Company Quick10K Filing
BrightSphere Investment
Price-0.00 EPS1
Shares93 P/E-0
MCap-0 P/FCF-0
Net Debt-125 EBIT93
TEV-125 TEV/EBIT-1
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-02
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
8-K 2020-07-24 Enter Agreement, Earnings, Regulation FD, Exhibits
8-K 2020-06-24 Shareholder Vote
8-K 2020-05-07
8-K 2020-04-15
8-K 2020-03-02
8-K 2020-02-06
8-K 2019-12-16
8-K 2019-11-05
8-K 2019-09-17
8-K 2019-08-20
8-K 2019-08-01
8-K 2019-07-22
8-K 2019-07-12

BSA 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 5. Other Events.
Item 6. Exhibits.
EX-10.6 ex-106nedrsus.htm
EX-10.7 ex-107rsuuk.htm
EX-10.8 ex-108rsuus.htm
EX-10.9 ex-109formoptionaward.htm
EX-10.10 ex-1010surenoptionawar.htm
EX-10.11 ex-1011surenemployment.htm
EX-10.12 ex-1012rsaawardus.htm
EX-10.13 ex-1013wiateremploymen.htm
EX-31.1 bsig-2020331xexx311.htm
EX-31.2 bsig-2020331xexx312.htm
EX-32.1 bsig-2020331xexx321.htm
EX-32.2 bsig-2020331xexx322.htm

BrightSphere Investment Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
1.51.20.90.60.30.02018201820192020
Assets, Equity
0.30.20.20.10.10.02018201820192020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12018201820192020
Ops, Inv, Fin

