Acadian Asset Management Inc 10-Q for FY2026 Q3
Acadian Asset Management Inc. (AAMI)
10-Q
2026-11-05
For: 2026-09-30
View Original
Added on
November 05, 2026
About this 10-Q
Acadian Asset Management Inc filed this 10-Q on November 5, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Acadian Asset Management Inc. reported net income of $38.1 million and revenue of $191.2 million for the three months ended September 30, 2026. Assets under management reached $239.6 billion, up 44.0% from September 30, 2025, while net client cash flows were $2.6 billion. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $191.2M
- up 32.6% from $144.2M a year earlier
- Net income
- $35.5M
- up 135.1% from net income of $15.1M a year earlier
- Diluted EPS
- $1.00
- up 138.1% from $0.42 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended September 30, 2026
OR
For the transition period from to
Commission File Number: 001-38979
 | ||||||||
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(617 ) 369-7300
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Ticker Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | |||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý
The number of shares of the registrant’s common stock, $0.001 per share, outstanding as of November 3, 2026 was 35,302,780 .
TABLE OF CONTENTS
| Page | ||||||||
| Part I | ||||||||
| Item 1. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Part II | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
2
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.
Acadian Asset Management Inc.
Condensed Consolidated Balance Sheets
(in millions, except for share and per share data, unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Investment advisory fees receivable | |||||||||||
| Income taxes receivable | |||||||||||
| Fixed assets, net | |||||||||||
| Right of use assets | |||||||||||
| Investments | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Deferred tax assets | |||||||||||
| Assets of consolidated Funds: | |||||||||||
| Cash and cash equivalents, restricted | |||||||||||
| Investments | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities and stockholders’ equity | |||||||||||
| Accounts payable and accrued expenses | $ | $ | |||||||||
| Accrued incentive compensation | |||||||||||
| Other compensation liabilities | |||||||||||
| Accrued income taxes | |||||||||||
| Operating lease liabilities | |||||||||||
| Revolving credit facility | |||||||||||
| Third party borrowings | |||||||||||
| Liabilities of consolidated Funds: | |||||||||||
| Accounts payable and accrued expenses | |||||||||||
Other liabilities | |||||||||||
Securities sold short | |||||||||||
| Total liabilities | |||||||||||
Commitments and contingencies (Note 8) | |||||||||||
| Redeemable non-controlling interests in consolidated Funds | |||||||||||
| Equity: | |||||||||||
Common stock (par value $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive income | |||||||||||
Total equity and redeemable non-controlling interests in consolidated Funds | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
See Notes to Condensed Consolidated Financial Statements
3
Acadian Asset Management Inc.
Condensed Consolidated Statements of Operations
(in millions except for per share data, unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Management fees | $ | $ | $ | $ | |||||||||||||||||||
| Performance fees | |||||||||||||||||||||||
| Consolidated Funds’ revenue | |||||||||||||||||||||||
| Total revenue | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Compensation and benefits | |||||||||||||||||||||||
| General and administrative expense | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Consolidated Funds’ expense | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Non-operating income and (expense): | |||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Net consolidated Funds’ investment gains (losses) | |||||||||||||||||||||||
| Total non-operating income | |||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Net income attributable to redeemable non-controlling interests in consolidated Funds | |||||||||||||||||||||||
| Net income attributable to controlling interests | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share (basic) attributable to controlling interests | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share (diluted) attributable to controlling interests | |||||||||||||||||||||||
| Weighted average common stock outstanding | |||||||||||||||||||||||
| Weighted average diluted common stock outstanding | |||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements
4
Acadian Asset Management Inc.
Condensed Consolidated Statements of Comprehensive Income
(in millions, unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Amortization related to derivative securities, net of tax | |||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | ( | ||||||||||||||||||||||
| Total other comprehensive income | |||||||||||||||||||||||
| Total comprehensive income | |||||||||||||||||||||||
| Comprehensive income attributable to redeemable non-controlling interests in consolidated Funds | |||||||||||||||||||||||
| Total comprehensive income attributable to controlling interests | $ | $ | $ | $ | |||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements
5
Acadian Asset Management Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
For the three months ended September 30, 2026 and 2025
($ in millions except share data, unaudited)
| Common stock (millions) | Common stock, par value | Additional paid-in capital | Retained earnings (deficit) | Accumulated other comprehensive income (loss) | Total stockholders’ equity | Redeemable non-controlling interests in consolidated Funds | Total equity and redeemable non-controlling interests in consolidated Funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock including excise taxes | ( | — | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions (distributions) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization related to derivative securities, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net deconsolidation of Funds | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions (distributions) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net deconsolidation of Funds | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements
6
Acadian Asset Management Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
For the nine months ended September 30, 2026 and 2025
($ in millions except share data, unaudited)
| Common stock (millions) | Common stock, par value | Additional paid-in capital | Retained earnings (deficit) | Accumulated other comprehensive income (loss) | Total stockholders’ equity (deficit) | Redeemable non-controlling interests in consolidated Funds | Total equity and redeemable non-controlling interests in consolidated Funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock including excise taxes | ( | — | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions (distributions) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization related to derivative securities, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Withholding tax related to restricted stock vesting | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net deconsolidation of Funds | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2025 | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock including excise taxes | ( | — | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions (distributions) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Withholding tax related to restricted stock vesting | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net deconsolidation of Funds | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements
7
Acadian Asset Management Inc. Condensed Consolidated Statements of Cash Flows (in millions, unaudited) | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | $ | |||||||||
Less: Net income attributable to redeemable non-controlling interests in consolidated Funds | ( | ( | |||||||||
| Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
| Amortization of debt-related costs | |||||||||||
| Loss on disposal of fixed assets | |||||||||||
| Amortization and revaluation of non-cash compensation awards | |||||||||||
| Deferred income taxes | ( | ||||||||||
| (Gains) on other investments | ( | ( | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| (Increase) decrease in investment advisory fees receivable | ( | ||||||||||
| (Increase) in other receivables, prepayments, deposits and other assets | ( | ( | |||||||||
| (Decrease) in accrued incentive compensation, operating lease liabilities and other liabilities | ( | ( | |||||||||
| Increase (decrease) in accounts payable, accrued expenses and accrued income taxes | ( | ||||||||||
| Net cash flows from operating activities, excluding consolidated Funds | |||||||||||
| Net income attributable to redeemable non-controlling interests in consolidated Funds | |||||||||||
| Adjustments to reconcile net income (loss) attributable to redeemable non-controlling interests of consolidated Funds to net cash flows from operating activities of consolidated Funds: | |||||||||||
| (Gains) on other investments | ( | ( | |||||||||
| Purchase of investments | ( | ( | |||||||||
| Sale of investments | |||||||||||
| (Increase) decrease in receivables and other assets | ( | ||||||||||
| Increase in accounts payable and other liabilities | |||||||||||
| Net cash flows from operating activities of consolidated Funds | ( | ( | |||||||||
| Total net cash flows from operating activities | ( | ||||||||||
| Cash flows from investing activities: | |||||||||||
| Additions of fixed assets | ( | ( | |||||||||
| Purchase of investment securities | ( | ( | |||||||||
| Sale of investment securities | |||||||||||
| Cash flows from investing activities of consolidated Funds | |||||||||||
Net deconsolidation of Funds | ( | ||||||||||
| Net cash flows from investing activities | ( | ( | |||||||||
See Notes to Condensed Consolidated Financial Statements
8
Acadian Asset Management Inc. Condensed Consolidated Statements of Cash Flows (in millions, unaudited) | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from financing activities: | |||||||||||
Proceeds from third party borrowings and revolving credit facility | |||||||||||
Repayment of third party borrowings and revolving credit facility | ( | ( | |||||||||
| Dividends paid to stockholders | ( | ( | |||||||||
| Dividends paid to related parties | ( | ( | |||||||||
| Repurchase of common stock including excise taxes | ( | ( | |||||||||
| Withholding tax payments related to stock option exercise and restricted stock vesting | ( | ( | |||||||||
| Cash flows from financing activities of consolidated Funds: | |||||||||||
| Redeemable non-controlling interest capital raised | |||||||||||
| Redeemable non-controlling interest capital redeemed | ( | ( | |||||||||
| Total net cash flows from financing activities | |||||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | |||||||||||
| Net increase in cash and cash equivalents | |||||||||||
| Cash and cash equivalents at beginning of period (including restricted cash) | |||||||||||
| Cash and cash equivalents at end of period (including restricted cash) | $ | $ | |||||||||
Cash and cash equivalents | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash and cash equivalents of consolidated Funds, restricted | |||||||||||
| Cash and cash equivalents at end of period (including restricted cash) | $ | $ | |||||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Interest paid (excluding consolidated Funds) | $ | $ | |||||||||
| Income taxes paid | $ | $ | |||||||||
Supplemental disclosure of non-cash investing and financing transactions: | |||||||||||
Excise tax on repurchase of common stock | $ | $ | |||||||||
See Notes to Condensed Consolidated Financial Statements
9
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
1) Organization and Description of the Business
Acadian Asset Management Inc. (“Acadian”, “AAMI” or the “Company”) is a holding company that operates a systematic investment management business through its majority-owned subsidiary, Acadian Asset Management LLC (“Acadian LLC”). Acadian LLC is a leading investment manager that 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. Notable product lines and capabilities include Emerging Equity, Non-U.S. Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives. The Company’s Quant & Solutions reportable segment consists of Acadian LLC:
•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; product lines and capabilities include Emerging Equity, Non-U.S. Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives.
Acadian LLC is organized as a limited liability company. Fees for services are largely asset-based and, as a result, revenues fluctuate based on the performance of financial markets and investors’ asset flows in and out of Acadian LLC’s products. The Company utilizes a profit-sharing model in structuring its compensation and ownership arrangements with Acadian LLC. Variable compensation is based on the firm’s profitability. The Company and Acadian LLC key employees share in profits after variable compensation according to their respective ownership interests. The profit-sharing model results in the alignment of the Company and Acadian LLC key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business.
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. As part of the Offering, the Company was authorized to issue up to 230 million shares of $0.001 par value per share common stock. As of September 30, 2026, Paulson & Co. Inc. (“Paulson”) and related parties thereof held approximately 16.5 % of the common stock of the Company.
For the nine months ended September 30, 2026, the Company repurchased 246,314 shares of common stock at an average price of $62.14 per share, or approximately $15.3 million in total, including commissions. For the nine months ended September 30, 2025, the Company repurchased 1,799,423 shares of common stock at an average price of $26.64 per share, or approximately $48.0 million in total, including commissions.
10
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
2) 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, statements of comprehensive income, statements of changes in stockholders’ equity, and statements of cash flows of the Company. Within these Condensed Consolidated Financial Statements, Paulson and its related entities, as defined above, are considered “related parties.”
The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of the Company’s Condensed Consolidated Financial Statements have been included. All dollar amounts, except per-share data in the text and tables herein, are stated in millions of United States Dollars (“USD”) unless otherwise indicated. Transactions between the Company and its related parties are included in the Condensed Consolidated Financial Statements; however, intercompany balances and transactions among the Company, Acadian LLC, and consolidated Funds are eliminated in consolidation.
Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (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, 2025 included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 27, 2026. The Company’s significant accounting policies, which have been consistently applied, are summarized in those financial statements.
Use of estimates
New accounting standards not yet adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-4): Disaggregation of Income Statement Expenses, which requires disclosures of additional information and disaggregation of certain expenses included in the income statement. This amendment is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The Company does not expect the adoption of this standard to have a material impact on the Condensed Consolidated Financial Statements.
11
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
2) Basis of Presentation and Significant Accounting Policies (cont.)
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes the accounting for internal-use software costs. This amendment is effective for annual periods beginning after December 15, 2027 and interim periods within those annual periods. The Company is evaluating the impact that the adoption will have on the Condensed Consolidated Financial Statements.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements to the Accounting for derivatives and hedging, which aims to more closely align hedge accounting with the economics of an entity’s risk management activities. This amendment is effective for annual periods beginning after December 15, 2026, and interim periods within those annual periods. The Company does not expect the additional disclosure requirements under ASU 2025-09 to have a material impact on the Consolidated Financial Statements.
The Company has considered all other newly issued accounting guidance that is applicable to the Company’s operations and the preparation of the unaudited Condensed Consolidated Financial Statements, including those that have not yet been adopted. The Company does not believe that any such guidance has or will have a material effect on its Condensed Consolidated Financial Statements and related disclosures.
3) Investments
Investments are comprised of the following as of the dates indicated (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||
Investments of consolidated Funds | $ | $ | |||||||||
| Other investments | |||||||||||
| Investments related to long-term incentive compensation plans | |||||||||||
| Total investments per Condensed Consolidated Balance Sheets | $ | $ | |||||||||
12
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
4) 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, 2026 (in millions):
| Quoted prices in active markets (Level I) | Significant other observable inputs (Level II) | Significant unobservable inputs (Level III) | Uncategorized | Total value, September 30, 2026 | |||||||||||||||||||||||||
Assets of AAMI and consolidated Funds | |||||||||||||||||||||||||||||
Common and preferred stock | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Corporate bonds | — | ||||||||||||||||||||||||||||
| Derivatives | — | ||||||||||||||||||||||||||||
Consolidated Funds total(1) | — | ||||||||||||||||||||||||||||
Investments in separate accounts(2) | — | ||||||||||||||||||||||||||||
Investments related to long-term incentive compensation plans(3) | — | ||||||||||||||||||||||||||||
Investments in unconsolidated Funds(4) | |||||||||||||||||||||||||||||
AAMI total | |||||||||||||||||||||||||||||
| Total fair value assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities of consolidated Funds | |||||||||||||||||||||||||||||
Securities sold short | $ | ( | $ | $ | $ | — | $ | ( | |||||||||||||||||||||
Derivatives | ( | ( | — | ( | |||||||||||||||||||||||||
Consolidated Funds total(1) | ( | ( | — | ( | |||||||||||||||||||||||||
| Total fair value liabilities | $ | ( | $ | ( | $ | $ | — | $ | ( | ||||||||||||||||||||
13
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
4) Fair Value Measurements (cont.)
The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2025 (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, 2025 | |||||||||||||||||||||||||
Assets of AAMI and consolidated Funds | |||||||||||||||||||||||||||||
| Common and preferred stock | $ | $ | $ | $ | — | $ | |||||||||||||||||||||||
Corporate bonds | — | ||||||||||||||||||||||||||||
| Derivatives | — | ||||||||||||||||||||||||||||
Consolidated Funds total(1) | — | ||||||||||||||||||||||||||||
Investments in separate accounts(2) | — | ||||||||||||||||||||||||||||
Investments related to long-term incentive compensation plans(3) | — | ||||||||||||||||||||||||||||
Investments in unconsolidated Funds(4) | |||||||||||||||||||||||||||||
AAMI total | |||||||||||||||||||||||||||||
| Total fair value assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities of consolidated Funds | |||||||||||||||||||||||||||||
Securities sold short | $ | ( | $ | $ | $ | — | $ | ( | |||||||||||||||||||||
| Derivatives | ( | — | ( | ||||||||||||||||||||||||||
Consolidated Funds total(1) | ( | ( | — | ( | |||||||||||||||||||||||||
| Total fair value liabilities | $ | ( | $ | ( | $ | $ | — | $ | ( | ||||||||||||||||||||
(1)Assets and liabilities measured at fair value are comprised of financial investments managed by Acadian LLC.
Equity securities 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. The 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 Corporate bonds.
14
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
4) Fair Value Measurements (cont.)
If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model with unobservable inputs, 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.
(2)Investments in separate accounts of $5.4 million at September 30, 2026 consisted of 1 % of cash equivalents and 99 % of equity securities. The Company values these accounts 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 incentive compensation plans of $39.6 million and $37.9 million at September 30, 2026 and December 31, 2025, respectively, were investments in publicly registered daily redeemable funds (some managed by Acadian LLC), 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 $23.0 million and $13.3 million at September 30, 2026 and December 31, 2025, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in 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 unconsolidated Funds consist primarily of real estate investment Funds 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. Other investment vehicles are not subject to redemption restrictions.
The real estate investment Funds of $2.6 million and $3.1 million at September 30, 2026 and December 31, 2025, respectively, were subject to longer than monthly or 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 from September 30, 2026. 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, finance, 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.
