Investments

9 Months Ended

Jun. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investments

Investments

Equity Method Investments

As of June 30, 2020, Tremont Advisors owned 1,600,100, or approximately 19.4%, of TRMT’s outstanding common shares. We account for our investment in TRMT using the equity method of accounting because we are deemed to exert significant influence, but not control, over TRMT’s most significant activities. Our share of earnings from our investment in TRMT included in equity in earnings of investees in our condensed consolidated statements of income was $458 and $174 for the three months ended June 30, 2020 and 2019, respectively, and $1,037 and $318 for the nine months ended June 30, 2020 and 2019, respectively. We received aggregate distributions from TRMT of $16 and $132 during the three months ended June 30, 2020 and 2019, respectively, and $721 and $198 during the nine months ended June 30, 2020 and 2019, respectively.

Equity Method Investment Accounted for Under the Fair Value Option

As of June 30, 2020, we owned 298,538, or approximately 3.6%, of TA’s outstanding common shares. We purchased these shares on October 10, 2018 for $8,382. On July 6, 2020, in conjunction with a public offering of TA’s common shares, we purchased an additional 218,577 shares for $3,060, maintaining our approximately 3.6% ownership of TA’s outstanding common shares. We account for our investment in TA using the equity method of accounting because we are deemed to exert significant influence, but not control, over TA’s most significant activities. We elected the fair value option to account for our equity method investment in TA and determine fair value using the closing price of TA’s common shares, which is a Level 1 fair value input. The market value of our investment in TA as of June 30, 2020 and September 30, 2019, based on quoted market prices, was $4,598 and $3,682, respectively. The unrealized gain (loss) in our condensed consolidated statements of income related to our investment in TA was $1,678 and ($731) for the three months ended June 30, 2020 and 2019, respectively, and $916 and ($2,978) for the nine months ended June 30, 2020 and 2019, respectively.