Document
false--12-31Q120200001748824P10YP3Y100000.00100000.000.0010.00185886371824827684500000002750000001250000000.0480.051251000000 0001748824 2020-01-01 2020-03-31 0001748824 2020-05-08 0001748824 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001748824 bsig:A5.125NotesDue2031Member 2020-01-01 2020-03-31 0001748824 bsig:A4.800Notesdue2026Member 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember 2019-12-31 0001748824 bsig:ConsolidatedFundsMember 2019-12-31 0001748824 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember 2020-03-31 0001748824 2019-12-31 0001748824 bsig:ConsolidatedFundsMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedFundsMember 2019-01-01 2019-03-31 0001748824 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedFundsMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:InvestmentPerformanceMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AssetManagement1Member 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:InvestmentPerformanceMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AssetManagement1Member 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:ShareholdersEquityDeficitMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:ShareholdersEquityDeficitMember 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:ShareholdersEquityDeficitMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:TotalParentEntityDeficitMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:TotalParentEntityDeficitMember 2020-01-01 2020-03-31 0001748824 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001748824 bsig:ConsolidatedFundsMember 2019-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2019-12-31 0001748824 bsig:ConsolidatedFundsMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:CommonStockMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:ShareholdersEquityDeficitMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001748824 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:CommonStockMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:CommonStockMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:TotalParentEntityDeficitMember 2019-12-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:TotalParentEntityDeficitMember 2018-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:ShareholdersEquityDeficitMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:TotalParentEntityDeficitMember 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:TotalParentEntityDeficitMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:CommonStockMember 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:ShareholdersEquityDeficitMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2019-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:NoncontrollingInterestMember 2019-12-31 0001748824 srt:ParentCompanyMember 2017-03-25 2017-03-25 0001748824 bsig:PaulsonMember bsig:BrightSphereInvestmentGroupMember 2019-02-25 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:EquityAccountedInvestmentsInAffiliatesMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:EquityAccountedInvestmentsInAffiliatesMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:OtherDiscretionaryInvestmentsMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:OtherDiscretionaryInvestmentsMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedFundsMember bsig:EquityAccountedInvestmentsInAffiliatesMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedFundsMember bsig:OtherDiscretionaryInvestmentsMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedFundsMember bsig:EquityAccountedInvestmentsInAffiliatesMember 2019-01-01 2019-03-31 0001748824 bsig:ConsolidatedFundsMember bsig:OtherDiscretionaryInvestmentsMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:OtherDiscretionaryInvestmentsMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:OtherDiscretionaryInvestmentsMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:InvestmentsOfVoluntaryDeferredCompensationPlansMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:InvestmentsOfVoluntaryDeferredCompensationPlansMember 2020-03-31 0001748824 srt:MinimumMember us-gaap:RealEstateFundsMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel3Member bsig:VariousInvestmentsMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityIncludingConsolidatedFundsMemberMember 2020-01-01 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:RealEstateFundsRedemptionRestrictionsMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:VariousInvestmentsMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member 2019-01-01 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:RealEstateFundsRedemptionRestrictionsMember 2019-12-31 0001748824 srt:MaximumMember us-gaap:RealEstateFundsMember 2020-01-01 2020-03-31 0001748824 bsig:VariousInvestmentsMember 2019-12-31 0001748824 us-gaap:FairValueInputsLevel1Member 2019-12-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:OtherInvestmentsMember 2019-12-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0001748824 us-gaap:FairValueInputsLevel3Member 2019-12-31 0001748824 us-gaap:FairValueInputsLevel2Member 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member bsig:VariousInvestmentsMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel2Member bsig:VariousInvestmentsMember 2019-12-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel3Member bsig:VariousInvestmentsMember 2019-12-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:OtherInvestmentsMember 2020-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0001748824 bsig:ConsolidatedFundsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel3Member 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember bsig:VariousInvestmentsMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel2Member bsig:VariousInvestmentsMember 2020-03-31 0001748824 us-gaap:FairValueInputsLevel1Member 2020-03-31 0001748824 us-gaap:FairValueInputsLevel2Member 2020-03-31 0001748824 us-gaap:FairValueInputsLevel3Member 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel1Member bsig:VariousInvestmentsMember 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember us-gaap:FairValueInputsLevel2Member 2020-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember 2019-03-31 0001748824 bsig:ConsolidatedEntityExcludingConsolidatedFundsMember 2018-12-31 0001748824 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2020-03-31 0001748824 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2019-12-31 0001748824 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-03-31 0001748824 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-12-31 0001748824 us-gaap:FairValueInputsLevel2Member bsig:NonrecourseSeedCapitalFacilityMember 2019-12-31 0001748824 