There were no significant transfers of financial assets or liabilities between Levels II or III during the three and nine months ended September 30, 2026 and 2025.
15
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
5) Variable Interest Entities
The Company, through Acadian LLC, sponsors the formation of various entities considered to be variable interest entities (“VIEs”). These VIEs are primarily Funds managed by Acadian LLC 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 Acadian LLC key employees and/or individuals that have ownership interests in Acadian LLC.
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 have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company, through Acadian LLC in its capacity as the investment advisor to the Funds, generally has power over the Funds and therefore the Company may be required to consolidate a Fund that is a VIE if it has potentially significant economics. 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 in 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 significant.
When the Company’s ownership interest in a Fund, including interests of related parties, is significant, the Company generally consolidates the VIE. If the Company subsequently determines that it no longer controls the managed funds in which it has invested, or no longer has an obligation to absorb losses or rights to receive benefits that could be significant, the Company will deconsolidate the Fund.
The following table presents the assets and liabilities of Funds that are VIEs consolidated by the Company (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents, restricted | $ | $ | |||||||||
Investments | |||||||||||
| Other assets of consolidated Funds | |||||||||||
| Total Assets | $ | $ | |||||||||
| Liabilities | |||||||||||
| Securities sold short | $ | $ | |||||||||
| Other liabilities of consolidated Funds | |||||||||||
| Total Liabilities | $ | $ | |||||||||
“Investments” consist of investments in equity securities, corporate bonds, and derivative 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.
16
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
5) Variable Interest Entities (cont.)
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 but that are 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 in the Fund’s net assets and assets under management, such that the majority of the VIE’s 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, 2026 | December 31, 2025 | ||||||||||
| Equity interests on the Condensed Consolidated Balance Sheets | $ | $ | |||||||||
Maximum exposure to loss(1) | $ | $ | |||||||||
6) Leases
The Company has operating leases for corporate offices, data centers, and certain equipment. The operating leases have remaining lease terms of less than 1 year to 7 years, some of which include options to extend the leases for up to 5 years. Some of the Company’s leases also include options to terminate the lease prior to expiration.
17
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
6) Leases (cont.)
The following table summarizes information about the Company’s operating leases for the three and nine months ended September 30, 2026 and 2025 (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
| Variable lease cost | |||||||||||||||||||||||
| Total operating lease expense | $ | $ | $ | $ | |||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||
| Operating cash flows from operating leases | $ | $ | $ | $ | |||||||||||||||||||
| Right of use assets obtained in exchange for new operating lease liabilities | |||||||||||||||||||||||
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, 2026 and 2025, the weighted average remaining lease term was 6.9 years and 7.8 years, respectively, and the weighted average discount rate was 3.51 % and 3.53 %, respectively.
Maturities of operating lease liabilities were as follows (in millions):
| Operating Leases | |||||
| Year Ending December 31, | |||||
2026 (excluding the nine months ended September 30, 2026) | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| Thereafter | |||||
| Total lease payments | $ | ||||
| Less imputed interest | ( | ||||
| Total | $ | ||||
18
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
7) Borrowings and Debt
The Company’s borrowings and long-term debt were comprised of the following as of the dates indicated (in millions):
| September 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| (in millions) | Carrying value | Fair value | Carrying value | Fair value | |||||||||||||||||||||||||||||||
| Revolving credit facility: | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Total revolving credit facility | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Third party borrowings: | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Total third party borrowings | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
(1)Fair value approximates carrying value because the credit facility and the delayed draw term loan have variable interest rates based on selected short-term market rates.
The Delayed Draw Term Loan Credit Agreement and Revolving Credit Agreement
On October 28, 2025 (the “Closing Date”), Acadian LLC entered into a Delayed Draw Term Loan Credit Agreement with the Lenders from time to time party thereto, and Bank of America, N.A. (“Bank of America”), as the Administrative Agent (the “DDTL Credit Agreement”), and a Revolving Credit Agreement with the Lenders from time to time party thereto, Bank of America, as the Administrative Agent and a L/C Issuer, and the other L/C Issuers from time to time party thereto (the “Revolving Credit Agreement”).
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.
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.
19
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
7) Borrowings and Debt (cont.)
Financial covenants under the Term Facility include the quarterly maintenance by Acadian LLC of (i) a maximum Consolidated Net Leverage Ratio (as defined in the DDTL Credit Agreement) of not greater than 2.5 x 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 4.0 x. 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.
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.
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 (as defined in the Revolving Credit Agreement) 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 Consolidated Leverage Ratio on the daily undrawn amount of the revolving commitments, and customary letter of credit participation and fronting fees.
As of September 30, 2026, Acadian LLC had unused lines of credit of $172.5 million comprised of undrawn commitments on the revolving credit facility of $175.0 million less a $2.5 million letter of credit with Bank of America related to one of Acadian LLC’s current office spaces.
8) Commitments and Contingencies
Operational commitments
A number of our subsidiaries 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 periods presented.
Guaranty
The Company entered into a guaranty for an office space security deposit on behalf of Acadian LLC in the amount of $2.5 million in January 2020. This represents the maximum potential amount of future (undiscounted) payments that the Company could be required to make under the guaranty in the event of default by the guaranteed parties. This guaranty expires in 2033. There are no
20
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
8) Commitments and Contingencies (cont.)
Litigation
The Company is subject to claims, legal proceedings, and other contingencies in the ordinary course of its 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. The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated. As of September 30, 2026, there were no material accruals for claims and the Company does not believe any outstanding matters will have a material adverse effect on the Company.
Indemnifications
In the normal course of business, the Company may enter 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, 2026, 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, 2026.
Considerations of credit risk
21
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
9) 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 anti-dilutive.
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, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net income attributable to controlling interests | $ | $ | $ | $ | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted-average shares of common stock outstanding—basic | |||||||||||||||||||||||
| Potential shares of common stock: | |||||||||||||||||||||||
| Restricted stock units | |||||||||||||||||||||||
| Employee stock options | |||||||||||||||||||||||
| Weighted-average shares of common stock outstanding—diluted | |||||||||||||||||||||||
| Earnings per share of common stock attributable to controlling interests: | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
10) Revenue
Management fees
The Company’s management fees are a function of the fee rates charged to clients, which are typically expressed in basis points, and the levels of the Company’s assets under management. The most significant 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 products subject to performance fees earn these fees upon exceeding high-water mark performance thresholds or outperforming a hurdle rate. Performance fees are recorded in revenues when the contractual performance criteria have been met and when it is probable that a significant reversal of revenue recognized will not occur in future reporting periods.
22
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
10) Revenue (cont.)
Disaggregation of management fee revenue
The geographic disaggregation of management fee revenue by location of client domicile for the three and nine months ended September 30, 2026 and 2025 is as follows (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Quant & Solutions | |||||||||||||||||||||||
| U.S. | $ | $ | $ | $ | |||||||||||||||||||
| Non-U.S. | |||||||||||||||||||||||
| Management fee revenue | $ | $ | $ | $ | |||||||||||||||||||
11) Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2026 and 2025 are as follows (in millions):
| Foreign currency translation adjustment | |||||||||||||||||
Balance, as of June 30, 2026 | $ | ||||||||||||||||
Foreign currency translation adjustment before tax | |||||||||||||||||
| Tax impact | |||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||
Balance, as of September 30, 2026 | $ | ||||||||||||||||
| Foreign currency translation adjustment | Valuation and amortization of derivative securities | Total | |||||||||||||||
Balance, as of June 30, 2025 | $ | $ | ( | $ | ( | ||||||||||||
Foreign currency translation adjustment before tax | ( | ( | |||||||||||||||
| Amortization related to derivative securities before tax | |||||||||||||||||
| Tax impact | ( | ( | |||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||
Balance, as of September 30, 2025 | $ | $ | ( | $ | ( | ||||||||||||
23
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
11) Accumulated Other Comprehensive Income (Loss) (cont.)
The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2026 and 2025 are as follows (in millions):
| Foreign currency translation adjustment | |||||||||||||||||
Balance, as of December 31, 2025 | $ | ||||||||||||||||
Foreign currency translation adjustment before tax | |||||||||||||||||
| Tax impact | |||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||
Balance, as of September 30, 2026 | $ | ||||||||||||||||
| Foreign currency translation adjustment | Valuation and amortization of derivative securities | Total | |||||||||||||||
Balance, as of December 31, 2024 | $ | $ | ( | $ | ( | ||||||||||||
Foreign currency translation adjustment before tax | |||||||||||||||||
| Amortization related to derivative securities before tax | |||||||||||||||||
| Tax impact | ( | ( | ( | ||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||
Balance, as of September 30, 2025 | $ | $ | ( | $ | ( | ||||||||||||
12) 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 Company assessed the effectiveness of the hedging contract at inception and on a quarterly basis thereafter. 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.
On December 1, 2025, the Company completed the full redemption of the $275 million aggregate principal amount outstanding of its 4.80 % Senior Notes due July 27, 2026. As of September 30, 2026, there was no balance relating to the cash flow hedge recorded in accumulated other comprehensive income (loss) before tax. The Company reclassified $1.0 million and $2.9 million to earnings through interest expense for the three and nine months ended September 30, 2025, respectively.
24
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
13) Segment Information
The Company has the following reportable segment :
•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; product lines and capabilities include Emerging Equity, Non-U.S. Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives. This segment consists of our ownership interest in Acadian LLC.
The corporate holding company (“Hold Co”) is included within the Unallocated corporate expenses. The Hold Co expenses are not allocated to the Company’s business segment, but the Chief Operating Decision Maker (“CODM”) does consider the cost structure of the corporate head office when evaluating the financial performance of the segment. The CODM is the Company’s Chief Executive Officer.
Performance Measure
The primary measure used by the CODM in measuring performance and allocating resources to the segment is economic net income (“ENI”). ENI is used to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and equity distributions, and incentivize management. The Company defines ENI for the segment as ENI revenue less ENI operating expenses. 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 recognized under U.S. GAAP. This measure supplements and should be considered in addition to, and not in lieu of, the Consolidated Statements of Operations prepared in accordance with U.S. GAAP. The Company does not disclose total asset information for its reportable segment 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 the Company by consolidated Funds.
Significant segment ENI expenses include fixed compensation and benefits, variable compensation, and Acadian LLC key employee distributions included in compensation and benefits expense under U.S. GAAP, depreciation and amortization under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, capital transaction costs, and restructuring costs. Other segment items include ENI general and administrative expense under U.S. GAAP, adjusted to exclude restructuring costs, amortization of acquired intangible assets, and include sales-based compensation.
ENI segment results are also adjusted to exclude consolidated Fund revenues, consolidated Fund expenses and investment return recorded under U.S. GAAP.
25
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
13) Segment Information (cont.)
Segment Presentation
The following table sets forth summarized operating results for the Company’s segment and related adjustments necessary to reconcile the segment economic net income to arrive at the Company’s consolidated U.S. GAAP net income attributable to controlling interests for the three and nine months ended September 30, 2026 and 2025 (in millions):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
U.S. GAAP consolidated revenue | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Exclude revenue from consolidated Funds | (a) | ||||||||||||||||||||||||||||||||||
Quant & Solutions segment ENI revenue | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Less: Quant & Solutions segment ENI expenses | |||||||||||||||||||||||||||||||||||
Fixed compensation and benefits | (b) | ||||||||||||||||||||||||||||||||||
Variable compensation | (c) | ||||||||||||||||||||||||||||||||||
Acadian LLC key employee distributions | (d) | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | (e) | ||||||||||||||||||||||||||||||||||
Other segment items | (f) | ||||||||||||||||||||||||||||||||||
Segment economic net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Reconciliation of segment ENI to net income attributable to controlling interests: | |||||||||||||||||||||||||||||||||||
Unallocated corporate expenses | (g) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Adjustments and reconciling items | (h) | ||||||||||||||||||||||||||||||||||
Non-cash compensation expenses for Acadian LLC key employee equity and profit interest revaluations | (i) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Investment income (loss) | |||||||||||||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Net consolidated Funds’ investment gains (losses) | |||||||||||||||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Consolidated net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Net income attributable to redeemable non-controlling interests in consolidated Funds | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Net income attributable to controlling interests | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
26
Acadian Asset Management Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
13) Segment Information (cont.)
Reconciling Adjustments:
a.Adjustment to exclude consolidated Funds’ revenues, which is included in U.S. GAAP revenue.
b.Fixed compensation and benefits include base salaries, payroll taxes and the cost of benefit programs provided.
c.Variable compensation is contractually set and calculated individually for Acadian LLC bonuses. Amounts are adjusted for non-cash Acadian LLC key employee equity revaluations and severance relating to restructuring costs.
d.Acadian LLC key employee distributions include the share of Acadian LLC profits after variable compensation that is attributable to the Acadian LLC key employee equity and profit interests holders, according to their ownership interests.
e.Depreciation and amortization includes U.S. GAAP depreciation and amortization, adjusted for amortization of acquired intangible assets.
f.Other segment items include segment systems, portfolio administration costs, and other general & administrative expenses.
g.Included in unallocated corporate expenses for the three months ended September 30, 2026 and 2025 were compensation and benefits of $2.8 million and $2.7 million, respectively, related to Hold Co which are included in U.S. GAAP net income attributable to controlling interests. Included in unallocated corporate expenses for the three months ended September 30, 2026 and 2025 were general and administrative expenses of $1.6 million and $1.5 million, respectively, related to Hold Co which are included in U.S. GAAP net income attributable to controlling interests. Included in unallocated corporate expenses for the nine months ended September 30, 2026 and 2025 were compensation and benefits of $8.3 million and $7.7 million, respectively, related to Hold Co which are included in U.S. GAAP net income attributable to controlling interests. Included in unallocated corporate expenses for the nine months ended September 30, 2026 and 2025 were general and administrative expenses of $5.7 million and $5.8 million, respectively, related to Hold Co which are included in U.S. GAAP net income attributable to controlling interests.
h.Adjustments and reconciling items include consolidated Funds’ revenue, consolidated Funds’ expense, restructuring costs, and amortization of acquired intangible assets.
i.Non-cash Acadian LLC key employee equity revaluations represent changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, which are included within the U.S. GAAP compensation and benefits expense.
14) Subsequent Events
During the period from October 1, 2026 through November 2, 2026, the Company repurchased 0.2 million shares of common stock at a weighted average price of $89.25 per share, or approximately $16.7 million in total, including commissions.
27
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to the “Company”, “Acadian Asset Management”, “Acadian” or “AAMI” refer to Acadian Asset Management Inc., and references to “we,” “our” and “us” refer to AAMI and its consolidated subsidiaries. References to “Hold Co” refer to AAMI and its subsidiaries excluding Acadian Asset Management LLC (“Acadian LLC”). Unless we state otherwise or the context otherwise requires, references in this Quarterly Report on Form 10-Q to “OM plc” refer to Old Mutual plc, our former parent. None of the information in this Quarterly Report on Form 10-Q constitutes either an offer or a solicitation to buy or sell Acadian LLC’s products or services, nor is any such information a recommendation for Acadian LLC’s products or services.
The following discussion of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and related notes which appear in this Quarterly Report on Form 10-Q in Item 1, Financial Statements.
This discussion contains forward-looking statements that involve risks and uncertainties. See “Forward-Looking Statements” at the end of this Item 2 for more information. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed below.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is designed to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results.
Our MD&A is presented in five sections:
•Overview provides a brief description of our business. It includes information on our reporting segment, a summary of The Economics of Our Business and an explanation of How We Measure Performance using a non-GAAP measure which we refer to as economic net income, or ENI. This section also provides a Summary Results of Operations and information regarding our Assets Under Management by strategy, client type and client location, and net flows by segment, client type and client location.
•U.S. GAAP Results of Operations for the Three and Nine Months Ended September 30, 2026 and 2025 includes an explanation of changes in our U.S. GAAP revenue, expense and other items for the three and nine months ended September 30, 2026 and 2025, as well as key U.S. GAAP operating metrics.
•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, 2026 and 2025, 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.
•Capital Resources and Liquidity discusses our key balance sheet data. This section discusses Cash Flows from the business; Adjusted EBITDA; Future Capital Needs; Borrowings and Long-Term Debt; Other Compensation Liabilities. The discussion of Adjusted EBITDA includes an explanation of how we calculate Adjusted EBITDA and a reconciliation of U.S. GAAP net income attributable to controlling interests to Adjusted EBITDA.
