Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 10, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36683 | |
Entity Registrant Name | BRIGHTSPHEREInvestment Group Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1121020 | |
Entity Address, Address Line One | 200 Clarendon Street, 53rd Floor | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02116 | |
City Area Code | 617 | |
Local Phone Number | 369-7300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 86,107,800 | |
Entity Central Index Key | 0001748824 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | BSIG | |
Security Exchange Name | NYSE | |
4.800% Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.800% Notes due 2026 | |
Trading Symbol | BSIG 26 | |
Security Exchange Name | NYSE | |
5.125% Notes Due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.125% Notes due 2031 | |
Trading Symbol | BSA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Investments (includes balances reported at fair value) | $ 378.6 | $ 323.3 |
Total assets | 1,432.3 | 1,553.7 |
Liabilities and shareholders’ equity | ||
Total liabilities | 1,279.6 | 1,377.6 |
Commitments and contingencies | ||
Equity: | ||
Total equity and redeemable non-controlling interests in consolidated Funds | 152.7 | 176.1 |
Total liabilities and equity | 1,432.3 | 1,553.7 |
Investments in unconsolidated Funds | ||
Assets | ||
Cash and cash equivalents | 116.5 | 340.6 |
Investment advisory fees receivable | 146.8 | 159.1 |
Income taxes receivable | 12.5 | 3.9 |
Fixed assets, net | 63.5 | 49 |
Investments (includes balances reported at fair value) | 199.5 | 198.5 |
Acquired intangibles, net | 66.8 | 71.7 |
Goodwill | 274.6 | 274.6 |
Other assets | 92.9 | 41.6 |
Deferred tax assets | 261.7 | 270.1 |
Liabilities and shareholders’ equity | ||
Accounts payable and accrued expenses | 37.6 | 54.3 |
Accrued incentive compensation | 130.1 | 171 |
Due to OM plc | 3.7 | 33 |
Other compensation liabilities | 432.4 | 649.2 |
Accrued income taxes | 12.6 | 53.6 |
Non-recourse borrowings | 35 | 0 |
Third party borrowings | 568.6 | 393.3 |
Other liabilities | 48.7 | 8.3 |
Equity: | ||
Common stock (par value $0.001; 88,776,731 and 105,160,021 shares, respectively, issued) | 0.1 | 0.1 |
Additional paid-in capital | 560.4 | 764.6 |
Retained deficit | (511.7) | (640.5) |
Accumulated other comprehensive loss | (20) | (20.9) |
Non-controlling interests | 1.9 | 1.6 |
Consolidated Funds | ||
Assets | ||
Investments (includes balances reported at fair value) | 179.1 | 124.8 |
Other assets | 10.2 | 14.9 |
Cash and cash equivalents, restricted | 8.2 | 4.9 |
Liabilities and shareholders’ equity | ||
Accounts payable and accrued expenses | 9.3 | 13.1 |
Other liabilities | 0 | 0.1 |
Securities sold, not yet purchased, at fair value | 1.6 | 1.7 |
Redeemable non-controlling interests in consolidated Funds | 81.9 | 41.9 |
Equity: | ||
Non-controlling interests | $ 40.1 | $ 29.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Investment fair value | $ 322.4 | $ 321.4 |
Investments in unconsolidated Funds | ||
Investment fair value | $ 197.8 | $ 196.6 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, issued (in shares) | 88,776,731 | 105,160,021 |
Consolidated Funds | ||
Investment fair value | $ 124.6 | $ 124.8 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Revenue | $ 196.4 | $ 229.6 | $ 609.8 | $ 701 |
Total revenue | 197.8 | 230.1 | 612.1 | 713.7 |
Operating expenses: | ||||
Total operating expenses | 145.9 | 216.8 | 445.6 | 659.5 |
Operating income | 51.9 | 13.3 | 166.5 | 54.2 |
Non-operating income and (expense): | ||||
Net consolidated Funds’ investment gains (losses) | 7 | 2.8 | 25.2 | 62.8 |
Total non-operating income (loss) | (0.9) | (2.6) | 2.9 | 46.1 |
Income from continuing operations before taxes | 51 | 10.7 | 169.4 | 100.3 |
Income tax expense (benefit) | (32) | (43.4) | 3.7 | (11.1) |
Income from continuing operations | 83 | 54.1 | 165.7 | 111.4 |
Gain (loss) on disposal of discontinued operations, net of tax | 0 | 0.1 | 0 | 0.1 |
Net income | 83 | 54.2 | 165.7 | 111.5 |
Net income (loss) attributable to non-controlling interests in consolidated Funds | 7.6 | 0.2 | 9.6 | (1.9) |
Net income attributable to controlling interests | $ 75.4 | $ 54 | $ 156.1 | $ 113.4 |
Earnings per share (basic) attributable to controlling interests (in dollars per share) | $ 0.84 | $ 0.51 | $ 1.68 | $ 1.05 |
Earnings per share (diluted) attributable to controlling interests (in dollars per share) | 0.84 | 0.51 | 1.68 | 1.04 |
Continuing operations earnings per share (basic) attributable to controlling interests (in dollars per share) | 0.84 | 0.51 | 1.68 | 1.05 |
Continuing operations earnings per share (diluted) attributable to controlling interests (in dollars per share) | $ 0.84 | $ 0.51 | $ 1.68 | $ 1.04 |
Weighted average ordinary shares outstanding (in shares) | 89,970,871 | 106,363,714 | 92,996,289 | 108,057,432 |
Weighted average diluted ordinary shares outstanding (in shares) | 89,972,300 | 106,514,709 | 93,076,064 | 108,231,710 |
Investments in unconsolidated Funds | ||||
Revenue: | ||||
Other revenue | $ 1.4 | $ 1.4 | $ 4.3 | $ 7.2 |
Operating expenses: | ||||
Compensation and benefits | 108 | 180.2 | 332.8 | 552.8 |
General and administrative expense | 31.7 | 31 | 95.3 | 90.3 |
Amortization of acquired intangibles | 1.6 | 1.6 | 4.9 | 4.9 |
Depreciation and other amortization | 4.4 | 3.7 | 12.2 | 10.6 |
Non-operating income and (expense): | ||||
Investment income | 2.3 | 3.9 | 11.4 | 69.6 |
Interest income | 0.4 | 0.9 | 1.8 | 2 |
Interest expense | (8.3) | (6.3) | (24.1) | (18.7) |
Gain (loss) on disposal of discontinued operations, net of tax | 0 | 0.1 | ||
Consolidated Funds | ||||
Revenue: | ||||
Total revenue | 1.9 | 1.2 | 4.9 | 2.6 |
Operating expenses: | ||||
Total operating expenses | 0.2 | 0.3 | 0.4 | 0.9 |
Non-operating income and (expense): | ||||
Net consolidated Funds’ investment gains (losses) | 4.7 | (1.1) | 13.8 | (6.8) |
Net income (loss) attributable to non-controlling interests in consolidated Funds | 7.6 | 0.2 | 9.6 | (1.9) |
Management fees | ||||
Revenue: | ||||
Revenue | 196.4 | 229.6 | 609.8 | 701 |
Management fees | Investments in unconsolidated Funds | ||||
Revenue: | ||||
Revenue | 196.4 | 229.6 | 609.8 | 701 |
Performance fees | Investments in unconsolidated Funds | ||||
Revenue: | ||||
Revenue | $ (1.9) | $ (2.1) | $ (6.9) | $ 2.9 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 83 | $ 54.2 | $ 165.7 | $ 111.5 |
Other comprehensive income (loss): | ||||
Amortization related to derivative securities, net of tax | 0.6 | 0.6 | 1.8 | 1.8 |
Foreign currency translation adjustment | (0.8) | (0.4) | (0.9) | (1.2) |
Total other comprehensive income (loss) | (0.2) | 0.2 | 0.9 | 0.6 |
Comprehensive income (loss) attributable to non-controlling interests in consolidated Funds | 7.6 | 0.2 | 9.6 | (1.9) |
Total comprehensive income attributable to controlling interests | $ 75.2 | $ 54.2 | $ 157 | $ 114 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Consolidated Funds | Ordinary sharesInvestments in unconsolidated Funds | Additional Paid-in CapitalInvestments in unconsolidated Funds | Retained earnings (deficit)Investments in unconsolidated Funds | Accumulated other comprehensive income (loss)Investments in unconsolidated Funds | Total shareholders’ equityInvestments in unconsolidated Funds | Non- controlling interestsInvestments in unconsolidated Funds | Non- controlling interestsConsolidated Funds |
Beginning balance (in shares) at Dec. 31, 2017 | 109.7 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 127.3 | $ 0.1 | $ 831.5 | $ (734.6) | $ (21.6) | $ 75.4 | $ 1.3 | $ 50.6 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of ordinary shares (in shares) | 1 | ||||||||
Repurchase of ordinary shares/common stock (in shares) | (4.4) | ||||||||
Repurchase of ordinary shares/common stock | (62.1) | (62.1) | (62.1) | ||||||
Capital contributions | 9.3 | $ 68 | 9.3 | ||||||
Equity-based compensation | 4.2 | 4.2 | 4.2 | ||||||
Foreign currency translation adjustment | (1.2) | (1.2) | (1.2) | ||||||
Amortization related to derivative securities, net of tax | 1.8 | 1.8 | 1.8 | ||||||
Other changes in non-controlling interests | 0.1 | 0.1 | |||||||
Dividends | (31.6) | (31.6) | (31.6) | ||||||
Dividends to related parties | 0 | ||||||||
Net income (loss) | 111.6 | 113.4 | 113.4 | (1.8) | |||||
Ending balance (in shares) at Sep. 30, 2018 | 106.3 | ||||||||
Ending balance at Sep. 30, 2018 | 101.3 | $ 0.1 | 773.6 | (652.8) | (21) | 99.9 | 1.4 | 0 | |
Beginning balance at Dec. 31, 2017 | 44 | ||||||||
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds | |||||||||
Net de-consolidation of Funds | (58.1) | (41.5) | (58.1) | ||||||
Net income (loss) | (0.1) | ||||||||
Ending balance at Sep. 30, 2018 | 70.4 | ||||||||
Beginning balance at Dec. 31, 2017 | 171.3 | ||||||||
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds | |||||||||
Issuance of ordinary shares/common stock | 0 | ||||||||
Repurchase of common stock | (62.1) | ||||||||
Capital contributions | 77.3 | ||||||||
Equity-based compensation | 4.2 | ||||||||
Foreign currency translation adjustment | (1.2) | ||||||||
Amortization related to derivative securities, net of tax | 1.8 | ||||||||
Net de-consolidation of Funds | (99.6) | ||||||||
Dividends | (31.6) | ||||||||
Dividends to related parties | 0 | ||||||||
Net income (loss) | 111.5 | ||||||||
Ending balance at Sep. 30, 2018 | 171.7 | ||||||||
Beginning balance (in shares) at Jun. 30, 2018 | 108.9 | ||||||||
Beginning balance at Jun. 30, 2018 | 149.1 | $ 0.1 | 806.9 | (696.2) | (21.2) | 89.6 | 1.4 | 58.1 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Repurchase of ordinary shares/common stock (in shares) | (2.6) | ||||||||
Repurchase of ordinary shares/common stock | (34.7) | (34.7) | (34.7) | ||||||
Capital contributions | 0.1 | 64.2 | 0.1 | 0.1 | |||||
Equity-based compensation | 1.3 | 1.3 | 1.3 | ||||||
Foreign currency translation adjustment | (0.4) | (0.4) | (0.4) | ||||||
Amortization related to derivative securities, net of tax | 0.6 | 0.6 | 0.6 | ||||||
Dividends | (10.6) | (10.6) | (10.6) | ||||||
Net income (loss) | 54 | 54 | 54 | ||||||
Ending balance (in shares) at Sep. 30, 2018 | 106.3 | ||||||||
Ending balance at Sep. 30, 2018 | 101.3 | $ 0.1 | 773.6 | (652.8) | (21) | 99.9 | 1.4 | 0 | |
Beginning balance at Jun. 30, 2018 | 6 | ||||||||
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds | |||||||||
Net de-consolidation of Funds | (58.1) | (58.1) | |||||||
Net income (loss) | 0.2 | ||||||||
Ending balance at Sep. 30, 2018 | 70.4 | ||||||||
Beginning balance at Jun. 30, 2018 | 155.1 | ||||||||
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds | |||||||||
Repurchase of common stock | (34.7) | ||||||||
Capital contributions | 64.3 | ||||||||
Equity-based compensation | 1.3 | ||||||||
Foreign currency translation adjustment | (0.4) | ||||||||
Amortization related to derivative securities, net of tax | 0.6 | ||||||||
Net de-consolidation of Funds | (58.1) | ||||||||
Dividends | (10.6) | ||||||||
Net income (loss) | 54.2 | ||||||||
Ending balance at Sep. 30, 2018 | 171.7 | ||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 105.2 | ||||||||
Beginning balance at Dec. 31, 2018 | 134.2 | $ 0.1 | 764.6 | (640.5) | (20.9) | 103.3 | 1.6 | 29.3 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of ordinary shares (in shares) | 0.2 | ||||||||
Repurchase of ordinary shares/common stock (in shares) | (16.6) | ||||||||
Repurchase of ordinary shares/common stock | (209.3) | (209.3) | (209.3) | ||||||
Capital contributions | 4.9 | 36.3 | 4.9 | ||||||
Equity-based compensation | 5.1 | 5.1 | 5.1 | ||||||
Foreign currency translation adjustment | (0.9) | (0.9) | (0.9) | ||||||
Amortization related to derivative securities, net of tax | 1.8 | 1.8 | 1.8 | ||||||
Other changes in non-controlling interests | 0.3 | 0.3 | |||||||
Net de-consolidation of Funds | 0 | ||||||||
Dividends | (27.3) | (27.3) | (27.3) | ||||||
Net income (loss) | 162 | 156.1 | 156.1 | 5.9 | |||||
Ending balance (in shares) at Sep. 30, 2019 | 88.8 | ||||||||
Ending balance at Sep. 30, 2019 | 70.8 | $ 0.1 | 560.4 | (511.7) | (20) | 28.8 | 1.9 | 40.1 | |
Beginning balance at Dec. 31, 2018 | 41.9 | ||||||||
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds | |||||||||
Net income (loss) | 3.7 | ||||||||
Ending balance at Sep. 30, 2019 | 81.9 | ||||||||
Beginning balance at Dec. 31, 2018 | 176.1 | ||||||||
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds | |||||||||
Issuance of ordinary shares/common stock | 0 | ||||||||
Repurchase of common stock | (209.3) | ||||||||
Capital contributions | 41.2 | ||||||||
Equity-based compensation | 5.1 | ||||||||
Foreign currency translation adjustment | (0.9) | ||||||||
Amortization related to derivative securities, net of tax | 1.8 | ||||||||
Net de-consolidation of Funds | 0 | ||||||||
Dividends | (27.3) | ||||||||
Net income (loss) | 165.7 | ||||||||
Ending balance at Sep. 30, 2019 | 152.7 | ||||||||
Beginning balance (in shares) at Jun. 30, 2019 | 91.6 | ||||||||
Beginning balance at Jun. 30, 2019 | 21.8 | $ 0.1 | 585.2 | (578.2) | (19.8) | (12.7) | 1.8 | 32.7 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Repurchase of ordinary shares/common stock (in shares) | (2.8) | ||||||||
Repurchase of ordinary shares/common stock | (25.5) | (25.5) | (25.5) | ||||||
Capital contributions | 0.9 | (1) | 0.9 | ||||||
Equity-based compensation | 0.7 | 0.7 | 0.7 | ||||||
Foreign currency translation adjustment | (0.8) | (0.8) | (0.8) | ||||||
Amortization related to derivative securities, net of tax | 0.6 | 0.6 | 0.6 | ||||||
Amendment of Deferred Tax Asset Deed | 0 | ||||||||
Other changes in non-controlling interests | 0.1 | 0.1 | |||||||
Dividends | (8.9) | (8.9) | (8.9) | ||||||
Dividends to related parties | 0 | ||||||||
Net income (loss) | 81.9 | 75.4 | 75.4 | 6.5 | |||||
Ending balance (in shares) at Sep. 30, 2019 | 88.8 | ||||||||
Ending balance at Sep. 30, 2019 | 70.8 | $ 0.1 | $ 560.4 | $ (511.7) | $ (20) | $ 28.8 | $ 1.9 | $ 40.1 | |
Beginning balance at Jun. 30, 2019 | 81.8 | ||||||||
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds | |||||||||
Net income (loss) | 1.1 | ||||||||
Ending balance at Sep. 30, 2019 | $ 81.9 | ||||||||
Beginning balance at Jun. 30, 2019 | 103.6 | ||||||||
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds | |||||||||
Repurchase of common stock | (25.5) | ||||||||
Capital contributions | (0.1) | ||||||||
Equity-based compensation | 0.7 | ||||||||
Foreign currency translation adjustment | (0.8) | ||||||||
Amortization related to derivative securities, net of tax | 0.6 | ||||||||
Dividends | (8.9) | ||||||||
Dividends to related parties | 0 | ||||||||
Net income (loss) | 83 | ||||||||
Ending balance at Sep. 30, 2019 | $ 152.7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends (in dollars per share) | $ 100,000 | $ 100,000 | $ 0.3 | $ 0.29 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 165.7 | $ 111.5 |
Less: Net (income) loss attributable to non-controlling interests in consolidated Funds | (9.6) | 1.9 |
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | ||
(Gain) loss on disposal of discontinued operations, excluding consolidated Funds | 0 | (0.1) |
Net earnings from Affiliate accounted for using the equity method | (11.2) | 0 |
Changes in operating assets and liabilities (excluding discontinued operations): | ||
Net cash flows from operating activities of continuing operations | (183.6) | 142.7 |
Purchase of investments | (18) | (75.9) |
Distributions received from equity method investees | 3.8 | 0 |
Net cash flows from operating activities of discontinued operations | 0 | 0.1 |