bsig:SeniorNotes5.125due2031Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2020-03-31 0001748824 bsig:NonrecourseSeedCapitalFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:LineOfCreditMember 2020-03-31 0001748824 bsig:SeniorNotes4.80due2026Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2020-03-31 0001748824 bsig:SeniorNotes5.125due2031Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2019-12-31 0001748824 us-gaap:RevolvingCreditFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:LineOfCreditMember 2019-12-31 0001748824 us-gaap:FairValueInputsLevel2Member bsig:ThirdPartyDebtArrangementMember 2019-12-31 0001748824 bsig:SeniorNotes4.80due2026Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2019-12-31 0001748824 us-gaap:FairValueInputsLevel2Member bsig:ThirdPartyDebtArrangementMember 2020-03-31 0001748824 us-gaap:FairValueInputsLevel2Member bsig:NonrecourseSeedCapitalFacilityMember 2020-03-31 0001748824 bsig:NonrecourseSeedCapitalFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:LineOfCreditMember 2019-12-31 0001748824 us-gaap:RevolvingCreditFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:LineOfCreditMember 2020-03-31 0001748824 bsig:SeniorNotes4.80due2026Member us-gaap:SeniorNotesMember 2020-03-31 0001748824 bsig:SeniorNotes5.125due2031Member us-gaap:SeniorNotesMember 2020-03-31 0001748824 2019-10-01 2019-12-31 0001748824 srt:MaximumMember 2020-01-01 2020-03-31 0001748824 srt:MinimumMember 2020-01-01 2020-03-31 0001748824 us-gaap:TradeNamesMember 2020-01-01 2020-03-31 0001748824 bsig:LiquidAlphaMember 2020-01-01 2020-03-31 0001748824 bsig:QuantAndSolutionsMember 2020-03-31 0001748824 bsig:QuantAndSolutionsMember 2020-01-01 2020-03-31 0001748824 bsig:LiquidAlphaMember 2020-03-31 0001748824 bsig:QuantAndSolutionsMember 2019-12-31 0001748824 bsig:AlternativesMember 2020-03-31 0001748824 bsig:AlternativesMember 2020-01-01 2020-03-31 0001748824 bsig:LiquidAlphaMember 2019-12-31 0001748824 bsig:AlternativesMember 2019-12-31 0001748824 us-gaap:CustomerRelationshipsMember 2020-01-01 2020-03-31 0001748824 us-gaap:CustomerRelationshipsMember 2019-12-31 0001748824 us-gaap:CustomerRelationshipsMember 2020-03-31 0001748824 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-03-31 0001748824 us-gaap:CustomerRelationshipsMember 2019-03-31 0001748824 us-gaap:CustomerRelationshipsMember 2018-12-31 0001748824 bsig:AlternativesMember 2019-03-31 0001748824 bsig:QuantAndSolutionsMember 2018-12-31 0001748824 bsig:LiquidAlphaMember 2019-03-31 0001748824 bsig:AlternativesMember 2018-12-31 0001748824 bsig:QuantAndSolutionsMember 2019-03-31 0001748824 bsig:LiquidAlphaMember 2018-12-31 0001748824 bsig:AlternativesMember 2019-01-01 2019-03-31 0001748824 bsig:LiquidAlphaMember 2019-01-01 2019-03-31 0001748824 bsig:QuantAndSolutionsMember 2019-01-01 2019-03-31 0001748824 us-gaap:TradeNamesMember 2019-01-01 2019-03-31 0001748824 srt:MinimumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-12-31 0001748824 srt:MaximumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-12-31 0001748824 srt:MaximumMember 2020-03-31 0001748824 bsig:GlobalNonUSEquityMember bsig:LiquidAlphaDomain 2020-01-01 2020-03-31 0001748824 bsig:GlobalNonUSEquityMember bsig:LiquidAlphaDomain 2019-01-01 2019-03-31 0001748824 bsig:GlobalNonUSEquityMember bsig:QuantSolutionsDomain 2019-01-01 2019-03-31 0001748824 us-gaap:FixedIncomeFundsMember bsig:LiquidAlphaDomain 2020-01-01 2020-03-31 0001748824 bsig:USEquityMember bsig:LiquidAlphaDomain 2020-01-01 2020-03-31 0001748824 bsig:GlobalNonUSEquityMember bsig:QuantSolutionsDomain 2020-01-01 2020-03-31 0001748824 bsig:USEquityMember bsig:LiquidAlphaDomain 2019-01-01 2019-03-31 0001748824 bsig:AlternativesMember bsig:AlternativesMember 2019-01-01 2019-03-31 0001748824 us-gaap:FixedIncomeFundsMember bsig:LiquidAlphaDomain 2019-01-01 2019-03-31 0001748824 bsig:AlternativesMember bsig:AlternativesMember 2020-01-01 2020-03-31 0001748824 us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2020-01-01 2020-03-31 0001748824 us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2019-01-01 2019-03-31 0001748824 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-03-31 0001748824 us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2018-12-31 0001748824 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-03-31 0001748824 us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2019-03-31 0001748824 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001748824 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-03-31 0001748824 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001748824 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2019-12-31 0001748824 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2020-01-01 2020-03-31 0001748824 us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2020-03-31 0001748824 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-12-31 0001748824 us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2020-03-31 0001748824 us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember 2019-12-31 0001748824 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2020-03-31 0001748824 us-gaap:TreasuryLockMember us-gaap:DesignatedAsHedgingInstrumentMember 2015-07-31 0001748824 us-gaap:InterestExpenseMember 2020-01-01 2020-03-31 0001748824 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember 2020-01-01 2020-03-31 0001748824 us-gaap:TreasuryLockMember us-gaap:DesignatedAsHedgingInstrumentMember 2016-07-31 0001748824 us-gaap:AssetManagement1Member us-gaap:NonUsMember 2020-01-01 2020-03-31 0001748824 us-gaap:AssetManagement1Member us-gaap:NonUsMember 2019-01-01 2019-03-31 0001748824 us-gaap:AssetManagement1Member country:US 2020-01-01 2020-03-31 0001748824 us-gaap:AssetManagement1Member country:US 2019-01-01 2019-03-31 0001748824 us-gaap:AssetManagement1Member 2020-01-01 2020-03-31 0001748824 us-gaap:AssetManagement1Member 2019-01-01 2019-03-31 0001748824 bsig:QuantSolutionsDomain 2019-01-01 2019-03-31 0001748824 bsig:LiquidAlphaDomain 2019-01-01 2019-03-31 0001748824 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-03-31 0001748824 bsig:AlternativesDomain 2019-01-01 2019-03-31 0001748824 us-gaap:AllOtherSegmentsMember 2019-01-01 2019-03-31 0001748824 bsig:LiquidAlphaDomain 2020-01-01 2020-03-31 0001748824 us-gaap:AllOtherSegmentsMember 2020-01-01 2020-03-31 0001748824 bsig:AlternativesDomain 2020-01-01 2020-03-31 0001748824 us-gaap:MaterialReconcilingItemsMember 2020-01-01 2020-03-31 0001748824 bsig:QuantSolutionsDomain 2020-01-01 2020-03-31 0001748824 bsig:AffiliateLoantoItsEmployeesMember bsig:AffiliateEmployeesMember 2019-12-31 0001748824 bsig:AffiliateLoantoItsEmployeesMember bsig:AffiliateEmployeesMember 2020-03-31 xbrli:shares bsig:segment iso4217:USD xbrli:pure iso4217:USD xbrli:shares