•Critical Accounting Policies and Estimates provides a discussion of the key accounting policies and estimates that we believe are the most critical to an understanding of our results of operations and financial condition. These accounting policies and estimates require complex management judgment regarding matters that are highly uncertain at the time the policies were applied and estimates were made.
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Overview
We are a holding company that operates a systematic investment management business through our majority-owned subsidiary, Acadian LLC. Acadian LLC is a leading investment manager that 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. Notable product lines and capabilities include Emerging Equity, Non-U.S. Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives. Acadian LLC comprises our Quant & Solutions reportable segment:
•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; product lines and capabilities include Emerging Equity, Non-U.S. Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives. This segment consists of our ownership interest in Acadian LLC.
Hold Co is included within the Unallocated Corporate expenses category.
Under U.S. GAAP, Acadian LLC is consolidated into our financial statements. We may also be required to consolidate Acadian LLC’s sponsored investment entities, or Funds, due to the nature of our decision-making rights, our economic interests in these Funds or the rights of third-party clients in those Funds.
The Economics of Our Business
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, 2026, approximately $29 billion, or 12%, of our AUM was 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.
Our largest expense item is compensation and benefits paid to our employees, which consists of both fixed and variable components. Fixed compensation and benefits represents base salaries and wages, payroll taxes and the costs of our employee benefit programs. Variable compensation is comprised of variable compensation at both Hold Co and Acadian LLC. Hold Co variable compensation includes discretionary annual bonuses and may be paid in the form of cash or AAMI equity. Acadian LLC variable compensation, calculated as described below, may be awarded in cash, equity, or profit interests.
The arrangement in place with Acadian LLC results in the sharing of economics between us and key management personnel using a profit-sharing model. Profit sharing affects two elements within our earnings: (i) the calculation of variable compensation and (ii) the level of Acadian LLC’s equity or profit interests distribution to its employees.
Variable compensation includes the portion of earnings that is contractually allocated to Acadian LLC employees as a bonus pool, typically representing a percentage of earnings before variable compensation, which is measured as revenues less fixed compensation and benefits and other operating and administrative expenses. Profits after variable compensation are shared between us and Acadian LLC key employee equity holders according to our respective equity or profit interests ownership. The sharing of profits in this manner ensures that the economic interests of Acadian LLC key employees and ours are aligned, both in terms of generating strong annual earnings as well as investing those earnings back into the business in order to generate growth over the long term. We view profit sharing as an attractive operating model, as it allows us to share in the benefits of operating leverage as the business grows, and ensures all equity and profit interests holders are incentivized to achieve that growth.
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Equity or profit interests owned by Acadian LLC key employees are awarded as part of their variable compensation arrangement. Over time, Acadian LLC key employee-owned equity or profit interests are recycled from one generation of employee-owners to the next, either by the next generation purchasing equity or profit interests directly from retiring principals, or by key employees forgoing cash bonuses in exchange for the equivalent value in Acadian LLC equity or profit interests. The recycling of equity or profit interests is often facilitated by Hold Co; see “U.S. GAAP Results of Operations — U.S. GAAP Expenses — Compensation and Benefits Expense” for a further discussion. Notwithstanding the foregoing, under the contractual arrangements governing these interests, any amounts used by the Company to facilitate recycling are funded through corresponding reductions in the Acadian LLC annual bonus pool and/or deferred compensation pool otherwise available for allocation to employees. Accordingly, the cash impact of repurchasing these interests is offset by corresponding reductions in cash variable compensation otherwise payable to employees from either the Acadian LLC annual bonus pool or the deferred compensation pool, resulting in a neutral offsetting impact to the Company's cash. Notwithstanding this cash funding offset, the value of these interests is carried on the Company’s balance sheet as a liability, and changes in the value of the liability are recognized as compensation expense under U.S. GAAP. Accordingly, regardless of the size of the liability, Hold Co does not expect recycling to have an impact on its liquidity.
Employee equity is valued at a fixed multiple of profits, so employees have transparency into both their earning potential in any year from the bonus pool and share of profits, as well as the current value of their equity and the long-term potential to realize value from its growth.
In this structure, key employees who are managing the business have incentives to manage for profit, but also to manage the business prudently, in the interest of their clients, and invest for growth, since they will benefit over the long term as both employees and equity holders. In this way, key employees are aligned with the public stockholders to generate profits and growth over time.
How We Measure Performance
We manage our business based on one segment, reflecting how our management assesses the performance of our business.
In measuring and monitoring the key components of our earnings, our management uses a non-GAAP financial measure, ENI, to evaluate the financial performance of, and to make operational decisions for, our business. We also use ENI to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and Acadian LLC equity distributions, and incentivize management. It is an important measure in evaluating our financial performance because we believe it most accurately represents our operating performance and cash generation capability.
ENI differs from net income determined in accordance with U.S. GAAP as a result of both the reclassification of certain income statement items and the exclusion of certain non-cash or non-recurring income statement items. In particular, ENI excludes non-cash charges representing the changes in the value of Acadian LLC equity and profit interests held by key employees, the results of discontinued operations which are no longer part of our business, restructuring costs, capital transaction costs, seed capital and co-investment gains, losses and related financing costs and that portion of consolidated Funds which are not attributable to our stockholders.
ENI revenue is primarily comprised of the fee revenues paid to us by our clients for our advisory services. Revenue included within ENI differs from U.S. GAAP revenue in that it excludes amounts from consolidated Funds which are not attributable to our stockholders.
ENI expenses are calculated to reflect all usual expenses from ongoing continuing operations attributable to our stockholders. Expenses included within ENI differ from U.S. GAAP expenses in that they exclude amounts from consolidated Funds which are not attributable to our stockholders, revaluations of Acadian LLC key employee owned equity and profit interests, amortization and impairment of acquired intangibles and other acquisition-related items, and certain other non-cash expenses.
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“Non-controlling interests” is a concept under U.S. GAAP that identifies net components of revenues and expenses that are not attributable to our stockholders. For example, the portion of the net income (loss) of any consolidated Fund that is attributable to the outside investors or clients of the consolidated Fund is included in “Non-controlling interests” in our Condensed Consolidated Financial Statements. Conversely, “controlling interests” is the portion of revenue or expense that is attributable to our stockholders.
For a more detailed discussion of the differences between U.S. GAAP net income and economic net income, see “Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis.”
Summary Results of Operations
The following table summarizes our unaudited results of operations for the three and nine months ended September 30, 2026 and 2025:
| ($ in millions, unless otherwise noted) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 vs. 2025 | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||||||||||||||||||
| U.S. GAAP Basis | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 191.2 | $ | 144.2 | $ | 47.0 | $ | 543.3 | $ | 391.5 | $ | 151.8 | |||||||||||||||||||||||
| Pre-tax income attributable to controlling interests | 49.9 | 22.5 | 27.4 | 124.1 | 65.5 | 58.6 | |||||||||||||||||||||||||||||
| Net income attributable to controlling interests | 35.5 | 15.1 | 20.4 | 87.1 | 45.3 | 41.8 | |||||||||||||||||||||||||||||
U.S. GAAP operating margin(1) | 26.4 | % | 18.4 | % | 797 bps | 23.0 | % | 19.1 | % | 389 bps | |||||||||||||||||||||||||
| Earnings per share, basic ($) | $ | 1.00 | $ | 0.42 | $ | 0.58 | $ | 2.45 | $ | 1.25 | $ | 1.20 | |||||||||||||||||||||||
| Earnings per share, diluted ($) | $ | 1.00 | $ | 0.42 | $ | 0.58 | $ | 2.44 | $ | 1.25 | $ | 1.19 | |||||||||||||||||||||||
| Basic shares outstanding (in millions) | 35.5 | 35.8 | (0.3) | 35.6 | 36.4 | (0.8) | |||||||||||||||||||||||||||||
| Diluted shares outstanding (in millions) | 35.6 | 35.8 | (0.2) | 35.7 | 36.4 | (0.7) | |||||||||||||||||||||||||||||
Economic Net Income Basis(2)(3) | |||||||||||||||||||||||||||||||||||
| (Non-GAAP measure used by management) | |||||||||||||||||||||||||||||||||||
ENI revenue(4) | $ | 189.1 | $ | 136.3 | $ | 52.8 | $ | 537.3 | $ | 379.4 | $ | 157.9 | |||||||||||||||||||||||
Pre-tax economic net income(5) | 68.2 | 37.8 | 30.4 | 187.0 | 97.2 | 89.8 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | 75.1 | 45.1 | 30.0 | 206.8 | 119.4 | 87.4 | |||||||||||||||||||||||||||||
ENI operating margin(6) | 42.6 | % | 33.2 | % | 933 bps | 40.4 | % | 30.9 | % | 955 bps | |||||||||||||||||||||||||
Economic net income(7) | 48.3 | 27.2 | 21.1 | 133.4 | 70.4 | 63.0 | |||||||||||||||||||||||||||||
ENI diluted EPS ($) | $ | 1.36 | $ | 0.76 | $ | 0.60 | $ | 3.74 | $ | 1.93 | $ | 1.81 | |||||||||||||||||||||||
| Other Operational Information | |||||||||||||||||||||||||||||||||||
Assets under management (AUM) at period end (in billions) | $ | 239.6 | $ | 166.4 | $ | 73.2 | $ | 239.6 | $ | 166.4 | $ | 73.2 | |||||||||||||||||||||||
| Net client cash flows (in billions) | 2.6 | 6.4 | (3.8) | 28.3 | 24.0 | 4.3 | |||||||||||||||||||||||||||||
(1)U.S. GAAP operating margin equals operating income divided by total revenue.
(2)Economic net income is a non-GAAP measure we use to evaluate the performance of our business. For a reconciliation to U.S. GAAP financial information and a further discussion of economic net income refer to “Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis.”
(3)Excludes amortization of acquired intangible assets of $0.3 million, for both the three and nine months ended September 30, 2026. Excludes legal-related restructuring of $(0.1) million and $0.1 million, respectively, for the three and nine months ended September 30, 2026. Excludes severance-related items of $(0.2) million and $(0.7) million, respectively, for the three and nine months ended September 30, 2025.
(4)ENI revenue is the ENI measure which corresponds to U.S. GAAP revenue.
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(5)Pre-tax economic net income is the ENI measure which corresponds to U.S. GAAP pre-tax income attributable to controlling interests.
(6)ENI operating margin is a non-GAAP efficiency measure, calculated based on ENI operating earnings divided by ENI revenue. ENI operating earnings is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation. The ENI operating margin is most directly comparable to our U.S. GAAP operating margin (excluding the effect of consolidated Funds).
(7)Economic net income is the non-GAAP measure which is most directly comparable to U.S. GAAP net income attributable to controlling interests.
Assets Under Management
Our total assets under management were $239.6 billion as of September 30, 2026 and $177.5 billion as of December 31, 2025.
The following table presents our assets under management by strategy as of each of the dates indicated:
| ($ in billions) | September 30, 2026 | December 31, 2025 | |||||||||||||||||||||
| AUM | % of total | AUM | % of total | ||||||||||||||||||||
| Enhanced Equity | $ | 75.1 | 31.3 | % | $ | 40.0 | 22.5 | % | |||||||||||||||
| Non-U.S. Equity | 49.1 | 20.5 | % | 38.4 | 21.6 | % | |||||||||||||||||
| Small Cap Equity | 36.2 | 15.1 | % | 32.8 | 18.5 | % | |||||||||||||||||
Emerging Markets Equity | 32.1 | 13.4 | % | 26.0 | 14.7 | % | |||||||||||||||||
| Global Equity | 29.4 | 12.3 | % | 22.9 | 12.9 | % | |||||||||||||||||
| Other | 17.7 | 7.4 | % | 17.4 | 9.8 | % | |||||||||||||||||
| Total assets under management | $ | 239.6 | $ | 177.5 | |||||||||||||||||||
The following table shows assets under management by client type as of each of the dates indicated:
| ($ in billions) | September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||
| AUM | % of total | AUM | % of total | ||||||||||||||||||||||||||||||||
| Institutional | $ | 178.4 | 74.5 | % | $ | 144.5 | 81.4 | % | |||||||||||||||||||||||||||
| Wealth/other | 42.3 | 17.6 | % | 16.2 | 9.1 | % | |||||||||||||||||||||||||||||
| Sub-advisory | 18.9 | 7.9 | % | 16.8 | 9.5 | % | |||||||||||||||||||||||||||||
| Total assets under management | $ | 239.6 | $ | 177.5 | |||||||||||||||||||||||||||||||
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The following table shows assets under management by client location as of each of the dates indicated:
| ($ in billions) | September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||
| AUM | % of total | AUM | % of total | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 122.3 | 51.0 | % | $ | 99.5 | 56.1 | % | |||||||||||||||||||||||||||||||||||||||
EMEA | 64.4 | 26.9 | % | 37.7 | 21.2 | % | |||||||||||||||||||||||||||||||||||||||||
Asia Pacific | 42.2 | 17.6 | % | 31.2 | 17.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Other | 10.7 | 4.5 | % | 9.1 | 5.1 | % | |||||||||||||||||||||||||||||||||||||||||
| Total assets under management | $ | 239.6 | $ | 177.5 | |||||||||||||||||||||||||||||||||||||||||||
AUM flows
Net client cash flows for all periods include reinvested income and distributions. Reinvested income and distributions represent investment yield that is reinvested back into the portfolios as opposed to distributed as cash.
The following table summarizes our asset flows and market appreciation by segment for each of the periods indicated:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in billions, unless otherwise noted) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Quant & Solutions | |||||||||||||||||||||||
| Beginning balance | $ | 232.7 | $ | 151.1 | $ | 177.5 | $ | 117.3 | |||||||||||||||
| Gross inflows | 11.1 | 11.9 | 55.2 | 39.4 | |||||||||||||||||||
| Gross outflows | (10.0) | (6.5) | (30.8) | (18.0) | |||||||||||||||||||
| Reinvested income and distributions | 1.5 | 1.0 | 3.9 | 2.6 | |||||||||||||||||||
| Net flows | 2.6 | 6.4 | 28.3 | 24.0 | |||||||||||||||||||
| Market appreciation | 4.3 | 8.9 | 33.8 | 25.1 | |||||||||||||||||||
| Ending balance | $ | 239.6 | $ | 166.4 | $ | 239.6 | $ | 166.4 | |||||||||||||||
| Average AUM | $ | 236.4 | $ | 156.5 | $ | 215.4 | $ | 136.6 | |||||||||||||||
We also analyze our asset flows by client type and client location. Our client types include:
i.Institutional, which includes assets managed for public/government pension funds and other investments, including U.S. state and local government funds and non-U.S. sovereign wealth, local government and national investments; also includes corporate and union-sponsored pension plans and other investments;
ii.Sub-advisory, which includes assets managed for third-party mutual funds sponsored by platforms in the U.S. or abroad, where the end client is typically retail; and
iii.Wealth/other, which includes assets managed for registered investment advisor clients, private banks, high-net-worth clients, and family offices, defined contribution clients on certain platforms, mutual funds directly sponsored by Acadian LLC, and other assets.
