and projected declines in assets under management that decreased the forecasted revenue associated with the

assets.  The most relevant assumptions used in these analyses were revenue growth rates over the next five years ranging from

(21)% to 0%, long-term revenue growth rates of 0%, and discount rates of 11.0%.

In the fourth quarter of 2025, we completed our annual impairment assessment of our indefinite-lived acquired client

relationships and determined that the fair value of certain mutual fund assets had declined below their carrying values. 

Accordingly, we recorded an expense in Intangible amortization and impairments of $37.0 million attributable to the controlling

interest ($58.0 million in aggregate) to reduce the carrying value of the assets to fair value.  The decline in the fair value was a

result of current and projected declines in assets under management that decreased the forecasted revenue associated with the

assets.  The most relevant assumptions used in these analyses were revenue growth rates over the next five years ranging from

(34)% to 0%, long-term revenue growth rates of 0%, and discount rates of 10.5%.

While we believe all assumptions used in our assessments are reasonable and appropriate, changes in these estimates could

produce different values.  We performed a sensitivity analysis over the most relevant assumptions used in these assessments. 

Assuming all other assumptions remain constant, a decrease in the revenue growth rates over the next five years of 200 basis

points would result in an additional impairment amount of approximately $80 million, while an increase in the discount rate of

100 basis points would result in an additional impairment amount of approximately $85 million.  Further declines in assets

under management resulting from negative investment performance or net client outflows above our estimates could result in

additional future impairments.

For the year ended December 31, 2025, no other impairments were indicated for our indefinite-lived acquired client

relationships.

Equity Method Investments in Affiliates

We periodically perform assessments to determine if the fair value of an investment may have declined below its related

carrying value for our Affiliates accounted for under the equity method for a period that we consider to be other-than-

temporary.  We perform these assessments if certain triggering events occur or annually during the fourth quarter.  We first

consider whether certain qualitative and quantitative factors (including discount rates) indicate an increased likelihood of a

decline in the fair value of an Affiliate during the reporting period.  If such a decline is identified, and it is likely that an

investment’s fair value may have declined below its carrying value, we perform a quantitative assessment to determine if an

impairment exists.  Impairments are recorded as an expense in Equity method income (net) to reduce the carrying value of the

Affiliate to its fair value.

When we quantitatively test our equity method investments for impairment, we typically use valuation methods such as

discounted cash flow analyses.  In these analyses, our most significant assumptions relate to growth rates of projected assets

under management, client attrition, asset- and performance-based fees, expenses, and discount rates.  We consider the

reasonableness of our assumptions by comparing our valuation conclusions to observed market transactions, comparable

company valuations, and, in certain instances, by consulting with third-party valuation firms.  Changes in these assumptions

could significantly impact the respective fair value of an Affiliate.

40

Table of Contents

For the year ended December 31, 2025, the Company completed its annual assessment of its investments in Affiliates

accounted for under the equity method and no impairments were indicated.