 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
FORM 10-Q 
(Mark One)
      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2020
OR
         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from          to
Commission File Number: 001-38979
 
 
 
 
brightsphere-sphere_logoa06.jpg
 
BRIGHTSPHERE
Investment Group Inc.
(Exact name of registrant as specified in its charter) 
Delaware
47-1121020
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 
 
200 Clarendon Street, 53rd Floor
02116
Boston,
Massachusetts
(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
Common stock, par value $0.001 per share
BSIG
New York Stock Exchange
4.800% Notes due 2026
BSIG 26
New York Stock Exchange
5.125% Notes due 2031
BSA
New York Stock Exchange
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 definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
Large accelerated filer
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 May 8, 2020 was 80,241,738.
 
 
 
 
 



TABLE OF CONTENTS
 
 
 
Page
 
 
 
 
 
 
 
Part I
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Part II
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 5.
 
 
 
Item 6.



2


EXPLANATORY NOTE

On July 12, 2019, the BrightSphere corporate group, which consisted of BrightSphere Investment Group plc, a public company limited by shares incorporated under the laws of England and Wales and its operating subsidiaries (such operating subsidiaries and the holding company collectively, the “BrightSphere Group”), completed a redomestication, resulting in BrightSphere Investment Group Inc., a Delaware corporation, becoming the publicly traded parent company of the BrightSphere Group (the “Redomestication”). As part of the Redomestication, which was approved by the shareholders of BrightSphere Investment Group plc, existing shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. immediately prior to the effective time of the Redomestication. As a result, all outstanding shareholders of BrightSphere Investment Group plc became common stockholders of BrightSphere Investment Group Inc. Throughout this Form 10-Q, references to “BrightSphere,” “the Company,” “we” and “us” (i) for periods until the completion of the Redomestication, refer to BrightSphere Investment Group plc and (ii) for periods after the completion of the Redomestication, refer to BrightSphere Investment Group Inc. Also throughout this Form 10-Q, we refer to our equity securities (i) for periods until the completion of the Redomestication, as ordinary shares and (ii) for periods after the completion of the Redomestication, as shares of common stock.





3


PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.
 
BrightSphere Investment Group Inc.
Condensed Consolidated Balance Sheets
(in millions, except for share and per share data, unaudited)
 
March 31,
2020
 
December 31,
2019
Assets
 

 
 

Cash and cash equivalents
$
124.4

 
$
111.3

Investment advisory fees receivable
134.8

 
151.9

Income taxes receivable
36.3

 
26.2

Fixed assets, net
66.6

 
65.8

Right of use assets
105.3

 
37.7

Investments (includes balances reported at fair value of $158.6 and $184.3)
161.0

 
186.3

Acquired intangibles, net
63.5

 
65.1

Goodwill
258.2

 
274.6

Other assets
57.9

 
52.0

Deferred tax assets
220.6

 
243.6

Assets of consolidated Funds:
 
 
 
Cash and cash equivalents, restricted
6.8

 
9.7

Investments (includes balances reported at fair value of $107.6 and $119.5)
178.8

 
190.6

Other assets
9.3

 
4.9

Total assets
$
1,423.5

 
$
1,419.7

Liabilities and stockholders’ equity
 

 
 

Accounts payable and accrued expenses
$
24.9

 
$
41.5

Accrued incentive compensation
63.9

 
137.8

Due to OM plc
3.7

 
3.7

Other compensation liabilities
356.4

 
404.9

Accrued income taxes
12.9

 
12.8

Operating lease liabilities
119.3

 
42.5

Other liabilities
3.1

 
3.1

Debt:
 
 
 
Non-recourse borrowings
21.7

 
35.0

Third party borrowings
613.9

 
533.8

Liabilities of consolidated Funds:
 
 
 
Accounts payable and accrued expenses
6.8

 
5.2

Securities sold, not yet purchased, at fair value
3.1

 
0.9

Other liabilities

 
0.1

Total liabilities
1,229.7

 
1,221.3

Commitments and contingencies


 


Redeemable non-controlling interests in consolidated Funds
74.5

 
83.9

Equity:
 
 
 

Common stock (par value $0.001; 82,482,768
 and 85,886,371 shares, respectively, issued)
0.1

 
0.1

Additional paid-in capital
516.2

 
534.3

Retained deficit
(428.3
)
 
(452.5
)
Accumulated other comprehensive loss
(19.1
)
 
(17.5
)
Non-controlling interests
1.3

 
1.3

Non-controlling interests in consolidated Funds
49.1

 
48.8

Total equity and redeemable non-controlling interests in consolidated Funds
193.8

 
198.4

Total liabilities and equity
$
1,423.5

 
$
1,419.7


See Notes to Condensed Consolidated Financial Statements

4


BrightSphere Investment Group Inc.
Condensed Consolidated Statements of Operations
(in millions except for per share data, unaudited)
 
 
Three Months Ended
March 31,
 
2020
 
2019
Revenue:
 

 
 

Management fees
$
178.5

 
$
207.5

Performance fees
1.0

 
(2.8
)
Other revenue
1.6

 
1.4

Consolidated Funds’ revenue
1.5

 
1.1

Total revenue
182.6

 
207.2

Operating expenses:
 

 
 

Compensation and benefits
57.4

 
101.1

General and administrative expense
27.7

 
32.5

Impairment of goodwill
16.4

 

Amortization of acquired intangibles
1.6

 
1.6

Depreciation and amortization
5.3

 
3.8

Consolidated Funds’ expense
0.1

 
0.2

Total operating expenses
108.5

 
139.2

Operating income
74.1

 
68.0

Non-operating income and (expense):
 

 
 

Investment income (loss)
(13.7
)
 
7.0

Interest income
0.3

 
1.1

Interest expense
(7.8
)
 
(7.0
)
Net consolidated Funds’ investment gains (losses)
(17.2
)
 
13.6

Total non-operating income (loss)
(38.4
)
 
14.7

Income from continuing operations before taxes
35.7

 
82.7

Income tax expense
13.6

 
21.6

Income from continuing operations
22.1

 
61.1

Gain (loss) on disposal of discontinued operations, net of tax

 

Net income
22.1

 
61.1

Net income (loss) attributable to non-controlling interests in consolidated Funds
(10.5
)
 