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The following table summarizes our asset flows by client type for each of the periods indicated:
| ($ in billions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Institutional | |||||||||||||||||||||||
| Beginning balance | $ | 174.9 | $ | 121.9 | $ | 144.5 | $ | 93.0 | |||||||||||||||
| Gross inflows | 5.8 | 9.4 | 24.5 | 33.2 | |||||||||||||||||||
| Gross outflows | (6.4) | (4.2) | (18.6) | (12.9) | |||||||||||||||||||
| Reinvested income and distributions | 1.1 | 0.8 | 3.0 | 2.0 | |||||||||||||||||||
| Net flows | 0.5 | 6.0 | 8.9 | 22.3 | |||||||||||||||||||
| Market appreciation | 3.0 | 7.1 | 25.0 | 19.7 | |||||||||||||||||||
| Ending balance | $ | 178.4 | $ | 135.0 | $ | 178.4 | $ | 135.0 | |||||||||||||||
| Wealth/other | |||||||||||||||||||||||
| Beginning balance | $ | 39.2 | $ | 13.2 | $ | 16.2 | $ | 11.2 | |||||||||||||||
| Gross inflows | 4.1 | 1.2 | 24.5 | 2.6 | |||||||||||||||||||
| Gross outflows | (2.1) | (0.6) | (5.5) | (1.7) | |||||||||||||||||||
| Reinvested income and distributions | 0.3 | 0.1 | 0.6 | 0.3 | |||||||||||||||||||
| Net flows | 2.3 | 0.7 | 19.6 | 1.2 | |||||||||||||||||||
| Market appreciation | 0.8 | 1.1 | 6.5 | 2.6 | |||||||||||||||||||
| Ending balance | $ | 42.3 | $ | 15.0 | $ | 42.3 | $ | 15.0 | |||||||||||||||
| Sub-advisory | |||||||||||||||||||||||
| Beginning balance | $ | 18.6 | $ | 16.0 | $ | 16.8 | $ | 13.1 | |||||||||||||||
| Gross inflows | 1.2 | 1.3 | 6.2 | 3.6 | |||||||||||||||||||
| Gross outflows | (1.5) | (1.7) | (6.7) | (3.4) | |||||||||||||||||||
| Reinvested income and distributions | 0.1 | 0.1 | 0.3 | 0.3 | |||||||||||||||||||
| Net flows | (0.2) | (0.3) | (0.2) | 0.5 | |||||||||||||||||||
| Market appreciation | 0.5 | 0.7 | 2.3 | 2.8 | |||||||||||||||||||
| Ending balance | $ | 18.9 | $ | 16.4 | $ | 18.9 | $ | 16.4 | |||||||||||||||
| Total | |||||||||||||||||||||||
| Beginning balance | $ | 232.7 | $ | 151.1 | $ | 177.5 | $ | 117.3 | |||||||||||||||
| Gross inflows | 11.1 | 11.9 | 55.2 | 39.4 | |||||||||||||||||||
| Gross outflows | (10.0) | (6.5) | (30.8) | (18.0) | |||||||||||||||||||
| Reinvested income and distributions | 1.5 | 1.0 | 3.9 | 2.6 | |||||||||||||||||||
| Net flows | 2.6 | 6.4 | 28.3 | 24.0 | |||||||||||||||||||
| Market appreciation | 4.3 | 8.9 | 33.8 | 25.1 | |||||||||||||||||||
| Ending balance | $ | 239.6 | $ | 166.4 | $ | 239.6 | $ | 166.4 | |||||||||||||||
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Our categorization of assets under management by client location includes:
i. U.S.-based clients, where the contracting client is based in the United States; and
ii. Non-U.S.-based clients, where the contracting client is based outside the United States.
The following table summarizes asset flows by client location for each of the periods indicated:
| ($ in billions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| U.S. | |||||||||||||||||||||||
| Beginning balance | $ | 117.3 | $ | 86.9 | $ | 99.5 | $ | 74.7 | |||||||||||||||
| Gross inflows | 6.5 | 6.2 | 19.4 | 13.6 | |||||||||||||||||||
| Gross outflows | (4.5) | (4.3) | (16.9) | (11.8) | |||||||||||||||||||
| Reinvested income and distributions | 0.8 | 0.6 | 2.1 | 1.6 | |||||||||||||||||||
| Net flows | 2.8 | 2.5 | 4.6 | 3.4 | |||||||||||||||||||
| Market appreciation | 2.2 | 5.1 | 18.2 | 16.4 | |||||||||||||||||||
| Ending balance | $ | 122.3 | $ | 94.5 | $ | 122.3 | $ | 94.5 | |||||||||||||||
| Non-U.S. | |||||||||||||||||||||||
| Beginning balance | $ | 115.4 | $ | 64.2 | $ | 78.0 | $ | 42.6 | |||||||||||||||
| Gross inflows | 4.6 | 5.7 | 35.8 | 25.8 | |||||||||||||||||||
| Gross outflows | (5.5) | (2.2) | (13.9) | (6.2) | |||||||||||||||||||
| Reinvested income and distributions | 0.7 | 0.4 | 1.8 | 1.0 | |||||||||||||||||||
| Net flows | (0.2) | 3.9 | 23.7 | 20.6 | |||||||||||||||||||
| Market appreciation | 2.1 | 3.8 | 15.6 | 8.7 | |||||||||||||||||||
| Ending balance | $ | 117.3 | $ | 71.9 | $ | 117.3 | $ | 71.9 | |||||||||||||||
| Total | |||||||||||||||||||||||
| Beginning balance | $ | 232.7 | $ | 151.1 | $ | 177.5 | $ | 117.3 | |||||||||||||||
| Gross inflows | 11.1 | 11.9 | 55.2 | 39.4 | |||||||||||||||||||
| Gross outflows | (10.0) | (6.5) | (30.8) | (18.0) | |||||||||||||||||||
| Reinvested income and distributions | 1.5 | 1.0 | 3.9 | 2.6 | |||||||||||||||||||
| Net flows | 2.6 | 6.4 | 28.3 | 24.0 | |||||||||||||||||||
| Market appreciation | 4.3 | 8.9 | 33.8 | 25.1 | |||||||||||||||||||
| Ending balance | $ | 239.6 | $ | 166.4 | $ | 239.6 | $ | 166.4 | |||||||||||||||
At September 30, 2026, our total assets under management were $239.6 billion, an increase of $6.9 billion, or 3.0%, compared to $232.7 billion at June 30, 2026 and an increase of $73.2 billion, or 44.0%, compared to $166.4 billion at September 30, 2025. The increase in assets under management compared to September 30, 2025 was driven by 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, 2026 reflects net market appreciation of $4.3 billion and net inflows of $2.6 billion including reinvested income and distributions of $1.5 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.
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For the three months ended September 30, 2026, our net inflows were $2.6 billion compared to $6.4 billion for the three months ended September 30, 2025. The change in net flows during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily driven by an increase in rebalancing activities in the three months ended September 30, 2026. Reinvested income and distributions of $1.5 billion and $1.0 billion are reflected in the net flows for the three months ended September 30, 2026 and September 30, 2025, respectively.
For the nine months ended September 30, 2026, our net inflows were $28.3 billion compared to $24.0 billion for the nine months ended September 30, 2025. The change in net flows during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily driven by strong gross inflows, which increased to $55.2 billion in the nine months ended September 30, 2026. Reinvested income and distributions of $3.9 billion and $2.6 billion are reflected in the net flows for the nine months ended September 30, 2026 and September 30, 2025, respectively.
Strategies representing 95%, 96%, 96%, and 96% of revenue were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2026. As of September 30, 2026 the 5-year revenue weighted annualized return in excess of benchmark was 4.8%. Assets representing 92%, 94%, 95%, and 94% of assets under management were outperforming benchmarks on a 1-, 3-, 5-, and 10- year basis as of September 30, 2026. As of September 30, 2026 the 5-year asset weighted annualized return in excess of benchmark was 3.9%.
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U.S. GAAP Results of Operations for the Three and Nine Months Ended September 30, 2026 and 2025
Our U.S. GAAP results of operations were as follows for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| ($ in millions, unless otherwise noted) | 2026 | 2025 | Increase (Decrease) | 2026 | 2025 | Increase (Decrease) | |||||||||||||||||||||||||||||
U.S. GAAP Statement of Operations(1) | |||||||||||||||||||||||||||||||||||
| Management fees | $ | 187.8 | $ | 136.1 | $ | 51.7 | $ | 523.6 | $ | 371.3 | $ | 152.3 | |||||||||||||||||||||||
| Performance fees | 1.3 | 0.2 | 1.1 | 13.7 | 8.1 | 5.6 | |||||||||||||||||||||||||||||
| Consolidated Funds’ revenue | 2.1 | 7.9 | (5.8) | 6.0 | 12.1 | (6.1) | |||||||||||||||||||||||||||||
| Total revenue | 191.2 | 144.2 | 47.0 | 543.3 | 391.5 | 151.8 | |||||||||||||||||||||||||||||
| Compensation and benefits | 107.5 | 84.7 | 22.8 | 324.7 | 229.3 | 95.4 | |||||||||||||||||||||||||||||
| General and administrative expense | 27.8 | 23.5 | 4.3 | 79.7 | 67.6 | 12.1 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 4.3 | 4.1 | 0.2 | 11.6 | 12.5 | (0.9) | |||||||||||||||||||||||||||||
| Consolidated Funds’ expense | 1.1 | 5.3 | (4.2) | 2.5 | 7.4 | (4.9) | |||||||||||||||||||||||||||||
| Total operating expenses | 140.7 | 117.6 | 23.1 | 418.5 | 316.8 | 101.7 | |||||||||||||||||||||||||||||
| Operating income | 50.5 | 26.6 | 23.9 | 124.8 | 74.7 | 50.1 | |||||||||||||||||||||||||||||
| Investment income | 1.1 | — | 1.1 | 3.2 | 0.1 | 3.1 | |||||||||||||||||||||||||||||
| Interest income | 0.9 | 0.9 | — | 2.6 | 2.8 | (0.2) | |||||||||||||||||||||||||||||
| Interest expense | (3.3) | (4.6) | 1.3 | (10.3) | (14.7) | 4.4 | |||||||||||||||||||||||||||||
| Net consolidated Funds’ investment gains | 3.3 | 11.5 | (8.2) | 8.6 | 27.2 | (18.6) | |||||||||||||||||||||||||||||
Income before taxes | 52.5 | 34.4 | 18.1 | 128.9 | 90.1 | 38.8 | |||||||||||||||||||||||||||||
| Income tax expense | 14.4 | 7.4 | 7.0 | 37.0 | 20.2 | 16.8 | |||||||||||||||||||||||||||||
Net income | 38.1 | 27.0 | 11.1 | 91.9 | 69.9 | 22.0 | |||||||||||||||||||||||||||||
Net income attributable to redeemable non-controlling interests in consolidated Funds | 2.6 | 11.9 | (9.3) | 4.8 | 24.6 | (19.8) | |||||||||||||||||||||||||||||
Net income attributable to controlling interests | $ | 35.5 | $ | 15.1 | $ | 20.4 | $ | 87.1 | $ | 45.3 | $ | 41.8 | |||||||||||||||||||||||
| Basic earnings per share ($) | $ | 1.00 | $ | 0.42 | $ | 0.58 | $ | 2.45 | $ | 1.25 | $ | 1.20 | |||||||||||||||||||||||
| Diluted earnings per share ($) | 1.00 | 0.42 | 0.58 | 2.44 | 1.25 | 1.19 | |||||||||||||||||||||||||||||
Weighted average shares of common stock outstanding—basic | 35.5 | 35.8 | (0.3) | 35.6 | 36.4 | (0.8) | |||||||||||||||||||||||||||||
Weighted average shares of common stock outstanding—diluted | 35.6 | 35.8 | (0.2) | 35.7 | 36.4 | (0.7) | |||||||||||||||||||||||||||||
U.S. GAAP operating margin(2) | 26.4 | % | 18.4 | % | 23.0 | % | 19.1 | % | |||||||||||||||||||||||||||
(1)Certain Funds have been consolidated due to our seed capital investments in the Funds.
(2)U.S. GAAP operating margin equals operating income divided by total revenue.
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The following table reconciles our net income attributable to controlling interests to our pre-tax income attributable to controlling interests:
| ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
U.S. GAAP Consolidated Statements of Operations | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income attributable to controlling interests | $ | 35.5 | $ | 15.1 | $ | 87.1 | $ | 45.3 | |||||||||||||||
| Add: Income tax expense | 14.4 | 7.4 | 37.0 | 20.2 | |||||||||||||||||||
| Pre-tax income attributable to controlling interests | $ | 49.9 | $ | 22.5 | $ | 124.1 | $ | 65.5 | |||||||||||||||
U.S. GAAP Revenues
Our U.S. GAAP revenues principally consist of:
i.management fees earned based on our overall weighted average fee rate charged to our clients and the level of assets under management;
ii.performance fees earned when our investment performance over agreed time periods for certain clients has differed from predetermined hurdles; and
iii.revenue from consolidated Funds, a portion of which is attributable to the holders of non-controlling interests in consolidated Funds.
Management Fees
Our management fees are a function of the fee rates charged to our clients, which are typically expressed in basis points, and the levels of our assets under management. Our effective management fee rate will vary from period to period based on several factors, including changes in the mix of assets under management caused by market movements and client flows.
Average basis points earned on average assets under management were 31.5 bps and 32.5 bps for the three and nine months ended September 30, 2026, respectively, and 34.5 bps and 36.5 bps for the three and nine months ended September 30, 2025, respectively. The overall weighted average fee rate decrease for the three and nine months ended September 30, 2026 is the result of changes in the mix of assets under management caused by net inflows or outflows in certain asset classes, and disproportionate market movements.
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Management fees increased $51.7 million, or 38.0%, from $136.1 million for the three months ended September 30, 2025 to $187.8 million for the three months ended September 30, 2026. The increase was mainly driven by higher levels of average assets under management. Average assets under management increased 51.1%, from $156.5 billion for the three months ended September 30, 2025 to $236.4 billion for the three months ended September 30, 2026, mainly due to strong net flows and the positive equity market in the past twelve months.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Management fees increased $152.3 million, or 41.0%, from $371.3 million for the nine months ended September 30, 2025 to $523.6 million for the nine months ended September 30, 2026. The increase was primarily driven by higher levels of average assets under management. Average assets under management increased 57.7%, from $136.6 billion for the nine months ended September 30, 2025 to $215.4 billion for the nine months ended September 30, 2026, mainly due to strong net flows and the positive equity market in the past twelve months.
Performance Fees
Approximately $29 billion, or 12% 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.
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Three months ended September 30, 2026 compared to three months ended September 30, 2025: Performance fees increased $1.1 million, or 550.0%, from $0.2 million for the three months ended September 30, 2025 to $1.3 million for the three months ended September 30, 2026, 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.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Performance fees increased $5.6 million, or 69.1%, from $8.1 million for the nine months ended September 30, 2025 to $13.7 million for the nine months ended September 30, 2026, primarily due to a change in performance relative to benchmarks in certain strategies. Performance fees are variable and are contractually triggered based on investment performance results over agreed upon time periods.
U.S. GAAP Expenses
Our U.S. GAAP expenses principally consist of:
i.compensation paid to our investment professionals and other employees, including base salary, benefits, sales-based compensation, variable compensation, Acadian LLC key employee distributions, and revaluation of key employee-owned Acadian LLC equity and profit interests;
ii.general and administrative expenses;
iii.depreciation and amortization charges; and
iv.expenses of consolidated Funds, a portion of which is attributable to the holders of non-controlling interests in consolidated Funds.
Compensation and Benefits Expense
Our most significant category of expense is compensation and benefits awarded to our employees. The following table presents the components of U.S. GAAP compensation expense for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Fixed compensation and benefits(1) | $ | 29.5 | $ | 28.0 | $ | 83.6 | $ | 77.3 | |||||||||||||||
Sales-based compensation(2) | 8.3 | 3.4 | 21.3 | 10.4 | |||||||||||||||||||
Variable compensation(3) | 38.9 | 31.8 | 124.2 | 93.6 | |||||||||||||||||||
Acadian LLC key employee distributions(4) | 11.4 | 5.2 | 26.8 | 12.3 | |||||||||||||||||||
Non-cash Acadian LLC key employee equity revaluations(5) | 19.4 | 16.3 | 68.8 | 35.7 | |||||||||||||||||||
Total U.S. GAAP compensation and benefits expense | $ | 107.5 | $ | 84.7 | $ | 324.7 | $ | 229.3 | |||||||||||||||
(1)Fixed compensation and benefits includes base salaries, payroll taxes and the cost of benefit programs provided.
(2)Sales-based compensation is paid to our sales and distribution teams and represents compensation earned by our sales professionals, paid over a multi-year period, related to revenue earned on new sales. Its variability is based upon the structure of sales-based compensation due on inflows of assets under management and market-based movement in both current and prior periods.
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(3)Variable compensation includes the portion of earnings that is contractually allocated to Acadian LLC employees as a bonus pool, plus Hold Co bonuses. Variable compensation may be paid in the form of cash or non-cash equity or profit interests awards. We have a contractual split of performance fees between Acadian LLC employees and AAMI. Acadian LLC’s share of performance fees, which ranges between 60%-75% of the total, is allocated entirely to variable compensation. The variable compensation earned on performance fees vests over three years and compensation expense is recognized over that service period. Hold Co variable compensation includes cash and our equity. Equity-based compensation awards typically vest over several years and are recognized as compensation expense over that service period.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Cash variable compensation | $ | 35.7 | $ | 30.0 | $ | 116.2 | $ | 89.5 | |||||||||||||||
| Amortization of equity-based awards | 3.2 | 1.8 | 8.0 | 4.1 | |||||||||||||||||||
Total variable compensation(a) | $ | 38.9 | $ | 31.8 | $ | 124.2 | $ | 93.6 | |||||||||||||||
(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 with economic net income, which excludes $(0.2) million and $(0.7) million, respectively, of variable compensation associated with restructuring.
