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, and in the second quarter of

2025, the Company completed its minority investment in Verition Fund Management LLC (“Verition”), a global multi-strategy

investment firm. A portion of the consideration paid for NorthBridge and the majority of the consideration paid for Verition

will be deductible for U.S. tax purposes over a 15-year life. The Company’s purchase price allocations for each investment

were measured using discounted cash flow analyses that included assumptions of expected market performance, net client cash

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


	Equity Method Investments in Affiliates (Net)
Balance, as of December 31, 2024(1)	$2,246.6
Investments in Affiliates	538.0
Affiliate transactions(2)	(125.6)
Earnings, net of tax	299.7
Intangible amortization and impairments	(70.2)
Distributions of earnings	(379.1)
Return of capital	(3.8)
Foreign currency translation	23.5
Balance, as of September 30, 2025(1)	$2,529.1

(1)Includes undistributed earnings of $206.1 million and $123.1 million as of December 31, 2024 and September 30, 2025,

(2)Represents the Company’s equity method investment in Peppertree as of the closing date.

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 $22.7 million and $64.4 million for the three and nine months ended September 30, 2024, respectively, and $24.6 million and

$70.2 million for the three and nine months ended, September 30, 2025, respectively. Based on relationships existing as of

September 30, 2025, the Company estimates the amortization expense attributable to its Affiliates will be approximately $23

million for the remainder of 2025, approximately $85 million in each of 2026 and 2027, approximately $75 million in 2028,

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-

The Company had 22 and 23 Affiliates accounted for under the equity method as of December 31, 2024 and September 30,

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.

In the second quarter of 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 in the fourth quarter of 2025, subject to customary closing conditions. The

financial results will be recognized in the Consolidated Financial Statements one quarter in arrears.

In July 2025, the Company completed the previously announced sale of its minority 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 (the “Peppertree Transaction”). Pursuant to the terms of the transaction agreement

with TPG, under which the Company and each of the other owners agreed to sell their respective equity interests in Peppertree,

the Company received total consideration of $253.2 million, net of transaction costs, which included $99.8 million in cash and

2.9 million TPG Class A common shares, all of which the Company has since sold. Peppertree is included in the Company’s

results through the closing date and the Company’s gain on the transaction was $127.6 million, which is recorded in Affiliate

transaction gains in the Consolidated Statements of Income. The after-tax net proceeds from the transaction were $218.1

In October 2025, the Company announced an agreement with Brown Brothers Harriman (“BBH”), a privately held global

financial services firm, to acquire a minority equity interest in BBH Credit Partners, a newly formed subsidiary of BBH focused

on structured and alternative credit investment strategies. Following the close of the transaction, BBH partners will continue to

direct day-to-day operations and the Company’s ownership will be limited to a minority interest in the BBH Credit Partners

subsidiary. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions.

In October 2025, the Company completed the previously announced agreement to acquire a minority equity interest in

Montefiore Investment (“Montefiore”), a European private equity firm focused on the services sector. Following the close of

the transaction, Montefiore partners continue to hold a majority of the equity of the business and direct its day-to-day

On November 3, 2025, the Company completed the previously announced agreement to sell a portion of its minority equity

interest in Comvest Partners (“Comvest”), as part of the announced acquisition of Comvest’s private credit business by

Manulife Financial Corporation. Pursuant to the terms of the agreement, the Company received total cash consideration of

approximately $285 million. The Company acquired its interest in Comvest for $125.0 million in 2020 and, as of September

30, 2025, its carrying value was $121.8 million. The Company’s gain on the transaction was taxable at closing. Comvest will

be included in the Company’s results until closing date and the portion retained will continue to be included going forward.