v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis:
 
 
Fair Value Measurements
 
December 31,
2025
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Financial Assets(1)
 
 
 
 
Investments in equity securities
$34.8
$34.8
$—
$—
Investments in debt securities
50.0
—
50.0
—
Financial Liabilities(2)
 
 
 
 
Contingent payment obligations
$0.0
$—
$—
$0.0
Affiliate equity purchase obligations
161.2
—
—
161.2
 
 
Fair Value Measurements
 
June 30,
2026
 
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Financial Assets(1)
 
 
 
 
Investments in equity securities
$43.7
$43.7
$—
$—
Investments in debt securities
63.0
—
48.1
14.9
Financial Liabilities(2)
 
 
 
 
Contingent payment obligations
$0.0
$—
$—
$0.0
Affiliate equity purchase obligations
200.4
—
—
200.4
___________________________
(1)Amounts are recorded in Investments on the Consolidated Balance Sheets.
(2)Amounts are recorded in Other liabilities on the Consolidated Balance Sheets.
Level 3 Financial Assets and Liabilities
The following table presents the changes in the Company’s investments in debt securities classified as Level 3 financial
assets:
 
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2025
2026
2025
2026
Balance, beginning of period
$—
$—
$—
$—
Purchases and commitments funded
—
15.1
—
15.1
Sales and distributions
—
—
—
—
Net realized and unrealized losses(1)
—
(0.2)
—
(0.2)
Balance, end of period
$—
$14.9
$—
$14.9
Net change in unrealized losses relating to instruments still held at the
reporting date(1)
$—
$(0.2)
$—
$(0.2)
___________________________
(1)Gains and losses resulting from changes to unrealized gains (losses) are included in Investment and other income in the
Consolidated Statements of Income.
The following tables present the changes in Level 3 financial liabilities:
 
For the Three Months Ended June 30,
2025
2026
Contingent
Payment
Obligations
Affiliate Equity
Purchase
Obligations
Contingent
Payment
Obligations
Affiliate Equity
Purchase
Obligations
Balance, beginning of period
$5.6
$48.4
$0.0
$194.2
Purchases and issuances(1)
—
71.1
—
29.3
Settlements and reductions
(4.9)
(13.7)
—
(28.1)
Net realized and unrealized (gains) losses(2)
(0.7)
12.1
—
5.0
Balance, end of period
$0.0
$117.9
$0.0
$200.4
Net change in unrealized (gains) losses relating to
instruments still held at the reporting date(2)
$—
$13.1
$—
$4.7
For the Six Months Ended June 30,
2025
2026
Contingent
Payment
Obligations
Affiliate Equity
Purchase
Obligations
Contingent
Payment
Obligations
Affiliate Equity
Purchase
Obligations
Balance, beginning of period
$5.7
$54.8
$0.0
$161.2
Purchases and issuances(1)
—
93.1
—
61.3
Settlements and reductions
(4.9)
(43.4)
—
(62.0)
Net realized and unrealized (gains) losses(2)
(0.8)
13.4
—
39.9
Balance, end of period
$0.0
$117.9
$0.0
$200.4
Net change in unrealized (gains) losses relating to
instruments still held at the reporting date(2)
$(0.1)
$14.4
$—
$39.6
___________________________
(1)Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests.
(2)Gains and losses resulting from changes to expected payments related to contingent payment obligations and the accretion
of these obligations are included in Other expenses (net) and included in Interest expense, respectively, in the Consolidated
Statements of Income.  Changes to the redemption value of Affiliate equity purchase obligations are included in
Compensation and related expenses in the Consolidated Statements of Income.
The following table presents certain quantitative information about the significant unobservable inputs used in valuing the
Company’s recurring Level 3 fair value measurements:
 
Quantitative Information about Level 3 Fair Value Measurements
December 31, 2025
June 30, 2026
 
Valuation
Techniques
Unobservable
Input
Fair Value
Range
Weighted
Average(1)
Fair Value
Range
Weighted
Average(1)
Financial Assets
Investments in debt
securities
Cost
Transaction
price
$—
—
—
$10.4
N/A
N/A
Discounted
cash flow
Discount rates
$—
—
—
$4.5
20%
20%
Financial Liabilities
Contingent payment
obligations
Monte Carlo
simulation
Volatility
$0.0
13%
13%
$0.0
1%
1%
 
Discount rates
 
5%
5%
 
5%
5%
Affiliate equity
purchase obligations
Discounted
cash flow
Growth rates(2)
$113.0
(10)% - 11%
3%
$119.4
(11)% - 8%
2%
 
Discount rates
 
11% - 18%
14%
 
11% - 17%
14%
Monte Carlo
simulation
Volatility
$48.2
15%
15%
$81.0
10% - 15%
11%
Discount rates
5%
5%
5% - 6%
5%
___________________________
(1)Calculated by comparing the relative fair value of a security or an obligation to its respective total.
(2)Represents growth rates of asset- and performance-based fees.
Investments in debt securities represent the fair value of investments in consolidated Affiliate-sponsored investment
products.  When using cost as the valuation technique, increases to recent transaction prices would result in higher fair values. 
When using a discounted cash flow valuation technique, increases to the discount rates used would result in lower fair values.
Contingent payment obligations represent the fair value of the expected future settlement amounts related to the
Company’s investments in its consolidated Affiliates.  Changes to assumed volatility and discount rates change the fair value of
contingent payment obligations.  Increases to the volatility rates used would result in higher fair values, while increases to the
discount rates used would result in lower fair values.
Affiliate equity purchase obligations include agreements to purchase Affiliate equity and represent the fair value of the
expected future settlement amounts.  When using a discounted cash flow valuation technique, increases to the assumed growth
rates used would result in higher fair values, while increases to the discount rates used would result in lower fair values.  When
using a Monte Carlo valuation technique, changes to assumed volatility and discount rates change the fair value of Affiliate
equity purchase obligations.  Increases to the volatility rates used would result in higher fair values, while increases to the
discount rates used would result in lower fair values.
Other Financial Assets and Liabilities Not Carried at Fair Value
The following table summarizes the Company’s other financial liabilities not carried at fair value:
 
December 31, 2025
June 30, 2026
Carrying
Value
Fair Value
Carrying
Value
Fair Value
Fair Value
Hierarchy
Senior notes
$1,172.0
$1,171.0
$1,172.2
$1,153.9
Level 2
Junior subordinated notes
1,216.1
995.2
1,216.1
943.3
Level 2
The carrying amount of Cash and cash equivalents, Receivables, Payables and accrued liabilities, and certain Other
liabilities approximates fair value because of the short-term nature of these instruments.  The carrying value of the revolver (as
defined in Note 6) approximates fair value because the revolver has variable interest based on selected short-term rates.