(4)Acadian LLC key employee distributions represent the share of Acadian LLC profits after variable compensation that is attributable to key employee equity and profit interests holders, according to their ownership interests. Acadian LLC key employee distribution ratio is calculated as Acadian LLC key employee distributions divided by ENI operating earnings. Within Acadian LLC we have a tiered equity structure, where AAMI and other classes of employee equity holders are entitled to an initial proportionate preference over profits after variable compensation, structured such that before a preference threshold is reached, there would be no required key employee distributions to the tiered equity holders, whereas for profits above the threshold, the key employee distribution amount to the tiered equity holders would be calculated based on the tiered key employee ownership percentages.
(5)Non-cash Acadian LLC key employee equity revaluations represent changes in the value of Acadian LLC equity and profit interests held by key employees. These ownership interests may in certain circumstances be repurchased by Hold Co at a value based on a pre-determined fixed multiple of twelve-month earnings and as such a liability is carried on our balance sheet based on the expected cash to be paid. However, any equity or profit interests repurchased by Hold Co can be used to fund a portion of future variable compensation awards, resulting in savings in cash variable compensation that offset the negative cash effect of repurchasing the equity. The Acadian LLC equity and profit interest plans have been designed to ensure Hold Co is not required to repurchase more equity than we can reasonably recycle through variable compensation awards in any given twelve-month period.
Fluctuations in compensation and benefits expense for the periods presented are discussed below.
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Three months ended September 30, 2026 compared to three months ended September 30, 2025: Compensation and benefits expense increased $22.8 million, or 26.9%, from $84.7 million for the three months ended September 30, 2025 to $107.5 million for the three months ended September 30, 2026. Fixed compensation and benefits increased $1.5 million, or 5.4%, from $28.0 million for the three months ended September 30, 2025 to $29.5 million for the three months ended September 30, 2026, primarily reflecting an increase in headcount, cost of living increases and higher payroll taxes. Sales-based compensation increased $4.9 million, or 144.1%, from $3.4 million for the three months ended September 30, 2025 to $8.3 million for the three months ended September 30, 2026, driven by the timing of asset inflows in the last 12 months. Variable compensation increased $7.1 million, or 22.3%, from $31.8 million for the three months ended September 30, 2025 to $38.9 million for the three months ended September 30, 2026. The increase was primarily attributable to higher pre-bonus profits in the three months ended September 30, 2026, partially offset by changes in deferred compensation expense in the three months ended September 30, 2026. Acadian LLC key employee distributions increased $6.2 million, or 119.2%, from $5.2 million for the three months ended September 30, 2025 to $11.4 million for the three months ended September 30, 2026. 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 key employee equity changed by $3.1 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 three months ended September 30, 2026 reflects primarily the increase in earnings period over period.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Compensation and benefits expense increased $95.4 million, or 41.6%, from $229.3 million for the nine months ended September 30, 2025 to $324.7 million for the nine months ended September 30, 2026. Fixed compensation and benefits increased $6.3 million, or 8.2%, from $77.3 million for the nine months ended September 30, 2025 to $83.6 million for the nine months ended September 30, 2026, primarily reflecting an increase in headcount, cost of living increases and higher payroll taxes. Sales-based compensation increased $10.9 million or 104.8% from $10.4 million for the nine months ended September 30, 2025 to $21.3 million for the nine months ended September 30, 2026, driven by the increase in asset inflows. Variable compensation increased $30.6 million, or 32.7%, from $93.6 million for the nine months ended September 30, 2025 to $124.2 million for the nine months ended September 30, 2026. The increase was primarily attributable to higher pre-bonus profits in the nine months ended September 30, 2026, partially offset by changes in deferred compensation expense in the nine months ended September 30, 2026. Acadian LLC key employee distributions increased $14.5 million, or 117.9%, from $12.3 million for the nine months ended September 30, 2025 to $26.8 million for the nine months ended September 30, 2026. 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, 2026 is driven by higher operating earnings and the leveraged nature of this distribution share. Revaluations of Acadian LLC key employee equity changed by $33.1 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, 2026 reflects primarily the increase in earnings period over period.
General and Administrative Expense
Three months ended September 30, 2026 compared to three months ended September 30, 2025: General and administrative expense increased $4.3 million, or 18.3%, from $23.5 million for the three months ended September 30, 2025 to $27.8 million for the three months ended September 30, 2026. The increase in general and administrative expenses primarily reflects higher system, portfolio administrative, and recruiting costs.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: General and administrative expense increased $12.1 million, or 17.9%, from $67.6 million for the nine months ended September 30, 2025 to $79.7 million for the nine months ended September 30, 2026. The increase was primarily due to higher system, portfolio administrative, and consulting costs.
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Depreciation and Amortization Expense
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Depreciation and amortization expense increased $0.2 million, or 4.9% from $4.1 million for the three months ended September 30, 2025 to $4.3 million for the three months ended September 30, 2026. The increase was primarily attributable to leasehold improvements, slightly offset by the effect of certain software becoming fully depreciated.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Depreciation and amortization expense decreased $(0.9) million, or (7.2)%, from $12.5 million for the nine months ended September 30, 2025 to $11.6 million for the nine months ended September 30, 2026. The decrease was primarily attributable to the effect of certain software becoming fully depreciated.
U.S. GAAP Other Non-Operating Items of Income and Expense
Other non-operating items of income and expense consist of:
i.investment income (loss);
ii.interest income; and
iii.interest expense.
Investment Income (Loss)
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Investment income (loss) changed $1.1 million, from $0.0 million for the three months ended September 30, 2025 to $1.1 million for the three months ended September 30, 2026, reflecting the increase in returns generated by seed capital investments in unconsolidated Funds, combined with an increase in our investment in unconsolidated Funds.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Investment income increased $3.1 million, from $0.1 million for the nine months ended September 30, 2025 to $3.2 million for the nine months ended September 30, 2026, reflecting the increase in returns generated by seed capital investments in unconsolidated Funds, combined with an increase in our investment in unconsolidated Funds.
Interest Income
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Interest income remained flat at $0.9 million for both the three months ended September 30, 2025 and September 30, 2026.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Interest income decreased $(0.2) million, or (7.1)%, from $2.8 million for the nine months ended September 30, 2025 to $2.6 million for the nine months ended September 30, 2026. The decrease was due to a decrease in short-term investment returns, slightly offset by an increase in average cash balances in the nine months ended September 30, 2026.
Interest Expense
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Interest expense decreased $(1.3) million, or (28.3)%, from $(4.6) million for the three months ended September 30, 2025 to $(3.3) million for the three months ended September 30, 2026, reflecting a lower balance drawn on the revolving credit facility in the three months ended September 30, 2026.
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Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Interest expense decreased $(4.4) million, or (29.9)%, from $14.7 million for the nine months ended September 30, 2025 to $10.3 million for the nine months ended September 30, 2026, related to redemption of our $275 million 4.80% Senior Notes and associated cash flow hedge in December 2025, partially offset by the addition of our $200 million delayed draw term loan facility in October 2025.
U.S. GAAP Income Tax Expense
Our effective tax rate has been impacted by state and local tax obligations, changes in liabilities for uncertain tax positions, tax effects of stock-based compensation, non-deductible compensation, and the mix of income earned in the United States versus foreign jurisdictions. Our effective tax rate could be impacted in the future by these items as well as further changes in tax laws and regulations in jurisdictions in which we operate.
The American Rescue Plan Act of 2021 ("ARPA"), among other things, includes provisions to expand the IRC Section 162(m) disallowance for deduction of certain compensation paid by publicly held corporations. Effective for tax years starting after December 31, 2026, ARPA expands the limitations to cover the next five most highly compensated employees. H.R.1, commonly referred to as the One Big Beautiful Bill Act (the “OBBBA”), includes a broad range of tax reform provisions, including extensions and modifications of certain provisions of the Tax Cuts and Jobs Act, with various effective dates beginning in 2025 through 2027. The OBBBA includes amendments to Internal Revenue Code Section 162(m) that expand the scope of entities and employees considered in determining “covered employees” subject to the limitation on the deductibility of compensation. The Company continues to evaluate and incorporate the impact of IRC Section 162(m) amendments under the OBBBA and ARPA into its interim tax provision, including potential changes in covered employees, compensation structures and related deferred tax balances.
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Income tax expense increased $7.0 million, from $7.4 million for the three months ended September 30, 2025 to $14.4 million for the three months ended September 30, 2026. The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interests in the three months ended September 30, 2026.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Income tax expense increased $16.8 million, from $20.2 million for the nine months ended September 30, 2025 to $37.0 million for the nine months ended September 30, 2026. The increase in income tax expense primarily relates to an increase in pretax income attributable to controlling interests and non-deductible compensation in the nine months ended September 30, 2026.
U.S. GAAP Consolidated Funds
The net income or loss of all consolidated Funds, excluding any income or loss attributable to seed capital or co-investments we make in the Funds, is included in non-controlling interests in our Consolidated Financial Statements and is not included in net income attributable to controlling interests or in management fees.
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Consolidated Funds’ revenue decreased $(5.8) million, from $7.9 million for the three months ended September 30, 2025 to $2.1 million for the three months ended September 30, 2026. Consolidated Funds’ expense decreased $(4.2) million, from $5.3 million for the three months ended September 30, 2025 to $1.1 million for the three months ended September 30, 2026. Net consolidated Funds’ investment gain decreased $(8.2) million from $11.5 million for the three months ended September 30, 2025 to $3.3 million for the three months ended September 30, 2026. These movements relate to the underlying activity of our consolidated Funds.
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Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Consolidated Funds’ revenue decreased $(6.1) million, from $12.1 million for the nine months ended September 30, 2025 to $6.0 million for the nine months ended September 30, 2026. Consolidated Funds’ expense decreased $(4.9) million, from $7.4 million for the nine months ended September 30, 2025 to $2.5 million for the nine months ended September 30, 2026. Net consolidated Funds’ investment gain decreased $(18.6) million from $27.2 million for the nine months ended September 30, 2025 to $8.6 million for the nine months ended September 30, 2026. These movements relate to the underlying activity of our consolidated Funds.
Key U.S. GAAP Operating Metrics
The following table shows our key U.S. GAAP operating metrics for the three and nine months ended September 30, 2026 and 2025. The second, third and fourth metrics below have each been adjusted to eliminate the effect of consolidated Funds to more accurately reflect the economics of our Company.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Numerator: Operating income | $ | 50.5 | $ | 26.6 | $ | 124.8 | $ | 74.7 | |||||||||||||||
| Denominator: Total revenue | $ | 191.2 | $ | 144.2 | $ | 543.3 | $ | 391.5 | |||||||||||||||
U.S. GAAP operating margin(1) | 26.4 | % | 18.4 | % | 23.0 | % | 19.1 | % | |||||||||||||||
Numerator: Total operating expenses(2) | $ | 139.6 | $ | 112.3 | $ | 416.0 | $ | 309.4 | |||||||||||||||
| Denominator: Management fee revenue | $ | 187.8 | $ | 136.1 | $ | 523.6 | $ | 371.3 | |||||||||||||||
U.S. GAAP operating expense / management fee revenue(3) | 74.3 | % | 82.5 | % | 79.4 | % | 83.3 | % | |||||||||||||||
| Numerator: Variable compensation | $ | 38.9 | $ | 31.8 | $ | 124.2 | $ | 93.6 | |||||||||||||||
Denominator: Operating income before variable compensation and Acadian LLC key employee distributions(2)(4)(5) | $ | 99.8 | $ | 61.0 | $ | 272.3 | $ | 175.9 | |||||||||||||||
U.S. GAAP variable compensation ratio(3) | 39.0 | % | 52.1 | % | 45.6 | % | 53.2 | % | |||||||||||||||
Numerator: Acadian LLC key employee distributions | $ | 11.4 | $ | 5.2 | $ | 26.8 | $ | 12.3 | |||||||||||||||
Denominator: Operating income before Acadian LLC key employee distributions(2)(4)(5) | $ | 60.9 | $ | 29.2 | $ | 148.1 | $ | 82.3 | |||||||||||||||
U.S. GAAP Acadian LLC key employee distributions ratio(3) | 18.7 | % | 17.8 | % | 18.1 | % | 14.9 | % | |||||||||||||||
(1)Excluding the effect of Funds’ consolidation in the applicable periods, the U.S. GAAP operating margin was 26.2% for the three months ended September 30, 2026, 17.6% for the three months ended September 30, 2025, 22.6% for the nine months ended September 30, 2026 and 18.5% for the nine months ended September 30, 2025.
(2)Excludes consolidated Funds’ expense of $1.1 million for the three months ended September 30, 2026, $5.3 million for the three months ended September 30, 2025, $2.5 million for the nine months ended September 30, 2026, and $7.4 million for the nine months ended September 30, 2025.
(3)Excludes the effect of Funds’ consolidation for the three and nine months ended September 30, 2026 and 2025.
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(4)Excludes consolidated Funds’ revenue of $2.1 million for the three months ended September 30, 2026, $7.9 million for the three months ended September 30, 2025, $6.0 million for the nine months ended September 30, 2026, and $12.1 million for the nine months ended September 30, 2025.
(5)The following table identifies the components of operating income before variable compensation and Acadian LLC key employee distributions, as well as operating income before Acadian LLC key employee distributions:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Operating income | $ | 50.5 | $ | 26.6 | $ | 124.8 | $ | 74.7 | |||||||||||||||
Acadian LLC key employee distributions | 11.4 | 5.2 | 26.8 | 12.3 | |||||||||||||||||||
| Operating income of consolidated Funds | (1.0) | (2.6) | (3.5) | (4.7) | |||||||||||||||||||
Operating income before Acadian LLC key employee distributions | 60.9 | 29.2 | 148.1 | 82.3 | |||||||||||||||||||
| Variable compensation | 38.9 | 31.8 | 124.2 | 93.6 | |||||||||||||||||||
Operating income before variable compensation and Acadian LLC key employee distributions | $ | 99.8 | $ | 61.0 | $ | 272.3 | $ | 175.9 | |||||||||||||||
Non-GAAP Supplemental Performance Measure — Economic Net Income and Segment Analysis
As supplemental information, we provide a non-GAAP performance measure that we refer to as economic net income, or ENI, which represents our management’s view of the underlying economic earnings generated by us. We define economic net income as ENI revenue less (i) ENI operating expenses, (ii) variable compensation, (iii) key employee distributions, (iv) net interest and (v) taxes, each as further discussed in this section. 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.
ENI is an important measure to investors because it is used by us to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and equity distributions, and incentivize management. It is also an important measure because it assists management in evaluating our operating performance and is presented in a way that most closely reflects the key elements of our profit share operating model with Acadian LLC. For a further discussion of how we use ENI and why ENI is useful to investors, see “Overview — How We Measure Performance.”
To calculate economic net income, we re-categorize certain line items on our Condensed Consolidated Statements of Operations to reflect the following:
•We exclude the effect of Funds’ consolidation by removing the portion of Fund revenues, expenses and investment return which were not attributable to our stockholders.
•We include within management fee revenue any fees paid to the Company by consolidated Funds.
•We treat sales-based compensation as a general and administrative expense, rather than part of fixed compensation and benefits.
•We identify separately from operating expenses variable compensation and Acadian LLC key employee distributions, which represent Acadian LLC earnings shared with key employees.
