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Investments (Tables)

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Investments Carried Under Measurement Alternative

Equity Method Investments and Investments Carried Under the Measurement Alternative


(in thousands)	Percent Ownership1	December 31, 2022		December 31, 2021
Advanced Markets Holdings	25%	$	5,090	$	5,110
China Credit BGC Money Broking Company Limited	33%	21,104		16,784
Freedom International Brokerage	45%	9,659		9,794
Other		2,530		1,159
Equity method investments		$	38,383	$	32,847
Investments carried under measurement alternative		192		192
Total equity method and investments carried under measurement alternative		$	38,575	$	33,039

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1Represents the Company’s voting interest in the equity method investment as of December 31, 2022 and 2021.

Summary of Financial Information for Company's Equity Method Investments

Summarized financial information for the Company’s equity method investments is as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Statements of operations:
Total revenues	$	125,405	$	108,458	$	94,744
Total expenses	88,050		82,581		71,241
Income before income taxes	$	37,355	$	25,877	$	23,503


	December 31,
	2022		2021
Statements of financial condition:
Cash and cash equivalents	$	82,725	$	104,855
Fixed assets, net	1,848		2,603
Other assets	54,744		42,640
Total assets	$	139,317	$	150,098
Payables to related parties	—		2,000
Other liabilities	78,740		92,114
Total partners’ capital	60,577		55,984
Total liabilities and partners’ capital	$	139,317	$	150,098

Investments in Variable Interest Entities

The following table sets forth the Company’s investment in its unconsolidated VIEs and the maximum exposure to loss with respect to such entities (in thousands).


	December 31, 2022				December 31, 2021
	Investment		Maximum Exposure to Loss		Investment		Maximum Exposure to Loss
Variable interest entities1	$	2,530	$	2,959	$	1,159	$	2,139

__________________

1The Company has entered into a subordinated loan agreement with Aqua, whereby the Company agreed to lend the principal sum of $980 thousand. The Company’s maximum exposure to loss with respect to its unconsolidated VIEs includes the sum of its equity investments in its unconsolidated VIEs and the $430 thousand and $980 thousand subordinated loan to Aqua as of December 31, 2022 and 2021, respectively. The Company did not recognize any interest income on the subordinated loan subsequent to being designated as a non-accrual loan in November 2022. As of December 31, 2022, the Company wrote off $550 thousand of the subordinated loan, which was recorded as part of "Other expenses" on the Company's Consolidated Statements of Operations.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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