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Segment Information
 12 Months Ended
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 Expense1,132,017 603,333 168,113 1,903,463 
Adjusted Non-compensation Expense202,007 229,960 143,179 575,146 
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 AdvisoryAsset ManagementCorporateTotal
Net Revenue (Loss) - U.S. GAAP Basis$1,385,357 $1,151,496 $(21,364)$2,515,489 
Adjusted Compensation and Benefits Expense1,014,352 545,308 142,877 1,702,537 
Adjusted Non-compensation Expense193,661 218,903 158,940 571,504 
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 AdvisoryAsset ManagementCorporateTotal
Net Revenue (Loss) - U.S. GAAP Basis$1,666,156 $1,204,927 $(97,512)$2,773,571 
Adjusted Compensation and Benefits Expense939,164 557,887 159,787 1,656,838 
Adjusted Non-compensation Expense184,439 205,061 128,673 518,173 
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,
202420232022
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,
202420232022
Net Revenue - U.S. GAAP basis:
Americas$1,536,298 $1,193,056 $1,487,056 
EMEA1,360,784 1,162,052 1,136,636 
Asia Pacific154,755 160,381 149,879 
Total$3,051,837 $2,515,489 $2,773,571 
Operating Income (Loss) - U.S. GAAP basis:
   
Americas$101,675 $(224,857)$235,640 
EMEA256,938 108,058 248,404 
Asia Pacific27,859 36,842 32,804 
Total$386,472 $(79,957)$516,848 
December 31,
20242023
Total Assets:
Americas$2,908,489 $2,808,962 
EMEA1,757,275 1,679,644 
Asia Pacific128,229 147,175 
Total$4,793,993 $4,635,781