Business Combinations

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Business Combinations

Business Combinations

The Company completed majority investments in Baker Street Advisors, LLC (“Baker Street”) on April 1, 2015 and myCIO Wealth Partners, L.P. (“myCIO”) on October 1, 2015. The Company’s provisional purchase price allocations were measured using a financial model that includes assumptions of expected market performance, net client flows and discount rates.  The associated provisional amounts may be revised upon completion of the final valuation. The consideration paid (less net tangible assets acquired) will be deductible for U.S. tax purposes over a 15-year life.

The purchase price allocation for these investments was as follows:

	Total
Consideration paid	$	76.1
Contingent payment obligations	9.3
Non-controlling interests	33.8
Enterprise value	$	119.2
Acquired client relationships	$	52.5
Tangible assets, net	2.4
Goodwill	64.3
	$	119.2

The excess of the enterprise value over the separately identifiable net assets acquired was recorded as goodwill and the segment allocation was as follows:

	Total
Institutional	14.4	%
Mutual Fund	—	%
High Net Worth	85.6	%

Unaudited pro-forma financial results are set forth below, assuming these investments occurred on January 1, 2014 and the Company’s structured partnership interests had been in effect for the entire period.

	For the Years Ended December 31,
	2014 (Unaudited)		2015 (Unaudited)
Revenue	$	2,538.2	$	2,499.4
Net income (controlling interest)	454.5		517.9
Earnings per share (basic)	8.26		9.53
Earnings per share (diluted)	8.05		9.31

The unaudited pro-forma financial results are not necessarily indicative of the financial results had the investments been consummated at the beginning of the periods presented, nor are they necessarily indicative of the financial results expected in future periods. The unaudited pro-forma financial results do not include the impact of transaction and integration related costs or benefits that may be expected to result from these investments.

The Company’s new investments contributed $15.3 million and $1.3 million to the Company’s Revenue and earnings, respectively, during 2015.

The Company had liabilities to related parties for contingent payment arrangements in connection with certain business combinations. The total payable was $59.3 million and $10.2 million as of December 31, 2014 and 2015, respectively, and was included in Other liabilities. The Company made no payments associated with these liabilities in 2014.  In 2015, the Company made payments of $17.5 million associated with these liabilities. During 2013, the Company adjusted its estimate of its contingent payment obligations and recognized a loss totaling $10.3 million. During 2014, the Company made no such adjustments.  During 2015, the Company adjusted its estimate of its contingent payment obligations and recorded a gain of $44.7 million.