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Segment Information | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION The Company’s reportable segments offer different products and services and are managed separately, as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed by the Chief Operating Decision Maker (the “CODM”) to determine the allocation of resources and to assess its performance. The Company’s reportable segments are Financial Advisory, Asset Management, and Corporate, which are described in Note 1. The Company’s CODM is the Company’s Chief Executive Officer. The CODM assesses the segments’ performance by each segment’s adjusted operating income (loss) attributable to each of the segments. The Company previously disclosed each segments’ U.S. GAAP operating income (loss) as the segment’s measure of profit and loss. Comparable prior year information has been recast to reflect the updated measure. Adjusted operating income (loss) is also used by the CODM to allocate compensation and non-compensation related resources to each segment. For the years ended December 31, 2024, 2023 and 2022, no individual client constituted more than 10% of the net revenue of any of the Company’s reportable segments. The table below provides select financial information about the Company’s segments, including adjusted compensation and benefits expense and adjusted non-compensation expense (both of which are significant expense categories on which the CODM is regularly provided information), other segments items, and adjusted operating income (loss). Adjusted compensation and benefits expense and adjusted non-compensation expense include costs directly incurred by each segment, with certain adjustments. Adjusted non-compensation expense includes expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services. Other segment items include certain adjustments to calculate adjusted operating income, including: •Noncontrolling interests; •Certain distribution, introducer and management fees paid to third parties and reimbursable deal costs; •Provision for credit losses; •Changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements; •Interest expense, excluding interest expense incurred by LFB; •Asset impairment charges; •Losses associated with the closing of certain offices as part of the cost-saving initiatives, including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss and transactions related to foreign currency exchange; and •The gain on sale of an owned office building. Inter-segment revenues are not material for all periods presented. The CODM does not regularly receive asset information by segment and does not use segment asset information to assess performance or allocate resources.
| Year Ended December 31, 2024
| Financial Advisory |  | Asset Management |  | Corporate |  | Total
Net Revenue - U.S. GAAP Basis | $ | 1,756,183 |  |  | $ | 1,186,977 |  |  | $ | 108,677 |  |  | $ | 3,051,837 |
Adjusted Compensation and Benefits Expense | 1,132,017 |  |  | 603,333 |  |  | 168,113 |  |  | 1,903,463 |
Adjusted Non-compensation Expense | 202,007 |  |  | 229,960 |  |  | 143,179 |  |  | 575,146 |
Other Segment Items | (25,134) |  |  | (87,103) |  |  | (50,046) |  |  | (162,283) |
Adjusted Operating Income (Loss) | $ | 397,025 |  |  | $ | 266,581 |  |  | $ | (252,661) |  |  | $ | 410,945 |
Other Segment Disclosures: |  |  |  |  |  |  |
Interest income (included in net revenue) | $ | 4,730 |  |  | $ | 14,457 |  |  | $ | 34,417 |  |  | $ | 53,604 |
Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 8,398 |  |  | $ | 5,704 |  |  | $ | 22,129 |  |  | $ | 36,231 |
| Year Ended December 31, 2023
| Financial Advisory |  | Asset Management |  | Corporate |  | Total
Net Revenue (Loss) - U.S. GAAP Basis | $ | 1,385,357 |  |  | $ | 1,151,496 |  |  | $ | (21,364) |  |  | $ | 2,515,489 |
Adjusted Compensation and Benefits Expense | 1,014,352 |  |  | 545,308 |  |  | 142,877 |  |  | 1,702,537 |
Adjusted Non-compensation Expense | 193,661 |  |  | 218,903 |  |  | 158,940 |  |  | 571,504 |
Other Segment Items | (28,522) |  |  | (83,937) |  |  | 36,589 |  |  | (75,870) |
Adjusted Operating Income (Loss) | $ | 148,822 |  |  | $ | 303,348 |  |  | $ | (286,592) |  |  | $ | 165,578 |
Other Segment Disclosures: |  |  |  |  |  |  |
Interest income (included in net revenue) | $ | 1,561 |  |  | $ | 19,752 |  |  | $ | 20,709 |  |  | $ | 42,022 |
Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 8,458 |  |  | $ | 6,448 |  |  | $ | 27,860 |  |  | $ | 42,766 |
| Year Ended December 31, 2022
| Financial Advisory |  | Asset Management |  | Corporate |  | Total
Net Revenue (Loss) - U.S. GAAP Basis | $ | 1,666,156 |  |  | $ | 1,204,927 |  |  | $ | (97,512) |  |  | $ | 2,773,571 |
Adjusted Compensation and Benefits Expense | 939,164 |  |  | 557,887 |  |  | 159,787 |  |  | 1,656,838 |
Adjusted Non-compensation Expense | 184,439 |  |  | 205,061 |  |  | 128,673 |  |  | 518,173 |
Other Segment Items | (13,734) |  |  | (106,262) |  |  | 115,483 |  |  | (4,513) |
Adjusted Operating Income (Loss) | $ | 528,819 |  |  | $ | 335,717 |  |  | $ | (270,489) |  |  | $ | 594,047 |
Other Segment Disclosures: |  |  |  |  |  |  |
Interest income (included in net revenue) | $ | 4,074 |  |  | $ | 6,247 |  |  | $ | 19,136 |  |  | $ | 29,457 |
Depreciation and amortization of property (included in adjusted non-compensation expense) | $ | 8,968 |  |  | $ | 9,363 |  |  | $ | 20,922 |  |  | $ | 39,253 |
The table below provides a reconciliation of the Company's consolidated adjusted operating income (loss) to the Company’s consolidated U.S. GAAP operating income (loss).
