Acadian Asset Management Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
AAMI$90.96-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001748824-25-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001628280-25-049860
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 252 previous paragraphs and 264 current paragraphs.
171 unchanged; 73 reworded; 20 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 33 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Strategies representing 73%, 94%, 95%, and 94% of revenue were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2025. As of September 30, 2025 the 5-year revenue weighted annualized return in excess of benchmark was 4.5%. Assets representing 76%, 91%, 92%, and 90% of assets under management were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2025. As of September 30, 2025 the 5-year asset weighted annualized return in excess of benchmark was 3.5%.
Current report
U.S. GAAP Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024
Current report
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: General and administrative expense increased $4.7 million, or 7.5%, from $62.9 million for the nine months ended September 30, 2024 to $67.6 million for the nine months ended September 30, 2025. The increase was primarily due to higher system, recruiting, portfolio administrative, and consulting costs, partially offset by the impact of foreign currency changes.
Current report
Investment Income
Current report
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Interest expense decreased $(0.3) million, or (2.0)%, from $15.0 million for the nine months ended September 30, 2024 compared to $14.7 million for the nine months ended September 30, 2025, reflecting a lower balance drawn on the revolving credit facility in the nine months ended September 30, 2025.
Current report
(1)The three months ended September 30, 2025 includes $(0.2) million of severance-related items. The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million costs associated with the transfer of an insurance policy from our former parent. The nine months ended September 30, 2025 includes $(0.7) million of severance-related items. The nine months ended September 30, 2024 includes $(0.8) million of severance-related items, $0.9 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.
Current report
(a)The three months ended September 30, 2025 includes $(0.2) million of severance-related items. The three months ended September 30, 2024 includes $(0.3) million of severance-related items and $0.3 million costs associated with the transfer of an insurance policy from our former parent. The nine months ended September 30, 2025 includes $(0.7) million of severance-related items. The nine months ended September 30, 2024 includes $(0.8) million of severance-related items, $0.9 million of costs associated with the transfer of an insurance policy from our former parent, and $1.3 million of costs associated with the wind-down of the MACS business in the standalone format.
Current report
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Unallocated corporate expense decreased $(0.8) million, or (5.6)%, from $14.3 million for the nine months ended September 30, 2024 to $13.5 million for the nine months ended September 30, 2025. The decrease was driven by lower general and administrative expense, slightly offset by higher compensation and benefits expense.
Current report
Comparison for the nine months ended September 30, 2025 and 2024
Current report
(2)On October 30, 2025, we issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of our 2026 Notes.
Current report
On October 28, 2025 (the “Closing Date), Acadian LLC entered into a Delayed Draw Term Loan Credit Agreement (the “DDTL Credit Agreement”) and a Revolving Credit Agreement (the “Revolving Credit Agreement”).
Current report
The DDTL Credit Agreement provides for a delayed draw term loan facility in an aggregate principal amount, as of the Closing Date, of up to $200 million (the “Term Facility”). The term loans mature on October 28, 2028. Subject to certain conditions, Acadian LLC may increase the size of the Term Facility to an aggregate maximum principal amount of $275 million. None of the lenders under the Term Facility are obligated to provide such additional commitments to Acadian LLC.
Current report
Proceeds of the Term Facility are intended to fund, in part, the redemption of the Company’s 2026 Notes, as described below.
Current report
Loans under the DDTL Credit Agreement bear interest, at Acadian LLC’s option, at a rate per annum equal to (i) Term SOFR for the applicable interest period plus an applicable margin equal to a range of 1.5% to 2.0% depending on Acadian LLC’s consolidated leverage ratio or (ii) an alternate base rate (defined as a rate equal to the highest of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America’s published “prime rate” and (iii) Term SOFR plus 1.0%) plus an applicable margin equal to a range of 0.5% to 1.0% depending on Acadian LLC’s consolidated leverage ratio.
Current report
Financial covenants under the Term Facility include the quarterly maintenance by the Company of (i) a maximum Consolidated Net Leverage Ratio (as defined in the DDTL Credit Agreement) of not greater than 2.5x and (ii) a minimum Consolidated Interest Coverage Ratio (calculated as the ratio of Acadian LLC Consolidated EBITDA (as defined in the DDTL Credit Agreement), divided by Acadian LLC interest expense for the four consecutive fiscal quarters ended on or immediately prior to the date of determination) of not less than 4.0x. For purposes of calculating the Consolidated Net Leverage Ratio, the DDTL Credit Agreement refers to Consolidated Funded Indebtedness (as defined in the DDTL Credit Agreement) minus unrestricted cash at Acadian LLC.