Total net cash flows from operating activities | (183.6) | 142.8 |
Cash flows from investing activities: | ||
Sale of investments | 40.1 | 49.2 |
Contributions in equity method investees | (8) | 0 |
Consolidation (de-consolidation) of Funds | 0 | (40.2) |
Net cash flows from investing activities of continuing operations | (8.8) | 18.6 |
Net cash flows from investing activities of discontinued operations | 0 | 0 |
Total net cash flows from investing activities | (8.8) | 18.6 |
Cash flows from financing activities: | ||
Payment for debt issuance costs | (1.8) | 0 |
Non-controlling interest capital redeemed | (3.1) | 0 |
Net cash flows from financing activities of continuing operations | (28.4) | (40.3) |
Net cash flows from financing activities of discontinued operations | 0 | 0 |
Total net cash flows from financing activities | (28.4) | (40.3) |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (220.8) | 121.1 |
Cash and cash equivalents at beginning of period | 345.5 | 200.4 |
Cash and cash equivalents at end of period (including cash at consolidated Funds classified as restricted) | 124.7 | 321.5 |
Supplemental disclosure of cash flow information: | ||
Interest paid (excluding consolidated Funds) | 24.8 | 19.9 |
Income taxes paid | 41.6 | 28 |
Supplemental disclosure of non-cash investing and financing transactions: | ||
De-consolidation of Funds | 0 | (99.6) |
Investments in unconsolidated Funds | ||
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | ||
(Gain) loss on disposal of discontinued operations, excluding consolidated Funds | 0 | (0.1) |
Amortization of acquired intangibles | 4.9 | 4.9 |
Depreciation and other amortization | 12.2 | 10.6 |
Amortization of debt-related costs | 2.6 | 2.4 |
Amortization and revaluation of non-cash compensation awards | 6.3 | 165.9 |
Net earnings from Affiliate accounted for using the equity method | (2.1) | (2.1) |
Distributions received from equity method Affiliate | 2.3 | 11.7 |
Gain on sale of investment in Affiliate | 0 | (65.7) |
Deferred income taxes | 7.6 | (28.2) |
(Gains) losses on other investments | (26.3) | (2) |
Changes in operating assets and liabilities (excluding discontinued operations): | ||
(Increase) decrease in investment advisory fees receivable | 12.2 | 22.2 |
(Increase) decrease in other receivables, prepayments, deposits and other assets | (8.8) | 18.9 |
Increase (decrease) in accrued incentive compensation, amounts due to OM plc and other liabilities | (262.8) | (17.1) |
Increase (decrease) in accounts payable, accrued expenses and accrued income taxes | (54.1) | (48.3) |
Net cash flows from operating activities of continuing operations | (149.9) | 186.5 |
Purchase of investments | (161.1) | (178) |
Sale of investments | 122.1 | 116.7 |
Cash flows from investing activities: | ||
Additions of fixed assets | (26.7) | (14.5) |
Proceeds from sale of investment in Affiliate | 0 | 100 |
Cash flows from financing activities: | ||
Proceeds from third party and non-recourse borrowings | 485 | 15 |
Repayment of third party and non-recourse borrowings | (275) | (33.5) |
Payment to OM plc for DTA Deed | (32.7) | 0 |
Payment to OM plc for co-investment redemptions | (5.1) | (0.6) |
Dividends paid to shareholders | (18.8) | (24) |
Dividends paid to related parties | (8.6) | (7.9) |
Payment to OM plc for promissory notes | 0 | (4.5) |
Repurchases of common stock | (212.6) | (62.1) |
Consolidated Funds | ||
Cash flows from operating activities: | ||
Less: Net (income) loss attributable to non-controlling interests in consolidated Funds | (9.6) | 1.9 |
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | ||
(Gains) losses on other investments | 6.1 | 3.7 |
Changes in operating assets and liabilities (excluding discontinued operations): | ||
Net cash flows from operating activities of continuing operations | (33.7) | (43.8) |
(Increase) decrease in receivables and other assets | 4.8 | (4.7) |
Increase (decrease) in accounts payable and other liabilities | (4) | 20.4 |
Cash flows from financing activities: | ||
Non-controlling interest capital raised | 8 | 77.7 |
Redeemable non-controlling interest capital raised | 38 | 0 |
Redeemable non-controlling interest capital redeemed | (1.7) | (0.4) |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Payable for securities purchased by a consolidated Fund | $ 7.4 | $ 19.8 |
Organization and Description of
Organization and Description of the Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Business | BrightSphere Investment Group Inc. (“BrightSphere”, “BSIG” or the “Company”), through its subsidiaries, is a global asset management company with interests in a diverse group of investment management firms (the “Affiliates”) individually headquartered in the United States. The Company provides investment management services globally to predominantly institutional investors, in asset classes that include U.S. and global equities, fixed income, alternative assets, forestry and secondary Funds focused in real estate and private equity. Fees for services are largely asset-based and, as a result, the Company’s revenue fluctuates based on the performance of financial markets and investors’ asset flows in and out of the Company’s products. The Company’s Affiliates are organized as limited liability companies. The Company generally utilizes a profit-sharing model in structuring its compensation and ownership arrangements with its Affiliates. The Affiliates’ variable compensation is generally based on each firm’s profitability. BSIG and Affiliate key employees share in profits after variable compensation according to their respective ownership interests. The profit-sharing model results in the alignment of BSIG and Affiliate key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business. The Company conducts its operations through three reportable segments: Quant & Solutions, Alternatives and Liquid Alpha. Prior to 2014, the Company was a wholly-owned subsidiary of Old Mutual plc (“OM plc”), an international long-term savings, protection and investment group, listed on the London Stock Exchange. On October 15, 2014, the Company completed the initial public offering (the “Offering”) by OM plc pursuant to the Securities Act of 1933, as amended. Additionally, between the Offering and February 25, 2019, the Company, OM plc and/or HNA Capital U.S. (“HNA”) completed a series of transactions in the Company’s shares, including a two-step transaction announced on March 25, 2017 for a sale by OM plc of a 24.95% shareholding in the Company to HNA and a two-step transaction announced on November 19, 2018 for a sale of the substantial majority of the ordinary shares held by HNA of the Company to Paulson & Co. (“Paulson”). On February 25, 2019, this transaction was completed, resulting in Paulson holding approximately 21.7% of the ordinary shares of the Company. The remaining shares held by HNA were bought back by the Company in the first quarter of 2019. On July 12, 2019, the Company completed a redomestication process to change its publicly traded parent company from a company incorporated under the laws of England and Wales to a Delaware corporation. The scheme of arrangement pursuant to which the redomestication was effected was approved by the Company’s shareholders and the High Court of Justice of England and Wales. Effective as of the close of business on July 12, 2019, all issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. The common stock of BrightSphere Investment Group Inc. began trading on July 15, 2019, and the Company’s trading symbol on the NYSE remained unchanged as “BSIG.” For the nine months ended September 30, 2019 , the Company repurchased 16,588,838 shares of common stock at an average price of $12.54 per share, or approximately $208.3 million in total, including commissions. For the three months ended September 30, 2019, the Company repurchased 2,787,247 shares of common stock at an average price of $9.10 per share, or approximately $25.4 million in total, including commissions. Change in Segments The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable segments. Because of the change in the Chief Operating Decision Maker (“CODM”) of the Company at the end of 2018, the Company has been undergoing a strategic shift to refocus the Company’s businesses by its various investment strategies. During the third quarter of 2019, the Company realigned the business and reportable segment information that the CODM regularly reviews to evaluate performance for operating decision-making purposes, including performance assessment and allocation of resources. As a result, the Company’s segment reporting structure is based on the Company’s various investment strategies. As a result of the change in segments, effective for the quarter ended September 30, 2019, the Company has the following business segments: • Quant & Solutions —comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor based investment process across a range of asset classes and geographies, including Global, non-U.S., emerging markets and managed volatility equities, as well as multi-asset products. • Alternatives —comprised of illiquid and differentiated liquid investment strategies that include private equity, real estate and real assets, including forestry, as well as a growing suite of liquid alternative capabilities in areas such as long/short, market neutral and absolute return. • Liquid Alpha —comprised of specialized investment strategies with a focus on alpha-generation across market cycles in long-only small-, mid-, and large-cap U.S., global, non-U.S. and emerging markets equities, as well as fixed income. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | The Company’s significant accounting policies are as follows: Basis of presentation These unaudited Condensed Consolidated Financial Statements reflect the historical balance sheets, statements of operations and of comprehensive income, statements of changes in shareholders’ equity and statements of cash flows of the Company. The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All dollar amounts, except per-share data in the text and tables herein, are stated in millions unless otherwise indicated. Material intercompany balances and transactions among the Company and its consolidated Affiliates are eliminated in consolidation. As a result of the redomestication on July 12, 2019, discussed in Note 1, the Company revised its equity accounts to reflect a U.S. domiciled company presentation on the Condensed Consolidated Statements of Changes in Shareholders’ equity and the Condensed Consolidated Balance Sheets for all periods presented. The previously issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. The redomestication and related internal reorganization are accounted for consistent with a reorganization of entities under common control in accordance with ASC 805 Business Combinations . Accordingly, the transfer of the assets and liabilities and exchange of shares was recorded in the new entity (BrightSphere Investment Group Inc.) at their carrying amounts from transferring entity (BrightSphere Investment Group plc) at the date of transfer. The Company has revised certain amounts in prior-period financial statements to conform to the current period’s presentation. The Company changed the presentation of the purchase and sale of investments by its consolidated Funds within cash flows from investing activities in the prior period’s Condensed Consolidated Statements of Cash Flows to conform to the current period’s presentation of showing such purchase and sale of investments within cash flows from operating activities. The change had no impact on the total cash provided by or used in operating, investing or financing activities within the Condensed Consolidated Statements of Cash Flows or any impact on the other Condensed Consolidated Financial Statements. Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (annual report on Form 10-K) are not required to be included on an interim basis in the Company’s quarterly reports on Form 10-Q. The Company has condensed or omitted these disclosures. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019 . The Company’s significant accounting policies, which have been consistently applied, are summarized in those financial statements. Recently adopted accounting standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (“Topic 842”). Topic 842 requires that lessees recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with a lease term greater than 12 months. The Company adopted the standard on January 1, 2019 using the modified retrospective approach, without restating prior comparative periods. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. The Company recorded a ROU asset of approximately $44.2 million and a lease liability of approximately $49.9 million , primarily related to real estate operating leases on January 1, 2019, with no cumulative-effect adjustment to opening retained earnings. The initial recognition of ROU asset and lease liability represented a non-cash activity. The adoption of the new standard had a material impact on the Company’s Condensed Consolidated Balance Sheet, but did not have an impact on our Condensed Consolidated Statement of Operations. The package of three practical expedients applicable to the Company have been elected which resulted in the Company not having to reassess whether expired or existing contracts upon adoption contained a lease. It also allowed the Company to retain the historical classifications of our leases and initial direct costs. The Company has also made an accounting policy election to apply short-term exemption to leases that meet the definition of short-term leases under the new standard. On January 1, 2019, the Company early adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs will be expensed over the term of the hosting arrangement. The adoption of this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures. New accounting standard not yet adopted In June 2016, FASB issued ASU 2016-13, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ” (ASU 2016-13). ASU 2016-13 amends guidance reporting credit losses for financial assets measured at amortized cost and available for sale securities. The new guidance adds an impairment model that is based on expected losses rather than incurred losses. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019 and requires a modified retrospective approach to adoption. The Company expects that the adoption of this standard will not have a material impact on the Company’s Consolidated Financial Statements. Summary of Significant Accounting Policies Leases The Company determines if an arrangement is a lease at inception. The Company’s leases qualify as operating leases and consist primarily of corporate offices, data centers, vehicles and certain equipment. Operating lease liabilities are included in Other liabilities and ROU assets are included in Other assets on the Condensed Consolidated Balance Sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments are comprised of the following as of the dates indicated (in millions): September 30, December 31, Investments of consolidated Funds held at fair value $ 124.6 $ 124.8 Other investments held at fair value 102.4 104.8 Investments related to long-term incentive compensation plans held at fair value 95.4 91.8 Total investments held at fair value 322.4 321.4 Equity-accounted investments in Affiliates and consolidated Funds (1) 56.2 1.9 Total investments per Condensed Consolidated Balance Sheets $ 378.6 $ 323.3 (1) Equity-accounted investments in consolidated Funds is comprised of Investments in partnership interests where a portion of return includes carried interest. These investments are accounted for within the scope of ASC 323, Investments - Equity Method and Joint Ventures because the Company has determined it has significant influence. In August 2017, the Company executed a non-binding term sheet to sell its stake in Heitman LLC to Heitman’s management for cash consideration totaling $110 million . Pursuant to this term sheet, BSIG entered into a redemption agreement on November 17, 2017 and the Company reclassified its investment in Heitman to a cost method investment. The transaction closed on January 5, 2018 and resulted in a gain of $65.7 million included in the table below. Investment income is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Realized and unrealized gains (losses) on other investments held at fair value $ 1.5 $ 3.1 $ 9.3 $ 1.8 Investment return of equity-accounted investments in Affiliates 0.8 0.8 2.1 2.1 Gain on sale of Affiliate carried at cost — — — 65.7 Total investment income per Condensed Consolidated Statements of Operations $ 2.3 $ 3.9 $ 11.4 $ 69.6 Investment gains (losses) on net consolidated funds is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Realized and unrealized gains (losses) on consolidated Funds held at fair value $ (0.4 ) $ (1.1 ) $ 2.6 $ (6.8 ) Investment return of equity-accounted investments 5.1 — 11.2 — Total net consolidated Funds’ investment gains (losses) per Condensed Consolidated Statements of Operations $ 4.7 $ (1.1 ) $ 13.8 $ (6.8 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2019 (in millions): Quoted prices in active markets (Level I) Significant other observable inputs (Level II) Significant unobservable inputs (Level III) Uncategorized Total value, Assets of BSIG and consolidated Funds (1) Common and preferred stock $ 10.3 $ — $ — $ — $ 10.3 Short-term investment funds 1.4 — — — 1.4 Bank loans — 107.9 — — 107.9 Other investments 4.2 — — — 4.2 Derivatives 0.5 0.3 — — 0.8 Consolidated Funds total 16.4 108.2 — — 124.6 Investments in separate accounts (2) 35.2 10.7 — — 45.9 Investments related to long-term incentive compensation plans (3) 95.4 — — — 95.4 Investments in unconsolidated Funds (4) — — 3.0 53.5 56.5 BSIG total 130.6 10.7 3.0 53.5 197.8 Total fair value assets $ 147.0 $ 118.9 $ 3.0 $ 53.5 $ 322.4 Liabilities of consolidated Funds (1) Common stock $ (0.9 ) $ — $ — $ — $ (0.9 ) Derivatives (0.6 ) (0.1 ) — — (0.7 ) Consolidated Funds total (1.5 ) (0.1 ) — — (1.6 ) Total fair value liabilities $ (1.5 ) $ (0.1 ) $ — $ — $ (1.6 ) The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2018 (in millions): Quoted prices in active markets (Level I) Significant other observable inputs (Level II) Significant unobservable inputs (Level III) Uncategorized Total value December 31, 2018 Assets of BSIG and consolidated Funds (1) Common and preferred stock $ 13.8 $ — $ — $ — $ 13.8 Short-term investment funds 2.2 — — — 2.2 Bank loans — 63.9 — — 63.9 Other investments 3.7 — — 38.8 42.5 Derivatives 2.2 0.2 — — 2.4 Consolidated Funds total 21.9 64.1 — 38.8 124.8 Investments in separate accounts (2) 35.0 8.2 — — 43.2 Investments related to long-term incentive compensation plans (3) 91.8 — — — 91.8 Investments in unconsolidated Funds (4) — — 3.0 58.6 61.6 BSIG total 126.8 8.2 3.0 58.6 196.6 Total fair value assets $ 148.7 $ 72.3 $ 3.0 $ 97.4 $ 321.4 Liabilities of consolidated Funds (1) Common stock $ (0.8 ) $ — $ — $ — $ (0.8 ) Derivatives (0.8 ) (0.1 ) — — (0.9 ) Consolidated Funds total (1.6 ) (0.1 ) — — (1.7 ) Total fair value liabilities $ (1.6 ) $ (0.1 ) $ — $ — $ (1.7 ) (1) Assets and liabilities measured at fair value are comprised of financial investments managed by the Company's Affiliates. Equity securities, including common and preferred stock, short-term investment funds, other investments and derivatives which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I. These securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II. The Company obtains prices from independent pricing services that may utilize broker quotes, but generally the independent pricing services will use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Company has not made adjustments to the prices provided. Assets of consolidated Funds also include investments in bank loans. Interests in senior floating-rate loans for which reliable market participant quotations are readily available are valued at the average mid-point of bid and ask quotations obtained from a third party pricing service. These assets are classified as Level II. If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model, such securities are classified as Level III. If the pricing services are unable to provide prices, the Company attempts to obtain one or more broker quotes directly from a dealer or values such securities at the last bid price obtained. In either case, such securities are classified as Level III. The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures. The uncategorized amount of $0.0 million and $38.8 million at September 30, 2019 and December 31, 2018 , respectively, represents investments made by consolidated Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These consolidated Funds consist of real estate and private equity investment Funds. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. (2) Investments in separate accounts of $45.9 million at September 30, 2019 consist of approximately 9% of cash equivalents and 91% of equity securities, fixed income securities, and other investments. Investments in separate accounts of $43.2 million at December 31, 2018 consist of approximately 11% of cash equivalents and 89% of equity securities, fixed income securities, and other investments. The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II). (3) Investments related to long term compensation plans of $95.4 million and $91.8 million at September 30, 2019 and December 31, 2018 , respectively, are investments in publicly registered daily redeemable funds (some managed by Affiliates), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I. (4) The uncategorized amounts of $53.5 million and $58.6 million at September 30, 2019 and December 31, 2018 , respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds advised by Affiliates and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investment Funds, UCITS and other investment vehicles. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. The real estate investment Funds of $6.2 million and $12.3 million at September 30, 2019 and December 31, 2018 , respectively, are subject to longer than quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds. The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year to eleven years from September 30, 2019 . The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams. The valuations are then reviewed and approved by the valuation committee, which consists of senior members of the portfolio management, acquisitions, and research teams. For certain properties and loans, the valuation process may also include a valuation by independent appraisers. In connection with this process, changes in fair-value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions. Investments in unconsolidated Funds categorized as Level III of $3.0 million and $3.0 million at September 30, 2019 and December 31, 2018 , respectively, relate to investments in Timber Funds advised by Affiliates and are valued by the general partner of those Funds. Determination of estimated fair value involves subjective judgment because the actual fair value can be determined only through negotiation between parties in a sale transaction, and amounts ultimately realized may vary significantly from their fair value presented. The following table reconciles the opening balances of Level III financial assets to closing balances at the end of the period (in millions): Consolidated Funds’ other investments Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Level III financial assets At beginning of the period $ — $ 26.5 $ — $ — Additions (redemptions) — — — — Transfers into Level III — — — 26.5 Funds de-consolidation — (26.5 ) — (26.5 ) Total net fair value losses recognized in net income — — — — Total Level III financial assets $ — $ — $ — $ — Investments in unconsolidated Funds Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Level III financial assets At beginning of the period $ 3.0 $ 5.2 $ 3.0 $ — Additions (redemptions) 0.1 (0.3 ) 0.1 (0.3 ) Transfers into Level III — — — — Change in recognition based on adoption of ASU 2016-01 — — — 6.4 Total net fair value losses recognized in net income (0.1 ) (0.3 ) (0.1 ) (1.5 ) Total Level III financial assets $ 3.0 $ 4.6 $ 3.0 $ 4.6 There were no significant transfers of financial assets or liabilities among Levels I, II or III during the three and nine months ended September 30, 2019 . During the nine months ended September 30, 2018 , the Company transferred $26.5 million of Consolidated Funds’ other investments into Level III. These investments were not previously classified on the fair value hierarchy. The Fund was de-consolidated during the three months ended September 30, 2018. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities | |
Variable Interest Entities | The Company, through its Affiliates, sponsors the formation of various entities considered to be variable interest entities (“VIEs”). These VIEs are primarily Funds managed by Affiliates and other partnership interests typically owned entirely by third party investors. Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Affiliate key employees and/or individuals that own minority interests in an Affiliate. The Company’s determination of whether it is the primary beneficiary of a Fund that is a VIE is based in part on an assessment of whether or not the Company and its related parties are exposed to absorb more than an insignificant amount of the risks and rewards of the entity. Typically the Fund’s investors are entitled to substantially all of the economics of these VIEs with the exception of the management fees and performance fees, if any, earned by the Company or any investment the Company has made into the Funds. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest, including interests of related parties, is substantial. The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions): 9/30/2019 12/31/2018 Assets Investments at fair value $ 124.6 $ 124.8 Other assets of consolidated Funds 72.9 19.8 Total Assets $ 197.5 $ 144.6 Liabilities Liabilities of consolidated Funds $ 10.9 $ 14.9 Total Liabilities $ 10.9 $ 14.9 “Investments at fair value” consist of investments in bank loans, common and preferred stock, and other securities. To the extent the Company also has consolidated Funds that are not VIEs, the assets and liabilities of those Funds are not included in the table above. The assets of consolidated VIEs presented in the table above belong to the investors in those Funds, are available for use only by the Fund to which they belong, and are not available for use by the Company to the extent they are held by non-controlling interests. Any debt or liabilities held by consolidated Funds have no recourse to the Company's general credit. The Company’s involvement with Funds that are VIEs and not consolidated by the Company is generally limited to that of an investment manager and its investment in the unconsolidated VIE, if any. The Company’s investment in any unconsolidated VIE generally represents an insignificant interest of the Fund’s net assets and assets under management, such that the majority of the VIEs results are attributable to third parties. The Company’s exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected management fees. The Company has not issued any investment performance guarantees to these VIEs or their investors. The following information pertains to unconsolidated VIEs for which the Company holds a variable interest (in millions): September 30, December 31, Unconsolidated VIE assets $ 6,638.5 $ 4,814.9 Unconsolidated VIE liabilities $ 4,317.6 $ 2,115.1 Equity interests on the Condensed Consolidated Balance Sheets $ 17.0 $ 22.5 Maximum risk of loss (1) $ 23.4 $ 31.0 (1) Includes equity investments the Company has made or is required to make and any earned but uncollected management and incentive fees. The Company does not record performance or incentive allocations until the respective measurement period has ended. |
Borrowings and Debt
Borrowings and Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings and Debt | The Company’s borrowings and long-term debt was comprised of the following as of the dates indicated (in millions): September 30, 2019 December 31, 2018 Carrying value (1) Fair Value Fair Value Level Carrying value (1) Fair Value Fair Value Level $450 million revolving credit facility expiring August 22, 2022 (2) (3) $ 175.0 $ 175.0 2 $ — $ — Non-recourse seed capital facility expiring July 17, 2020 (3) $ 35.0 $ 35.0 2 $ — $ — Long-term bonds: $275 million 4.80% Senior Notes Due July 27, 2026 $ 272.3 $ 285.9 2 $ 272.2 $ 266.0 2 $125 million 5.125% Senior Notes Due August 1, 2031 $ 121.3 $ 124.3 2 $ 121.1 $ 102.3 2 Total borrowings and long-term debt $ 603.6 $ 620.2 $ 393.3 $ 368.3 (1) The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts. (2) Revolving credit facility of $350 million set to expire on October 15, 2019 was terminated. A new revolving credit facility of $450 million was executed on August 20, 2019. (3) Fair value approximates carrying value because the credit facilities have variable interest rates based on selected short term market rates. On August 20, 2019, the Company entered into a $450 million senior unsecured revolving credit facility with Citibank, as administrative agent and issuing bank, and RBC Capital Markets and BMO Capital Markets Corp. as joint lead arrangers and joint book runners (the “Credit Facility”). Subject to certain conditions, the Company may borrow up to an additional $150 million under the Credit Facility. The Credit Facility has a maturity day of August 22, 2022. The previous revolving credit facility with Citibank, which had a maturity date of October 15, 2019, was terminated. Upon entry into the Credit Facility, the Company made an initial drawdown of $210 million under the Credit Facility to fully repay the $210 million outstanding under its existing credit facility. The Company paid down $35 million of the amount outstanding of the Credit Facility during the third quarter. Borrowings under the Credit Facility bear interest, at the Company’s option, at either the per annum rate equal to (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the one month Adjusted LIBO Rate plus 1.0% , plus, in each case an additional amount based on its credit rating or (b) the London interbank offered rate for a period, at the Company’s election, equal to one, two, three or six months plus an additional amount ranging from 1.125% to 2.00% , with such additional amount based on its credit rating. In addition, the Company is charged a commitment fee based on the average daily unused portion of the Credit Facility at a per annum rate ranging from 0.125% to 0.45% , with such amount based on the Company’s credit rating. Moody’s Investor Service, Inc. and Standard & Poor’s have each assigned an investment-grade rating to the Company’s senior, unsecured long-term indebtedness. As a result of the assignment of the credit ratings, the Company’s interest rate on outstanding borrowings was set at LIBOR plus 1.50% and the commitment fee on the unused portion of the revolving credit facility was set at 0.20% . Under the Credit Facility, the