Investments

3 Months Ended

Mar. 31, 2025

Investments, All Other Investments [Abstract]

Investments

5.INVESTMENTS

Fair value investments are presented within investments on the Company’s condensed consolidated statements of financial condition. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring investments at fair value. See Note 2 for further information on the Company's fair value hierarchy.

The estimated fair value of sovereign debt securities and money market funds are based on quoted prices for recent trading activity in identical or similar instruments. The Company primarily invests in U.S. and U.K. sovereign debt securities with maturities of less than twelve months and we consider these securities to be risk free. Therefore, we do not reserve for expected credit losses on these investments. The Company also holds certificates of deposit, which are held at carrying value.

Fair Value of Financial Assets

The fair value of the Company's financial assets as of March 31, 2025, have been categorized based upon the fair value hierarchy as follows:

	Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents
Money market funds	$	113,918	$	—	$	113,918	$	—
Certificates of Deposit		3,571		—		3,571		—
Total fair value assets included in cash and cash equivalents		117,489		—		117,489		—
Investments
Sovereign debt securities		148,801		—		148,801		—
Certificates of Deposit		3,000		—		3,000		—
Total fair value assets included in investments		151,801		—		151,801		—
Total fair value assets	$	269,290	$	—	$	269,290	$	—

For the three months ended March 31, 2025 and 2024, the Company recognized unrealized losses of $719 and unrealized losses of $48 on sovereign debt securities measured at fair value and held at the reporting date, respectively. All gains and losses were recognized in other income and expenses on the condensed consolidated statement of operations. The cost basis of the investments recorded at fair value shown in the preceding table and included in investments on the condensed consolidated statement of financial condition was $152,520 as of March 31, 2025.

The fair value of the Company's financial assets as of December 31, 2024, have been categorized based upon the fair value hierarchy as follows:

	Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents
Sovereign debt securities	$	240,558	$	—	$	240,558	$	—
Money market funds		100,227		—		100,227		—
Certificates of Deposit		10,137		—		10,137		—
Total fair value assets included in cash and cash equivalents		350,922		—		350,922		—
Investments
Sovereign debt securities		146,924		—		146,924		—
Certificates of Deposit		1,000		—		1,000		—
Total fair value assets included in investments		147,924		—		147,924		—
Total fair value assets	$	498,846	$	—	$	498,846	$	—

The cost basis of the financial assets recorded at fair value included in investments on the condensed consolidated statement of financial condition was $144,904 as of December 31, 2024.

Equity Method Investments

Equity-method investments are presented within investments on the Company’s condensed consolidated statements of financial condition. As of March 31, 2025 and December 31, 2024, the carrying value of the Company's equity method investment in MA Financial (formerly known as Moelis Australia Limited) was $36,597 and $36,677, respectively. The Company's share of earnings on this investment is recorded in other income and expenses on the condensed consolidated statements of operation.

During the three months ended March 31, 2025 and 2024, MA Financial declared dividends, of which the Company received $1,623 and $2,155, respectively. The Company accounted for the dividends as returns on investment and reduced the carrying value of the investment in MA Financial by the amount of dividends received.

From time to time, MA Financial may issue shares in connection with a transaction or employee compensation which reduces the Company's ownership interest in MA Financial and can result in dilution gains or losses. Such gains or losses are recorded in other income and expenses on the condensed consolidated statements of operation.