Consolidation (Tables)

12 Months Ended

Dec. 31, 2016

Variable Interest Entity [Line Items]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products and the consolidated investment product discussed in Note 18, as of December 31, 2016 and December 31, 2015, by fair value hierarchy level were as follows:



December 31, 2016
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	48,620	$	—	$	—	$	48,620
Marketable securities trading:
Sponsored funds	60,019		—		—		60,019
Equity securities	11,473		—		—		11,473
Marketable securities available-for-sale:
Sponsored closed-end funds	3,415		—		—		3,415
Other investments
Nonqualified retirement plan assets	5,808		—		—		5,808
Total assets measured at fair value	$	129,335	$	—	$	—	$	129,335



December 31, 2015
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	54,772	$	—	$	—	$	54,772
Marketable securities trading:
Sponsored funds	29,331		—		—		29,331
Equity securities	9,168		—		—		9,168
Marketable securities available-for-sale:
Sponsored closed-end funds	2,997		—		—		2,997
Other investments
Nonqualified retirement plan assets	5,310		—		—		5,310
Total assets measured at fair value	$	101,578	$	—	$	—	$	101,578

Consolidated Sponsored Investment Products [Member]

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The following table presents the balances of the consolidated sponsored investment products that were reflected in the Consolidated Balance Sheets as of December 31, 2016 and 2015:



	As of December 31,
	2016						2015
($ in thousands)	VOE's			VIE			VOE's			VIE
Total cash	$	1,859		$	2,775		$	11,408		$	458
Total investments	99,247			42,828			291,247			32,088
All other assets	2,211			1,059			8,281			268
Total liabilities	(2,310		)	(1,799		)	(14,948		)	(439		)
Redeemable noncontrolling interest	(12,505		)	(24,761		)	(61,236		)	(12,628		)
The Company’s net interests in consolidated sponsored investment products	$	88,502		$	20,102		$	234,752		$	19,747

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis by fair value hierarchy level were as follows:



As of December 31, 2016
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	101,510	$	87	$	101,597
Equity securities	40,270		208		—		40,478
Derivatives	4		—		—		4
Total assets measured at fair value	$	40,274	$	101,718	$	87	$	142,079
Liabilities
Derivatives	$	3	$	235	$	62	$	300
Short sales	649		—		—		649
Total liabilities measured at fair value	$	652	$	235	$	62	$	949



As of December 31, 2015
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	151,156	$	1,397	$	152,553
Equity securities	162,986		7,796		—		170,782
Derivatives	33		738		—		771
Total assets measured at fair value	$	163,019	$	159,690	$	1,397	$	324,106
Liabilities
Derivatives	$	128	$	844	$	—	$	972
Short sales	5,334		75		—		5,409
Total liabilities measured at fair value	$	5,462	$	919	$	—	$	6,381

Reconciliation of Assets of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value

The following table is a reconciliation of assets and liabilities of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.



	Year Ended December 31,
	2016			2015
(in thousands)
Level 3 Debt Securities (a)
Balance at beginning of period	$	1,397		$	1,065
Purchases	174			913
Sales	(1,472		)	(370		)
Paydowns	(5		)	(10		)
Change in unrealized loss, net	348			(113		)
Change in realized loss, net	(355		)	(141		)
Transfers from Level 2	(62		)	151
Transfers to Level 2	—			(98		)
Balance at end of period	$	25		$	1,397


(a)	None of the securities were internally fair valued at December 31, 2016 or December 31, 2015.

Reconciliation of Liabilities of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value



	Year Ended December 31,
	2016			2015
(in thousands)
Level 3 Debt Securities (a)
Balance at beginning of period	$	1,397		$	1,065
Purchases	174			913
Sales	(1,472		)	(370		)
Paydowns	(5		)	(10		)
Change in unrealized loss, net	348			(113		)
Change in realized loss, net	(355		)	(141		)
Transfers from Level 2	(62		)	151
Transfers to Level 2	—			(98		)
Balance at end of period	$	25		$	1,397


(a)	None of the securities were internally fair valued at December 31, 2016 or December 31, 2015.

Consolidated Investment Product [Member]

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The following table presents the balances of the consolidated investment product that, after intercompany eliminations, were reflected in the Condensed Consolidated Balance Sheets as of December 31, 2016 and December 31, 2015:



	As of December 31,
	2016			2015
($ in thousands)
Total cash equivalents	$	14,449		$	8,297
Total investments	346,967			199,485
Other assets	5,888			1,467
Debt	—			(152,597		)
Notes payable	(328,761		)	—
Securities purchased payable and other liabilities	(12,534		)	(18,487		)
The Company’s net interests in the consolidated investment product	$	26,009		$	38,165

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis by fair value hierarchy level were as follows:

As of December 31, 2016:



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	14,449	$	—	$	—	$	14,449
Bank loans	—		346,967		—		346,967
Total Assets Measured at Fair Value	$	14,449	$	346,967	$	—	$	361,416
Liabilities
Notes payable	$	—	$	328,761	$	—	$	328,761
Total Liabilities Measured at Fair Value	$	—	$	328,761	$	—	$	328,761

As of December 31, 2015:



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	8,297	$	—	$	—	$	8,297
Bank loans	—		199,485		—		199,485
Total Assets Measured at Fair Value	$	8,297	$	199,485	$	—	$	207,782

Schedule of VIE Consolidated Investment Product

The Company’s beneficial interests and maximum exposure to loss related to the consolidated investment product is limited to (i) ownership in the subordinated notes and related participations in management fees of the CLOs and (ii) accrued management fees. The secured notes of the CLO have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative, prescribed by ASU 2014-13 and adopted on January 1, 2016, results in the net amount of the consolidated investment product shown above to be equivalent to the beneficial interests retained by the Company at December 31, 2016 as shown in the table below:



	As of
Beneficial Interests	December 31, 2016
($ in thousands)
Subordinated notes	$	25,668
Accrued investment management fees	341
Total Beneficial Interests	$	26,009

The following table represents revenue and expenses of the consolidated investment product included in the Company’s Consolidated Statements of Operations for the periods indicated:



	Year Ended December 31, 2016
($ in thousands)
Income:
Realized and unrealized loss, net	$	(1,070	)
Interest Income	12,893
Total Revenue	$	11,823

Expenses:
Other operating expenses	3,944
Interest expense	11,292
Total Expense	$	15,236

Net Loss attributable to consolidated investment product	$	(3,413	)

As summarized in the table below, the application of the measurement alternative as prescribed by ASU 2014-13 results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the consolidated investment product which are eliminated upon consolidation:



Economic Interests	Year Ended December 31, 2016
($ in thousands)
Distributions received and unrealized losses on the subordinated notes held by the Company	(4,398		)
Investment management fees	985
Total Economic Interests	$	(3,413	)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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