ratio of the third-party borrowings to trailing twelve months Adjusted EBITDA cannot exceed 3.0 x, and the interest coverage ratio must not be less than 4.0 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | The Company has operating leases for corporate offices, data centers, vehicles and certain equipment. The operating leases have remaining lease terms of 1 year to 6 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. As of September 30, 2019 , the ROU asset of $40.3 million was included within Other assets and the lease liability of $45.3 million was included within Other liabilities on the Condensed Consolidated Balance Sheet. The following table summarizes information about the Company’s operating leases for the three and nine months ended September 30, 2019 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Operating lease cost $ 3.4 $ 10.3 Variable lease cost 0.1 0.2 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 3.7 11.0 ROU asset obtained in exchange for new operating lease liabilities 0.1 5.5 In determining the incremental borrowing rate, the Company considered the interest rate yield for the specific interest rate environment and the Company’s credit spread at the inception of the lease. For the nine months ended September 30, 2019 , the weighted average remaining lease term was 4.47 years and the weighted average discount rate was 4.13% . Maturities of operating lease liabilities were as follows (in millions): Operating Leases Year Ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 3.6 2020 14.0 2021 13.0 2022 8.9 2023 3.5 Thereafter 7.0 Total lease payments 50.0 Less imputed interest (4.7 ) Total $ 45.3 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Operational commitments The Company had unfunded commitments to invest up to approximately $48 million in co-investments as of September 30, 2019 . These commitments will be funded as required through the end of the respective investment periods ranging through fiscal 2022 . Certain Affiliates operate under regulatory authorities that require that they maintain minimum financial or capital requirements. Management is not aware of any violations of such financial requirements occurring during the period. Litigation The Company and its Affiliates are subject to claims, legal proceedings and other contingencies in the ordinary course of their business activities. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company or its Affiliates. The Company and its Affiliates establish accruals for matters for which the outcome is probable and can be reasonably estimated. If an insurance claim or other indemnification for a litigation accrual is available to the Company, the associated gain will not be recognized until all contingencies related to the gain have been resolved. As of September 30, 2019 , there were no material accruals for claims, legal proceedings or other contingencies. Indemnifications In the normal course of business, such as through agreements to enter into business combinations and divestitures of Affiliates, the Company enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. Foreign tax contingency The Company has clients in non-U.S. jurisdictions which require entities that are conducting certain business activities in such jurisdictions to collect and remit tax assessed on certain fees paid for goods and services provided. The Company does not believe this requirement is applicable based on its limited business activities in these jurisdictions. However, given the fact that uncertainty exists around the requirement, the Company has chosen to evaluate its potential exposure related to non-collection and remittance of these taxes. At September 30, 2019 , management of the Company has estimated the potential maximum exposure and concluded that it is not material. No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at September 30, 2019 . Considerations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and investments. The Company maintains cash and cash equivalents and short term investments with various financial institutions. These financial institutions are typically located in cities in which the Company and its Affiliates operate. For the Company and certain Affiliates, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. Additionally, the Company holds insurance policies which cover historical and future tax benefits relating to certain of its deferred tax assets. The insurers of the policies are considered a significant counterparty to the Company. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share is calculated by dividing net income attributable to controlling interests by the weighted-average number of shares of common stock outstanding. Diluted earnings per share is similar to basic earnings per share, but is adjusted for the effect of potentially issuable common stock, except when inclusion is antidilutive. The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income attributable to controlling interests $ 75.4 $ 54.0 $ 156.1 $ 113.4 Less: Total income available to participating unvested securities (1) — (0.2 ) (0.1 ) (0.4 ) Total net income attributable to common stock $ 75.4 $ 53.8 $ 156.0 $ 113.0 Denominator: Weighted-average shares of common stock outstanding—basic 89,970,871 106,363,714 92,996,289 108,057,432 Potential shares of common stock: Restricted stock units 1,429 150,995 79,775 174,278 Weighted-average shares of common stock outstanding—diluted 89,972,300 106,514,709 93,076,064 108,231,710 Earnings per share of common stock attributable to controlling interests: Basic $ 0.84 $ 0.51 $ 1.68 $ 1.05 Diluted $ 0.84 $ 0.51 $ 1.68 $ 1.04 (1) Income available to participating unvested securities includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings. Employee options to purchase 8,970,000 shares were not included in the computation of diluted EPS for the three and nine months ended September 30, 2019 because the assumed proceeds from exercising such options exceed the average price of the shares of common stock for the period and, therefore, the options are deemed antidilutive. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Management fees The Company’s management fees are a function of the fee rates the Affiliates charge to their clients, which are typically expressed in basis points, and the levels of the Company’s assets under management. The greatest driver of increases or decreases in this average fee rate is changes in the mix of the Company’s assets under management caused by net inflows or outflows in certain asset classes or disproportionate market movements. Performance fees The Company’s alternative products subject to performance fees earn these fees upon exceeding high-water mark performance thresholds or outperforming a hurdle rate. Conversely, the separate accounts / other products, which primarily earn management fees, are potentially subject to performance adjustments up or down based on investment performance versus benchmarks (i.e. fulcrum fees). Other revenue Included in other revenue are certain payroll and benefits costs and expenses paid on behalf of Funds by the Company’s Affiliates. In instances where a customer reimburses the Company for a cost paid on the customer’s behalf, the Company is acting as a principal and the reimbursement is accrued on a gross basis at cost as the corresponding reimbursable expenses are incurred. Revenue from expense reimbursement amounted to $0.9 million and $ 1.1 million for the three months ended September 30, 2019 and 2018 , respectively. Revenue from expense reimbursement amounted to $ 3.2 million and $ 6.1 million for the nine months ended September 30, 2019 and 2018 , respectively, and is recorded in other revenue in the Company’s Condensed Consolidated Statements of Operations. Other revenue may also consist of other miscellaneous revenue, consisting primarily of administration and consulting services. Disaggregation of management fee revenue The Company classifies its revenue (including only consolidated Affiliates that are included in management fee revenue) among the following asset classes: i. U.S. equity, which includes small cap through large cap securities and substantially value or blended investment styles; ii. Global / non-U.S. equity, which includes global and international equities including emerging markets; iii. Fixed income, which includes government bonds, corporate bonds and other fixed income investments in the United States; and iv. Alternatives, which is comprised of illiquid and differentiated liquid investment strategies that include private equity, real estate and real assets, including forestry, as well as a growing suite of liquid alternative capabilities in areas such as long/short, market neutral and absolute return. Management fee revenue by segment and asset class is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Quant & Solutions Global / non-U.S. equity 92.7 95.9 276.8 288.7 Alternatives Alternatives 37.2 54.6 124.5 164.5 Liquid Alpha Global / non-U.S. equity 21.9 27.1 70.6 89.1 Fixed income 6.6 6.7 19.5 20.3 U.S. equity 38.0 45.3 118.4 138.4 Management fee revenue $ 196.4 $ 229.6 $ 609.8 $ 701.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2019 and 2018 are as follows (in millions): Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of June 30, 2019 $ 1.7 $ (21.5 ) $ (19.8 ) Foreign currency translation adjustment (0.8 ) — (0.8 ) Amortization related to derivatives securities, before tax — 0.7 0.7 Tax impact — (0.1 ) (0.1 ) Other comprehensive income (loss) (0.8 ) 0.6 (0.2 ) Balance, as of September 30, 2019 $ 0.9 $ (20.9 ) $ (20.0 ) Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of June 30, 2018 $ 2.7 $ (23.9 ) $ (21.2 ) Foreign currency translation adjustment (0.4 ) — (0.4 ) Amortization related to derivatives securities, before tax — 0.7 0.7 Tax impact — (0.1 ) (0.1 ) Other comprehensive income (loss) (0.4 ) 0.6 0.2 Balance, as of September 30, 2018 $ 2.3 $ (23.3 ) $ (21.0 ) The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2019 and 2018 were as follows (in millions): Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of December 31, 2018 $ 1.8 $ (22.7 ) $ (20.9 ) Foreign currency translation adjustment (0.9 ) — (0.9 ) Amortization related to derivatives securities, before tax — 2.2 2.2 Tax impact — (0.4 ) (0.4 ) Other comprehensive income (loss) (0.9 ) 1.8 0.9 Balance, as of September 30, 2019 $ 0.9 $ (20.9 ) $ (20.0 ) Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of December 31, 2017 $ 3.5 $ (25.1 ) $ (21.6 ) Foreign currency translation adjustment (1.2 ) — (1.2 ) Amortization related to derivatives securities, before tax — 2.1 2.1 Tax impact — (0.3 ) (0.3 ) Other comprehensive income (loss) (1.2 ) 1.8 0.6 Balance, as of September 30, 2018 $ 2.3 $ (23.3 ) $ (21.0 ) For the three months ended September 30, 2019 and 2018 , the Company reclassified $0.7 million and $0.7 million from accumulated other comprehensive income (loss) to interest expense on the Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2019 and 2018 , the Company reclassified $2.2 million and $2.1 million from accumulated other comprehensive income (loss) to interest expense on the Condensed Consolidated Statements of Operations. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Cash flow hedge In July 2015, the Company entered into a series of $300.0 million notional Treasury rate lock contracts which were designated and qualified as cash flow hedges. The Company documented its hedging strategy and risk management objective for this contract in anticipation of a future debt issuance. The Treasury rate lock contract eliminated the impact of fluctuations in the underlying benchmark interest rate for future forecasted debt issuances. The forecasted debt issuances occurred in July 2016 and the Treasury rate lock, which had an accumulated fair value of $(34.4) million , was settled. Refer to Note 6, Borrowings and Debt, for additional information on the debt issuances. As of September 30, 2019 , the balance recorded in accumulated other comprehensive income (loss) was $(20.9) million , net of tax. This balance will be reclassified to earnings through interest expense over the life of the issued debt. Amounts of $0.7 million and $0.7 million have been reclassified for the three months ended September 30, 2019 and 2018 , respectively, and amounts of $2.2 million and $2.1 million have been reclassified for the nine months ended September 30, 2019 and 2018 , respectively. During the next twelve months the Company expects to reclassify approximately $3.1 million to interest expense. Derivatives of consolidated Funds In the normal course of business, the Company’s consolidated Funds may enter into transactions involving derivative financial instruments in connection with Funds’ investing activities. Derivative instruments may be used as substitutes for securities in which the Funds can invest, to hedge portfolio investments or to generate income or gain to the Funds. The Funds may also use derivatives to manage duration; sector and yield curve exposures and credit and spread volatility. Derivative financial instruments base their value upon an underlying asset, index or reference rate. These instruments are subject to various risks, including leverage, market, credit, liquidity and operational risks. The Funds manage the risks associated with derivatives on an aggregate basis, along with the risks associated with its trading and as part of its overall risk management policies. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Change in Segments During the third quarter of 2019, the Company realigned the information that the Chief Operating Decision Maker (“CODM”) regularly reviews to evaluate performance for operating decision-making purposes, including performance assessment and allocation of resources. As a result of this change in segment reporting (see Note 1), the Company retrospectively revised prior period results, by segment, to conform to the current period presentation. This structure includes three reportable segments: Quant & Solutions, Alternatives, and Liquid Alpha. The structure is based on the Company’s various investment strategies. As a result of the change noted above, effective for the quarter ended September 30, 2019, the Company began reporting the following business segments: • Quant & Solutions —comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor based investment process across a range of asset classes and geographies, including Global, non-U.S., emerging markets and managed volatility equities, as well as multi-asset products. • Alternatives —comprised of illiquid and differentiated liquid investment strategies that include private equity, real estate and real assets, including forestry, as well as a growing suite of liquid alternative capabilities in areas such as long/short, market neutral and absolute return. • Liquid Alpha —comprised of specialized investment strategies with a focus on alpha-generation across market cycles in long-only small-, mid-, and large-cap U.S., global, non-U.S. and emerging markets equities, as well as fixed income. The Company has a corporate head office that is included in “Other”. The corporate head office supports the segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, strategy and relationship management, legal, compliance and human resources. The corporate head office expenses are not allocated to the Company’s three business segments but the CODM does consider the cost structure of the corporate head office when evaluating the financial performance of the segments. Performance Measure The primary measure used by the CODM in measuring performance and allocating resources to the segments is Economic Net Income ("ENI"). The Company defines economic net income for the segments as ENI revenue less (i) ENI operating expenses, (ii) variable compensation and (iii) key employee distributions. The ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP. This measure supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with U.S. GAAP. The Company does not disclose total asset information for its reportable segments as the information is not reviewed by the CODM. ENI revenue includes management fees, performance fees and other revenue under U.S. GAAP, adjusted to include management fees paid to Affiliates by consolidated Funds and the Company’s share of earnings from equity-accounted Affiliates. ENI revenue is also adjusted to exclude the separate revenues recorded under U.S. GAAP for certain Fund expenses reimbursed to our Affiliates. ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, non-cash amortization of acquisition-related contingent consideration, as well as the value of employee equity owned pre-acquisition, that occurred as a result of Landmark transaction, and the separate expenses recorded under U.S. GAAP for certain Fund expenses reimbursed to Affiliates. Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses. ENI segment results are also adjusted to exclude the portion of consolidated Fund revenues, expenses and investment return recorded under U.S. GAAP. Segment Presentation The following tables set forth summarized operating results for the Company's three segments and related adjustments necessary to reconcile the segment economic net income to arrive at the Company's consolidated U.S. GAAP net income (loss): The following table presents the financial data for the Company’s three segments for the three months ended September 30, 2019 (in millions): Three Months Ended September 30, 2019 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 93.1 $ 37.4 $ 65.2 $ 0.1 $ 2.0 (a) $ 197.8 ENI operating expenses 40.8 16.1 18.5 8.3 5.5 (b) 89.2 Earnings before variable compensation 52.3 21.3 46.7 (8.2 ) (3.5 ) 108.6 Variable compensation 18.8 7.8 15.6 1.9 — 44.1 ENI operating earnings (after variable comp) 33.5 13.5 31.1 (10.1 ) (3.5 ) 64.5 Affiliate key employee distributions 1.5 5.0 6.1 — — 12.6 Earnings after Affiliate key employee distributions 32.0 8.5 25.0 (10.1 ) (3.5 ) 51.9 Net interest income (expense) — — — (5.7 ) (2.2 ) (d) (7.9 ) Net investment income — — — — 7.0 (e) 7.0 Net income attributable to non-controlling interests in consolidated Funds — — — — (7.6 ) (e) (7.6 ) Income tax (expense) benefit — — — (12.3 ) 44.3 (f) 32.0 Economic net income $ 32.0 $ 8.5 $ 25.0 $ (28.1 ) $ 38.0 $ 75.4 The following table presents the financial data for the Company’s three segments for the three months ended September 30, 2018 (in millions): Three Months Ended September 30, 2018 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 97.0 $ 54.6 $ 76.9 $ 0.1 $ 1.5 (a) $ 230.1 ENI operating expenses 37.5 15.5 21.0 9.6 55.5 (b) 139.1 Earnings before variable compensation 59.5 39.1 55.9 (9.5 ) (54.0 ) 91.0 Variable compensation 21.1 14.3 18.6 3.2 — 57.2 ENI operating earnings (after variable comp) 38.4 24.8 37.3 (12.7 ) (54.0 ) 33.8 Affiliate key employee distributions 2.4 10.1 8.0 — — 20.5 Earnings after Affiliate key employee distributions 36.0 14.7 29.3 (12.7 ) (54.0 ) 13.3 Net interest income (expense) — — — (3.1 ) (2.3 ) (d) (5.4 ) Net investment income (loss) — — — — 2.8 (e) 2.8 Net (income) loss attributable to non-controlling interests in consolidated Funds — — — — (0.2 ) (e) (0.2 ) Income tax (expense) benefit — — — (15.4 ) 58.8 (f) 43.4 Gain (loss) on disposal of discontinued operations, net of tax — — — — 0.1 (e) 0.1 Economic net income $ 36.0 $ 14.7 $ 29.3 $ (31.2 ) $ 5.2 $ 54.0 The following table presents the financial data for the Company’s three segments for the nine months ended September 30, 2019 (in millions): Nine Months Ended September 30, 2019 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 277.3 $ 125.7 $ 202.8 $ 0.3 $ 6.0 (a) $ 612.1 ENI operating expenses 120.4 49.4 60.0 25.4 4.8 (b) 260.0 Earnings before variable compensation 156.9 76.3 142.8 (25.1 ) 1.2 352.1 Variable compensation 57.6 28.0 48.1 7.5 4.6 (c) 145.8 ENI operating earnings (after variable comp) 99.3 48.3 94.7 (32.6 ) (3.4 ) 206.3 Affiliate key employee distributions 4.1 17.1 18.6 — — 39.8 Earnings after Affiliate key employee distributions 95.2 31.2 76.1 (32.6 ) (3.4 ) 166.5 Net interest income (expense) — — — (15.4 ) (6.9 ) (d) (22.3 ) Net investment income (loss) — — — — 25.2 (e) 25.2 Net (income) loss attributable to non-controlling interests in consolidated Funds — — — — (9.6 ) (e) (9.6 ) Income tax (expense) benefit — — — (36.9 ) 33.2 (f) (3.7 ) Economic net income $ 95.2 $ 31.2 $ 76.1 $ (84.9 ) $ 38.5 $ 156.1 The following table presents the financial data for the Company’s three segments for the nine months ended September 30, 2018 (in millions: Nine Months Ended September 30, 2018 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 295.2 $ 170.0 $ 241.6 $ 0.3 $ 6.6 (a) $ 713.7 ENI operating expenses 107.2 46.7 64.1 31.6 164.6 (b) 414.2 Earnings before variable compensation 188.0 123.3 177.5 (31.3 ) (158.0 ) 299.5 Variable compensation 67.0 45.7 58.2 11.5 — 182.4 ENI operating earnings (after variable comp) 121.0 77.6 119.3 (42.8 ) (158.0 ) 117.1 Affiliate key employee distributions 8.4 28.5 26.0 — — 62.9 Earnings after Affiliate key employee distributions 112.6 49.1 93.3 (42.8 ) (158.0 ) 54.2 Net interest income (expense) — — — (10.8 ) (5.9 ) (d) (16.7 ) Net investment income — — — — 62.8 (e) 62.8 Net loss attributable to non-controlling interests in consolidated Funds — — — — 1.9 (e) 1.9 Income tax (expense) benefit — — — (47.2 ) 58.3 (f) 11.1 Gain on disposal of discontinued operations, net of tax — — — — 0.1 (e) 0.1 Economic net income $ 112.6 $ 49.1 $ 93.3 $ (100.8 ) $ (40.8 ) $ 113.4 (1) The U.S. GAAP equivalent of ENI revenue is U.S. GAAP revenue. The U.S. GAAP equivalent of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation and Affiliate key employee distributions above. The U.S. GAAP equivalent of earnings after Affiliate key employee distributions is U.S. GAAP operating Income. The U.S. GAAP equivalent of Economic Net Income is U.S. GAAP net income attributable to controlling interests. Reconciling Adjustments: (a) Adjusted to exclude earnings from equity-accounted Affiliates, which are included in U.S. GAAP investment income, and to include consolidated Funds revenues and the separate revenues recorded for certain Fund expenses reimbursed by customers, which are included in U.S. GAAP revenue. (b) Adjusted to include non-cash amortization expense for acquisition-related consideration and pre-acquisition employee equity, non-cash expenses for key employee equity and profit interest revaluations, capital transaction costs, restructuring costs, consolidated Funds’ operating expenses and the Fund expenses reimbursed by customers, each of which are included in U.S. GAAP operating expenses. (c) Adjusted to include restructuring costs, which are included in U.S. GAAP compensation expense. (d) Adjusted to include the cost of seed financing, which is included in U.S. GAAP interest expense. (e) Adjusted to include net investment income (loss), net income (loss) attributable to non-controlling interests in consolidated Funds, and the gain on disposal of discontinued operations, all of which are included in U.S. GAAP net income attributable to controlling interests. (f) Adjusted to include the impact of deferred taxes resulting from changes in tax law and the amortization of goodwill and acquired intangibles. Also adjusted to include tax expense or benefits relating to uncertain tax positions, the tax impact of certain ENI adjustments and other unusual items that are not included in current operating results for ENI purposes. Management fee revenue by principal geographic area is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 U.S. $ 148.2 $ 173.7 $ 459.4 $ 533.8 Non-U.S. 48.2 55.9 150.4 167.2 Management fee revenue $ 196.4 $ 229.6 $ 609.8 $ 701.0 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | During the third quarter of 2019, an Affiliate provided a loan to Affiliate employees to be used to repurchase Affiliate equity. At September 30, 2019 the balance of the loan to Affiliate employees was $5.1 million |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These unaudited Condensed Consolidated Financial Statements reflect the historical balance sheets, statements of operations and of comprehensive income, statements of changes in shareholders’ equity and statements of cash flows of the Company. The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All dollar amounts, except per-share data in the text and tables herein, are stated in millions unless otherwise indicated. Material intercompany balances and transactions among the Company and its consolidated Affiliates are eliminated in consolidation. As a result of the redomestication on July 12, 2019, discussed in Note 1, the Company revised its equity accounts to reflect a U.S. domiciled company presentation on the Condensed Consolidated Statements of Changes in Shareholders’ equity and the Condensed Consolidated Balance Sheets for all periods presented. The previously issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. The redomestication and related internal reorganization are accounted for consistent with a reorganization of entities under common control in accordance with ASC 805 Business Combinations . Accordingly, the transfer of the assets and liabilities and exchange of shares was recorded in the new entity (BrightSphere Investment Group Inc.) at their carrying amounts from transferring entity (BrightSphere Investment Group plc) at the date of transfer. The Company has revised certain amounts in prior-period financial statements to conform to the current period’s presentation. The Company changed the presentation of the purchase and sale of investments by its consolidated Funds within cash flows from investing activities in the prior period’s Condensed Consolidated Statements of Cash Flows to conform to the current period’s presentation of showing such purchase and sale of investments within cash flows from operating activities. The change had no impact on the total cash provided by or used in operating, investing or financing activities within the Condensed Consolidated Statements of Cash Flows or any impact on the other Condensed Consolidated Financial Statements. Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (annual report on Form 10-K) are not required to be included on an interim basis in the Company’s quarterly reports on Form 10-Q. The Company has condensed or omitted these disclosures. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019 . The Company’s significant accounting policies, which have been consistently applied, are summarized in those financial statements. |
Recently adopted accounting pronouncements | Recently adopted accounting standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (“Topic 842”). Topic 842 requires that lessees recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with a lease term greater than 12 months. The Company adopted the standard on January 1, 2019 using the modified retrospective approach, without restating prior comparative periods. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. The Company recorded a ROU asset of approximately $44.2 million and a lease liability of approximately $49.9 million , primarily related to real estate operating leases on January 1, 2019, with no cumulative-effect adjustment to opening retained earnings. The initial recognition of ROU asset and lease liability represented a non-cash activity. The adoption of the new standard had a material impact on the Company’s Condensed Consolidated Balance Sheet, but did not have an impact on our Condensed Consolidated Statement of Operations. The package of three practical expedients applicable to the Company have been elected which resulted in the Company not having to reassess whether expired or existing contracts upon adoption contained a lease. It also allowed the Company to retain the historical classifications of our leases and initial direct costs. The Company has also made an accounting policy election to apply short-term exemption to leases that meet the definition of short-term leases under the new standard. On January 1, 2019, the Company early adopted ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs will be expensed over the term of the hosting arrangement. The adoption of this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures. New accounting standard not yet adopted In June 2016, FASB issued ASU 2016-13, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ” (ASU 2016-13). ASU 2016-13 amends guidance reporting credit losses for financial assets measured at amortized cost and available for sale securities. The new guidance adds an impairment model that is based on expected losses rather than incurred losses. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019 and requires a modified retrospective approach to adoption. The Company expects that the adoption of this standard will not have a material impact on the Company’s Consolidated Financial Statements. |
Leases | Leases The Company determines if an arrangement is a lease at inception. The Company’s leases qualify as operating leases and consist primarily of corporate offices, data centers, vehicles and certain equipment. Operating lease liabilities are included in Other liabilities and ROU assets are included in Other assets on the Condensed Consolidated Balance Sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company elected both at transition and on an ongoing basis, to combine lease and non-lease components in calculating the lease liability and ROU asset for all operating leases. |
Investment (Tables)
Investment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Schedule of investment components | Investments are comprised of the following as of the dates indicated (in millions): September 30, December 31, Investments of consolidated Funds held at fair value $ 124.6 $ 124.8 Other investments held at fair value 102.4 104.8 Investments related to long-term incentive compensation plans held at fair value 95.4 91.8 Total investments held at fair value 322.4 321.4 Equity-accounted investments in Affiliates and consolidated Funds (1) 56.2 1.9 Total investments per Condensed Consolidated Balance Sheets $ 378.6 $ 323.3 (1) Equity-accounted investments in consolidated Funds is comprised of Investments in partnership interests where a portion of return includes carried interest. These investments are accounted for within the scope of ASC 323, Investments - Equity Method and Joint Ventures because the Company has determined it has significant influence. |
