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Equity Method Investments in Affiliates
 9 Months Ended
Sep. 30, 2012
Equity Method Investments in Affiliates  
Equity Method Investments in Affiliates

18.   Equity Method Investments in Affiliates

        For the Affiliates in which the Company holds a significant but non-controlling interest, the equity method of accounting is applied. The definite-lived acquired client relationships attributable to the Company's equity method investments are amortized over their expected useful lives. As of September 30, 2012, these relationships were being amortized over a weighted average life of approximately eight years. The Company recognized amortization expense for these relationships of $8.2 million and $24.8 million, respectively for the three and nine months ended September 30, 2011 as compared to $10.2 million and $26.5 million, respectively for the three and nine months ended September 30, 2012. Assuming no additional investments in new or existing Affiliates, the Company estimates the annual amortization expense attributable to its current equity-method Affiliates for the next five years as follows:

Year Ending December 31,
   Estimated Amortization
Expense 		 

2012

   $ 37.8  

2013

     44.9  

2014

     23.5  

2015

     14.9  

2016

     12.4  

        During the quarter ended September 30, 2012, the Company announced and closed an additional investment in BlueMountain Capital Management LLC ("BlueMountain"), a leading global credit alternatives manager. Founded in 2003, BlueMountain manages more than $8.0 billion in assets across a diverse set of strategies in the credit markets.

        The Company continues to hold a minority interest and accounts for the investment under the equity method of accounting. The Company's purchase price allocation is provisional and allocated $122.8 million to acquired client relationships. The Company's purchase price allocation was measured using a financial model that includes assumptions of expected market performance and net client cash flows. This provisional amount may be revised upon completion of the final valuation. The consideration paid (less net tangible assets acquired) will be deductible for U.S. tax purposes over a 15-year life.