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Equity Method Investments in Affiliates | 3 Months Ended
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Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments in Affiliates | Equity Method Investments in Affiliates In the first quarter of 2025, the Company completed its minority investment in NorthBridge Partners, LLC (“NorthBridge”), a private markets manager specializing in industrial logistics real estate assets. A portion of the consideration paid for NorthBridge will be deductible for U.S. tax purposes over a 15-year life. The Company’s purchase price allocation for the investment was measured using a discounted cash flow analysis that included assumptions of expected market performance, net client cash flows, and discount rates. The financial results of certain Affiliates accounted for under the equity method are recognized in the Consolidated Financial Statements one quarter in arrears. The following table presents the changes in Equity method investments in Affiliates (net):
| Equity Method Investments in Affiliates (Net)
Balance, as of December 31, 2024(1) | $2,246.6
Investments in Affiliates | 72.0
Earnings, net of tax | 93.9
Intangible amortization and impairments | (18.6)
Distributions of earnings | (205.0)
Foreign currency translation | (29.4)
Balance, as of March 31, 2025(1) | $2,159.5
_______________________ (1)Includes undistributed earnings of $206.1 million and $90.4 million as of December 31, 2024 and March 31, 2025, respectively. 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 $20.8 million and $18.6 million for the three months ended March 31, 2024 and 2025, respectively. Based on relationships existing as of March 31, 2025, the Company estimates the amortization expense attributable to its Affiliates will be approximately $60 million for the remainder of 2025, approximately $75 million in each of 2026 and 2027, approximately $65 million in 2028, approximately $50 million in 2029, and approximately $45 million in 2030. The Company had 22 and 23 Affiliates accounted for under the equity method as of December 31, 2024 and March 31, 2025, respectively. 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. I n May 2025, the Company completed a minority investment in Verition Fund Management LLC (“Verition”), a global multi-strategy investment firm. Following the close of this transaction, Verition partners continue to hold a significant majority of the equity of the business and direct its day-to-day operations. In May 2025, the Company entered into an agreement to acquire a minority equity interest in Qualitas Energy, a renewables-focused global infrastructure manager specializing in energy transition. Following the close of the transaction, Qualitas Energy partners will continue to hold a majority of the equity of the business and direct its day-to-day operations. The transaction is expected to close during the fourth quarter of 2025, and is subject to customary closing conditions. The financial results will be recognized in the Consolidated Financial Statements one quarter in arrears. Together with the Company’s previously completed investment in NorthBridge, the Company has committed approximately $700 million for investments in new Affiliates in 2025. In May 2025, the Company entered into an agreement to sell its 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. Pursuant to the terms of the agreement, the Company is expected to receive total consideration of approximately $240 million, based on the TPG closing share price on May 2, 2025, and includes approximately $102 million in cash, subject to certain closing adjustments, and approximately 2.9 million TPG Class A common shares. Peppertree will continue to be included in the Company’s results until closing of the transaction, which is expected to occur in the third quarter of 2025, subject to customary closing conditions.

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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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