Investment income including realized gain loss on investments | Investment income is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Realized and unrealized gains (losses) on other investments held at fair value $ 1.5 $ 3.1 $ 9.3 $ 1.8 Investment return of equity-accounted investments in Affiliates 0.8 0.8 2.1 2.1 Gain on sale of Affiliate carried at cost — — — 65.7 Total investment income per Condensed Consolidated Statements of Operations $ 2.3 $ 3.9 $ 11.4 $ 69.6 Investment gains (losses) on net consolidated funds is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Realized and unrealized gains (losses) on consolidated Funds held at fair value $ (0.4 ) $ (1.1 ) $ 2.6 $ (6.8 ) Investment return of equity-accounted investments 5.1 — 11.2 — Total net consolidated Funds’ investment gains (losses) per Condensed Consolidated Statements of Operations $ 4.7 $ (1.1 ) $ 13.8 $ (6.8 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of the assets and liabilities that are measured at fair value on a recurring basis | The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2019 (in millions): Quoted prices in active markets (Level I) Significant other observable inputs (Level II) Significant unobservable inputs (Level III) Uncategorized Total value, Assets of BSIG and consolidated Funds (1) Common and preferred stock $ 10.3 $ — $ — $ — $ 10.3 Short-term investment funds 1.4 — — — 1.4 Bank loans — 107.9 — — 107.9 Other investments 4.2 — — — 4.2 Derivatives 0.5 0.3 — — 0.8 Consolidated Funds total 16.4 108.2 — — 124.6 Investments in separate accounts (2) 35.2 10.7 — — 45.9 Investments related to long-term incentive compensation plans (3) 95.4 — — — 95.4 Investments in unconsolidated Funds (4) — — 3.0 53.5 56.5 BSIG total 130.6 10.7 3.0 53.5 197.8 Total fair value assets $ 147.0 $ 118.9 $ 3.0 $ 53.5 $ 322.4 Liabilities of consolidated Funds (1) Common stock $ (0.9 ) $ — $ — $ — $ (0.9 ) Derivatives (0.6 ) (0.1 ) — — (0.7 ) Consolidated Funds total (1.5 ) (0.1 ) — — (1.6 ) Total fair value liabilities $ (1.5 ) $ (0.1 ) $ — $ — $ (1.6 ) The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2018 (in millions): Quoted prices in active markets (Level I) Significant other observable inputs (Level II) Significant unobservable inputs (Level III) Uncategorized Total value December 31, 2018 Assets of BSIG and consolidated Funds (1) Common and preferred stock $ 13.8 $ — $ — $ — $ 13.8 Short-term investment funds 2.2 — — — 2.2 Bank loans — 63.9 — — 63.9 Other investments 3.7 — — 38.8 42.5 Derivatives 2.2 0.2 — — 2.4 Consolidated Funds total 21.9 64.1 — 38.8 124.8 Investments in separate accounts (2) 35.0 8.2 — — 43.2 Investments related to long-term incentive compensation plans (3) 91.8 — — — 91.8 Investments in unconsolidated Funds (4) — — 3.0 58.6 61.6 BSIG total 126.8 8.2 3.0 58.6 196.6 Total fair value assets $ 148.7 $ 72.3 $ 3.0 $ 97.4 $ 321.4 Liabilities of consolidated Funds (1) Common stock $ (0.8 ) $ — $ — $ — $ (0.8 ) Derivatives (0.8 ) (0.1 ) — — (0.9 ) Consolidated Funds total (1.6 ) (0.1 ) — — (1.7 ) Total fair value liabilities $ (1.6 ) $ (0.1 ) $ — $ — $ (1.7 ) (1) Assets and liabilities measured at fair value are comprised of financial investments managed by the Company's Affiliates. Equity securities, including common and preferred stock, short-term investment funds, other investments and derivatives which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I. These securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II. The Company obtains prices from independent pricing services that may utilize broker quotes, but generally the independent pricing services will use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Company has not made adjustments to the prices provided. Assets of consolidated Funds also include investments in bank loans. Interests in senior floating-rate loans for which reliable market participant quotations are readily available are valued at the average mid-point of bid and ask quotations obtained from a third party pricing service. These assets are classified as Level II. If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model, such securities are classified as Level III. If the pricing services are unable to provide prices, the Company attempts to obtain one or more broker quotes directly from a dealer or values such securities at the last bid price obtained. In either case, such securities are classified as Level III. The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures. The uncategorized amount of $0.0 million and $38.8 million at September 30, 2019 and December 31, 2018 , respectively, represents investments made by consolidated Funds and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These consolidated Funds consist of real estate and private equity investment Funds. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. (2) Investments in separate accounts of $45.9 million at September 30, 2019 consist of approximately 9% of cash equivalents and 91% of equity securities, fixed income securities, and other investments. Investments in separate accounts of $43.2 million at December 31, 2018 consist of approximately 11% of cash equivalents and 89% of equity securities, fixed income securities, and other investments. The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II). (3) Investments related to long term compensation plans of $95.4 million and $91.8 million at September 30, 2019 and December 31, 2018 , respectively, are investments in publicly registered daily redeemable funds (some managed by Affiliates), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I. (4) The uncategorized amounts of $53.5 million and $58.6 million at September 30, 2019 and December 31, 2018 , respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds advised by Affiliates and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investment Funds, UCITS and other investment vehicles. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. The real estate investment Funds of $6.2 million and $12.3 million at September 30, 2019 and December 31, 2018 , respectively, are subject to longer than quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds. The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year to eleven years from September 30, 2019 . The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams. The valuations are then reviewed and approved by the valuation committee, which consists of senior members of the portfolio management, acquisitions, and research teams. For certain properties and loans, the valuation process may also include a valuation by independent appraisers. In connection with this process, changes in fair-value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions. Investments in unconsolidated Funds categorized as Level III of $3.0 million and $3.0 million at September 30, 2019 and December 31, 2018 , respectively, relate to investments in Timber Funds advised by Affiliates and are valued by the general partner of those Funds. Determination of estimated fair value involves subjective judgment because the actual fair value can be determined only through negotiation between parties in a sale transaction, and amounts ultimately realized may vary significantly from their fair value presented. |
Level Three Investment Reconciliation | The following table reconciles the opening balances of Level III financial assets to closing balances at the end of the period (in millions): Consolidated Funds’ other investments Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Level III financial assets At beginning of the period $ — $ 26.5 $ — $ — Additions (redemptions) — — — — Transfers into Level III — — — 26.5 Funds de-consolidation — (26.5 ) — (26.5 ) Total net fair value losses recognized in net income — — — — Total Level III financial assets $ — $ — $ — $ — Investments in unconsolidated Funds Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Level III financial assets At beginning of the period $ 3.0 $ 5.2 $ 3.0 $ — Additions (redemptions) 0.1 (0.3 ) 0.1 (0.3 ) Transfers into Level III — — — — Change in recognition based on adoption of ASU 2016-01 — — — 6.4 Total net fair value losses recognized in net income (0.1 ) (0.3 ) (0.1 ) (1.5 ) Total Level III financial assets $ 3.0 $ 4.6 $ 3.0 $ 4.6 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities | |
Schedule of assets and liabilities and information pertains to VIEs | The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions): 9/30/2019 12/31/2018 Assets Investments at fair value $ 124.6 $ 124.8 Other assets of consolidated Funds 72.9 19.8 Total Assets $ 197.5 $ 144.6 Liabilities Liabilities of consolidated Funds $ 10.9 $ 14.9 Total Liabilities $ 10.9 $ 14.9 The following information pertains to unconsolidated VIEs for which the Company holds a variable interest (in millions): September 30, December 31, Unconsolidated VIE assets $ 6,638.5 $ 4,814.9 Unconsolidated VIE liabilities $ 4,317.6 $ 2,115.1 Equity interests on the Condensed Consolidated Balance Sheets $ 17.0 $ 22.5 Maximum risk of loss (1) $ 23.4 $ 31.0 (1) Includes equity investments the Company has made or is required to make and any earned but uncollected management and incentive fees. The Company does not record performance or incentive allocations until the respective measurement period has ended. |
Borrowings and Debt (Tables)
Borrowings and Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | The Company’s borrowings and long-term debt was comprised of the following as of the dates indicated (in millions): September 30, 2019 December 31, 2018 Carrying value (1) Fair Value Fair Value Level Carrying value (1) Fair Value Fair Value Level $450 million revolving credit facility expiring August 22, 2022 (2) (3) $ 175.0 $ 175.0 2 $ — $ — Non-recourse seed capital facility expiring July 17, 2020 (3) $ 35.0 $ 35.0 2 $ — $ — Long-term bonds: $275 million 4.80% Senior Notes Due July 27, 2026 $ 272.3 $ 285.9 2 $ 272.2 $ 266.0 2 $125 million 5.125% Senior Notes Due August 1, 2031 $ 121.3 $ 124.3 2 $ 121.1 $ 102.3 2 Total borrowings and long-term debt $ 603.6 $ 620.2 $ 393.3 $ 368.3 (1) The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts. (2) Revolving credit facility of $350 million set to expire on October 15, 2019 was terminated. A new revolving credit facility of $450 million was executed on August 20, 2019. (3) Fair value approximates carrying value because the credit facilities have variable interest rates based on selected short term market rates. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Operating Lease Information | The following table summarizes information about the Company’s operating leases for the three and nine months ended September 30, 2019 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Operating lease cost $ 3.4 $ 10.3 Variable lease cost 0.1 0.2 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 3.7 11.0 ROU asset obtained in exchange for new operating lease liabilities 0.1 5.5 |
Lease Liability Maturity | Maturities of operating lease liabilities were as follows (in millions): Operating Leases Year Ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 3.6 2020 14.0 2021 13.0 2022 8.9 2023 3.5 Thereafter 7.0 Total lease payments 50.0 Less imputed interest (4.7 ) Total $ 45.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of pro forma basic and diluted earnings per share | The calculation of basic and diluted earnings per share of common stock is as follows (dollars in millions, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income attributable to controlling interests $ 75.4 $ 54.0 $ 156.1 $ 113.4 Less: Total income available to participating unvested securities (1) — (0.2 ) (0.1 ) (0.4 ) Total net income attributable to common stock $ 75.4 $ 53.8 $ 156.0 $ 113.0 Denominator: Weighted-average shares of common stock outstanding—basic 89,970,871 106,363,714 92,996,289 108,057,432 Potential shares of common stock: Restricted stock units 1,429 150,995 79,775 174,278 Weighted-average shares of common stock outstanding—diluted 89,972,300 106,514,709 93,076,064 108,231,710 Earnings per share of common stock attributable to controlling interests: Basic $ 0.84 $ 0.51 $ 1.68 $ 1.05 Diluted $ 0.84 $ 0.51 $ 1.68 $ 1.04 (1) Income available to participating unvested securities includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | evenue by segment and asset class is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Quant & Solutions Global / non-U.S. equity 92.7 95.9 276.8 288.7 Alternatives Alternatives 37.2 54.6 124.5 164.5 Liquid Alpha Global / non-U.S. equity 21.9 27.1 70.6 89.1 Fixed income 6.6 6.7 19.5 20.3 U.S. equity 38.0 45.3 118.4 138.4 Management fee revenue $ 196.4 $ 229.6 $ 609.8 $ 701.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive income including proportions attributable to non-controlling interests | The components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2019 and 2018 are as follows (in millions): Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of June 30, 2019 $ 1.7 $ (21.5 ) $ (19.8 ) Foreign currency translation adjustment (0.8 ) — (0.8 ) Amortization related to derivatives securities, before tax — 0.7 0.7 Tax impact — (0.1 ) (0.1 ) Other comprehensive income (loss) (0.8 ) 0.6 (0.2 ) Balance, as of September 30, 2019 $ 0.9 $ (20.9 ) $ (20.0 ) Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of June 30, 2018 $ 2.7 $ (23.9 ) $ (21.2 ) Foreign currency translation adjustment (0.4 ) — (0.4 ) Amortization related to derivatives securities, before tax — 0.7 0.7 Tax impact — (0.1 ) (0.1 ) Other comprehensive income (loss) (0.4 ) 0.6 0.2 Balance, as of September 30, 2018 $ 2.3 $ (23.3 ) $ (21.0 ) The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2019 and 2018 were as follows (in millions): Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of December 31, 2018 $ 1.8 $ (22.7 ) $ (20.9 ) Foreign currency translation adjustment (0.9 ) — (0.9 ) Amortization related to derivatives securities, before tax — 2.2 2.2 Tax impact — (0.4 ) (0.4 ) Other comprehensive income (loss) (0.9 ) 1.8 0.9 Balance, as of September 30, 2019 $ 0.9 $ (20.9 ) $ (20.0 ) Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of December 31, 2017 $ 3.5 $ (25.1 ) $ (21.6 ) Foreign currency translation adjustment (1.2 ) — (1.2 ) Amortization related to derivatives securities, before tax — 2.1 2.1 Tax impact — (0.3 ) (0.3 ) Other comprehensive income (loss) (1.2 ) 1.8 0.6 Balance, as of September 30, 2018 $ 2.3 $ (23.3 ) $ (21.0 ) |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents the financial data for the Company’s three segments for the three months ended September 30, 2019 (in millions): Three Months Ended September 30, 2019 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 93.1 $ 37.4 $ 65.2 $ 0.1 $ 2.0 (a) $ 197.8 ENI operating expenses 40.8 16.1 18.5 8.3 5.5 (b) 89.2 Earnings before variable compensation 52.3 21.3 46.7 (8.2 ) (3.5 ) 108.6 Variable compensation 18.8 7.8 15.6 1.9 — 44.1 ENI operating earnings (after variable comp) 33.5 13.5 31.1 (10.1 ) (3.5 ) 64.5 Affiliate key employee distributions 1.5 5.0 6.1 — — 12.6 Earnings after Affiliate key employee distributions 32.0 8.5 25.0 (10.1 ) (3.5 ) 51.9 Net interest income (expense) — — — (5.7 ) (2.2 ) (d) (7.9 ) Net investment income — — — — 7.0 (e) 7.0 Net income attributable to non-controlling interests in consolidated Funds — — — — (7.6 ) (e) (7.6 ) Income tax (expense) benefit — — — (12.3 ) 44.3 (f) 32.0 Economic net income $ 32.0 $ 8.5 $ 25.0 $ (28.1 ) $ 38.0 $ 75.4 The following table presents the financial data for the Company’s three segments for the three months ended September 30, 2018 (in millions): Three Months Ended September 30, 2018 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 97.0 $ 54.6 $ 76.9 $ 0.1 $ 1.5 (a) $ 230.1 ENI operating expenses 37.5 15.5 21.0 9.6 55.5 (b) 139.1 Earnings before variable compensation 59.5 39.1 55.9 (9.5 ) (54.0 ) 91.0 Variable compensation 21.1 14.3 18.6 3.2 — 57.2 ENI operating earnings (after variable comp) 38.4 24.8 37.3 (12.7 ) (54.0 ) 33.8 Affiliate key employee distributions 2.4 10.1 8.0 — — 20.5 Earnings after Affiliate key employee distributions 36.0 14.7 29.3 (12.7 ) (54.0 ) 13.3 Net interest income (expense) — — — (3.1 ) (2.3 ) (d) (5.4 ) Net investment income (loss) — — — — 2.8 (e) 2.8 Net (income) loss attributable to non-controlling interests in consolidated