8.4

Net income attributable to controlling interests
$
32.6

 
$
52.7

 
 
 
 
Earnings per share (basic) attributable to controlling interests
$
0.38

 
$
0.54

Earnings per share (diluted) attributable to controlling interests
0.38

 
0.54

Continuing operations earnings per share (basic) attributable to controlling interests
0.38

 
0.54

Continuing operations earnings per share (diluted) attributable to controlling interests
0.38

 
0.54

Weighted average common stock outstanding
85.1

 
97.6

Weighted average diluted common stock outstanding
85.1

 
97.8


See Notes to Condensed Consolidated Financial Statements

5


BrightSphere Investment Group Inc.
Condensed Consolidated Statements of Comprehensive Income
(in millions, unaudited)
 
 
Three Months Ended
March 31,
 
2020
 
2019
Net income
$
22.1

 
$
61.1

Other comprehensive income (loss):
 
 
 
Amortization related to derivative securities, net of tax
0.5

 
0.6

Foreign currency translation adjustment
(2.1
)
 
0.5

Total other comprehensive income (loss)
(1.6
)
 
1.1

Comprehensive income (loss) attributable to non-controlling interests in consolidated Funds)
(10.5
)
 
8.4

Total comprehensive income attributable to controlling interests
$
31.0

 
$
53.8






See Notes to Condensed Consolidated Financial Statements

6


BrightSphere Investment Group Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
For the three months ended March 31, 2020 and 2019
($ 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
 
Non-
controlling
interests
 
Non-controlling
interests in
consolidated
Funds
 
Total 
equity
 
Redeemable non-controlling interests in consolidated 
Funds
 
Total equity and
redeemable
non-controlling
interests in
consolidated
Funds
December 31, 2018
105.2

 
$
0.1

 
$
764.6

 
$
(640.5
)
 
$
(20.9
)
 
103.3

 
$
1.6

 
$
29.3

 
$
134.2

 
$
41.9

 
$
176.1

Issuance of common stock
0.2

 

 

 

 

 

 

 

 

 

 

Repurchase of common stock
(13.5
)
 

 
(180.5
)
 

 

 
(180.5
)
 

 

 
(180.5
)
 

 
(180.5
)
Capital contributions (redemptions)

 

 

 

 

 

 

 

 

 
(0.4
)
 
(0.4
)
Equity-based compensation

 

 
3.2

 

 

 
3.2

 

 

 
3.2

 

 
3.2

Foreign currency translation adjustment

 

 

 

 
0.5

 
0.5

 

 

 
0.5

 

 
0.5

Amortization related to derivatives securities, net of tax

 

 

 

 
0.6

 
0.6

 

 

 
0.6

 

 
0.6

Other changes in non-controlling interests

 

 

 

 

 

 
0.2

 

 
0.2

 

 
0.2

Dividends ($0.10 per share)

 

 

 
(9.2
)
 

 
(9.2
)
 

 

 
(9.2
)
 

 
(9.2
)
Net income (loss)

 

 

 
52.7

 

 
52.7

 

 
6.7

 
59.4

 
1.7

 
61.1

March 31, 2019
91.9

 
$
0.1

 
$
587.3

 
$
(597.0
)
 
$
(19.8
)
 
$
(29.4
)
 
$
1.8

 
$
36.0

 
$
8.4

 
$
43.2

 
$
51.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
85.9

 
$
0.1

 
$
534.3

 
$
(452.5
)
 
$
(17.5
)
 
$
64.4

 
$
1.3

 
$
48.8

 
$
114.5

 
$
83.9

 
$
198.4

Retirement of common stock
(0.2
)
 

 

 

 

 

 

 

 

 

 

Repurchase of common stock
(3.2
)
 

 
(19.2
)
 

 

 
(19.2
)
 

 

 
(19.2
)
 

 
(19.2
)
Capital contributions

 

 

 

 

 

 

 
0.2

 
0.2

 
1.2

 
1.4

Equity-based compensation

 

 
1.1

 

 

 
1.1

 

 

 
1.1

 

 
1.1

Foreign currency translation adjustment

 

 

 

 
(2.1
)
 
(2.1
)
 

 

 
(2.1
)
 

 
(2.1
)
Amortization related to derivative securities, net of tax

 

 

 

 
0.5

 
0.5

 

 

 
0.5

 

 
0.5

Dividends ($0.10 per share)

 

 

 
(8.4
)
 

 
(8.4
)
 

 

 
(8.4
)
 

 
(8.4
)
Net income (loss)

 

 

 
32.6

 

 
32.6

 

 
0.1

 
32.7

 
(10.6
)
 
22.1

March 31, 2020
82.5

 
$
0.1

 
$
516.2

 
$
(428.3
)
 
$
(19.1
)
 
$
68.9

 
$
1.3

 
$
49.1

 
$
119.3

 
$
74.5

 
$
193.8


See Notes to Condensed Consolidated Financial Statements

7


BrightSphere Investment Group Inc.
Condensed Consolidated Statements of Cash Flows
(in millions, unaudited) 
 
