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Equity Method Investments in Affiliates | 9 Months Ended
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Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments in Affiliates | Equity Method Investments in Affiliates In the second quarter of 2024, the Company completed its minority investment in Suma Capital (“Suma”), a pan- European private markets firm that invests in the transition to a lower carbon economy. Following the close of the transaction, Suma partners continue to hold a significant majority of the equity of the firm and direct its day-to-day operations. The financial results of certain Affiliates accounted for under the equity method are recognized in the Consolidated Financial Statements one quarter in arrears. Equity method investments in Affiliates (net) consisted of the following:
|  | December 31, 2023 |  | September 30, 2024
Goodwill |  | $1,323.3 |  | $1,348.1
Definite-lived acquired client relationships (net) |  | 652.5 |  | 568.1
Indefinite-lived acquired client relationships (net) |  | 122.6 |  | 122.4
Undistributed earnings and tangible capital |  | 190.1 |  | 109.8
Equity method investments in Affiliates (net) |  | $2,288.5 |  | $2,148.4
The following table presents the changes in Equity method investments in Affiliates (net):
| Equity Method Investments in Affiliates (Net)
Balance, as of December 31, 2023 | $2,288.5
Investments in Affiliates | 12.3
Earnings | 292.6
Intangible amortization and impairments | (104.3)
Distributions of earnings | (357.3)
Foreign currency translation | 16.6
Balance, as of September 30, 2024 | $2,148.4
Definite-lived acquired client relationships at the Company’s Affiliates accounted for under the equity method are amortized over their expected period of economic benefit. The Company recorded amortization expense for these relationships of $21.2 million and $63.0 million for the three and nine months ended September 30, 2023, respectively, and $22.7 million and $64.4 million for the three and nine months ended September 30, 2024, respectively. Based on relationships existing as of September 30, 2024, the Company estimates the amortization expense attributable to its Affiliates will be approximately $23 million for the remainder of 2024, approximately $75 million in 2025, approximately $70 million in each of 2026 and 2027, approximately $60 million in 2028, and approximately $45 million in 2029. In the second quarter of 2024, the Company recorded a $39.9 million expense to reduce the carrying value of an Affiliate to fair value. The decline in the fair value was a result of an anticipated decline in assets under management, which decreased the forecasted income associated with the investment. The fair value of the investment was determined using a discounted cash flow analysis, a Level 3 fair value measurement that included a projected compounded growth in assets under management over the next ten years of (2.5)%, long-term growth rate of 3%, discount rates of 12% and 20% for asset- and performance-based fees, respectively, and a market participant tax rate of 21%. Based on the discounted cash flow analysis, the Company concluded that the fair value of its investment had declined below its carrying value and that the decline was other-than- temporary. The Company had 22 Affiliates accounted for under the equity method as of December 31, 2023 and September 30, 2024. The majority of these Affiliates are partnerships with structured interests that define how the Company will participate in Affiliate earnings, typically based upon a fixed percentage of revenue reduced by, in some cases, certain agreed-upon expenses. The partnership agreements do not define a fixed percentage for the Company’s ownership of the equity of the Affiliate. These percentages would be subject to a separate future negotiation if an Affiliate were to be sold or liquidated.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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