Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Segment Reporting Information, by Segment

The following table presents the financial information for the Company’s segments for the periods indicated.

Subsequent to June 30, 2024, management has commenced a strategic review of certain businesses within the currently defined Strategic Alternatives segment. This review, which is expected to be completed by the end of the third quarter of 2024, will consider, among other things, potential changes to our legal entity structure as well as the components included within the operating segments outlined below. Refer to Note 21 (Subsequent Events) for further details.


	For the Three Months Ended
(Dollars in Thousands)	June 30, 2024						June 30, 2023
Net Income by Segment	Strategic Alternatives Segment		Wealth Management Segment		Total		Strategic Alternatives Segment		Wealth Management Segment		Total
Revenue:											$
Management/advisory fees	$	6,041	$	40,988	$	47,029	$	12,952	$	33,892	$	46,844
Incentive fees	52		1		53		469		—		469
Distributions from investments	2,240		—		2,240		2,203		—		2,203
Other income/fees	220		(89)		131		1,697		72		1,769
Total income	$	8,553	$	40,900	$	49,453	$	17,321	$	33,964	$	51,285
Operating Expenses:
Compensation and employee benefits	9,900		28,993		38,893		12,306		21,646		33,952
Systems, technology, and telephone	1,165		3,644		4,809		1,388		2,722		4,110
Sales, distribution, and marketing	508		694		1,202		213		355		568
Occupancy costs	1,176		2,849		4,025		975		2,377		3,352
Professional fees	3,784		3,818		7,602		6,757		8,106		14,863
Travel and entertainment	518		808		1,326		510		796		1,306
Depreciation and amortization	406		3,407		3,813		1,518		2,137		3,655
General, administrative, and other	951		1,787		2,738		2,010		528		2,538
Total operating expenses	$	18,408	$	46,000	$	64,408	$	25,677	$	38,667	$	64,344
Operating income (loss)	(9,855)		(5,100)		(14,955)		(8,356)		(4,703)		(13,059)
Other income (expenses):
Impairment loss on goodwill and intangible assets	(695)		—		(695)		(29,393)		—		(29,393)
Gain (loss) on investments	(721)		12,078		11,357		(5,585)		431		(5,154)
Gain (loss) on derivative	—		—		—		—		—		—
Gain (loss) on warrant liability	205		204		409		38		38		76
Gain (loss) on earn-out liability	(593)		(1,352)		(1,945)		33,042		33,041		66,083
Gain (loss) on TRA	194		195		389		(896)		(896)		(1,792)
Interest expense	(2,390)		(2,461)		(4,851)		(1,634)		(1,737)		(3,371)
Interest income	241		322		563		—		—		—
Other income	2		11		13		(367)		(339)		(706)
Income (loss) before taxes	(13,612)		3,897		(9,715)		(13,151)		25,835		12,684
Income tax (expenses) benefit	836		(80)		756		7,723		7,723		15,446
Net income (loss)	$	(12,776)	$	3,817	$	(8,959)	$	(5,428)	$	33,558	$	28,130


	For the Six Months Ended
(Dollars in Thousands)	June 30, 2024						June 30, 2023
Net Income by Segment	Strategic Alternatives Segment		Wealth Management Segment		Total		Strategic Alternatives Segment		Wealth Management Segment		Total
Revenue:											$
Management/advisory fees	$	15,619	$	77,634	$	93,253	$	27,928	$	65,386	$	93,314
Incentive fees	216		—		216		1,046		—		1,046
Distributions from investments	6,410		—		6,410		12,233		—		12,233
Other income/fees	289		97		386		2,629		110		2,739
Total income	$	22,534	$	77,731	$	100,265	$	43,836	$	65,496	$	109,332
Operating Expenses:
Compensation and employee benefits	22,603		55,847		78,450		39,568		57,556		97,124
Systems, technology, and telephone	2,443		6,680		9,123		2,582		5,357		7,939
Sales, distribution, and marketing	877		1,090		1,967		463		631		1,094
Occupancy costs	2,311		5,191		7,502		2,180		4,352		6,532
Professional fees	8,635		10,337		18,972		19,014		18,733		37,747
Travel and entertainment	1,099		1,638		2,737		1,500		1,752		3,252
Depreciation and amortization	758		5,622		6,380		4,257		3,915		8,172
General, administrative, and other	2,118		2,639		4,757		2,465		1,506		3,971
Total operating expenses	$	40,844	$	89,044	$	129,888	$	72,029	$	93,802	$	165,831
Operating income (loss)	(18,310)		(11,313)		(29,623)		(28,193)		(28,306)		(56,499)
Other income (expenses):
Impairment loss on goodwill and intangible assets	(695)		—		(695)		(29,393)		—		(29,393)
Gain (loss) on investments	(4,875)		12,571		7,696		(1,312)		(392)		(1,704)
Gain (loss) on derivative	—		—		—		—		—		—
Gain (loss) on warrant liability	35		34		69		(6,433)		(6,433)		(12,866)
Gain (loss) on earn-out liability	19,167		18,342		37,509		18,439		18,438		36,877
Gain (loss) on TRA	3,161		3,161		6,322		(1,046)		(1,046)		(2,092)
Interest expense	(4,768)		(4,923)		(9,691)		(3,387)		(3,245)		(6,632)
Interest income	364		459		823		—		—		—
Other income	30		(47)		(17)		(366)		(281)		(647)
Income (loss) before taxes	(5,891)		18,284		12,393		(51,691)		(21,265)		(72,956)
Income tax (expenses) benefit	508		(115)		393		5,398		5,398		10,796
Net income (loss)	$	(5,383)	$	18,169	$	12,786	$	(46,293)	$	(15,867)	$	(62,160)


(Dollars in Thousands)
Assets by segment	As of June 30, 2024		As of December 31, 2023
Strategic Alternatives	$	606,708	$	675,926
Wealth Management	$	716,022	$	590,371
Total Assets	$	1,322,730	$	1,266,297