Current report
On the Closing Date, Acadian LLC terminated the Acadian LLC Credit Agreement and entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”), among Acadian LLC, the lenders from time to time party thereto, Bank of America, N.A., as the Administrative Agent and a L/C Issuer and the other L/C Issuers from time to time party thereto.
Current report
The Revolving Credit Agreement provides for senior unsecured revolving credit commitments as of the Closing Date in an aggregate principal amount, as of the Closing Date, of up to $175 million (the “Revolving Facility”). The revolving commitments mature on October 28, 2028. Subject to certain conditions, Acadian LLC may increase the size of the Revolving Facility to an aggregate maximum principal amount of $275 million, which may be established in the form of revolving commitments or term loan commitments. None of the lenders under the Revolving Facility are obligated to provide such additional commitments to Acadian LLC.
Current report
Borrowings under the Revolving Credit Agreement bear interest, at Acadian LLC's option, at a rate per annum equal to (i) Term SOFR (as defined in the Revolving Credit Agreement) for the applicable interest period plus an applicable margin equal to a range of 1.5% to 2.0% depending on Acadian LLC’s consolidated leverage ratio or (ii) an alternate base rate (defined as a rate equal to the highest of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America's published "prime rate" and (iii) Term SOFR plus 1.0%) plus an applicable margin equal to a range of 0.5% to 1.0% depending on Acadian LLC’s consolidated leverage ratio. The Company is required to pay a commitment fee at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian LLC’s Leverage Ratio on the daily undrawn amount of the revolving commitments, and customary letter of credit participation and fronting fees.
Current report
Redemption of 4.80% Senior Notes
Current report
On October 30, 2025, the Company issued a notice for the full redemption of all $275 million aggregate principal amount outstanding of its 2026 Notes.
Removed paragraphs (8)
Previous report
U.S. GAAP Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024
Previous report
Six months ended June 30, 2025 compared to six months ended June 30, 2024: General and administrative expense increased $3.0 million, or 7.3%, from $41.1 million for the six months ended June 30, 2024 to $44.1 million for the six months ended June 30, 2025. The increase was primarily due to higher systems, recruiting and outside services costs, partially offset by the impact of foreign currency changes.
Previous report
Investment Income (loss)
Previous report
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Interest income decreased $(0.3) million, or (13.6)%, from $2.2 million for the six months ended June 30, 2024 compared to $1.9 million for the six months ended June 30, 2025. The decrease was due to the change in short-term investment returns in the six months ended June 30, 2025.
Previous report
(1)The three months ended June 30, 2025 includes $(0.3) million of severance-related items. The three months ended June 30, 2024 includes $(0.3) million of severance-related items, $0.4 million costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million. The six months ended June 30, 2025 includes $(0.5) million of severance-related items. The six months ended June 30, 2024 includes $(0.5) million of severance-related items, $0.6 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.
Previous report
(a)The three months ended June 30, 2025 includes $(0.3) million of severance-related items. The three months ended June 30, 2024 includes $(0.3) million of severance-related items, $0.4 million costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million. The six months ended June 30, 2025 includes $(0.5) million of severance-related items. The six months ended June 30, 2024 includes $(0.5) million of severance-related items, $0.6 million of costs associated with the transfer of an insurance policy from our former parent, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million.
Previous report
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Unallocated corporate expense remained unchanged at $(4.8) million for both the three months ended June 30, 2024 and June 30, 2025.
Previous report
Comparison for the six months ended June 30, 2025 and 2024
Reworded paragraphs (73)
Previous wording
•U.S. GAAP Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024 includes an explanation of changes in our U.S. GAAP revenue, expense and other items for the three and six months ended June 30, 2025 and 2024, as well as key U.S. GAAP operating metrics.
Current wording
•U.S. GAAP Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 includes an explanation of changes in our U.S. GAAP revenue, expense and other items for the three and nine months ended September 30, 2025 and 2024, as well as key U.S. GAAP operating metrics.
Previous wording
•Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis includes an explanation of the key differences between U.S. GAAP net income and ENI, the key measure management uses to evaluate our performance. This section also provides a reconciliation between U.S. GAAP net income attributable to controlling interests and ENI for the three and six months ended June 30, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses. This section also provides key non-GAAP operating metrics. In addition, this section provides segment analysis for our business segment.
Current wording
•Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis includes an explanation of the key differences between U.S. GAAP net income and ENI, the key measure management uses to evaluate our performance. This section also provides a reconciliation between U.S. GAAP net income attributable to controlling interests and ENI for the three and nine months ended September 30, 2025 and 2024, as well as a reconciliation of key ENI operating items including ENI revenue and ENI operating expenses. This section also provides key non-GAAP operating metrics. In addition, this section provides segment analysis for our business segment.