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We also make the following adjustments to U.S. GAAP results to more closely reflect our economic results:
i.We exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by key employees. These ownership interests may in certain circumstances be repurchased by Hold Co at a value based on a pre-determined fixed multiple of trailing earnings and as such this value is carried on our balance sheet as a liability. Non-cash movements in the value of this liability are treated as compensation expense under U.S. GAAP. However, any equity or profit interests repurchased by Hold Co can be used to fund a portion of future variable compensation awards, resulting in savings in cash variable compensation that offset the negative cash effect of repurchasing the equity. Our equity and profit interest plans have been designed to ensure Hold Co is never required to repurchase more equity than we can reasonably recycle through variable compensation awards in any given twelve-month period.
ii.We exclude non-cash amortization or impairment expenses related to acquired goodwill and other intangibles as these are non-cash charges that do not result in an outflow of tangible economic benefits from the business.
iii.We exclude capital transaction costs, including the costs of raising debt or equity, gains or losses realized as a result of redeeming debt or equity and direct incremental costs associated with acquisitions of businesses or assets.
iv.We exclude seed capital and co-investment gains, losses, and related financing costs. The net returns on these investments are considered and presented separately from ENI because ENI is primarily a measure of our earnings from managing client assets, which therefore differs from earnings generated by our investments, which can be variable from period to period.
v.We include cash tax benefits associated with deductions allowed for acquired intangibles and goodwill that may not be recognized or have timing differences compared to U.S. GAAP.
vi.We exclude the results of discontinued operations attributable to controlling interests since they are not part of our ongoing business and restructuring costs incurred in continuing operations.
vii.We exclude deferred tax resulting from changes in tax law and expiration of statutes, adjustments for uncertain tax positions, deferred tax attributable to intangible assets and other unusual items not related to current operating results to reflect ENI tax normalization.
We also adjust our income tax expense to reflect any tax impact of our ENI adjustments.
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Reconciliation of U.S. GAAP Net Income to Economic Net Income for the Three and Nine Months Ended September 30, 2026 and 2025
The following table reconciles net income attributable to controlling interests to economic net income for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| U.S. GAAP net income attributable to controlling interests | $ | 35.5 | $ | 15.1 | $ | 87.1 | $ | 45.3 | ||||||||||||||||||
| Adjustments to reflect the economic earnings of the Company: | ||||||||||||||||||||||||||
| i. | Non-cash key employee-owned equity and profit interest revaluations | 19.4 | 16.3 | 68.8 | 35.7 | |||||||||||||||||||||
| ii. | Amortization of acquired intangible assets | 0.3 | — | 0.3 | — | |||||||||||||||||||||
| iii. | Capital transaction costs | 0.3 | 0.1 | 0.8 | 0.2 | |||||||||||||||||||||
| iv. | Seed/Co-investment (gains) losses and financings(1) | (1.7) | (0.9) | $ | (7.1) | (3.5) | ||||||||||||||||||||
| v. | Tax benefit of goodwill and acquired intangibles deductions | 0.6 | 0.3 | 1.1 | 0.8 | |||||||||||||||||||||
| vi. | Discontinued operations attributable to controlling interests and restructuring(2) | (0.1) | (0.2) | 0.1 | (0.7) | |||||||||||||||||||||
| vii. | ENI tax normalization | (1.0) | 0.7 | (0.9) | 1.3 | |||||||||||||||||||||
Tax effect of above adjustments, as applicable(3) | (5.0) | (4.2) | (16.8) | (8.7) | ||||||||||||||||||||||
Economic net income | $ | 48.3 | $ | 27.2 | $ | 133.4 | $ | 70.4 | ||||||||||||||||||
(1)The net return on seed/co-investment (gains) losses and financings for the three and nine months ended September 30, 2026 and 2025 is shown in the following table:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Seed/Co-investment gains | $ | (2.8) | $ | (2.2) | $ | (10.5) | $ | (7.4) | |||||||||||||||
| Financing costs: | |||||||||||||||||||||||
| Seed/Co-investment average balance | 91.9 | 79.6 | 85.1 | 79.8 | |||||||||||||||||||
| Blended interest rate* | 5.4 | % | 6.5 | % | 5.4 | % | 6.5 | % | |||||||||||||||
| Financing costs | 1.1 | 1.3 | 3.4 | 3.9 | |||||||||||||||||||
| Net seed/co-investment gains and financing | $ | (1.7) | $ | (0.9) | $ | (7.1) | $ | (3.5) | |||||||||||||||
* The blended rate is based on the weighted average rate of the long-term debt.
(2)The three and nine months ended September 30, 2026 includes legal-related restructuring costs of $0.1 million. The three and nine months ended September 30, 2025 includes severance-related items of $(0.2) million and $(0.7) million, respectively.
(3)Reflects the sum of lines (i), (ii), (iii), (iv) and the restructuring component of line (vi) multiplied by the respective blended rates applicable to the adjustments. Prior to the first quarter of 2026, the Company used a statutory income tax rate of 27.3%. The Company now applies a blended income tax rate, which is intended to more accurately reflect the tax effect of the adjusting items. The effect of this change on prior periods is not material.
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Limitations of Economic Net Income
Economic net income is the key measure our management uses to evaluate the financial performance of, and make operational decisions for, our business. Economic net income is not audited and is not a substitute for net income or other performance measures that are derived in accordance with U.S. GAAP. Furthermore, our calculation of economic net income may differ from similarly titled measures provided by other companies.
Because the calculation of economic net income excludes certain ongoing expenses, including amortization expense and certain compensation costs, it has certain material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures of earnings.
ENI Revenues
The following table reconciles U.S. GAAP revenue to ENI revenue for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| U.S. GAAP revenue | $ | 191.2 | $ | 144.2 | $ | 543.3 | $ | 391.5 | |||||||||||||||
Exclude revenue from consolidated Funds | (2.1) | (7.9) | (6.0) | (12.1) | |||||||||||||||||||
| ENI revenue | $ | 189.1 | $ | 136.3 | $ | 537.3 | $ | 379.4 | |||||||||||||||
The following table identifies the components of ENI revenue:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Management fees(1) | $ | 187.8 | $ | 136.1 | $ | 523.6 | $ | 371.3 | |||||||||||||||
Performance fees(2) | 1.3 | 0.2 | 13.7 | 8.1 | |||||||||||||||||||
| ENI revenue | $ | 189.1 | $ | 136.3 | $ | 537.3 | $ | 379.4 | |||||||||||||||
(1)ENI management fees correspond to U.S. GAAP management fees.
(2)ENI performance fees correspond to U.S. GAAP performance fees.
ENI Operating Expenses
The largest difference between U.S. GAAP operating expense and ENI operating expense relates to compensation. As shown in the following reconciliation, we exclude the impact of key employee equity revaluations. Variable compensation and Acadian LLC key employee distributions are also segregated out of U.S. GAAP operating expense in order to align with the manner in which these items are contractually calculated.
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The following table reconciles U.S. GAAP operating expense to ENI operating expense for the three and nine months ended September 30, 2026 and 2025.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| U.S. GAAP operating expense | $ | 140.7 | $ | 117.6 | $ | 418.5 | $ | 316.8 | |||||||||||||||
| Less: items excluded from economic net income | |||||||||||||||||||||||
Non-cash key employee equity and profit interest revaluations | (19.4) | (16.3) | (68.8) | (35.7) | |||||||||||||||||||
| Amortization of acquired intangible assets | (0.3) | — | (0.3) | — | |||||||||||||||||||
Restructuring costs(1) | 0.1 | 0.2 | (0.1) | 0.8 | |||||||||||||||||||
| Funds’ operating expense | (1.1) | (5.3) | (2.5) | (7.4) | |||||||||||||||||||
| Less: items segregated out of U.S. GAAP operating expense | |||||||||||||||||||||||
Variable compensation(2) | (38.9) | (32.1) | (124.2) | (94.4) | |||||||||||||||||||
Acadian LLC key employee distributions | (11.4) | (5.2) | (26.8) | (12.3) | |||||||||||||||||||
| ENI operating expense | $ | 69.7 | $ | 58.9 | $ | 195.8 | $ | 167.8 | |||||||||||||||
(1)The three and nine months ended September 30, 2026 includes legal-related restructuring costs of $0.1 million. The three and nine months ended September 30, 2025 includes $(0.2) million and $(0.7) million, respectively, of severance-related items.
(2)The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that are included within restructuring costs.
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The following table identifies the components of ENI operating expense:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Fixed compensation & benefits(1) | $ | 29.5 | $ | 28.0 | $ | 83.6 | $ | 77.3 | |||||||||||||||
General and administrative expenses(2) | 36.2 | 26.8 | 100.9 | 78.0 | |||||||||||||||||||
| Depreciation and amortization | 4.0 | 4.1 | 11.3 | 12.5 | |||||||||||||||||||
| ENI operating expense | $ | 69.7 | $ | 58.9 | $ | 195.8 | $ | 167.8 | |||||||||||||||
(1)Fixed compensation and benefits include base salaries, payroll taxes and the cost of benefit programs provided. The following table reconciles U.S. GAAP compensation and benefits expense for the three and nine months ended September 30, 2026 and 2025 to ENI fixed compensation and benefits expense:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Total U.S. GAAP compensation and benefits expense | $ | 107.5 | $ | 84.7 | $ | 324.7 | $ | 229.3 | |||||||||||||||
Non-cash key employee equity and profit interest revaluations excluded from ENI | (19.4) | (16.3) | (68.8) | (35.7) | |||||||||||||||||||
Sales-based compensation reclassified to ENI general & administrative expenses | (8.3) | (3.4) | (21.3) | (10.4) | |||||||||||||||||||
Acadian LLC key employee distributions | (11.4) | (5.2) | (26.8) | (12.3) | |||||||||||||||||||
Restructuring expenses(a) | — | 0.3 | — | 0.8 | |||||||||||||||||||
Variable compensation | (38.9) | (32.1) | (124.2) | (94.4) | |||||||||||||||||||
| ENI fixed compensation and benefits | $ | 29.5 | $ | 28.0 | $ | 83.6 | $ | 77.3 | |||||||||||||||
(a)The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that are included within restructuring costs.
(2)The following table reconciles U.S. GAAP general and administrative expense to ENI general and administrative expense:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
U.S. GAAP general and administrative expense | $ | 27.8 | $ | 23.5 | $ | 79.7 | $ | 67.6 | |||||||||||||||
| Sales-based compensation | 8.3 | 3.4 | 21.3 | 10.4 | |||||||||||||||||||
Restructuring costs(a) | 0.1 | (0.1) | (0.1) | — | |||||||||||||||||||
| ENI general and administrative expense | $ | 36.2 | $ | 26.8 | $ | 100.9 | $ | 78.0 | |||||||||||||||
(a)The three and nine months ended September 30, 2026 includes $0.1 million of legal-related restructuring costs.
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Key Non-GAAP Operating Metrics
The following table shows our key non-GAAP operating metrics for the three and nine months ended September 30, 2026 and 2025. We present these metrics because they are the measures our management uses to evaluate the profitability of our business and are useful to investors because they represent the key drivers and measures of economic performance within our business model. Please see the footnotes below for an explanation of each ratio, its usefulness in measuring the economics and operating performance of our business, and a reference to the most closely related U.S. GAAP measure:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Numerator: ENI operating earnings(1) | $ | 80.5 | $ | 45.3 | $ | 217.3 | $ | 117.2 | |||||||||||||||
Denominator: ENI revenue | $ | 189.1 | $ | 136.3 | $ | 537.3 | $ | 379.4 | |||||||||||||||
ENI operating margin(2) | 42.6 | % | 33.2 | % | 40.4 | % | 30.9 | % | |||||||||||||||
Numerator: ENI operating expense | $ | 69.7 | $ | 58.9 | $ | 195.8 | $ | 167.8 | |||||||||||||||
Denominator: ENI management fee revenue(3) | $ | 187.8 | $ | 136.1 | $ | 523.6 | $ | 371.3 | |||||||||||||||
ENI operating expense ratio(4) | 37.1 | % | 43.3 | % | 37.4 | % | 45.2 | % | |||||||||||||||
Numerator: ENI variable compensation | $ | 38.9 | $ | 32.1 | $ | 124.2 | $ | 94.4 | |||||||||||||||
Denominator: ENI earnings before variable compensation(1)(5) | $ | 119.4 | $ | 77.4 | $ | 341.5 | $ | 211.6 | |||||||||||||||
ENI variable compensation ratio(6) | 32.6 | % | 41.5 | % | 36.4 | % | 44.6 | % | |||||||||||||||
Numerator: Acadian LLC key employee distributions | $ | 11.4 | $ | 5.2 | $ | 26.8 | $ | 12.3 | |||||||||||||||
Denominator: ENI operating earnings(1) | $ | 80.5 | $ | 45.3 | $ | 217.3 | $ | 117.2 | |||||||||||||||
ENI Acadian LLC key employee distributions ratio(7) | 14.2 | % | 11.5 | % | 12.3 | % | 10.5 | % | |||||||||||||||
(1)ENI operating earnings represents ENI earnings before Acadian LLC key employee distributions and is calculated as ENI revenue, less ENI operating expense, less ENI variable compensation. It differs from economic net income because it does not include the effects of Acadian LLC key employee distributions, net interest expense or income tax expense.
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The following table reconciles U.S. GAAP operating income to ENI operating earnings:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| U.S. GAAP operating income | $ | 50.5 | $ | 26.6 | $ | 124.8 | $ | 74.7 | |||||||||||||||
| Exclude the impact of: | |||||||||||||||||||||||
| Acadian LLC key employee-owned equity and profit interest revaluations | 19.4 | 16.3 | 68.8 | 35.7 | |||||||||||||||||||
| Amortization of acquired intangible assets | 0.3 | — | 0.3 | — | |||||||||||||||||||
Restructuring costs(a) | (0.1) | (0.2) | 0.1 | (0.8) | |||||||||||||||||||
Acadian LLC key employee distributions | 11.4 | 5.2 | 26.8 | 12.3 | |||||||||||||||||||
| Variable compensation | 38.9 | 32.1 | 124.2 | 94.4 | |||||||||||||||||||
| Funds’ operating income | (1.0) | (2.6) | (3.5) | (4.7) | |||||||||||||||||||
| ENI earnings before variable compensation | 119.4 | 77.4 | 341.5 | 211.6 | |||||||||||||||||||
Less: ENI variable compensation(b) | (38.9) | (32.1) | (124.2) | (94.4) | |||||||||||||||||||
| ENI operating earnings | 80.5 | 45.3 | 217.3 | 117.2 | |||||||||||||||||||
| Less: ENI Acadian LLC key employee distributions | (11.4) | (5.2) | (26.8) | (12.3) | |||||||||||||||||||
| ENI earnings after Acadian LLC key employee distributions | $ | 69.1 | $ | 40.1 | $ | 190.5 | $ | 104.9 | |||||||||||||||
(a)The three and nine months ended September 30, 2026 includes legal-related restructuring costs of $0.1 million. The three and nine months ended September 30, 2025 includes $(0.2) million and $(0.7) million, respectively, of severance-related items.
(b)The three and nine months ended September 30, 2025 excludes $(0.2) million and $(0.7) million, respectively, of severance-related items that are included within restructuring costs.
(2)The ENI operating margin, which is calculated before Acadian LLC key employee distributions, is used by management and is useful to investors to evaluate the overall operating margin of the business. The ENI operating margin is most comparable to our U.S. GAAP operating margin. Our U.S. GAAP operating margin, excluding the effect of consolidated Funds, is 26.2% for the three months ended September 30, 2026 and 17.6% for the three months ended September 30, 2025, 22.6% for the nine months ended September 30, 2026, and 18.5% for the nine months ended September 30, 2025.
The ENI operating margin is important because it gives investors an understanding of the profitability of the total business relative to revenue, irrespective of the ownership position which we have in Acadian LLC. Management and investors use this ratio when comparing our profitability relative to our peer group and evaluating our ability to manage the cost structure and profitability of our business under different operating environments.
(3)ENI management fee revenue corresponds to U.S. GAAP management fee revenue.
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(4)The ENI operating expense ratio is used by management and is useful to investors to evaluate the level of operating expense as measured against our recurring management fee revenue. We have provided this ratio since many operating expenses, including fixed compensation and benefits and general and administrative expense, are generally linked to the overall size of the business. We track this ratio as a key measure of scale economies because in our profit-sharing economic model, scale benefits both the Acadian LLC employees and our stockholders. The ENI operating expense ratio is most comparable to the U.S. GAAP operating expense / management fee revenue ratio.
(5)ENI earnings before variable compensation is calculated as ENI revenue, less ENI operating expense.
(6)The ENI variable compensation ratio is used by management and is useful to investors to evaluate consolidated variable compensation as measured against our ENI earnings before variable compensation. Variable compensation is primarily comprised of a contractual percentage of Acadian LLC’s ENI earnings before variable compensation and may be paid in the form of cash or non-cash Acadian LLC equity or profit interests. Hold Co variable compensation includes cash and AAMI equity. Non-cash variable compensation awards typically vest over several years and are recognized as compensation expense over that service period. The variable compensation ratio is calculated as variable compensation divided by ENI earnings before variable compensation. The ENI variable compensation ratio is most comparable to the U.S. GAAP variable compensation ratio.