Three Months Ended
March 31,
 
2020
 
2019
Cash flows from operating activities:
 

 
 

Net income
$
22.1

 
$
61.1

Less: Net (income) loss attributable to non-controlling interests in consolidated Funds
10.5

 
(8.4
)
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations:
 

 
 

Loss from discontinued operations, excluding consolidated Funds

 

Impairment of goodwill
16.4

 

Amortization of acquired intangibles
1.6

 
1.6

Depreciation and other amortization
5.3

 
3.8

Amortization of debt-related costs
1.1

 
0.9

Amortization and revaluation of non-cash compensation awards
(44.0
)
 
(12.7
)
Net earnings from Affiliate accounted for using the equity method
(0.6
)
 
(0.6
)
Distributions received from equity method Affiliate
0.2

 

Deferred income taxes
22.8

 
6.2

(Gains) losses on other investments
23.1

 
(18.3
)
Changes in operating assets and liabilities (excluding discontinued operations):
 

 
 

Decrease in investment advisory fees receivable
17.1

 
7.7

Increase in other receivables, prepayments, deposits and other assets
(18.2
)
 
(6.6
)
Decrease in accrued incentive compensation, operating lease liabilities and other liabilities
(70.3
)
 
(316.9
)
Decrease in accounts payable, accrued expenses and accrued income taxes
(16.2
)
 
(17.3
)
Net cash flows from operating activities of continuing operations, excluding consolidated Funds
(29.1
)
 
(299.5
)
Net income (loss) attributable to non-controlling interests in consolidated Funds
(10.5
)
 
8.4

Adjustments to reconcile net income (loss) attributable to non-controlling interests in consolidated Funds to net cash flows from operating activities from continuing operations of consolidated Funds:
 
 
 
(Gains) losses on other investments
12.0

 
(2.6
)
Purchase of investments
(25.1
)
 
(32.7
)
Sale of investments
22.0

 
28.0

(Increase) decrease in receivables and other assets
(4.4
)
 
2.3

Increase in accounts payable and other liabilities
1.6

 
3.6

Net cash flows from operating activities of continuing operations of consolidated Funds
(4.4
)
 
7.0

Net cash flows from operating activities of continuing operations
(33.5
)
 
(292.5
)
Net cash flows from operating activities of discontinued operations

 

Total net cash flows from operating activities
(33.5
)
 
(292.5
)
Cash flows from investing activities:
 

 
 

Additions of fixed assets
(6.3
)
 
(7.3
)
Purchase of investment securities
(4.8
)
 
(7.0
)
Sale of investment securities
12.2

 
9.9

Cash flows from investing activities of consolidated Funds
 
 
 
Contributions in equity method investees
(0.3
)
 

Distributions received from equity method investees
0.5

 

Net cash flows from investing activities of continuing operations
1.3

 
(4.4
)
Net cash flows from investing activities of discontinued operations

 

Total net cash flows from investing activities
1.3

 
(4.4
)

See Notes to Condensed Consolidated Financial Statements

8


BrightSphere Investment Group Inc.
Condensed Consolidated Statements of Cash Flows
(in millions, unaudited) 
 
Three Months Ended
March 31,
 
2020
 
2019
Cash flows from financing activities:
 

 
 

Proceeds from third party and non-recourse borrowings
80.0

 
240.0

Repayment of third party and non-recourse borrowings
(13.3
)
 
(5.0
)
Payment to OM plc for co-investment redemptions

 
(5.1
)
Dividends paid to stockholders
(5.8
)
 
(6.4
)
Dividends paid to related parties
(2.7
)
 
(3.0
)
Repurchases of common stock
(17.1
)
 
(183.9
)
Cash flows from financing activities of consolidated Funds
 
 
 
      Non-controlling interest capital redeemed
(0.1
)
 

      Redeemable non-controlling interest capital raised
1.4

 
0.3

      Redeemable non-controlling interest capital redeemed

 
(0.4
)
Net cash flows from financing activities of continuing operations
42.4

 
36.5

Net cash flows from financing activities of discontinued operations

 

Total net cash flows from financing activities
42.4

 
36.5

Effect of foreign exchange rate changes on cash and cash equivalents

 

Net increase (decrease) in cash and cash equivalents
10.2

 
(260.4
)
Cash and cash equivalents at beginning of period
121.0

 
345.5

Cash and cash equivalents at end of period (including cash at consolidated Funds classified as restricted)
$
131.2

 
$
85.1

 
 
 
 
Supplemental disclosure of cash flow information:
 

 
 

Interest paid (excluding consolidated Funds)
$
10.1

 
$
9.4

Income taxes paid

 
12.9

 
 
 
 
Supplemental disclosure of non-cash investing and financing transactions:
 
 
 
Payable for securities purchased by a consolidated Fund
$
1.1

 
$
15.5


See Notes to Condensed Consolidated Financial Statements

9


BrightSphere Investment Group Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