Previous wording
We are a holding company that operates a systematic investment management business through our majority owned subsidiary, Acadian LLC. Acadian LLC offers institutional investors across the globe access to a diversified array of systematic investment strategies designed to meet a range of risk and return objectives. Acadian LLC is a leading systematic investment manager of active equity products, including global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies. Acadian LLC comprises our Quant & Solutions reportable segment:
Current wording
We are a holding company that operates a systematic investment management business through our majority owned subsidiary, Acadian LLC. Acadian LLC offers institutional investors across the globe access to a diversified array of systematic investment strategies designed to meet a range of risk and return objectives. Acadian LLC is a leading systematic investment manager of active equity products, including global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative capabilities. Acadian LLC comprises our Quant & Solutions reportable segment:
Previous wording
•Quant & Solutions—incorporates strategies that utilize advanced technology to collect and analyze data, aiming to identify mispriced assets and generate attractive risk-adjusted returns for investors; portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative strategies. This segment consists of our ownership interest in Acadian LLC.
Current wording
•Quant & Solutions—incorporates strategies that utilize advanced technology to collect and analyze data, aiming to identify mispriced assets and generate attractive risk-adjusted returns for investors; portfolios include global, emerging market, non-U.S., small cap and enhanced equities, as well as credit and alternative capabilities. This segment consists of our ownership interest in Acadian LLC.
Previous wording
Our profitability is affected by a variety of factors including the level and composition of our average assets under management, or AUM, fee rates charged on AUM and our expense structure. We earn management fees based on assets under management. The majority of our management fees are calculated based on average AUM (calculated on either a daily or monthly basis) with the remainder of our management fees calculated based on period-end AUM. Changes in the levels of our AUM are driven by market investment performance and net client cash flows. We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed required returns. Approximately $20 billion, or 13%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee. The majority of these performance fees are calculated based on value added over the relevant benchmarks on a rolling one-year basis.
Current wording
Our profitability is affected by a variety of factors including the level and composition of our average assets under management, or AUM, fee rates charged on AUM and our expense structure. We earn management fees based on assets under management. The majority of our management fees are calculated based on average AUM (calculated on either a daily or monthly basis) with the remainder of our management fees calculated based on period-end AUM. Changes in the levels of our AUM are driven by market investment performance and net client cash flows. We may also earn performance fees when certain accounts differ in relation to relevant benchmarks or exceed required returns. As of September 30, 2025, approximately $22 billion, or 13%, of our AUM are in accounts with incentive fee features in which we participate in the performance fee. The majority of these performance fees are calculated based on value added over the relevant benchmarks on a rolling one-year basis.
Previous wording
The following table summarizes our unaudited results of operations for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes our unaudited results of operations for the three and nine months ended September 30, 2025 and 2024:
Previous wording
(3)Excludes severance-related items of $(0.3) million for the three months ended June 30, 2025. Excludes severance-related items of $(0.3) million, costs associated with the transfer of an insurance policy from our former parent of $0.4 million, and costs associated with the wind-down of the Multi-Asset Class Strategies, or “MACS” business in the standalone format of $1.3 million for the three months ended June 30, 2024. Excludes severance-related items of $(0.5) million for the six months ended June 30, 2025. Excludes severance-related items of $(0.5) million, costs associated with the transfer of an insurance policy from our former parent of $0.6 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million for the six months ended June 30, 2024.
Current wording
(3)Excludes severance-related items of $(0.2) million for the three months ended September 30, 2025. Excludes severance-related items of $(0.3) million and costs associated with the transfer of an insurance policy from our former parent of $0.3 million for the three months ended September 30, 2024. Excludes severance-related items of $(0.7) million for the nine months ended September 30, 2025. Excludes severance-related items of $(0.8) million, costs associated with the transfer of an insurance policy from our former parent of $0.9 million, and costs associated with the wind-down of the MACS business in the standalone format of $1.3 million for the nine months ended September 30, 2024.
Previous wording
Our total assets under management were $151.1 billion as of June 30, 2025 and $117.3 billion as of December 31, 2024.
Current wording
Our total assets under management were $166.4 billion as of September 30, 2025 and $117.3 billion as of December 31, 2024.
