Variable interest entities ("VIEs")

9 Months Ended

Sep. 30, 2025

The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE.

In the normal course of business, the Company may sponsor and serve as general partner of hedge funds and private equity funds that were established for the purpose of providing alternative investments to both its institutional and qualified retail clients. Upon initial formation, the Company or its affiliates may extend to these funds a loan to finance the purchase of underlying investments. These loans mature in 90 days or less and are repaid by the fund when the underlying fund interests are sold to qualified clients. Depending on the facts and circumstances, the sponsored investment funds may be considered VIEs, as the loans are considered variable interests. As of September 30, 2025, no such loans were outstanding. Additionally, the Company's investment in and additional capital commitments to these hedge funds and private equity funds are considered variable interests. The Company's additional capital commitments are subject to call at a later date and are limited to the amount committed. As of September 30, 2025, the Company does not have any outstanding or pending investments in or capital commitments to these funds.

For funds that are VIEs, the Company assesses whether it is the primary beneficiary. In each instance, the Company has determined that it is not the primary beneficiary and therefore need not consolidate the hedge funds or private equity funds. The subsidiaries' general and limited partnership interests and additional capital commitments represent its maximum exposure to loss. The subsidiaries' general partnership and limited partnership interests are included in other assets on the condensed consolidated balance sheet.

As of September 30, 2025, assets and liabilities related to a VIE where the Company is not the primary beneficiary were included in Securities owned, at fair value on the condensed consolidated balance sheet and primarily related to a convertible note and warrants issued by a beverage manufacturing company. There was no VIE where the Company was not the primary beneficiary as of December 31, 2024.

The maximum loss exposure indicated in the following table relates solely to our investments in, and unfunded commitments to, the VIE.


(Expressed in thousands)
	As of September 30,
	2025		2024
Assets	$	3,143	$	—
Liabilities	—		—
Unfunded commitments	—		—
Maximum loss exposure	$	3,143	$	—