Investment In Unconsolidated Affiliate

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Affiliate

LSV Asset Management

The Company has an investment in LSV Asset Management (LSV), a registered investment advisor that provides investment advisory services primarily to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a limited number of SEI-sponsored investment products. The Company's partnership interest in LSV as of September 30, 2020 was 38.8%. The Company accounts for its interest in LSV using the equity method because of its less than 50% ownership. The Company’s interest in the net assets of LSV is reflected in Investment in unconsolidated affiliate on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliate on the accompanying Consolidated Statements of Operations.

At September 30, 2020, the Company’s total investment in LSV was $33,117. The Company receives partnership distributions from LSV on a quarterly basis. The Company received partnership distributions from LSV of $119,821 and $123,663 in the nine months ended September 30, 2020 and 2019, respectively. As such, the Company considers these distribution payments as returns on investment rather than returns of the Company's original investment in LSV and has therefore classified the associated cash inflows as an operating activity on the Consolidated Statements of Cash Flows.

The Company’s proportionate share in the earnings of LSV was $28,305 and $37,609 during the three months ended September 30, 2020 and 2019, respectively. During the nine months ended September 30, 2020 and 2019, the Company's proportionate share in the earnings of LSV was $86,488 and $112,758, respectively.

These tables contain condensed financial information of LSV:


Condensed Statement of Operations	Three Months Ended September 30,						Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues	$	94,902	$	121,232	$	289,546	$	365,164
Net income	70,440		96,699		220,184		289,918


Condensed Balance Sheets	September 30, 2020		December 31, 2019
Current assets	$	105,712	$	144,547
Non-current assets	4,484		5,048
Total assets	$	110,196	$	149,595

Current liabilities	$	65,197	$	46,828
Non-current liabilities	4,802		5,326
Partners’ capital	40,197		97,441
Total liabilities and partners’ capital	$	110,196	$	149,595

On April 1, 2020, LSV provided an interest in the partnership to select key employees which reduced the ownership percentage of each existing partner on a pro-rata basis. As a result, the Company's total partnership interest in LSV was reduced slightly to approximately 38.8% from approximately 38.9%.