Previous wording
The following table summarizes our asset flows and market appreciation (depreciation) by segment for each of the periods indicated:
Current wording
The following table summarizes our asset flows and market appreciation by segment for each of the periods indicated:
Previous wording
At June 30, 2025, our total assets under management were $151.1 billion, an increase of $29.2 billion, or 24.0%, compared to $121.9 billion at March 31, 2025 and an increase of $38.5 billion, or 34.2%, compared to $112.6 billion at June 30, 2024. The increase in assets under management compared to June 30, 2024 was driven by the equity market appreciation and positive net client cash flows in the last twelve months. The change in assets under management during the three months ended June 30, 2025 reflects net market appreciation of $15.4 billion, and net inflows of $13.8 billion. Market appreciation or depreciation reported in current and prior periods includes changes in equity prices, as well as the impact from exchange rate fluctuations on our foreign-denominated AUM. Given a substantial portion of our AUM is denominated in foreign currencies, foreign exchange rate movements during the period can impact AUM when the strength of the U.S. dollar changes relative to other currencies.
Current wording
At September 30, 2025, our total assets under management were $166.4 billion, an increase of $15.3 billion, or 10.1%, compared to $151.1 billion at June 30, 2025 and an increase of $46.1 billion, or 38.3%, compared to $120.3 billion at September 30, 2024. The increase in assets under management compared to September 30, 2024 was driven by the equity market appreciation and positive net client cash flows in the last twelve months. The change in assets under management during the three months ended September 30, 2025 reflects net market appreciation of $8.9 billion, and net inflows of $6.4 billion. Market appreciation or depreciation reported in current and prior periods includes changes in equity prices, as well as the impact from exchange rate fluctuations on our foreign-denominated AUM. Given a substantial portion of our AUM is denominated in foreign currencies, foreign exchange rate movements during the period can impact AUM when the strength of the U.S. dollar changes relative to other currencies.
Previous wording
For the three months ended June 30, 2025, our net flows were $13.8 billion compared to $0.0 billion for the three months ended June 30, 2024. Reinvested income and distributions of $0.8 billion are reflected in the net flows for each of the three months ended June 30, 2025 and June 30, 2024. For the six months ended June 30, 2025, our net inflows were $17.6 billion compared to $0.4 billion for the six months ended June 30, 2024. The change in net flows during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily driven by strong gross sales, which increased to $27.5 billion in the six months ended June 30, 2025. Reinvested income and distributions of $1.6 billion and $1.6 billion are reflected in the net inflows for the six months ended June 30, 2025 and June 30, 2024, respectively.
Current wording
For the three months ended September 30, 2025, our net inflows were $6.4 billion compared to $0.5 billion for the three months ended September 30, 2024. Reinvested income and distributions of $1.0 billion and $0.9 billion are reflected in the net flows for the three months ended September 30, 2025 and September 30, 2024, respectively. For the nine months ended September 30, 2025, our net inflows were $24.0 billion compared to $0.9 billion for the nine months ended September 30, 2024. The change in net flows during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily driven by strong gross inflows, which increased to $39.4 billion in the nine months ended September 30, 2025. Reinvested income and distributions of $2.6 billion and $2.5 billion are reflected in the net inflows for the nine months ended September 30, 2025 and September 30, 2024, respectively.
Previous wording
Our U.S. GAAP results of operations were as follows for the three and six months ended June 30, 2025 and 2024:
Current wording
Our U.S. GAAP results of operations were as follows for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Average basis points earned on average assets under management were 37.0 bps and 37.3 bps for the three and six months ended June 30, 2025, respectively, and 38.5 bps and 38.3 bps for the three and six months ended June 30, 2024, respectively. The overall weighted average fee rate decrease for the three and six months ended June 30, 2025 is the result of changes in the mix of assets under management caused by client flows and market movements.
Current wording
Average basis points earned on average assets under management were 34.5 bps and 36.5 bps for the three and nine months ended September 30, 2025, respectively, and 38.3 bps and 38.4 bps for the three and nine months ended September 30, 2024, respectively. The overall weighted average fee rate decrease for the three and nine months ended September 30, 2025 is the result of changes in the mix of assets under management caused by client flows and market movements.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Management fees increased $16.8 million, or 15.9%, from $105.5 million for the three months ended June 30, 2024 to $122.3 million for the three months ended June 30, 2025. The increase was mainly driven by higher levels of average assets under management. Average assets under management increased 20.0%, from $110.3 billion for the three months ended June 30, 2024 to $132.4 billion for the three months ended June 30, 2025, mainly due to the positive equity market impact in the past twelve months.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Management fees increased $24.0 million, or 21.4%, from $112.1 million for the three months ended September 30, 2024 to $136.1 million for the three months ended September 30, 2025. The increase was mainly driven by higher levels of average assets under management. Average assets under management increased 34.5%, from $116.4 billion for the three months ended September 30, 2024 to $156.5 billion for the three months ended September 30, 2025, mainly due to the positive equity market and strong net inflows in the past twelve months.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Management fees increased $27.5 million, or 13.2%, from $207.7 million for the six months ended June 30, 2024 to $235.2 million for the six months ended June 30, 2025. The increase was primarily driven by higher levels of average assets under management. Average assets under management increased 16.7%, from $109.0 billion for the six months ended June 30, 2024 to $127.2 billion for the six months ended June 30, 2025, mainly due to the positive equity market and positive net flows in the past twelve months.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Management fees increased $51.5 million, or 16.1%, from $319.8 million for the nine months ended September 30, 2024 to $371.3 million for the nine months ended September 30, 2025. The increase was primarily driven by higher levels of average assets under management. Average assets under management increased 23.3%, from $110.8 billion for the nine months ended September 30, 2024 to $136.6 billion for the nine months ended September 30, 2025, mainly due to the positive equity market and positive net flows in the past twelve months.
