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Goodwill, net | 12 Months Ended
--- | ---
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill, net | Goodwill, net The following tables provide a reconciliation of Goodwill, net reported on the Consolidated Statement of Financial Position and Consolidated Statement of Financial Position as of December 31, 2024 and December 31, 2023, respectively.
| As of December 31, 2024 |
(Dollars in Thousands) | Wealth & Capital Solutions |  | International Real Estate |  | Total |
Beginning Balance |  |  |  |  |  |
Gross goodwill | $ | 321,154 |  |  | $ | 90,480 |  |  | $ | 411,634 |  |
Accumulated impairment losses | — |  |  | — |  |  | — |  |
Net goodwill: | $ | 321,154 |  |  | $ | 90,480 |  |  | $ | 411,634 |  |
Goodwill acquired during the period | $ | 44,065 |  |  | $ | — |  |  | $ | 44,065 |  |
Impairment charges | (29,367) |  |  | (40,357) |  |  | (69,724) |  |
Resegmentation of U.S. Asset Management (1) | 40,625 |  |  | (40,625) |  |  | — |  |
Measurement period adjustments | 3,600 |  |  | — |  |  | 3,600 |  |
Currency translation and other adjustments | (2,235) |  |  | (9,498) |  |  | (11,733) |  |
| $ | 56,688 |  |  | $ | (90,480) |  |  | $ | (33,792) |  |
Ending Balance |  |  |  |  |  |
Gross goodwill | $ | 377,842 |  |  | $ | — |  |  | $ | 377,842 |  |
Accumulated impairment losses | — |  |  | — |  |  | — |  |
Net goodwill | $ | 377,842 |  |  | $ | — |  |  | $ | 377,842 |  |
(1) As of the third quarter ended September 30, 2024, the Company changed its segments. Prior year disclosures have not been restated. See Note 18 (Segment Reporting) for more information.
| As of December 31, 2023 |
(Dollars in Thousands) | Wealth Management |  | Strategic Alternatives |  | Total |
Beginning Balance |  |  |  |  |  |
Gross goodwill | $ | 298,118 |  |  | $ | 232,429 |  | $ | — |  | $ | 530,547 |  |
Net goodwill: | $ | 298,118 |  |  | $ | 232,429 |  |  | $ | 530,547 |  |
Goodwill acquired during the period | $ | 18,972 |  |  | $ | — |  |  | $ | 18,972 |  |
Impairment charges | — |  |  | (153,859) |  |  | (153,859) |  |
Currency translation and other adjustments | 4,064 |  |  | 11,910 |  | — |  | 15,974 |  |
| $ | 23,036 |  |  | $ | (141,949) |  |  | $ | (118,913) |  |
Ending Balance |  |  |  |  |  |
Gross goodwill | $ | 321,154 |  |  | $ | 90,480 |  |  | $ | 411,634 |  |
Net goodwill | $ | 321,154 |  |  | $ | 90,480 |  |  | $ | 411,634 |  |
As part of the Company’s strategic review of its Real Estate Businesses, the Company realigned its operating segments which resulted in a change to our reporting units as of the third quarter ended September 30, 2024. We determined that triggering events had occurred due to changes in the composition of our reporting units in addition to declining revenues and increased expenses associated with the Real Estate Businesses. As such, a goodwill impairment test of the reporting units was performed prior to their realignment. During the year ended December 31, 2024, the Company recognized an impairment charge of $44.9 million related to TIG’s Investment management agreements (“IMAs”), which is classified as an indefinite-lived intangible asset. See Note 11 (Intangible Assets, Net) for further details. Additionally, during the year ended December 31, 2024, the Company recognized a $29.4 million and $40.4 million impairment to goodwill for its Wealth & Capital Solutions and International Real Estate segments, respectively. The primary drivers of impairment are the financial projections and discount rate for the IMAs and financial projections, discount rate, and market multiples for goodwill. As of December 31, 2024, all goodwill allocated to the International Real Estate segment is written off. See Note 18 (Segment Reporting) for further information about changes to the Company’s segments. During the year ended December 31, 2023, the Company evaluated as of September 30, 2023 whether circumstances existed, indicating that the fair value of its reporting units may have declined to an amount lower than the carrying value of goodwill recorded on its Consolidated Statement of Position as of that date. The Company considered a variety of factors, including the impact of prevailing market conditions, persistently high interest rates and uncertainties caused by inflation and certain world events as well as the recent actions taken by the Company to restructure and reposition certain of the businesses within its reporting units. Based on the evaluation of these factors, the Company concluded that triggering events had occurred during the period that required the Company to assess whether the goodwill allocated to its legacy International Real Estate reporting unit was impaired. Accordingly, the Company performed a goodwill impairment test, which compared the estimated fair value of the legacy International Real Estate reporting unit to its carrying value. The Company utilized the discounted cash flow method under the income approach and the Guideline Public Company Method (“GPCM”) under the market approach, in equal weightings, in determining a fair value for the reporting unit. The results of the impairment test performed at September 30, 2023 indicated that the carrying value of the legacy International Real Estate reporting unit exceeded its estimated fair value by $153.6 million. Consequently, the Company recognized a goodwill impairment charge for this amount. The assumptions used in the discounted cash flow analyses require significant judgment, including judgment about appropriate growth rates and the amount and timing of expected future cash flows. The Company’s forecasted cash flows were based on its current assessment of the markets and on assumed growth rates expected as of the measurement date. The key assumptions used in the cash flows were revenue growth rates, operating expenses, gross margins, and discount rates that appropriately reflect the risks inherent in the cash flow streams. Under the GPCM approach, the significant assumptions include the consideration of stock price and financial metrics from guideline companies. The Company believes that its procedures for estimating the fair value of the reporting units are reasonable and consistent with assumptions that would be used by other marketplace participants. However, such assumptions are inherently uncertain, and a change in assumptions could change the estimated fair value of our reporting units. Future impairments of our reporting units could be required, which could be material to the consolidated financial statements.

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