1) Organization and Description of the Business

 
BrightSphere Investment Group Inc. (“BrightSphere”, “BSIG” or the “Company”), through its subsidiaries, is a global asset management company with interests in a diverse group of investment management firms (the “Affiliates”) individually headquartered in the United States. The Company provides investment management services globally to predominantly institutional investors, in asset classes that include U.S. and global equities, fixed income, alternative assets, forestry and secondary strategies focused in real estate and private equity. Fees for services are largely asset-based and, as a result, the Company’s revenue fluctuates based on the performance of financial markets and investors’ asset flows in and out of the Company’s products.
The Company’s Affiliates are organized as limited liability companies. The Company generally utilizes a profit-sharing model in structuring its compensation and ownership arrangements with its Affiliates. The Affiliates’ variable compensation is generally based on each firm’s profitability. BSIG and Affiliate key employees share in profits after variable compensation according to their respective ownership interests. The profit-sharing model results in the alignment of BSIG and Affiliate key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business. The Company conducts its operations through the following three reportable segments:
Quant & Solutions—comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor based investment process across a range of asset classes and geographies, including Global, non-U.S., emerging markets and managed volatility equities, as well as multi-asset products.

Alternatives—comprised of illiquid and differentiated liquid investment strategies that include private equity, real estate and real assets, including forestry, as well as a growing suite of liquid alternative capabilities in areas such as long/short, market neutral and absolute return.

Liquid Alpha—comprised of specialized investment strategies with a focus on alpha-generation across market cycles in long-only small-, mid-, and large-cap U.S., global, non-U.S. and emerging markets equities, as well as fixed income.

Prior to 2014, the Company was a wholly-owned subsidiary of Old Mutual plc (“OM plc”), an international long-term savings, protection and investment group, listed on the London Stock Exchange. On October 15, 2014, the Company completed the initial public offering (the “Offering”) by OM plc pursuant to the Securities Act of 1933, as amended. Additionally, between the Offering and February 25, 2019, the Company, OM plc and/or HNA Capital U.S. (“HNA”) completed a series of transactions in the Company’s shares, including a two-step transaction announced on March 25, 2017 for a sale by OM plc of a 24.95% shareholding in the Company to HNA and a two-step transaction announced on November 19, 2018 for a sale of the substantial majority of the ordinary shares held by HNA of the Company to Paulson & Co. (“Paulson”). On February 25, 2019, this transaction was completed and Paulson held approximately 21.7% of the ordinary shares of the Company. The remaining shares held by HNA were bought back by the Company in the first quarter of 2019.


10



BrightSphere Investment Group Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

1) Organization and Description of the Business (cont.)


On July 12, 2019, the BrightSphere corporate group, which consisted of BrightSphere Investment Group plc, a public company limited by shares incorporated under the laws of England and Wales and its operating subsidiaries (such operating subsidiaries and the holding company collectively, the “BrightSphere Group”), completed a redomestication, resulting in BrightSphere Investment Group Inc., a Delaware corporation, becoming the publicly traded parent company of BrightSphere Group (the “Redomestication”). The scheme of arrangement pursuant to which the Redomestication was effected was approved by the Company’s shareholders and the High Court of Justice of England and Wales. Effective as of the close of business on July 12, 2019, all issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. As a result, all outstanding shareholders of BrightSphere Investment Group plc became common stockholders of BrightSphere Investment Group Inc. The common stock of BrightSphere Investment Group Inc. began trading on July 15, 2019, and the Company’s trading symbol on the NYSE remained unchanged as “BSIG.”
For the three months ended March 31, 2020, the Company repurchased 3,230,262 shares of common stock at an average price of $5.93 per share, or approximately $19.2 million in total, including commissions.

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 and of comprehensive income, statements of changes in stockholders’ equity and statements of cash flows of the Company. Within these Condensed Consolidated Financial Statements, OM plc, HNA, Paulson and their related entities, as defined above, are referred to as “related parties.”
The Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). 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 unless otherwise indicated. Transactions between the Company and its related parties are included in the Condensed Consolidated Financial Statements, however, material intercompany balances and transactions among the Company, its consolidated Affiliates and consolidated Funds are eliminated in consolidation.
As a result of the Redomestication on July 12, 2019, discussed in Note 1, the Company revised its equity accounts to reflect a U.S. domiciled company presentation on the Condensed Consolidated Statements of Changes in Stockholders’ equity and the Condensed Consolidated Balance Sheets for all periods presented. The previously issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. The Redomestication and related internal reorganization was accounted for consistent with a reorganization of entities under common control in accordance with ASC 805 Business Combinations.  Accordingly, the transfer of the assets and liabilities and exchange of shares was recorded in the new entity (BrightSphere Investment Group Inc.) at their carrying amounts from the transferring entity (BrightSphere Investment Group plc) at the date of transfer.


11


BrightSphere Investment Group Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

2) Basis of Presentation and Significant Accounting Policies (cont.)