Previous wording
Approximately $20 billion, or 13% of our AUM, were in accounts with performance fee features in which we participate. Performance fees are typically shared with key employees through various contractual compensation and profit-sharing arrangements.
Current wording
Approximately $22 billion, or 13% of our AUM, were in accounts with performance fee features in which we participate. Performance fees are typically shared with key employees through various contractual compensation and profit-sharing arrangements.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Performance fees decreased $(0.2) million, or (7.1)%, from $2.8 million for the three months ended June 30, 2024 to $2.6 million for the three months ended June 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies. Performance fees can be variable and are contractually triggered based on investment performance results over agreed upon time periods.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Performance fees decreased $(9.9) million, or (98.0)%, from $10.1 million for the three months ended September 30, 2024 to $0.2 million for the three months ended September 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Performance fees increased $2.0 million, or 33.9%, from $5.9 million for the six months ended June 30, 2024 to $7.9 million for the six months ended June 30, 2025, primarily due to strong performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Performance fees decreased $(7.9) million, or (49.4)%, from $16.0 million for the nine months ended September 30, 2024 to $8.1 million for the nine months ended September 30, 2025, primarily due to a change in performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.
Previous wording
Our most significant category of expense is compensation and benefits awarded to our employees. The following table presents the components of U.S. GAAP compensation expense for the three and six months ended June 30, 2025 and 2024:
Current wording
Our most significant category of expense is compensation and benefits awarded to our employees. The following table presents the components of U.S. GAAP compensation expense for the three and nine months ended September 30, 2025 and 2024:
Previous wording
(a)For the three and six months ended June 30, 2025, $31.9 million and $62.3 million, respectively, of variable compensation expense (of the $31.6 million and $61.8 million above) is included within economic net income. The three and six months ended June 30, 2025 excludes $(0.3) million and $(0.5) million, respectively, of variable compensation associated with restructuring. For the three and six months ended June 30, 2024, $27.4 million and $54.0 million, respectively, of variable compensation expense (of the $27.9 million and $54.3 million above) is included with economic net income. The three months ended June 30, 2024 excludes $(0.3) million of severance-related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format. The six months ended June 30, 2024 excludes $(0.5) million of severance related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.
Current wording
(a)For the three and nine months ended September 30, 2025, $32.1 million and $94.4 million, respectively, of variable compensation expense (of the $31.8 million and $93.6 million above) is included within economic net income. The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of variable compensation associated with restructuring. For the three and nine months ended September 30, 2024, $29.6 million and $83.6 million, respectively, of variable compensation expense (of the $29.4 million and $83.7 million above) is included with economic net income. The three months ended September 30, 2024 excludes $(0.3) million of severance-related items at Acadian LLC. The nine months ended September 30, 2024 excludes $(0.8) million of severance related items at Acadian LLC and $0.9 million of costs associated with the wind-down of the MACS business in the standalone format.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Compensation and benefits expense increased $21.6 million, or 34.7%, from $62.2 million for the three months ended June 30, 2024 to $83.8 million for the three months ended June 30, 2025. Fixed compensation and benefits increased $0.7 million, or 2.9%, from $24.3 million for the three months ended June 30, 2024 to $25.0 million for the three months ended June 30, 2025, primarily reflecting cost of living increases. Variable compensation increased $3.7 million, or 13.3%, from $27.9 million for the three months ended June 30, 2024 to $31.6 million for the three months ended June 30, 2025. The increase was primarily attributable to higher pre-bonus profits in the three months ended June 30, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $1.5 million, or 75.0%, from $2.0 million for the three months ended June 30, 2024 to $3.5 million for the three months ended June 30, 2025, driven by the increase in asset inflows. Acadian LLC key employee distributions increased $1.9 million, or 90.5%, from $2.1 million for the three months ended June 30, 2024 to $4.0 million for the three months ended June 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the current period is driven by higher operating earnings in the current period and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed by $13.8 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the three months ended June 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Compensation and benefits expense increased $15.1 million, or 21.7%, from $69.6 million for the three months ended September 30, 2024 to $84.7 million for the three months ended September 30, 2025. Fixed compensation and benefits increased $3.5 million, or 14.3%, from $24.5 million for the three months ended September 30, 2024 to $28.0 million for the three months ended September 30, 2025, primarily reflecting cost of living increases, higher payroll taxes and benefits. Variable compensation increased $2.4 million, or 8.2%, from $29.4 million for the three months