(7)The ENI Acadian LLC key employee distribution ratio is used by management and is useful to investors to evaluate Acadian LLC key employee distributions as measured against our ENI operating earnings. Acadian LLC key employee distributions represent the share of profits after variable compensation that is attributable to Acadian LLC key employee equity and profit interests holders, according to their ownership interests. It is calculated as Acadian LLC key employee distributions divided by ENI operating earnings. Within Acadian LLC, we have a tiered equity structure, where AAMI and other classes of employee equity holders are entitled to an initial proportionate preference over profits after variable compensation, structured such that before a preference threshold is reached, there would be no required key employee distributions to the tiered equity holders, whereas for profits above the threshold the key employee distribution amount to the tiered equity holders would be calculated based on the tiered key employee ownership percentages. The ENI Acadian LLC key employee distributions ratio is most comparable to the U.S. GAAP Acadian LLC key employee distributions ratio.
Tax on Economic Net Income
The following table reconciles the blended effective tax rate to tax on economic net income:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Pre-tax economic net income(1) | $ | 68.2 | $ | 37.8 | $ | 187.0 | $ | 97.2 | |||||||||||||||
Taxes at blended effective tax rate(2) | (20.5) | (10.4) | (54.7) | (26.6) | |||||||||||||||||||
| Other reconciling tax adjustments | 0.6 | (0.2) | 1.1 | (0.2) | |||||||||||||||||||
| Tax on economic net income | (19.9) | (10.6) | (53.6) | (26.8) | |||||||||||||||||||
| Economic net income | $ | 48.3 | $ | 27.2 | $ | 133.4 | $ | 70.4 | |||||||||||||||
Economic net income effective tax rate(3) | 29.2 | % | 28.0 | % | 28.7 | % | 27.6 | % | |||||||||||||||
(1)Includes interest income and third-party ENI interest expense, as shown in the following table:
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| U.S. GAAP interest income | $ | 0.9 | $ | 0.9 | $ | 2.6 | $ | 2.8 | |||||||||||||||
| U.S. GAAP interest expense | (3.3) | (4.6) | (10.3) | (14.7) | |||||||||||||||||||
| U.S. GAAP net interest expense | (2.4) | (3.7) | (7.7) | (11.9) | |||||||||||||||||||
Other ENI interest expense exclusions(a) | 1.5 | 1.4 | 4.2 | 4.2 | |||||||||||||||||||
| ENI net interest expense | (0.9) | (2.3) | (3.5) | (7.7) | |||||||||||||||||||
ENI earnings after Acadian LLC key employee distributions(b) | 69.1 | 40.1 | 190.5 | 104.9 | |||||||||||||||||||
| Pre-tax economic net income | $ | 68.2 | $ | 37.8 | $ | 187.0 | $ | 97.2 | |||||||||||||||
(a)Other ENI interest expense exclusions represent cost of financing on seed capital and co-investments and amortization of debt issuance costs.
(b)ENI earnings after Acadian LLC key employee distributions is calculated as ENI operating income (ENI revenue, less ENI operating expense, less ENI variable compensation), less Acadian LLC key employee distributions. Refer to “Key Non-GAAP Operating Metrics” for a reconciliation from U.S. GAAP operating income to ENI earnings after Acadian LLC key employee distributions.
(2)Taxed at the blended effective tax rate on pre-tax economic net income. Prior to the first quarter of 2026, the Company used a statutory income tax rate of 27.3%. The Company now applies a blended income tax rate, which is intended to more accurately reflect the tax effect. The effect of this change on prior periods is not material.
(3)The economic net income effective tax rate is calculated by dividing the tax on economic net income by pre-tax economic net income.
Investments
The value of our seed capital investments was $112.6 million as of September 30, 2026 and $97.2 million as of December 31, 2025, including direct investments in consolidated Funds. Total seed capital investments represents our seed capital invested within Acadian LLC’s investment products. The following table reconciles the investments balance per our Condensed Consolidated Balance Sheets to the total value of our seed capital investments as of each of the dates indicated:
| ($ in millions) | September 30, 2026 | December 31, 2025 | |||||||||
Investments per Condensed Consolidated Balance Sheets | $ | 68.0 | $ | 51.2 | |||||||
| Seed capital investment in consolidated Funds | 84.2 | 83.9 | |||||||||
| Investments related to long-term incentive compensation plans | (39.6) | (37.9) | |||||||||
| Total seed capital investments | $ | 112.6 | $ | 97.2 | |||||||
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Segment Analysis
We operate our business through the following reportable segment:
•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; product lines and capabilities include Emerging Equity, Non-U.S. Equity, Global Equity, Small Cap Equity, Enhanced Equity, Equity Extensions, Systematic Credit, and Alternatives. This segment consists of our ownership interest in Acadian LLC.
The corporate holding company (“Hold Co”) is included within the Unallocated Corporate expense category. The Hold Co expenses are not allocated to the Company’s business segment, but the CODM does consider the cost structure of the corporate head office when evaluating the financial performance of our segment. The CODM is the Company’s Chief Executive Officer.
The primary measure used by the CODM in measuring performance and allocating resources to the segment is ENI. ENI is used to make resource allocation decisions, determine appropriate levels of investment or dividend payout, manage balance sheet leverage, determine variable compensation and equity distributions, and incentivize management. We define economic net income for the segment as ENI revenue less ENI operating expenses. 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 recognized under U.S. GAAP.
ENI revenue includes management fees, performance fees and other revenue under U.S. GAAP, adjusted to include management fees paid to the Company by consolidated Funds.
Significant segment ENI expenses include fixed compensation and benefits, variable compensation, Acadian LLC key employee distributions, depreciation and amortization, and general and administrative expense under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Acadian LLC equity and profit interests held by Acadian LLC key employees, capital transaction costs, restructuring costs and amortization of acquired intangible assets.
ENI segment results are also adjusted to exclude consolidated Funds’ revenue, consolidated Funds’ expense and investment return recorded under U.S. GAAP.
Refer to the reconciliations of U.S. GAAP revenue to ENI revenue, U.S. GAAP Operating expense to ENI Operating expense, variable compensation and Acadian LLC key employee distributions disclosed previously within this section.
Segment ENI Revenue
The following table identifies the components of Quant & Solutions segment ENI revenue for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Management fees | $ | 187.8 | $ | 136.1 | $ | 523.6 | $ | 371.3 | |||||||||||||||
Performance fees | 1.3 | 0.2 | 13.7 | 8.1 | |||||||||||||||||||
Segment ENI revenue | $ | 189.1 | $ | 136.3 | $ | 537.3 | $ | 379.4 | |||||||||||||||
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Quant & Solutions Segment ENI Revenue
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Quant & Solutions ENI revenue increased $52.8 million, or 38.7%, from $136.3 million for the three months ended September 30, 2025 to $189.1 million for the three months ended September 30, 2026. The increase was mainly attributable to 38.0% higher management fees driven by higher average AUM resulting from positive equity markets and net client cash flows in the past twelve months, along with 550.0% higher performance fees, which are variable and are contractually triggered based on investment performance results over agreed upon time periods.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Quant & Solutions ENI revenue increased $157.9 million, or 41.6%, from $379.4 million for the nine months ended September 30, 2025 to $537.3 million for the nine months ended September 30, 2026. The increase was attributable to 41.0% higher management fees driven by higher average AUM resulting from strong net client cash flows and positive equity markets in the past twelve months, along with 69.1% higher performance fees, which are variable and are contractually triggered based on investment performance results over agreed upon time periods.
Segment ENI Expense
The following table identifies the components of Quant & Solutions segment ENI expense for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Fixed compensation & benefits | $ | 27.9 | $ | 26.4 | $ | 78.6 | $ | 72.7 | |||||||||||||||
Variable compensation | 37.7 | 31.1 | 120.9 | 91.3 | |||||||||||||||||||
Acadian LLC key employee distributions | 11.4 | 5.2 | 26.8 | 12.3 | |||||||||||||||||||
Depreciation and amortization | 4.0 | 4.1 | 11.3 | 12.5 | |||||||||||||||||||
| General and administrative expense | 34.5 | 25.3 | 95.3 | 72.2 | |||||||||||||||||||
Segment ENI expenses | $ | 115.5 | $ | 92.1 | $ | 332.9 | $ | 261.0 | |||||||||||||||
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Quant & Solutions Segment ENI Expense
Three months ended September 30, 2026 compared to three months ended September 30, 2025: Quant & Solutions segment ENI expenses increased $23.4 million, or 25.4%, from $92.1 million for the three months ended September 30, 2025 to $115.5 million for the three months ended September 30, 2026. Quant & Solutions ENI fixed compensation and benefits expense increased 5.7%, reflecting an increase in headcount, cost of living increases, and higher payroll taxes. Quant & Solutions ENI variable compensation expense is based on a contractual percentage of earnings before variable compensation, and also includes a formulaic split of performance fee revenue that gets deferred and recognized as variable compensation expense over a three-year vesting period. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Quant & Solutions ENI variable compensation expense increased 21.2% as a result of higher earnings before variable compensation, partially offset by changes in deferred compensation expense in the three months ended September 30, 2026. Acadian LLC key employee distributions attributable to Quant & Solutions increased 119.2%. 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 and the leveraged nature of this distribution share. Quant & Solutions ENI general and administrative expense increased 36.4%, driven primarily by higher sales-based compensation, as well as higher system, portfolio administrative, and recruiting costs.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Quant & Solutions segment ENI expenses increased $71.9 million, or 27.5%, from $261.0 million for the nine months ended September 30, 2025 to $332.9 million for the nine months ended September 30, 2026. Quant & Solutions ENI fixed compensation and benefits expense increased 8.1%, reflecting an increase in headcount, cost of living increases and higher payroll taxes. Quant & Solutions ENI variable compensation expense is based on a contractual percentage of earnings before variable compensation, and also includes a formulaic split of performance fee revenue that gets deferred and recognized as variable compensation expense over a three-year vesting period. The deferred nature of the bonus earned on performance fee revenues can result in compensation expense variability that is uncorrelated to current period earnings. Quant & Solutions ENI variable compensation expense increased 32.4% as a result of higher earnings before variable compensation, partially offset by changes in deferred compensation expense in the nine months ended September 30, 2026. Acadian LLC key employee distributions for certain tiers of equity are calculated after an earnings threshold is met, whereby no distributions are made to these equity holders when earnings are below the threshold. Acadian LLC key employee distributions attributable to Quant & Solutions increased 117.9%. The change in Acadian LLC key employee distributions during the nine months ended September 30, 2026 is driven by higher operating earnings and the leveraged nature of this distribution share. Quant & Solutions ENI general and administrative expense increased 32.0% primarily due to higher sales-based compensation, as well as higher system, portfolio administrative, and consulting costs.
Unallocated corporate expense
The following table identifies unallocated corporate expense for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
Unallocated corporate expenses(1) | $ | 4.4 | $ | 4.2 | $ | 14.0 | $ | 13.5 | |||||||||||||||
(1)Unallocated corporate expenses are presented on a U.S. GAAP basis.
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Three months ended September 30, 2026 compared to three months ended September 30, 2025: Unallocated corporate expense increased $0.2 million, or 4.8%, from $4.2 million for the three months ended September 30, 2025 to $4.4 million for the three months ended September 30, 2026. The increase was driven by higher compensation and benefits and higher general and administrative expenses.
Nine months ended September 30, 2026 compared to nine months ended September 30, 2025: Unallocated corporate expense increased $0.5 million, or 3.7%, from $13.5 million for the nine months ended September 30, 2025 to $14.0 million for the nine months ended September 30, 2026. The increase was driven by higher compensation and benefits, slightly offset by lower general and administrative expenses.
Capital Resources and Liquidity
Cash Flows
The following table summarizes certain key financial data relating to cash flows. All amounts presented exclude consolidated Funds:
| Nine Months Ended September 30, | |||||||||||
| ($ in millions) | 2026 | 2025 | |||||||||
Cash provided by (used in)(1) | |||||||||||
| Operating activities | $ | 100.3 | $ | 63.5 | |||||||
| Investing activities | (24.7) | 8.7 | |||||||||
| Financing activities | (27.0) | (50.1) | |||||||||
(1)Excludes consolidated Funds.
Comparison for the nine months ended September 30, 2026 and 2025
Net cash from operating activities, excluding consolidated Funds, changed by $36.8 million, from net cash provided of $63.5 million for the nine months ended September 30, 2025 to net cash provided of $100.3 million for the nine months ended September 30, 2026, driven by changes in net income offset by changes in operating assets and liabilities period-over-period. In the nine months ended September 30, 2026, net cash from investing activities, excluding consolidated Funds, changed by $(33.4) million, from $8.7 million provided in the nine months ended September 30, 2025 to $(24.7) million used in the nine months ended September 30, 2026, driven by higher fixed asset additions and net purchases of investment securities in the nine months ended September 30, 2026. Net cash from financing activities, excluding consolidated Funds, changed by $23.1 million, from $(50.1) million used in the nine months ended September 30, 2025 to $(27.0) million used in the nine months ended September 30, 2026, primarily due to lower share repurchases in the nine months ended September 30, 2026.
Supplemental Liquidity Measure — Adjusted EBITDA
As supplemental information, we provide information regarding Adjusted EBITDA, which we define as economic net income before net interest, income taxes, depreciation, and amortization. Adjusted EBITDA is a non-GAAP liquidity measure that we provide in addition to, but not as a substitute for, cash flows from operating activities. It should be noted that our calculation of Adjusted EBITDA may not be consistent with Adjusted EBITDA as calculated by other companies. We believe Adjusted EBITDA is a useful liquidity metric because it indicates our ability to make further investments in our business, service debt and meet working capital requirements.
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The following table reconciles our U.S. GAAP net income attributable to controlling interests to EBITDA to Adjusted EBITDA to economic net income for the three and nine months ended September 30, 2026 and 2025.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Net income attributable to controlling interests | $ | 35.5 | $ | 15.1 | $ | 87.1 | $ | 45.3 | |||||||||||||||
| Net interest expense to third parties | 2.4 | 3.7 | 7.7 | 11.9 | |||||||||||||||||||
| Income tax expense | 14.4 | 7.4 | 37.0 | 20.2 | |||||||||||||||||||
Depreciation and amortization | 4.3 | 4.1 | 11.6 | 12.5 | |||||||||||||||||||
| EBITDA | $ | 56.6 | $ | 30.3 | $ | 143.4 | $ | 89.9 | |||||||||||||||
Non-cash compensation costs, including revaluation of Acadian LLC key employee-owned equity and profit interests | 21.4 | 17.2 | 73.8 | 37.6 | |||||||||||||||||||
| Gain on seed and co-investments | (2.8) | (2.2) | (10.5) | (7.4) | |||||||||||||||||||
Restructuring(1) | (0.1) | (0.2) | 0.1 | (0.7) | |||||||||||||||||||
Adjusted EBITDA | $ | 75.1 | $ | 45.1 | $ | 206.8 | $ | 119.4 | |||||||||||||||
| ENI net interest expense to third parties | (0.9) | (2.3) | (3.5) | (7.7) | |||||||||||||||||||
Depreciation and amortization(2) | (6.0) | (5.0) | (16.3) | (14.5) | |||||||||||||||||||
| Tax on economic net income | (19.9) | (10.6) | (53.6) | (26.8) | |||||||||||||||||||
Economic net income | $ | 48.3 | $ | 27.2 | $ | 133.4 | $ | 70.4 | |||||||||||||||
(1)The three and nine months ended September 30, 2026 includes legal-related restructuring costs of $0.1 million. The three and nine months ended September 30, 2025 includes $(0.2) million and $(0.7) million, respectively, of severance-related items.
(2)Includes non-cash equity-based award amortization expense.
Limitations of Adjusted EBITDA
As a non-GAAP, unaudited liquidity measure and derivation of EBITDA, Adjusted EBITDA has certain material limitations. It does not include cash costs associated with capital transactions and excludes certain U.S. GAAP expenses that fall outside the definition of EBITDA. Each of these categories of expense represents costs to us of doing business, and therefore any measure that excludes any or all of these categories of expense has material limitations.