Funds — — — — (0.2 ) (e) (0.2 ) Income tax (expense) benefit — — — (15.4 ) 58.8 (f) 43.4 Gain (loss) on disposal of discontinued operations, net of tax — — — — 0.1 (e) 0.1 Economic net income $ 36.0 $ 14.7 $ 29.3 $ (31.2 ) $ 5.2 $ 54.0 The following table presents the financial data for the Company’s three segments for the nine months ended September 30, 2019 (in millions): Nine Months Ended September 30, 2019 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 277.3 $ 125.7 $ 202.8 $ 0.3 $ 6.0 (a) $ 612.1 ENI operating expenses 120.4 49.4 60.0 25.4 4.8 (b) 260.0 Earnings before variable compensation 156.9 76.3 142.8 (25.1 ) 1.2 352.1 Variable compensation 57.6 28.0 48.1 7.5 4.6 (c) 145.8 ENI operating earnings (after variable comp) 99.3 48.3 94.7 (32.6 ) (3.4 ) 206.3 Affiliate key employee distributions 4.1 17.1 18.6 — — 39.8 Earnings after Affiliate key employee distributions 95.2 31.2 76.1 (32.6 ) (3.4 ) 166.5 Net interest income (expense) — — — (15.4 ) (6.9 ) (d) (22.3 ) Net investment income (loss) — — — — 25.2 (e) 25.2 Net (income) loss attributable to non-controlling interests in consolidated Funds — — — — (9.6 ) (e) (9.6 ) Income tax (expense) benefit — — — (36.9 ) 33.2 (f) (3.7 ) Economic net income $ 95.2 $ 31.2 $ 76.1 $ (84.9 ) $ 38.5 $ 156.1 The following table presents the financial data for the Company’s three segments for the nine months ended September 30, 2018 (in millions: Nine Months Ended September 30, 2018 Quant & Solutions Alter-natives Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 295.2 $ 170.0 $ 241.6 $ 0.3 $ 6.6 (a) $ 713.7 ENI operating expenses 107.2 46.7 64.1 31.6 164.6 (b) 414.2 Earnings before variable compensation 188.0 123.3 177.5 (31.3 ) (158.0 ) 299.5 Variable compensation 67.0 45.7 58.2 11.5 — 182.4 ENI operating earnings (after variable comp) 121.0 77.6 119.3 (42.8 ) (158.0 ) 117.1 Affiliate key employee distributions 8.4 28.5 26.0 — — 62.9 Earnings after Affiliate key employee distributions 112.6 49.1 93.3 (42.8 ) (158.0 ) 54.2 Net interest income (expense) — — — (10.8 ) (5.9 ) (d) (16.7 ) Net investment income — — — — 62.8 (e) 62.8 Net loss attributable to non-controlling interests in consolidated Funds — — — — 1.9 (e) 1.9 Income tax (expense) benefit — — — (47.2 ) 58.3 (f) 11.1 Gain on disposal of discontinued operations, net of tax — — — — 0.1 (e) 0.1 Economic net income $ 112.6 $ 49.1 $ 93.3 $ (100.8 ) $ (40.8 ) $ 113.4 (1) The U.S. GAAP equivalent of ENI revenue is U.S. GAAP revenue. The U.S. GAAP equivalent of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation and Affiliate key employee distributions above. The U.S. GAAP equivalent of earnings after Affiliate key employee distributions is U.S. GAAP operating Income. The U.S. GAAP equivalent of Economic Net Income is U.S. GAAP net income attributable to controlling interests. Reconciling Adjustments: (a) Adjusted to exclude earnings from equity-accounted Affiliates, which are included in U.S. GAAP investment income, and to include consolidated Funds revenues and the separate revenues recorded for certain Fund expenses reimbursed by customers, which are included in U.S. GAAP revenue. (b) Adjusted to include non-cash amortization expense for acquisition-related consideration and pre-acquisition employee equity, non-cash expenses for key employee equity and profit interest revaluations, capital transaction costs, restructuring costs, consolidated Funds’ operating expenses and the Fund expenses reimbursed by customers, each of which are included in U.S. GAAP operating expenses. (c) Adjusted to include restructuring costs, which are included in U.S. GAAP compensation expense. (d) Adjusted to include the cost of seed financing, which is included in U.S. GAAP interest expense. (e) Adjusted to include net investment income (loss), net income (loss) attributable to non-controlling interests in consolidated Funds, and the gain on disposal of discontinued operations, all of which are included in U.S. GAAP net income attributable to controlling interests. (f) Adjusted to include the impact of deferred taxes resulting from changes in tax law and the amortization of goodwill and acquired intangibles. Also adjusted to include tax expense or benefits relating to uncertain tax positions, the tax impact of certain ENI adjustments and other unusual items that are not included in current operating results for ENI purposes. Management fee revenue by principal geographic area is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 U.S. $ 148.2 $ 173.7 $ 459.4 $ 533.8 Non-U.S. 48.2 55.9 150.4 167.2 Management fee revenue $ 196.4 $ 229.6 $ 609.8 $ 701.0 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Management fee revenue by principal geographic area is comprised of the following for the three and nine months ended September 30 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 U.S. $ 148.2 $ 173.7 $ 459.4 $ 533.8 Non-U.S. 48.2 55.9 150.4 167.2 Management fee revenue $ 196.4 $ 229.6 $ 609.8 $ 701.0 |
Organization and Description _2
Organization and Description of the Business (Details) $ / shares in Units, $ in Millions | Mar. 25, 2017 | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)segment$ / sharesshares | Feb. 25, 2019 |
Business Acquisition [Line Items] | ||||
Number of reportable segments (in segments) | segment | 3 | |||
Ordinary shares repurchased (in shares) | shares | 2,787,247 | 16,588,838 | ||
Average price of ordinary shares repurchased (in dollars per share) | $ / shares | $ 9.10 | $ 12.54 | ||
Value of treasury stock acquired using the cost method | $ | $ 25.4 | $ 208.3 | ||
Parent Company | ||||
Business Acquisition [Line Items] | ||||
Percent of interest sold | 24.95% | |||
BrightSphere Investment Group | Paulson | ||||
Business Acquisition [Line Items] | ||||
Parent owned interest | 21.70% |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use asset | $ 40.3 | |
Lease liability | $ 45.3 | |
Accounting Standards Update 2016-19 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use asset | $ 44.2 | |
Lease liability | $ 49.9 |
Investments - Schedule of Inves
Investments - Schedule of Investment Components (Details) - USD ($) $ in Millions | Jan. 05, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Investment Components | ||||||
Investments at fair value | $ 322.4 | $ 322.4 | $ 321.4 | |||
Equity-accounted investments in Affiliates and consolidated Funds | 56.2 | 56.2 | 1.9 | |||
Total investments per Condensed Consolidated Balance Sheets | 378.6 | 378.6 | 323.3 | |||
Investment Income | ||||||
Net consolidated Funds’ investment gains (losses) | 7 | $ 2.8 | 25.2 | $ 62.8 | ||
Investments in unconsolidated Funds | ||||||
Investment Components | ||||||
Total investments per Condensed Consolidated Balance Sheets | 199.5 | 199.5 | 198.5 | |||
Investment Income | ||||||
Investment income | 2.3 | 3.9 | 11.4 | 69.6 | ||
Consolidated Funds | ||||||
Investment Components | ||||||
Investments at fair value | 124.6 | 124.6 | 124.8 | |||
Total investments per Condensed Consolidated Balance Sheets | 179.1 | 179.1 | 124.8 | |||
Investment Income | ||||||
Net consolidated Funds’ investment gains (losses) | 4.7 | (1.1) | 13.8 | (6.8) | ||
Other investments held at fair value | Investments in unconsolidated Funds | ||||||
Investment Components | ||||||
Investments at fair value | 102.4 | 102.4 | 104.8 | |||
Investment Income | ||||||
Investment income | 1.5 | 3.1 | 9.3 | 1.8 | ||
Other investments held at fair value | Consolidated Funds | ||||||
Investment Income | ||||||
Net consolidated Funds’ investment gains (losses) | (0.4) | (1.1) | 2.6 | (6.8) | ||
Investments related to long-term incentive compensation plans held at fair value | Investments in unconsolidated Funds | ||||||
Investment Components | ||||||
Investments at fair value | 95.4 | 95.4 | $ 91.8 | |||
Investment return of equity-accounted investments in Affiliates | Investments in unconsolidated Funds | ||||||
Investment Income | ||||||
Investment income | 0.8 | 0.8 | 2.1 | 2.1 | ||
Investment return of equity-accounted investments in Affiliates | Consolidated Funds | ||||||
Investment Income | ||||||
Net consolidated Funds’ investment gains (losses) | 5.1 | 0 | 11.2 | 0 | ||
Gain on sale of Affiliate carried at cost | Investments in unconsolidated Funds | ||||||
Investment Income | ||||||
Investment income | $ 65.7 | 0 | 0 | 0 | 65.7 | |
Gain on sale of Affiliate carried at cost | Consolidated Funds | ||||||
Investment Income | ||||||
Net consolidated Funds’ investment gains (losses) | $ 4.7 | $ (1.1) | $ 13.8 | $ (6.8) |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 1 Months Ended |
Aug. 31, 2017USD ($) | |
Heitman LLC | |
Investment [Line Items] | |
Proceeds from sale of interest in corporation | $ 110 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Asset of BSIF and consolidated Funds | |||||||
Investments at fair value | $ 322,400,000 | $ 322,400,000 | $ 321,400,000 | ||||
Total fair value assets | 322,400,000 | 322,400,000 | 321,400,000 | ||||
Liabilities of consolidated Funds | |||||||
Total fair value liabilities | (1,600,000) | $ (1,600,000) | (1,700,000) | ||||
Various Investments | |||||||
Asset of BSIF and consolidated Funds | |||||||
Uncategorized | 97,400,000 | ||||||
Real estate investment funds | Minimum | |||||||
Asset of BSIF and consolidated Funds | |||||||
Term over which the underlying assets are expected to be liquidated by the investees | 1 year | ||||||
Real estate investment funds | Maximum | |||||||
Asset of BSIF and consolidated Funds | |||||||
Term over which the underlying assets are expected to be liquidated by the investees | 11 years | ||||||
Consolidated Funds | |||||||
Asset of BSIF and consolidated Funds | |||||||
Common and preferred stock | 10,300,000 | $ 10,300,000 | 13,800,000 | ||||
Short-term investment funds | 1,400,000 | 1,400,000 | 2,200,000 | ||||
Bank loans | 107,900,000 | 107,900,000 | 63,900,000 | ||||
Other investments | 4,200,000 | 4,200,000 | 42,500,000 | ||||
Derivatives | 800,000 | 800,000 | 2,400,000 | ||||
Investments at fair value | 124,600,000 | 124,600,000 | 124,800,000 | ||||
Total fair value assets | 124,600,000 | 124,600,000 | 124,800,000 | ||||
Liabilities of consolidated Funds | |||||||
Common stock | (900,000) | (900,000) | (800,000) | ||||
Derivatives | (700,000) | (700,000) | (900,000) | ||||
Total fair value liabilities | (1,600,000) | (1,600,000) | (1,700,000) | ||||
Consolidated Funds | Other Investments | |||||||
Asset of BSIF and consolidated Funds | |||||||
Uncategorized | 0 | 0 | 38,800,000 | ||||
Investments in unconsolidated Funds | |||||||
Fair value measurements | |||||||
Additions (redemptions) | 100,000 | $ (300,000) | 100,000 | $ (300,000) | |||
Additions and transfers into Level III | $ 0 | 0 | $ 0 | 0 | |||
Asset of BSIF and consolidated Funds | |||||||
Investments in separate accounts | 45,900,000 | 45,900,000 | 43,200,000 | ||||
Investments related to long-term incentive compensation plans | 95,400,000 | 95,400,000 | 91,800,000 | ||||
Uncategorized | 53,500,000 | 53,500,000 | |||||
Total fair value assets | 197,800,000 | 197,800,000 | 196,600,000 | ||||
Investments in unconsolidated Funds | Various Investments | |||||||
Asset of BSIF and consolidated Funds | |||||||
Uncategorized | 53,500,000 | 53,500,000 | 58,600,000 | ||||
Investments at fair value | 56,500,000 | 56,500,000 | 61,600,000 | ||||
Investments in unconsolidated Funds | Investment Funds Subject To Longer Redemption Restrictions | |||||||
Asset of BSIF and consolidated Funds | |||||||
Uncategorized | 6,200,000 | 6,200,000 | 12,300,000 | ||||
Consolidated Entity Funds | |||||||
Fair value measurements | |||||||
Additions (redemptions) | 0 | 0 | 0 | 0 | |||
Additions and transfers into Level III | 0 | $ 0 | 0 | $ 26,500,000 | |||
Quoted prices in active markets (Level I) | |||||||
Asset of BSIF and consolidated Funds | |||||||
Total fair value assets | 147,000,000 | 147,000,000 | 148,700,000 | ||||
Liabilities of consolidated Funds | |||||||
Total fair value liabilities | (1,500,000) | (1,500,000) | (1,600,000) | ||||
Quoted prices in active markets (Level I) | Consolidated Funds | |||||||
Asset of BSIF and consolidated Funds | |||||||
Common and preferred stock | 10,300,000 | 10,300,000 | 13,800,000 | ||||
Short-term investment funds | 1,400,000 | 1,400,000 | 2,200,000 | ||||
Bank loans | 0 | 0 | 0 | ||||
Other investments | 4,200,000 | 4,200,000 | 3,700,000 | ||||
Derivatives | 500,000 | 500,000 | 2,200,000 | ||||
Total fair value assets | 16,400,000 | 16,400,000 | 21,900,000 | ||||
Liabilities of consolidated Funds | |||||||
Common stock | (900,000) | (900,000) | (800,000) | ||||
Derivatives | (600,000) | (600,000) | (800,000) | ||||
Total fair value liabilities | (1,500,000) | (1,500,000) | (1,600,000) | ||||
Quoted prices in active markets (Level I) | Investments in unconsolidated Funds | |||||||
Asset of BSIF and consolidated Funds | |||||||
Investments in separate accounts | 35,200,000 | 35,200,000 | 35,000,000 | ||||
Investments related to long-term incentive compensation plans | 95,400,000 | 95,400,000 | 91,800,000 | ||||
Total fair value assets | 130,600,000 | $ 130,600,000 | $ 126,800,000 | ||||
Liabilities of consolidated Funds | |||||||
Investment in cash | 9.00% | 11.00% | |||||
Investment in equity securities | 91.00% | 89.00% | |||||
Quoted prices in active markets (Level I) | Investments in unconsolidated Funds | Various Investments | |||||||
Asset of BSIF and consolidated Funds | |||||||
Investments at fair value | 0 | $ 0 | $ 0 | ||||
Significant other observable inputs (Level II) | |||||||
Asset of BSIF and consolidated Funds | |||||||
Total fair value assets | 118,900,000 | 118,900,000 | 72,300,000 | ||||
Liabilities of consolidated Funds | |||||||
Total fair value liabilities | (100,000) | (100,000) | (100,000) | ||||
Significant other observable inputs (Level II) | Consolidated Funds | |||||||
Asset of BSIF and consolidated Funds | |||||||
Common and preferred stock | 0 | 0 | 0 | ||||
Short-term investment funds | 0 | 0 | 0 | ||||
Bank loans | 107,900,000 | 107,900,000 | 63,900,000 | ||||
Other investments | 0 | 0 | 0 | ||||
Derivatives | 300,000 | 300,000 | 200,000 | ||||
Total fair value assets | 108,200,000 | 108,200,000 | 64,100,000 | ||||
Liabilities of consolidated Funds | |||||||
Common stock | 0 | 0 | 0 | ||||
Derivatives | (100,000) | (100,000) | (100,000) | ||||
Total fair value liabilities | (100,000) | (100,000) | (100,000) | ||||
Significant other observable inputs (Level II) | Investments in unconsolidated Funds | |||||||
Asset of BSIF and consolidated Funds | |||||||
Investments in separate accounts | 10,700,000 | 10,700,000 | 8,200,000 | ||||
Investments related to long-term incentive compensation plans | 0 | 0 | 0 | ||||
Total fair value assets | 10,700,000 | 10,700,000 | 8,200,000 | ||||
Significant other observable inputs (Level II) | Investments in unconsolidated Funds | Various Investments | |||||||
Asset of BSIF and consolidated Funds | |||||||
Investments at fair value | 0 | 0 | 0 | ||||
Significant unobservable inputs (Level III) | |||||||
Asset of BSIF and consolidated Funds | |||||||
Total fair value assets | 3,000,000 | 3,000,000 | 3,000,000 | ||||
Liabilities of consolidated Funds | |||||||
Total fair value liabilities | 0 | 0 | 0 | ||||
Significant unobservable inputs (Level III) | Consolidated Funds | |||||||
Asset of BSIF and consolidated Funds | |||||||
Common and preferred stock | 0 | 0 | 0 | ||||
Short-term investment funds | 0 | 0 | 0 | ||||
Bank loans | 0 | 0 | 0 | ||||
Other investments | 0 | 0 | 0 | ||||
Derivatives | 0 | 0 | 0 | ||||
Total fair value assets | 0 | 0 | 0 | ||||
Liabilities of consolidated Funds | |||||||
Common stock | 0 | 0 | 0 | ||||