ended September 30, 2024 to $31.8 million for the three months ended September 30, 2025. The increase was primarily attributable to higher pre-bonus profits in the three months ended September 30, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $0.1 million, or 3.0%, from $3.3 million for the three months ended September 30, 2024 to $3.4 million for the three months ended September 30, 2025, driven by the increase in asset inflows. Acadian LLC key employee distributions increased $2.1 million, or 67.7%, from $3.1 million for the three months ended September 30, 2024 to $5.2 million for the three months ended September 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the current period is driven by higher operating earnings in the current period and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed by $7.0 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the three months ended September 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Compensation and benefits expense increased $24.3 million, or 20.2%, from $120.3 million for the six months ended June 30, 2024 to $144.6 million for the six months ended June 30, 2025. Fixed compensation and benefits increased $1.5 million, or 3.1%, from $47.8 million for the six months ended June 30, 2024 to $49.3 million for the six months ended June 30, 2025, primarily reflecting cost of living increases. Variable compensation increased $7.5 million, or 13.8%, from $54.3 million for the six months ended June 30, 2024 to $61.8 million for the six months ended June 30, 2025. The increase was primarily attributable to higher pre-bonus profits in the six months ended June 30, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $3.4 million or 94.4% from $3.6 million for the six months ended June 30, 2024 to $7.0 million for the six months ended June 30, 2025, driven by the increase in asset inflows. Acadian LLC key employee distributions increased $2.8 million, or 65.1%, from $4.3 million for the six months ended June 30, 2024 to $7.1 million for the six months ended June 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the six months ended June 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed by $9.1 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the six months ended June 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Compensation and benefits expense increased $39.4 million, or 20.7%, from $189.9 million for the nine months ended September 30, 2024 to $229.3 million for the nine months ended September 30, 2025. Fixed compensation and benefits increased $5.0 million, or 6.9%, from $72.3 million for the nine months ended September 30, 2024 to $77.3 million for the nine months ended September 30, 2025, primarily reflecting cost of living increases, higher payroll taxes and benefits. Variable compensation increased $9.9 million, or 11.8%, from $83.7 million for the nine months ended September 30, 2024 to $93.6 million for the nine months ended September 30, 2025. The increase was primarily attributable to higher pre-bonus profits in the nine months ended September 30, 2025. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Sales-based compensation increased $3.5 million or 50.7% from $6.9 million for the nine months ended September 30, 2024 to $10.4 million for the nine months ended September 30, 2025, driven by the increase in asset inflows. Acadian LLC key employee distributions increased $4.9 million, or 66.2%, from $7.4 million for the nine months ended September 30, 2024 to $12.3 million for the nine months ended September 30, 2025. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. The change in Acadian LLC key employee distributions during the nine months ended September 30, 2025 is driven by higher operating earnings and the leveraged nature of this distribution share. Revaluations of Acadian LLC equity changed by $16.1 million, reflecting an increase in the value of key employee ownership interests at Acadian LLC. For certain tiers of Acadian LLC equity, revaluations are calculated based on earnings above a threshold. The change in the revaluation in the nine months ended September 30, 2025 reflects the increase in earnings, as well as changes in inputs used in the valuation model, including market risk assumptions and discount rates.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: General and administrative expense increased $0.7 million, or 3.3%, from $21.1 million for the three months ended June 30, 2024 to $21.8 million for the three months ended June 30, 2025. The increase in general and administrative expenses primarily reflects higher systems, recruiting and consulting costs, partially offset by the impact of foreign currency changes.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: General and administrative expense increased $1.7 million, or 7.8%, from $21.8 million for the three months ended September 30, 2024 to $23.5 million for the three months ended September 30, 2025. The increase in general and administrative expenses primarily reflects higher portfolio administrative, consulting, and system costs, partially offset by the impact of foreign currency changes.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Depreciation and amortization expense decrease $(0.8) million, or (16.0)% from $5.0 million for the three months ended June 30, 2024 to $4.2 million for the three months ended June 30, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Depreciation and amortization expense decreased $(0.4) million, or (8.9)% from $4.5 million for the three months ended September 30, 2024 to $4.1 million for the three months ended September 30, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Depreciation and amortization expense decreased $(1.2) million, or (12.5)%, from $9.6 million for the six months ended June 30, 2024 to $8.4 million for the six months ended June 30, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Depreciation and amortization expense decreased $(1.6) million, or (11.3)%, from $14.1 million for the nine months ended September 30, 2024 to $12.5 million for the nine months ended September 30, 2025. The decrease was primarily attributable to the effect of certain software becoming fully depreciated.