Future Capital Needs
We believe that our available cash and cash equivalents to be generated from operations, supplemented by short-term and long-term financing, as necessary, will be sufficient to fund current operations and capital requirements for at least the next twelve months, as well as our day-to-day operations and future investment requirements. Our ability to secure short-term and long-term financing in the future will depend on several factors, including our future profitability, our relative levels of debt and equity and the overall condition of the credit markets. As of September 30, 2026, we have $150.0 million in cash and cash equivalents and $112.6 million in seed capital investments.
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Borrowings and Long-Term Debt
The following table summarizes our financing arrangements as of the dates indicated:
| ($ in millions) | September 30, 2026 | December 31, 2025 | Interest rate | Maturity | ||||||||||||||||||||||
| Revolving credit facility: | ||||||||||||||||||||||||||
$175 million revolving credit facility | $ | — | $ | — | Variable rate | October 28, 2028 | ||||||||||||||||||||
| Total revolving credit facility | $ | — | $ | — | ||||||||||||||||||||||
| Third party borrowings: | ||||||||||||||||||||||||||
$200 million Delayed Draw Term Loan Due October 28, 2028 | $ | 200.0 | $ | 200.0 | Variable rate | October 28, 2028 | ||||||||||||||||||||
| Total third party borrowings | $ | 200.0 | $ | 200.0 | ||||||||||||||||||||||
The Delayed Draw Term Loan Credit Agreement and Revolving Credit Agreement
On October 28, 2025 (the “Closing Date”), Acadian LLC entered into a Delayed Draw Term Loan Credit Agreement with the Lenders from time to time party thereto, and Bank of America, N.A. (“Bank of America”), as the Administrative Agent (the “DDTL Credit Agreement”), and a Revolving Credit Agreement with the Lenders from time to time party thereto, Bank of America, as the Administrative Agent and a L/C Issuer, and the other L/C Issuers from time to time party thereto (the “Revolving Credit Agreement”).
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.
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.
Financial covenants under the Term Facility include the quarterly maintenance by Acadian LLC 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. At September 30, 2026, Acadian LLC’s Leverage Ratio was 0.5x and Acadian LLC’s Interest Coverage Ratio was 29.3x.
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.
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 (as
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defined in the Revolving Credit Agreement) 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 Consolidated Leverage Ratio on the daily undrawn amount of the revolving commitments, and customary letter of credit participation and fronting fees.
As of September 30, 2026, Acadian LLC had unused lines of credit of $172.5 million comprised of undrawn commitments on the revolving credit facility of $175.0 million less a $2.5 million letter of credit with Bank of America related to one of Acadian LLC’s current office spaces.
Other Compensation Liabilities
Other compensation liabilities principally consist of cash-settled Acadian LLC equity and profit interests liabilities held by certain key employees, and voluntary deferred compensation plans. The following table summarizes our other compensation liabilities as of each of the dates indicated:
| September 30, 2026 | December 31, 2025 | ||||||||||
| ($ in millions) | |||||||||||
| Share-based payments liability | $ | 47.3 | $ | 37.0 | |||||||
Profit interests compensation liability | 112.9 | 54.0 | |||||||||
| Voluntary deferral plan liability | 39.3 | 37.9 | |||||||||
| Total | $ | 199.5 | $ | 128.9 | |||||||
Share-based payments liability represents the value of Acadian LLC key employee-owned equity that may under certain circumstances be repurchased by us that is considered an equity award under U.S. GAAP based on the terms and conditions attached to these interests. Acadian LLC profit interests liability represents the value of Acadian LLC key employee-owned equity that may under certain circumstances be repurchased by us that is not considered an equity award under U.S. GAAP, but rather a form of compensation arrangement, based on the terms and conditions attached to these interests. Our obligation in any given period in respect of funding these potential repurchases of Acadian LLC equity is limited to only that portion that may be put to us by Acadian LLC key employees, which is typically capped annually under the terms of these arrangements such that we are not required to repurchase more than we can reasonably recycle by re-granting the interests in lieu of cash variable compensation owed to Acadian LLC key employees.
Certain of our employees are eligible to participate in our voluntary deferral plan, or VDP, which provides our senior personnel the opportunity to voluntarily defer a portion of their compensation. There is a voluntary deferral plan investment balance included in investments on the Condensed Consolidated Balance Sheets that corresponds to this deferral liability.
Additionally, we have recorded accrued incentive compensation of $129.0 million and $129.9 million on the Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025, respectively. Included within the accrued incentive compensation balance is the vested portion of our deferred compensation pool. The deferred compensation pool is primarily based on a contractual percentage of Acadian LLC performance fee revenues and post-bonus profits, and is subject to a three-year vesting period. Compensation expense is recognized over the requisite service period. Remaining unamortized compensation expense related to the unvested portion of the deferred compensation pool of $6.7 million, $17.9 million and $8.3 million is expected to be recognized in the years ending December 31, 2026, 2027 and 2028, respectively.
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Critical Accounting Policies and Estimates
There have been no significant changes to the critical accounting policies and estimates disclosed in our most recent Form 10-K for the year ended December 31, 2025. Critical accounting policies and estimates are those that require management’s most difficult, subjective or complex judgments and would therefore be deemed the most critical to an understanding of our results of operations and financial condition.
Recent Accounting Developments
See discussion of Recent Accounting Developments in Note 2 of the accompanying Condensed Consolidated Financial Statements.
Forward-Looking Statements
This Quarterly Report on Form 10-Q includes forward-looking statements, which may include, from time to time, anticipated revenues, margins, cash flows or earnings, anticipated future performance of our business, our expected future net cash flows, our anticipated expense levels, capital management, financial condition, results of operations and cash flows, expected use of capital resources, expectations regarding market conditions and/or expected impact of changes in accounting standards and tax law. The words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “can be,” “may be,” “aim to,” “may affect,” “may depend,” “intends,” “expects,” “believes,” “estimate,” “plan,” “project,” and other similar expressions are intended to identify such forward-looking statements. Such statements are subject to various known and unknown risks and uncertainties and we caution readers that any forward-looking information provided by or on behalf of us is not a guarantee of future performance.
Actual results may differ materially from those in forward-looking information as a result of various factors, some of which are beyond our control, including but not limited to those discussed above and elsewhere in this Quarterly Report on Form 10-Q, in our most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 27, 2026, and subsequent SEC filings. Due to such risks and uncertainties and other factors, we caution each person receiving such forward-looking information not to place undue reliance on such statements. Further, such forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and we undertake no obligations to update any forward-looking statement to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Market Risk
Our exposure to market risk is directly related to our role as an asset manager. Substantially all of our investment management revenues are derived from our agreements with our clients. Under these agreements, the revenues we receive are based on the value of our assets under management or the investment performance on client accounts for which we earn performance fees. Accordingly, our revenues and net income may decline as a result of our assets under management decreasing due to depreciation of our investment portfolios. In addition, such depreciation could cause our clients to withdraw their funds in favor of investments offering higher returns or lower risk, which would cause our revenues and net income to decline further.
Our model for assessing the impact of market risk on our results uses September 30, 2026 ending AUM and management fee rates as the basis for management fee revenue calculations. With respect to performance fee revenue, we assume that relative investment performance is the same as in the past four quarters ended September 30, 2026. Therefore, market-driven changes in performance fees, which are typically based on relative performance versus market indices, reflect changes in the underlying AUM used in the calculation rather than differences in relative performance as a result of a changed market environment. The impact that market changes have on performance fee eligible accounts varies due to high-water marks and other measurement hurdles which are not factored in this analysis. Changes in performance fee revenues could be significant in each period. The basis for the analysis is performance fees earned for the twelve months ended September 30, 2026.
Our profit sharing economic structure, described more fully in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—The Economics of Our Business,” results in a sharing of market risk between us and our employees. Approximately 44% of our ENI cost structure is variable, representing variable compensation and Acadian LLC key employee distributions. These variable expenses generally are linked in a formulaic manner to the profitability of the business after covering operating expenses, which include base compensation and benefits, general and administrative expenses, and depreciation and amortization. In modeling the impact of market risk, we assume that these operating expenses remain unchanged, but the resulting impact on profit driven by increases or decreases in revenue will change variable compensation and Acadian LLC key employee distributions in line with their formulaic calculations. Any change in pre-tax profit is tax-affected to calculate profit after tax.
The value of our assets under management was $239.6 billion as of September 30, 2026. A 10% increase or decrease in the value of our assets under management, if proportionally distributed over all of our investment strategies, asset classes and client relationships, would cause an annualized increase or decrease in our gross management fee revenues of approximately $75 million based on our effective weighted average fee rate of approximately 32 basis points in the most recent quarter. Approximately $29 billion, or 12%, of our AUM, are in accounts subject to performance fees. Of these assets, the majority are in accounts for which performance fees are calculated based on investment return that differs from the relative benchmark returns. Assuming the market change does not impact our relative performance, a 10% increase or decrease in AUM would have a $4 million impact to our gross performance fees based on our trailing twelve-month performance fees of $37 million as of September 30, 2026. The combined impact on our management fees and performance fees would have a direct impact on our earnings and result in an annual change of approximately $30 million in our post-tax economic net income. The analysis is based on our operating model, effective cost and fee structure in the quarter ended September 30, 2026.
Equity market risk, interest rate risk, and foreign currency risk are the market risks that could have the greatest impact on our management fees, performance fees and our business profitability. Impacts on our management and performance fees can be calculated based on the percentage of AUM constituting equity investments or foreign currency denominated investments, respectively, multiplied by the relevant weighted average management fee and performance fee attributable to that asset class.
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•Our equity markets-based AUM includes U.S., global, non-U.S. and emerging markets equities (including small cap through large cap securities). A 10% increase or decrease in equity markets would cause our approximately $239 billion of equity assets under management to increase or decrease by $24 billion, resulting in a change in annualized management fee revenue of $75 million and an annual change in post-tax economic net income of approximately $28 million given our cost structure, operating model, and effective weighted average fee rates of 32 basis points at the current mix of strategies as of September 30, 2026. Approximately $29 billion, or 12%, of our equity markets-based AUM are in accounts subject to performance fees. Of these assets, the majority are in accounts for which performance fees are calculated based on investment return in excess of the relative benchmark returns. Assuming the market change does not impact our relative performance, a 10% change in equity markets would have an approximate incremental $1 million impact from performance fees on our post-tax economic net income. The analysis is based on our operating model, effective cost and fee structure in the quarter ended September 30, 2026.
•Foreign currency AUM includes equity assets denominated in foreign currencies. Assuming that all other factors remain constant, including client activity and asset flows and pricing, we estimate that a 10% increase or decrease in foreign exchange rates against the U.S. dollar would cause our $158 billion of foreign currency denominated AUM to increase or decrease by $16 billion, resulting in a change in annualized management fee revenue of $61 million and an annual change in post-tax economic net income of $23 million, based on effective weighted average fees earned on our foreign currency denominated AUM of 38 basis points at the mix of strategies as of September 30, 2026. Approximately $19 billion, or 12%, of our foreign currency denominated AUM are in accounts subject to performance fees. Of these assets, the majority are in accounts for which performance fees are calculated based on investment return that differs from the relative benchmark returns. Assuming the market change does not impact our relative performance, a 10% change in foreign currency exchange rates would have an approximate incremental $1 million impact from performance fees on our post-tax economic net income. The analysis is based on our operating model, effective cost and fee structure in the quarter ended September 30, 2026.
While the analysis above assumes that market changes occur in a uniform manner across the relevant portfolio, because of our declining fee rates for larger relationships and differences in our fee rates across asset classes, a change in the composition of our assets under management, in particular an increase in the proportion of our total assets under management attributable to strategies, clients or relationships with lower effective fee rates, could have a material negative impact on our overall weighted average fee rate.
As is customary in the asset management industry, clients invest in particular strategies to gain exposure to certain asset classes, which exposes their investment to the benefits and risks of such asset classes. We have not adopted a corporate-level risk management policy regarding client assets, nor have we attempted to hedge at the corporate level or within individual strategies the market risks that would affect the value of our overall assets under management and related revenues. Any reduction in the value of our assets under management would result in a reduction in our revenues.
Interest Rate Risk
We are exposed to interest rate risks primarily through borrowings under Acadian LLC’s revolving credit facility and Delayed Draw Term Loan. Interest on borrowings under the revolving credit facility and Delayed Draw Term Loan is based upon variable interest rates. There were no borrowings under the credit facility as of September 30, 2026. We currently do not hedge against interest rate risk. As of September 30, 2026, a hypothetical 10% change in interest rates would have resulted in an immaterial change to our interest expense during the nine months ended September 30, 2026.
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Item 4. Controls and Procedures.
Controls and Procedures
Our management, including our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at September 30, 2026. Based on this evaluation, our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures are effective.
Internal Control over Financial Reporting
There have been no changes in internal control over financial reporting during the quarter ended September 30, 2026 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
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PART II — OTHER INFORMATION
Item 1. Legal Proceedings.
From time to time, we may be parties to various claims, suits, and complaints in the ordinary course of our business. Although the amount of liability that may result from these matters cannot be ascertained, we do not currently believe that, in the aggregate, they will result in liabilities material to our consolidated financial condition, future results of operations or cash flow.
Item 1A. Risk Factors.
There have been no material changes in the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
Item 5. Other Information.
During our fiscal quarter ended September 30, 2026, none of our directors or officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) entered into terminated
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Item 6. Exhibits.
| Exhibit No. | Description | ||||||||||
| 3.1 | |||||||||||
3.2 | |||||||||||
| 3.3 | |||||||||||
| 31.1* | |||||||||||
| 31.2* | |||||||||||
| 32.1** | |||||||||||
| 32.2** | |||||||||||
| 101* | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025, (ii) the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and 2025, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2026 and 2025, (iv) the Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2026 and 2025, (v) the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2026 and 2025 and (vi) the Notes to Financial Statements. | ||||||||||
| 104* | The cover page of this Quarterly Report on Form 10-Q, formatted in Inline eXtensible Business Reporting Language | ||||||||||
* Filed herewith
** Furnished herewith
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Acadian Asset Management Inc. | |||||||||||
| Dated: | November 5, 2026 | ||||||||||
| By: | /s/ Kelly Young | ||||||||||
Kelly Young President and Chief Executive Officer (principal executive officer) | |||||||||||
/s/ Scott Hynes | |||||||||||
Scott Hynes Senior Vice President and Chief Financial Officer (principal financial officer) | |||||||||||
| /s/ Christina Wiater | |||||||||||
Christina Wiater Senior Vice President and Chief Accounting Officer (principal accounting officer) | |||||||||||
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Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Kelly Young, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Acadian Asset Management Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: November 5, 2026
| /s/ Kelly Young | |||||
| Kelly Young | |||||
| President and Chief Executive Officer | |||||
| (principal executive officer) | |||||
Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Scott Hynes, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of Acadian Asset Management Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: November 5, 2026
| /s/ Scott Hynes | |||||
| Scott Hynes | |||||
| Senior Vice President and Chief Financial Officer | |||||
| (principal financial officer) | |||||
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Kelly Young, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report on Form 10-Q of Acadian Asset Management Inc. for the quarterly period ended September 30, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Report fairly presents in all material respects the financial condition and results of operations of Acadian Asset Management Inc. for the periods covered by the Report. The foregoing certification is being furnished to the Securities and Exchange Commission as part of the Report. A signed original of this statement has been provided to Acadian Asset Management Inc. and will be retained by Acadian Asset Management Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
| Date: | November 5, 2026 | /s/ Kelly Young | ||||||
| Name: Kelly Young | ||||||||
| Title: President and Chief Executive Officer | ||||||||
| (principal executive officer) | ||||||||
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Scott Hynes, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report on Form 10-Q of Acadian Asset Management Inc. for the quarterly period ended September 30, 2026 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Report fairly presents in all material respects the financial condition and results of operations of Acadian Asset Management Inc. for the periods covered by the Report. The foregoing certification is being furnished to the Securities and Exchange Commission as part of the Report. A signed original of this statement has been provided to Acadian Asset Management Inc. and will be retained by Acadian Asset Management Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
| Date: | November 5, 2026 | /s/ Scott Hynes | ||||||
| Name: Scott Hynes | ||||||||
| Title: Senior Vice President and Chief Financial Officer | ||||||||
| (principal financial officer) | ||||||||