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Adjusted Operating Income | $ | 410,945 |  |  | $ | 165,578 |  |  | $ | 594,047 |
Adjustments: |  |  |  |  |
Operating income related to noncontrolling interests and similar arrangements (a) | 6,787 |  |  | 18,169 |  |  | 34,963 |
Interest expense (b) | (87,795) |  |  | (77,457) |  |  | (76,528) |
Amortization and other acquisition-related costs | (242) |  |  | (334) |  |  | (60) |
Asset impairment charges | – |  |  | (19,129) |  |  | – |
Losses associated with cost-saving initiatives (c) | (587) |  |  | (4,878) |  |  | – |
Expenses associated with cost-saving initiatives | (48,142) |  |  | (195,126) |  |  | – |
Gain on sale of property (d) | 114,271 |  |  | – |  |  | – |
Expenses associated with sale of property (e) | (17,002) |  |  | – |  |  | – |
Expenses related to office space reorganization (f) | – |  |  | – |  |  | (3,764) |
Expenses associated with senior management transition (g) | – |  |  | (10,674) |  |  | (33,019) |
Benefit pursuant to tax receivable obligation ("TRA") (h) | 8,237 |  |  | 43,894 |  |  | 1,209 |
Operating Income (Loss) - U.S. GAAP Basis | $ | 386,472 |  |  | $ | (79,957) |  |  | $ | 516,848 |
_____________________ (a)Revenue and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts. (b)Interest expense (excluding interest expense incurred by LFB) is added back in determining adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business. (c)Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive losses in the years ended December 31, 2024 and 2023 and transactions related to foreign currency exchange in the year ended December 31, 2023. (d)Represents gain on the sale of an owned office building. (e)Represents estimated statutory profit-sharing expenses associated with the sale of an owned office building. (f)Represents building depreciation and other costs related to office space reorganization. (g)Represents expenses associated with senior management transition reflecting the departure of certain executive officers. (h)Represents the effect of the periodic revaluation of the TRA liability. Geographic Information Due to the highly integrated nature of international financial markets, the Company manages its business based on the profitability of the enterprise as a whole, not by geographic region. The Company’s revenue and total assets are generally allocated based on the country or domicile of the legal entity providing the service. The following table sets forth the net revenue from, and total assets for, the Company and its consolidated subsidiaries by geographic region allocated on the basis described above. In the table below, Americas principally includes the U.S., EMEA principally includes the U.K. and France, and Asia Pacific principally includes Australia.
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Net Revenue - U.S. GAAP basis: |  |  |  |  |
Americas | $ | 1,536,298 |  |  | $ | 1,193,056 |  |  | $ | 1,487,056 |
EMEA | 1,360,784 |  |  | 1,162,052 |  |  | 1,136,636 |
Asia Pacific | 154,755 |  |  | 160,381 |  |  | 149,879 |
Total | $ | 3,051,837 |  |  | $ | 2,515,489 |  |  | $ | 2,773,571 |
Operating Income (Loss) - U.S. GAAP basis: |  |  |  |  |
Americas | $ | 101,675 |  |  | $ | (224,857) |  |  | $ | 235,640 |
EMEA | 256,938 |  |  | 108,058 |  |  | 248,404 |
Asia Pacific | 27,859 |  |  | 36,842 |  |  | 32,804 |
Total | $ | 386,472 |  |  | $ | (79,957) |  |  | $ | 516,848 |
| December 31,
| 2024 |  | 2023
Total Assets: |  |  |
Americas | $ | 2,908,489 |  |  | $ | 2,808,962 |
EMEA | 1,757,275 |  |  | 1,679,644 |
Asia Pacific | 128,229 |  |  | 147,175 |
Total | $ | 4,793,993 |  |  | $ | 4,635,781 |

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- Definition The entire disclosure for reporting segments including data and tables. 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