The Company has revised certain amounts in prior-period financial statements to conform to the current period’s presentation. The Company changed the presentation of the purchase and sale of investments by its consolidated Funds within cash flows from investing activities in the prior period’s Condensed Consolidated Statements of Cash Flows to conform to the current period’s presentation of showing such purchase and sale of investments within cash flows from operating activities. The change had no impact on the total cash provided by or used in operating, investing or financing activities within the Condensed Consolidated Statements of Cash Flows, or any impact on the other Condensed Consolidated Financial Statements.
Certain disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (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, 2019 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 2, 2020. The Company’s significant accounting policies, which have been consistently applied, are summarized in those financial statements.
Use of estimates
The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The three months ended March 31, 2020 were characterized by heightened uncertainty due to the COVID-19 pandemic which could impact estimates and assumptions made by management. Actual results could differ from such estimates, and the differences may be material to the Condensed Consolidated Financial Statements.
Recently adopted accounting standards
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). This standard modifies the disclosure requirements on fair value measurements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Notably, this guidance removes the disclosure requirements for the valuation processes for Level 3 fair value measurements. This guidance also adds new disclosure requirements for the range and weighted average of significant unobservable inputs used to develop fair value measurements categorized within Level 3 of the fair value hierarchy. The Company has determined that the adoption of this standard did not have a material impact on its Condensed Consolidated Financial Statements and related disclosures.

New accounting standard not yet adopted

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.



12


BrightSphere Investment Group Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)

3) Investments


Investments are comprised of the following as of the dates indicated (in millions):
 
March 31,
2020
 
December 31,
2019
Investments of consolidated Funds held at fair value
$
107.6

 
$
119.5

Other investments held at fair value
69.3

 
95.5

Investments related to long-term incentive compensation plans held at fair value
89.3

 
88.8

Total investments held at fair value
266.2

 
303.8

Equity-accounted investments in Affiliates and consolidated Funds(1)
73.6

 
73.1

Total investments per Condensed Consolidated Balance Sheets
$
339.8

 
$
376.9

 
 
(1)
Equity-accounted investments in consolidated Funds is comprised of Investments in partnership interests where a portion of return includes carried interest. These investments are accounted for within the scope of ASC 323, Investments - Equity Method and Joint Ventures because the Company has determined it has significant influence.

Investment income is comprised of the following for the three months ended March 31 (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
Realized and unrealized gains (losses) on other investments held at fair value
$
(14.3
)
 
$
6.4

Investment return of equity-accounted investments in Affiliates
0.6

 
0.6

Total investment income (loss) per Condensed Consolidated Statements of Operations
$
(13.7
)
 
$
7.0


Investment gains (losses) on net consolidated funds is comprised of the following for the three months ended March 31 (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
Realized and unrealized gains (losses) on consolidated Funds held at fair value
$
(17.2
)
 
$
13.6

Investment return of equity-accounted investments

 

Total net consolidated Funds’ investment gains (losses) per Condensed Consolidated Statements of Operations
$
(17.2
)
 
$
13.6




13


BrightSphere Investment Group 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 March 31, 2020 (in millions):
 
Quoted prices
in active
markets
(Level I)
 
Significant
other
observable
inputs
(Level II)
 
Significant
unobservable
inputs
(Level III)
 
Uncategorized
 
Total value,
March 31, 2020
Assets of BSIG and consolidated Funds(1)
 
 

 
 

 
 
 
 

Common and preferred stock
$
7.2

 
$

 
$

 
$

 
$
7.2

Short-term investment funds
0.4

 

 

 

 
0.4

Bank loans

 
93.9

 

 

 
93.9

Derivatives
5.4

 
0.7

 

 

 
6.1

Consolidated Funds total
13.0

 
94.6

 

 

 
107.6

Investments in separate accounts(2)
27.9

 
9.5

 

 

 
37.4

Investments related to long-term incentive compensation plans(3)
89.3

 

 

 

 
89.3

Investments in unconsolidated Funds(4)

 

 
3.0

 
28.9

 
31.9

BSIG total
117.2

 
9.5

 
3.0

 
28.9

 
158.6

Total fair value assets
$
130.2

 
$
104.1

 
$
3.0

 
$
28.9

 
$
266.2

Liabilities of consolidated Funds(1)
 
 
 
 
 
 
 
 
Derivatives
(2.6
)
 
(0.5
)
 

 

 
(3.1
)
Consolidated Funds total
(2.6
)
 
(0.5
)
 

 

 
(3.1
)
Total fair value liabilities
$
(2.6
)
 
$
(0.5
)
 
$

 
$

 
$
(3.1
)



14


BrightSphere Investment Group 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, 2019 (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, 2019
Assets of BSIG and consolidated Funds(1)
 
 

 
 

 
 

 
 

Common and preferred stock
$
9.8

 
$

 
$

 
$

 
$
9.8

Short-term investment funds
0.1

 

 

 

 
0.1

Bank loans

 
109.0

 

 

 
109.0

Derivatives
0.5

 
0.1

 

 

 
0.6

Consolidated Funds total
10.4

 
109.1

 

 

 
119.5

Investments in separate accounts(2)
33.2

 
11.1

 

 

 
44.3

Investments related to long-term incentive compensation plans(3)
88.8