Derivatives | 0 | 0 | 0 | ||||
Total fair value liabilities | 0 | 0 | 0 | ||||
Significant unobservable inputs (Level III) | Investments in unconsolidated Funds | |||||||
Asset of BSIF and consolidated Funds | |||||||
Investments in separate accounts | 0 | 0 | 0 | ||||
Investments related to long-term incentive compensation plans | 0 | 0 | 0 | ||||
Total fair value assets | 3,000,000 | 3,000,000 | 3,000,000 | ||||
Significant unobservable inputs (Level III) | Investments in unconsolidated Funds | Various Investments | |||||||
Asset of BSIF and consolidated Funds | |||||||
Investments at fair value | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Level Three Investment Reconciliation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Funds’ other investments | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
At beginning of the period | $ 0 | $ 26,500,000 | $ 0 | $ 0 | $ 0 | |
Additions (redemptions) | 0 | 0 | 0 | 0 | ||
Transfers in (out) of Level 3 | 0 | 0 | 0 | 26,500,000 | ||
Change in recognition based on adoption of ASU 2016-01 | 0 | (26,500,000) | 0 | (26,500,000) | ||
Total net fair value losses recognized in net income | 0 | 0 | 0 | 0 | ||
Total Level III financial assets | 0 | $ 0 | 0 | 0 | 0 | 0 |
Investments in unconsolidated Funds | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
At beginning of the period | 3,000,000 | 5,200,000 | 3,000,000 | 3,000,000 | 0 | |
Additions (redemptions) | 100,000 | (300,000) | 100,000 | (300,000) | ||
Transfers in (out) of Level 3 | 0 | 0 | 0 | 0 | ||
Change in recognition based on adoption of ASU 2016-01 | 0 | 0 | 0 | 6,400,000 | ||
Total net fair value losses recognized in net income | (100,000) | (300,000) | (100,000) | (1,500,000) | ||
Total Level III financial assets | $ 3,000,000 | $ 3,000,000 | $ 4,600,000 | $ 3,000,000 | $ 3,000,000 | $ 4,600,000 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Funds that are VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Investments at fair value | $ 322.4 | $ 321.4 |
Liabilities | ||
Liabilities of consolidated Funds | 1,279.6 | 1,377.6 |
Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Investments at fair value | 124.6 | 124.8 |
Other assets of consolidated Funds | 72.9 | 19.8 |
Total Assets | 197.5 | 144.6 |
Liabilities | ||
Liabilities of consolidated Funds | 10.9 | 14.9 |
Total Liabilities | $ 10.9 | $ 14.9 |
Variable Interest Entities - Un
Variable Interest Entities - Unconsolidated VIEs (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entities | ||
Unconsolidated VIE assets | $ 6,638.5 | $ 4,814.9 |
Unconsolidated VIE liabilities | 4,317.6 | 2,115.1 |
Equity interests on the Condensed Consolidated Balance Sheets | 17 | 22.5 |
Maximum risk of loss | $ 23.4 | $ 31 |
Borrowings and Debt - Long Term
Borrowings and Debt - Long Term Debt Excluding Consolidated Funds (Details) - USD ($) | Aug. 20, 2019 | Sep. 30, 2019 | Aug. 19, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Face Amount | $ 450,000,000 | |||
Ratio of third-party borrowings to trailing twelve months adjusted EBITDA | 3 | |||
Interest coverage ratio | 4 | |||
Fair Value, Inputs, Level 2 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | 603,600,000 | $ 393,300,000 | ||
Fair Value | 620,200,000 | 368,300,000 | ||
Fair Value, Inputs, Level 2 | Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Carrying value | 175,000,000 | 0 | ||
Fair Value | 175,000,000 | 0 | ||
Face Amount | $ 450,000,000 | $ 350,000,000 | ||
Citibank | Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 450,000,000 | |||
Line of credit facility, additional amount borrowed | 150,000,000 | |||
Line of credit facility, initial drawdown | 210,000,000 | |||
Repayment of credit facility | $ 210,000,000 | 35,000,000 | ||
Fed Funds Effective Rate | Citibank | Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 1.50% | |||
London Interbank Offered Rate (LIBOR) | Citibank | Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 1.00% | |||
Line of credit, commitment fee percentage | 0.20% | |||
Minimum | London Interbank Offered Rate (LIBOR) | Citibank | Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 1.125% | |||
Line of credit, commitment fee percentage | 0.125% | |||
Maximum | London Interbank Offered Rate (LIBOR) | Citibank | Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 2.00% | |||
Line of credit, commitment fee percentage | 0.45% | |||
Non-recourse Seed Capital Facility | Fair Value, Inputs, Level 2 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Carrying value | 35,000,000 | 0 | ||
Fair Value | 35,000,000 | 0 | ||
Senior Notes, 4.80%, due 2026 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Face Amount | $ 275,000,000 | |||
Interest rate | 4.80% | |||
Senior Notes, 4.80%, due 2026 | Fair Value, Inputs, Level 2 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 272,300,000 | 272,200,000 | ||
Fair Value | 285,900,000 | 266,000,000 | ||
Senior Notes, 5.125%, due 2031 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Face Amount | $ 125,000,000 | |||
Interest rate | 5.125% | |||
Senior Notes, 5.125%, due 2031 | Fair Value, Inputs, Level 2 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 121,300,000 | 121,100,000 | ||
Fair Value | $ 124,300,000 | $ 102,300,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 5 years |
Lease termination period | 1 year |
Right of use asset | $ 40.3 |
Lease liability | $ 45.3 |
Weighted average remaining lease term | 4 years 5 months 19 days |
Weighted average discount rate | 4.13% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 6 years |
Leases - Summary of Lease Infor
Leases - Summary of Lease Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 3.4 | $ 10.3 | |
Variable Lease, Cost | 0.1 | $ 0.2 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | 3.7 | 11 | |
ROU asset obtained in exchange for new operating lease liabilities | $ 0.1 | $ 5.5 |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturity (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 3.6 |
2020 | 14 |
2021 | 13 |
2022 | 8.9 |
2023 | 3.5 |
Thereafter | 7 |
Total lease payments | 50 |
Less imputed interest | (4.7) |
Total | $ 45.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2019USD ($) |
Maximum | |
Other Commitments [Line Items] | |
Maximum commitments to fund investment activity | $ 48 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income attributable to controlling interests | $ 75.4 | $ 54 | $ 156.1 | $ 113.4 |
Less: Total income available to participating unvested securities | 0 | (0.2) | (0.1) | (0.4) |
Total net income attributable to ordinary shares | $ 75.4 | $ 53.8 | $ 156 | $ 113 |
Denominator: | ||||
Weighted average ordinary shares outstanding (in shares) | 89,970,871 | 106,363,714 | 92,996,289 | 108,057,432 |
Potential shares of common stock: | ||||
Restricted stock units (in shares) | 1,429 | 150,995 | 79,775 | 174,278 |
Weighted-average diluted ordinary shares outstanding - diluted (in shares) | 89,972,300 | 106,514,709 | 93,076,064 | 108,231,710 |
Earnings per share of common stock attributable to controlling interests: | ||||
Basic (in dollars per share) | $ 0.84 | $ 0.51 | $ 1.68 | $ 1.05 |
Diluted (in dollars per share) | $ 0.84 | $ 0.51 | $ 1.68 | $ 1.04 |
Employee options not included in computation of diluted EPS (in shares) | 8,970,000 | 8,970,000 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue from expense reimbursement | $ 0.9 | $ 1.1 | $ 3.2 | $ 6.1 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Management fee revenue | $ 196.4 | $ 229.6 | $ 609.8 | $ 701 |
Quant & Solutions | Global / non-U.S. equity | ||||
Disaggregation of Revenue [Line Items] | ||||
Management fee revenue | 92.7 | 95.9 | 276.8 | 288.7 |
Alternatives | Alternatives | ||||
Disaggregation of Revenue [Line Items] | ||||
Management fee revenue | 37.2 | 54.6 | 124.5 | 164.5 |
Liquid Alpha | Global / non-U.S. equity | ||||
Disaggregation of Revenue [Line Items] | ||||
Management fee revenue | 21.9 | 27.1 | 70.6 | 89.1 |
Liquid Alpha | Fixed income | ||||
Disaggregation of Revenue [Line Items] | ||||
Management fee revenue | 6.6 | 6.7 | 19.5 | 20.3 |
Liquid Alpha | U.S. equity | ||||
Disaggregation of Revenue [Line Items] | ||||
Management fee revenue | $ 38 | $ 45.3 | $ 118.4 | $ 138.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 21.8 | $ 149.1 | $ 134.2 | $ 127.3 |
Foreign currency translation adjustment | 0.8 | 0.4 | 0.9 | 1.2 |
Amortization related to derivatives securities, before tax | 0.7 | 0.7 | 2.2 | 2.1 |
Tax impact | (0.1) | (0.1) | (0.4) | (0.3) |
Other comprehensive income (loss) | (0.2) | 0.2 | 0.9 | 0.6 |
Ending balance | 70.8 | 101.3 | 70.8 | 101.3 |
Foreign currency translation adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 1.7 | 2.7 | 1.8 | 3.5 |
Foreign currency translation adjustment | 0.8 | 0.4 | 0.9 | 1.2 |
Other comprehensive income (loss) | (0.8) | (0.4) | (0.9) | (1.2) |
Ending balance | 0.9 | 2.3 | 0.9 | 2.3 |
Valuation and amortization of derivative securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (21.5) | (23.9) | (22.7) | (25.1) |
Amortization related to derivatives securities, before tax | 0.7 | 0.7 | 2.2 | 2.1 |
Tax impact | (0.1) | (0.1) | (0.4) | (0.3) |
Other comprehensive income (loss) | 0.6 | 0.6 | 1.8 | 1.8 |
Ending balance | (20.9) | (23.3) | (20.9) | (23.3) |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (19.8) | (21.2) | (20.9) | (21.6) |
Ending balance | $ (20) | $ (21) | $ (20) | $ (21) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Reclassification from AOCI, Current Period, Tax | $ (0.1) | $ (0.1) | $ (0.4) | $ (0.3) |
Amortization related to derivatives securities, before tax | 0.7 | 0.7 | 2.2 | 2.1 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated other comprehensive income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | $ 0.7 | $ 0.7 | $ 2.2 | $ 2.1 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Other comprehensive income | $ 70.8 | $ 101.3 | $ 70.8 | $ 101.3 | $ 21.8 | $ 134.2 | $ 149.1 | $ 127.3 | ||
Interest Expense | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Loss amount reclassified within twelve months | 3.1 | |||||||||
Accumulated other comprehensive income (loss) | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Other comprehensive income | (20) | (21) | (20) | (21) | $ (19.8) | $ (20.9) | $ (21.2) | $ (21.6) | ||
Accumulated other comprehensive income (loss) | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Interest expense | $ 0.7 | $ 0.7 | $ 2.2 | $ 2.1 | ||||||
Treasury Lock | Designated as Hedging Instrument | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Notional amount | $ 300 | |||||||||
Fair value of derivative | $ 34.4 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments (in segments) | segment | 3 | |||
ENI Revenue | $ 197.8 | $ 230.1 | $ 612.1 | $ 713.7 |
ENI Operating Expenses | 89.2 | 139.1 | 260 | 414.2 |
Earnings Before Variable Compensation | 108.6 | 91 | 352.1 | 299.5 |
Variable compensation | 44.1 | 57.2 | 145.8 | 182.4 |
ENI operating earnings (after variable comp) | 64.5 | 33.8 | 206.3 | 117.1 |
Affiliate key employee distributions | 12.6 | 20.5 | 39.8 | 62.9 |
Earnings after Affiliate key employee distributions | 51.9 | 13.3 | 166.5 | 54.2 |
Net interest income (expense) | (7.9) | (5.4) | (22.3) | (16.7) |
Net consolidated Funds’ investment gains (losses) | 7 | 2.8 | 25.2 | 62.8 |
Net income attributable to non-controlling interests in consolidated Funds | (7.6) | (0.2) | (9.6) | 1.9 |
Income tax expense (benefit) | 32 | 43.4 | (3.7) | 11.1 |
Gain (loss) on disposal of discontinued operations, net of tax | 0 | 0.1 | 0 | 0.1 |
Net income | 83 | 54.2 | 165.7 | 111.5 |
Net Income (Loss) Attributable to Parent | 75.4 | 54 | 156.1 | 113.4 |
Quant & Solutions | ||||
Segment Reporting Information [Line Items] | ||||
ENI Revenue | 93.1 | 97 | 277.3 | 295.2 |
ENI Operating Expenses | 40.8 | 37.5 | 120.4 | 107.2 |
Earnings Before Variable Compensation | 52.3 | 59.5 | 156.9 | 188 |
Variable compensation | 18.8 | 21.1 | 57.6 | 67 |
ENI operating earnings (after variable comp) | 33.5 | 38.4 | 99.3 | 121 |
Affiliate key employee distributions | 1.5 | 2.4 | 4.1 | 8.4 |
Earnings after Affiliate key employee distributions | 32 | 36 | 95.2 | 112.6 |
Net income | 32 | 36 | 95.2 | 112.6 |
Alter-natives | ||||
Segment Reporting Information [Line Items] | ||||
ENI Revenue | 37.4 | 54.6 | 125.7 | 170 |
ENI Operating Expenses | 16.1 | 15.5 | 49.4 | 46.7 |
Earnings Before Variable Compensation | 21.3 | 39.1 | 76.3 | 123.3 |
Variable compensation | 7.8 | 14.3 | 28 | 45.7 |
ENI operating earnings (after variable comp) | 13.5 | 24.8 | 48.3 | 77.6 |
Affiliate key employee distributions | 5 | 10.1 | 17.1 | 28.5 |
Earnings after Affiliate key employee distributions | 8.5 | 14.7 | 31.2 | 49.1 |
Net income | 8.5 | 14.7 | 31.2 | 49.1 |
Liquid Alpha | ||||
Segment Reporting Information [Line Items] | ||||
ENI Revenue | 65.2 | 76.9 | 202.8 | 241.6 |
ENI Operating Expenses | 18.5 | 21 | 60 | 64.1 |
Earnings Before Variable Compensation | 46.7 | 55.9 | 142.8 | 177.5 |
Variable compensation | 15.6 | 18.6 | 48.1 | 58.2 |
ENI operating earnings (after variable comp) | 31.1 | 37.3 | 94.7 | 119.3 |
Affiliate key employee distributions | 6.1 | 8 | 18.6 | 26 |
Earnings after Affiliate key employee distributions | 25 | 29.3 | 76.1 | 93.3 |
Net income | 25 | 29.3 | 76.1 | 93.3 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
ENI Revenue | 0.1 | 0.1 | 0.3 | 0.3 |
ENI Operating Expenses | 8.3 | 9.6 | 25.4 | 31.6 |
Earnings Before Variable Compensation | (8.2) | (9.5) | (25.1) | (31.3) |
Variable compensation | 1.9 | 3.2 | 7.5 | 11.5 |
ENI operating earnings (after variable comp) | (10.1) | (12.7) | (32.6) | (42.8) |
Affiliate key employee distributions | 0 | 0 | 0 | 0 |
Earnings after Affiliate key employee distributions | (10.1) | (12.7) | (32.6) | (42.8) |
Net interest income (expense) | (5.7) | (3.1) | (15.4) | (10.8) |
Income tax expense (benefit) | (12.3) | (15.4) | (36.9) | (47.2) |
Net income | (28.1) | (31.2) | (84.9) | (100.8) |
Reconciling Adjustments | ||||
Segment Reporting Information [Line Items] | ||||
ENI Revenue | 2 | 1.5 | 6 | 6.6 |
ENI Operating Expenses | 5.5 | 55.5 | 4.8 | 164.6 |
Earnings Before Variable Compensation | (3.5) | (54) | 1.2 | (158) |
Variable compensation | 0 | 0 | 4.6 | 0 |
ENI operating earnings (after variable comp) | (3.5) | (54) | (3.4) | (158) |
Affiliate key employee distributions | 0 | 0 | 0 | 0 |
Earnings after Affiliate key employee distributions | (3.5) | (54) | (3.4) | (158) |
Net interest income (expense) | (2.2) | (2.3) | (6.9) | (5.9) |
Net consolidated Funds’ investment gains (losses) | 7 | 2.8 | 25.2 | 62.8 |
Net income attributable to non-controlling interests in consolidated Funds | (7.6) | (0.2) | (9.6) | 1.9 |
Income tax expense (benefit) | 44.3 | 58.8 | 33.2 | 58.3 |
Gain (loss) on disposal of discontinued operations, net of tax | 0.1 | 0.1 | ||
Net income | $ 38 | $ 5.2 | $ 38.5 | $ (40.8) |
Segments - Management Fee Reven
Segments - Management Fee Revenue by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Management fee revenue | $ 196.4 | $ 229.6 | $ 609.8 | $ 701 |
Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Management fee revenue | 196.4 | 229.6 | 609.8 | 701 |
Management fees | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Management fee revenue | 148.2 | 173.7 | 459.4 | 533.8 |
Management fees | Non-U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Management fee revenue | $ 48.2 | $ 55.9 | $ 150.4 | $ 167.2 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | Sep. 30, 2019USD ($) |
Affiliate employees | Affiliate loan to its employees | |
Related party transactions | |
Related party loans | $ 5.1 |