GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

3. GOODWILL AND INTANGIBLE ASSETS

Intangible Assets, Net

The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets:



	Weighted Average Amortization Period (in years) as of September 30, 2024	As of September 30,		As of December 31,
		2024		2023
Management contracts	3.9	$	563,675	$	604,242
Client relationships	7.8	200,920		200,920

Other	0.1	500		500
Finite-lived intangible assets		765,095		805,662
Foreign currency translation		2,615		1,126
Total finite-lived intangible assets		767,710		806,788
Less: accumulated amortization		(365,534)		(316,093)
Finite-lived intangible assets, net		402,176		490,695


Indefinite-lived management contracts		567,800		567,800
Intangible assets, net		$	969,976	$	1,058,495

During the three and nine months ended September 30, 2024, the Company recorded a non-cash impairment charge of $8.9 million to the fair value of management contracts of certain funds within the Credit Group, Real Assets Group and Secondaries Group. The primary indicator of impairment was the lower than expected future fee revenue generated from these funds.

During the three and nine months ended September 30, 2023, the Company recorded non-cash impairment charges of $65.7 million and $78.6 million, respectively, primarily related to the value of client relationships from the acquisition of Landmark Partners, LLC (the “Landmark Acquisition”). The primary indicator of impairment was the lower than expected fee paying assets under management in a private equity secondaries fund from existing investors as of the date of the Landmark Acquisition.

Amortization expense associated with intangible assets, excluding the accelerated amortization described above, was $28.9 million and $31.0 million for the three months ended September 30, 2024 and 2023, respectively, and $87.1 million and $95.0 million for the nine months ended September 30, 2024 and 2023, respectively, and is presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2024, the Company removed $47.5 million of fully-amortized management contracts.

Goodwill

The following table summarizes the carrying value of the Company’s goodwill:


	Credit Group		Real Assets Group		Private Equity Group		Secondaries Group		Total




Balance as of December 31, 2023	$	256,679	$	277,205	$	172,462	$	417,630	$	1,123,976
Acquisitions	—		6,710		685		—		7,395
Reallocation	55,658		—		(55,658)		—		—
Foreign currency translation	1,694		—		—		9		1,703
Balance as of September 30, 2024	$	314,031	$	283,915	$	117,489	$	417,639	$	1,133,074

In connection with the segment reorganization of the former special opportunities strategy as described in “Note 13. Segment Reporting,” the Company had an associated change in its reporting units and reallocated goodwill of $55.7 million from the Private Equity Group to the Credit Group using a relative fair value allocation approach in the first quarter of 2024.

There was no impairment of goodwill recorded during the three and nine months ended September 30, 2024 and 2023. The impact of foreign currency translation is reflected within other comprehensive income within the Condensed Consolidated Statements of Comprehensive Income.