Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of September 30, 2023 and December 31, 2022 was as follows (in thousands):

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
September 30, 2023:
Money markets	$	171,192	$	—	$	—	$	—	$	—	$	171,192
Securities segregated (U.S. Treasury Bills)	—		927,934		—		—		—		927,934
Derivatives	2,945		21,483		—		—		—		24,428
Investments:
Equity securities	116,893		25,077		122		1,468		—		143,560
Limited partnership hedge funds(2)	—		—		—		—		77,433		77,433
Time deposits(3)	—		—		—		—		7,262		7,262
Other investments	6,987		—		—		—		2,972		9,959
Total investments	123,880		25,077		122		1,468		87,667		238,214
Total assets measured at fair value	$	298,017	$	974,494	$	122	$	1,468	$	87,667	$	1,361,768
Derivatives	$	10	$	10,712	$	—	$	—	$	—	$	10,722
Contingent payment arrangements	—		—		251,522		—		—		251,522
Total liabilities measured at fair value	$	10	$	10,712	$	251,522	$	—	$	—	$	262,244

	Level 1		Level 2		Level 3		NAV Expedient(1)		Other		Total
December 31, 2022:
Money markets	$	95,521	$	—	$	—	$	—	$	—	$	95,521
Securities segregated (U.S. Treasury Bills)	—		1,521,705		—		—		—		1,521,705
Derivatives	1,768		22,944		—		—		—		24,712
Investments:
Equity securities	129,655		27,799		129		1,484		—		159,067
Limited partnership hedge funds(2)	—		—		—		—		42,526		42,526
Time deposits(3)	—		—		—		—		7,750		7,750
Other investments	6,689		—		—		—		1,486		8,175
Total investments	136,344		27,799		129		1,484		51,762		217,518
Total assets measured at fair value	$	233,633	$	1,572,448	$	129	$	1,484	$	51,762	$	1,859,456
Derivatives	$	162	$	13,550	$	—	$	—	$	—	$	13,712
Contingent payment arrangements	—		—		247,309		—		—		247,309
Total liabilities measured at fair value	$	162	$	13,550	$	247,309	$	—	$	—	$	261,021

(1) Investments measured at fair value using NAV (or its equivalent) as a practical expedient.

(2) Investments in equity method investees that are not measured at fair value in accordance with GAAP.

(3) Investments carried at amortized cost that are not measured at fair value in accordance with GAAP.

Valuation of consolidated company-sponsored investment funds' financial instruments by pricing observability levels as of September 30, 2023 and December 31, 2022 was as follows (in thousands):

	Level 1		Level 2		Level 3		Total
September 30, 2023:
Investments - VIEs	$	50,467	$	246,919	$	—	$	297,386
Investments - VOEs	22,419		—		—		22,419
Derivatives - VIEs	343		1,568		—		1,911
Total assets measured at fair value	$	73,229	$	248,487	$	—	$	321,716
Derivatives - VIEs	1,192		2,549		—		3,741
Total liabilities measured at fair value	$	1,192	$	2,549	$	—	$	3,741
December 31, 2022:
Investments - VIEs	$	129,706	$	386,830	$	—	$	516,536
Derivatives - VIEs	1,529		6,023		—		7,552
Total assets measured at fair value	$	131,235	$	392,853	$	—	$	524,088
Derivatives - VIEs	$	14,932	$	6,608	$	—	$	21,540
Total liabilities measured at fair value	$	14,932	$	6,608	$	—	$	21,540

Schedule of Change in Carrying Value Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as equity securities, is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Balance as of beginning of period	$	121	$	119	$	129	$	126
Unrealized gains (losses), net	1		1		(7)		(6)
Balance as of end of period	$	122	$	120	$	122	$	120

The change in carrying value associated with Level 3 financial instruments carried at fair value within consolidated company-sponsored investment funds was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Balance as of beginning of period	$	—	$	—	$	—	$	3,357
Deconsolidated funds	—		—		—		(3,351)
Transfers (out)	—		—		—		(6)
Purchases	—		—		—		248
Sales	—		—		—		(248)
Balance as of end of period	$	—	$	—	$	—	$	—

Schedule of Contingent Payment Arrangements Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Balance as of beginning of period	$	249,854	$	42,436	$	247,309	$	38,260
Addition	—		227,071		—		229,571
Accretion	2,249		3,638		7,136		5,314
Change in estimate (1)	13,115		—		13,115		—
Payments	—		—		(792)		—
Held for sale reclassification (1)	(13,696)		—		(15,246)		—
Balance as of end of period	$	251,522	$	273,145	$	251,522	$	273,145

(1) For the three months ended September 30, 2023 we recorded a $13.1 million change in estimate associated with the acquisition of Autonomous LLC which is included in held for sale liabilities on the condensed consolidated statement of financial condition.