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Investment income (loss) changed $(0.3) million, from $0.1 million for the three months ended June 30, 2024 to $(0.2) million for the three months ended June 30, 2025, reflecting the change in returns generated by seed capital investments in Funds that are not consolidated by the Company.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Investment income decreased $(1.5) million, from $1.5 million for the three months ended September 30, 2024 to $0.0 million for the three months ended September 30, 2025, reflecting the change in returns generated by seed capital investments in Funds that are not consolidated by the Company.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Investment income decreased $(0.9) million, or (90.0)%, from $1.0 million for the six months ended June 30, 2024 to $0.1 million for the six months ended June 30, 2025, reflecting a decrease in returns generated by seed capital investments in Funds that are not consolidated by the Company.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Investment income decreased $(2.4) million, or (96.0)%, from $2.5 million for the nine months ended September 30, 2024 to $0.1 million for the nine months ended September 30, 2025, reflecting a decrease in returns generated by seed capital investments in Funds that are not consolidated by the Company.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Interest income decreased $(0.1) million, or (11.1)% from $0.9 million for the three months ended June 30, 2024 compared to $0.8 million for the three months ended June 30, 2025. The decrease reflects the change in short-term investment returns in the three months ended June 30, 2025.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Interest income increased $0.3 million, or 50.0% from $0.6 million for the three months ended September 30, 2024 compared to $0.9 million for the three months ended September 30, 2025. The increase reflects the change in short-term investment returns in the three months ended September 30, 2025.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Interest expense remained flat at $5.3 million for both the three months ended June 30, 2024 and June 30, 2025, respectively.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Interest income remained flat at $2.8 million for both the nine months ended September 30, 2024 and September 30, 2025, respectively.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Interest expense decreased $(0.2) million, or (1.9)%, from $10.3 million for the six months ended June 30, 2024 compared to $10.1 million for the six months ended June 30, 2025, reflecting a decrease in interest rates on the revolving credit facility in the six months ended June 30, 2025.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Interest expense decreased $(0.1) million, or (2.1)%, from $(4.7) million for the three months ended September 30, 2024 compared to $(4.6) million for the three months ended September 30, 2025, reflecting a lower balance drawn on the revolving credit facility in the three months ended September 30, 2025.
Previous wording
On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act, was enacted in the U.S., which includes a broad range of tax reform provisions, including extending and modifying certain key Tax Cuts and Jobs Act provisions (both domestic and international). The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We continue to evaluate the full effects of the legislation on our estimated annual effective tax rate and cash tax position. As the legislation was signed into law after June 30, 2025, it had no impact on our operating results for the three months and six months ended June 30, 2025.
Current wording
On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”), was enacted in the U.S., which includes a broad range of tax reform provisions, including extending and modifying certain key Tax Cuts and Jobs Act provisions (both domestic and international). The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. The OBBBA did not have a material impact to the income tax expense during the current period. We will continue to evaluate the impact of the legislative changes on future periods as additional guidance becomes available.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Income tax expense decreased $(1.1) million, from $5.6 million for the three months ended June 30, 2024 to $4.5 million for the three months ended June 30, 2025. The decrease in income tax expense primarily relates to a decrease in pretax income attributable to controlling interest partially offset by an increase in the disallowance of executive compensation deduction in the three months ended June 30, 2025.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Income tax expense decreased $(2.0) million, from $9.4 million for the three months ended September 30, 2024 to $7.4 million for the three months ended September 30, 2025. The decrease in income tax expense primarily relates to a decrease in both pretax income attributable to controlling interest and state tax expense in the three months ended September 30, 2025.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Income tax expense increased $1.1 million, from $11.7 million for the six months ended June 30, 2024 to $12.8 million for the six months ended June 30, 2025. The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interest in the six months ended June 30, 2025.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Income tax expense decreased $(0.9) million, from $21.1 million for the nine months ended September 30, 2024 to $20.2 million for the nine months ended September 30, 2025. The decrease in income tax expense primarily relates to a decrease in state tax expense, partially offset by an increase in pretax income attributable to controlling interest in the nine months ended September 30, 2025.
