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  "documentTitle": "MSCI Inc. (MSCI)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-01-17 00:00:00",
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  "notes": "The slide uses quotes from earnings calls to demonstrate management's admission of cost reallocation practices.",
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      "text": "It is worth noting that, similar to past acquisitions, there will be some amount of MSCI shared expenses that will be allocated to the segment. These allocations will reduce the margins for Burgiss, while slightly increasing the margins in other segments.",
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      "text": "MSCI does not disclose the precise impact of acquisitions on segment margins. However, we believe the evidence shows that it has the latitude and ability to allocate costs from its more mature segments to faster growing ones. For the Real Capital Analytics acquisition, management was not precise about the effect. However, with the Burgiss deal it admitted that cost reallocations would benefit the Index, ESG & Climate and Analytics segments.",
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      "text": "I would note that post-closing; we will be redistributing MSCI's corporate allocations across our segments, which may impact our segment margins. — Deal Call (Aug 2021)",
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      "text": "Source: MSCI Conference Calls",
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      "text": "MSCI's Historical Disclosure On Cost Allocations From Acquisitions Have Never Been Fully Quantified",
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      "text": "Acquisitions Can Be Used To Shift Costs Away From Mature Segments",
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