Investments (Tables)

12 Months Ended

Dec. 31, 2012

Carrying Value of Investments in Merchant Banking Funds

The carrying value of the Company’s investments in merchant banking funds are as follows:



	As of December 31,
	2012		2011
	(in thousands)
Investment in GCP II	$	11,173	$	1,609
Investment in GCP II subject to Put Options	—		10,520
Investment in GCP III	1,367		903
Investment in GCP Europe	—		23,951
Investment in GCP I	2,247		2,552
Investment in other merchant banking funds	1,985		2,107
Total investments in merchant banking funds	$	16,772	$	41,642

Merchant Banking and Other Investment Revenues

Carrying Value of Other Investments

The Company has other investments including investments in Iridium and certain deferred compensation plan investments related to Greenhill Australia. The Company’s other investments are as follows:



	As of December 31,
	2012		2011
	(in thousands)
Iridium common stock	$	34,165	$	68,881
Deferred compensation plan investments	50		2,338
Total other investments	$	34,215	$	71,219

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables set forth by level, assets and liabilities measured at fair value on a recurring basis. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. There were no transfers between Level 1 and Level 2 investments in the fair value measurement hierarchy during the years ended December 31, 2012 or 2011.

Assets Measured at Fair Value on a Recurring Basis as of December 31, 2012



	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2012
	(in thousands)
Assets
Iridium common stock	$	34,165	$	—	$	—	$	34,165
Deferred compensation plan investments	—		50		—		50
Total investments	$	34,165	$	50	$	—	$	34,215

Assets Measured at Fair Value on a Recurring Basis as of December 31, 2011



	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2011
	(in thousands)
Assets
Iridium common stock	$	68,881	$	—	$	—	$	68,881
Deferred compensation plan investments	—		2,338		—		2,338
Total investments	$	68,881	$	2,338	$	—	$	71,219

Changes in Fair Value of Level 3 Investments

There were no Level 3 investments during the year ended December 31, 2012.

In June 2011, the Company exchanged the Iridium $11.50 Warrants for shares of Iridium common stock. The Iridum $11.50 Warrants were classified as a Level 3 investments and valued under Black Scholes modeling. Selected inputs for the Company’s model include: (i) the terms of the warrants, including exercise price, exercisability threshold and expiration date; and (ii) externally observable factors including the trading price of Iridium shares, yields on U.S. Treasury obligation and various equity volatility measures, including historical volatility of broad market indices. Upon exchange, the shares are valued using quoted market prices and classified as a Level 1 investment.

The following table sets forth a summary of changes in the fair value of the Company’s Level 3 investments for the year ended December 31, 2011.



	Beginning Balance January 1, 2011		Realized Gains or (Losses)		Unrealized Gains or (Losses)		Purchases, Sales, Other Settlements and Issuances, Net		Net Transfers in and/or Out of Level 3			Ending Balance December 31, 2011
	(in thousands)
Assets
Iridium $11.50 Warrants	$	7,280	$	—	$	680	$	—	$	(7,960	)	$	—
Total investments	$	7,280	$	—	$	680	$	—	$	(7,960	)	$	—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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