Previous wording
Three months ended June 30, 2025 compared to three months ended June 30, 2024: Consolidated Funds’ revenue increased $1.8 million, from $0.7 million for the three months ended June 30, 2024 to $2.5 million for the three months ended June 30, 2025. Consolidated Funds’ expense increased $1.3 million, from $0.1 million for the three months ended June 30, 2024 to $1.4 million for the three months ended June 30, 2025. Net consolidated Funds’ investment gain increased $11.3 million from $0.8 million for the three months ended June 30, 2024 to $12.1 million for the three months ended June 30, 2025. These movements relate to the underlying activity of our consolidated Funds.
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024: Consolidated Funds’ revenue increased $7.0 million, from $0.9 million for the three months ended September 30, 2024 to $7.9 million for the three months ended September 30, 2025. Consolidated Funds’ expense increased $5.1 million, from $0.2 million for the three months ended September 30, 2024 to $5.3 million for the three months ended September 30, 2025. Net consolidated Funds’ investment gain increased $7.5 million from $4.0 million for the three months ended September 30, 2024 to $11.5 million for the three months ended September 30, 2025. These movements relate to the underlying activity of our consolidated Funds.
Previous wording
Six months ended June 30, 2025 compared to six months ended June 30, 2024: Consolidated Funds’ revenue increased $3.1 million, from $1.1 million for the six months ended June 30, 2024 to $4.2 million for the six months ended June 30, 2025. Consolidated Funds’ expense increased $1.9 million, from $0.2 million for the six months ended June 30, 2024 to $2.1 million for the six months ended June 30, 2025. Net consolidated Funds’ investment gain increased $13.2 million from $2.5 million for the six months ended June 30, 2024 to $15.7 million for the six months ended June 30, 2025. These movements relate to the underlying activity of our consolidated Funds.
Current wording
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024: Consolidated Funds’ revenue increased $10.1 million, from $2.0 million for the nine months ended September 30, 2024 to $12.1 million for the nine months ended September 30, 2025. Consolidated Funds’ expense increased $7.0 million, from $0.4 million for the nine months ended September 30, 2024 to $7.4 million for the nine months ended September 30, 2025. Net consolidated Funds’ investment gain increased $20.7 million from $6.5 million for the nine months ended September 30, 2024 to $27.2 million for the nine months ended September 30, 2025. These movements relate to the underlying activity of our consolidated Funds.
Previous wording
The following table shows our key U.S. GAAP operating metrics for the three and six months ended June 30, 2025 and 2024.
Current wording
The following table shows our key U.S. GAAP operating metrics for the three and nine months ended September 30, 2025 and 2024.
Previous wording
(1)Excluding the effect of Funds’ consolidation in the applicable periods, the U.S. GAAP operating margin is 12.1% for the three months ended June 30, 2025, 18.5% for the three months ended June 30, 2024, 18.9% for the six months ended June 30, 2025, and 19.9% for the six months ended June 30, 2024.
Current wording
(1)Excluding the effect of Funds’ consolidation in the applicable periods, the U.S. GAAP operating margin is 17.6% for the three months ended September 30, 2025, 21.5% for the three months ended September 30, 2024, 18.5% for the nine months ended September 30, 2025, and 20.5% for the nine months ended September 30, 2024.
Previous wording
(2)Excludes consolidated Funds’ expense of $1.4 million for the three months ended June 30, 2025, $0.1 million for the three months ended June 30, 2024, $2.1 million for the six months ended June 30, 2025, and $0.2 million for the six months ended June 30, 2024.
Current wording
(2)Excludes consolidated Funds’ expense of $5.3 million for the three months ended September 30, 2025, $0.2 million for the three months ended September 30, 2024, $7.4 million for the nine months ended September 30, 2025, and $0.4 million for the nine months ended September 30, 2024.
Previous wording
(3)Excludes the effect of Funds consolidation for the three and six months ended June 30, 2025 and 2024.
Current wording
(3)Excludes the effect of Funds consolidation for the three and nine months ended September 30, 2025 and 2024.
Previous wording
(4)Excludes consolidated Funds’ revenue of $2.5 million for the three months ended June 30, 2025, $0.7 million for the three months ended June 30, 2024, $4.2 million for the six months ended June 30, 2025, and $1.1 million for the six months ended June 30, 2024.
Current wording
(4)Excludes consolidated Funds’ revenue of $7.9 million for the three months ended September 30, 2025, $0.9 million for the three months ended September 30, 2024, $12.1 million for the nine months ended September 30, 2025, and $2.0 million for the nine months ended September 30, 2024.
Showing the first 40 of 73 pairs. Open the source sections for the rest.