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Segment Operating Results
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Operating Results Segment Operating Results
Business Segments – The Company's business results are categorized into the following two segments: Investment Banking & Equities and Investment Management. The Investment Banking & Equities segment includes providing advice to clients on significant mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. The Investment Management segment includes Wealth Management and interests in private equity funds which are not managed by the Company.
The Company's segment information for the three and nine months ended September 30, 2024 and 2023 is prepared using the following methodology:
•Revenue, expenses and income (loss) from equity method investments directly associated with each segment are included in determining pre-tax income.
•Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other performance and time-based factors.
•Segment assets are based on those directly associated with each segment, or for certain assets shared across segments, those assets are allocated based on the most relevant measures applicable, including headcount and other factors.
•Investment gains and losses, interest income and interest expense are allocated between the segments based on the segment in which the underlying asset or liability is held.
Other Revenue, net, included in each segment's Net Revenues includes the following:
•Interest income, including accretion, and income (losses) on investment securities, including the Company's investment funds (which are used as an economic hedge against the Company's deferred cash compensation program), certificates of deposit, cash and cash equivalents and long-term accounts receivable
•A gain on the sale of the remaining portion of the Company's interest in ABS in the third quarter of 2024. See Note 7 for further information
•A loss related to the release of cumulative foreign exchange losses resulting from the redemption of the Company's interest in Luminis in the third quarter of 2024. See Note 7 for further information
•Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge
•Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company
•Interest expense associated with the Company’s Notes Payable and lines of credit
•Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates
Each segment's Operating Expenses include: a) employee compensation and benefits expenses that are incurred directly in support of the segment and b) non-compensation expenses, which include expenses for premises and occupancy, professional fees, travel and entertainment, communications and information services, execution, clearing and custody fees, equipment and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, legal, technology, human capital, facilities management and senior management activities.
Other Expenses include Special Charges, Including Business Realignment Costs:
•2024 – Expenses for the three and nine months ended September 30, 2024 related to the write-off of the remaining carrying value of the Company's investment in Luminis in connection with the redemption of the Company's interest
•2023 – Expenses for the nine months ended September 30, 2023 related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico
The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses.
No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three and nine months ended September 30, 2024 and 2023, respectively.
The following information presents each segment's contribution.
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2024202320242023
Investment Banking & Equities
Net Revenues(1)
$712,775 $552,641 $1,944,513 $1,589,698 
Operating Expenses589,083 479,429 1,638,289 1,356,853 
Other Expenses7,305 — 7,305 2,921 
Operating Income116,387 73,212 298,919 229,924 
Income from Equity Method Investments207 180 1,042 394 
Pre-Tax Income $116,594 $73,392 $299,961 $230,318 
Identifiable Segment Assets$3,432,220 $3,068,495 $3,432,220 $3,068,495 
Investment Management
Net Revenues(1)
$21,447 $17,579 $59,748 $52,084 
Operating Expenses15,841 13,965 44,311 40,562 
Operating Income5,606 3,614 15,437 11,522 
Income from Equity Method Investments865 1,484 4,212 4,280 
Pre-Tax Income$6,471 $5,098 $19,649 $15,802 
Identifiable Segment Assets$135,327 $157,303 $135,327 $157,303 
Total
Net Revenues(1)
$734,222 $570,220 $2,004,261 $1,641,782 
Operating Expenses604,924 493,394 1,682,600 1,397,415 
Other Expenses7,305 — 7,305 2,921 
Operating Income121,993 76,826 314,356 241,446 
Income from Equity Method Investments1,072 1,664 5,254 4,674 
Pre-Tax Income$123,065 $78,490 $319,610 $246,120 
Identifiable Segment Assets$3,567,547 $3,225,798 $3,567,547 $3,225,798 
(1)Net Revenues include Other Revenue, net, allocated to the segments as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2024202320242023
Investment Banking & Equities(A)
$21,104 $5,729 $66,802 $46,472 
Investment Management892 275 1,294 2,247 
Total Other Revenue, net$21,996 $6,004 $68,096 $48,719 
(A)Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $4,198 and $12,575 for the three and nine months ended September 30, 2024, respectively, and $4,184 and $12,536 for the three and nine months ended September 30, 2023, respectively.
Geographic Information – The Company manages its business based on the profitability of the enterprise as a whole.
The Company's revenues were derived from clients located and managed in the following geographical areas:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2024202320242023
Net Revenues:(1)
United States$502,176 $417,553 $1,491,922 $1,156,979 
Europe and Other209,222 145,065 442,905 425,137 
Latin America828 1,598 1,338 10,947 
Total$712,226 $564,216 $1,936,165 $1,593,063 
(1)Excludes Other Revenue, Including Interest and Investments, and Interest Expense.
The Company's total assets are located in the following geographical areas:
September 30, 2024December 31, 2023
Total Assets:
United States$2,986,676 $3,146,756 
Europe and Other580,871 556,542 
Total$3,567,547 $3,703,298