Consolidation (Tables)

3 Months Ended

Mar. 31, 2017

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, which are separately discussed in Note 14, as of March 31, 2017 and December 31, 2016 by fair value hierarchy level were as follows:

March 31, 2017



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	223,087	$	—	$	—	$	223,087
Marketable securities trading:
Sponsored mutual funds	54,998		—		—		54,998
Equity securities	11,974		—		—		11,974
Marketable securities available-for-sale:
Sponsored closed-end funds	3,623		—		—		3,623
Other investments:
Nonqualified retirement plan assets	6,186		—		—		6,186
Total assets measured at fair value	$	299,868	$	—	$	—	$	299,868

December 31, 2016



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	48,620	$	—	$	—	$	48,620
Marketable securities trading:
Sponsored mutual 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

Consolidated Sponsored Investment Products

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The following table presents the balances of the CSIPs that, after intercompany eliminations, were reflected in the Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016:



	As of
	March 31, 2017						December 31, 2016
	VOEs			VIE			VOEs			VIE
($ in thousands)
Total cash and cash equivalents	$	2,044		$	929		$	1,859		$	2,775
Investments	61,028			51,902			99,247			42,828
All other assets	38,603			1,099			2,211			1,059
Total liabilities	(2,033		)	(801		)	(2,310		)	(1,799		)
Redeemable noncontrolling interests	(12,175		)	(32,801		)	(12,505		)	(24,761		)
The Company’s net interests in consolidated sponsored investment products	$	87,467		$	20,328		$	88,502		$	20,102

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

The assets and liabilities of the CSIPs measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 by fair value hierarchy level were as follows:

As of March 31, 2017



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	71,932	$	161	$	72,093
Equity securities	40,470		367		—		40,837
Total Assets Measured at Fair Value	$	40,470	$	72,299	$	161	$	112,930
Liabilities
Derivatives	$	1	$	280	$	—	$	281
Short sales	588		—		—		588
Total Liabilities Measured at Fair Value	$	589	$	280	$	—	$	869

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

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 of CSIPs for Level 3 investments for which significant unobservable inputs were used to determine fair value.



	Three Months Ended March 31,
($ in thousands)	2017			2016
Level 3 Debt securities (a)
Balance at beginning of period	$	25		$	1,397
Realized losses, net	(65		)	(102		)
Purchases	100			19
Paydowns	(1		)	(1		)
Sales	(36		)	(498		)
Transferred to Level 2	—			(618		)
Transfers from Level 2	76			710
Change in unrealized gain, net	62			89
Balance at end of period	$	161		$	996


(a)	None of the securities reflected in the table were internally fair valued at March 31, 2017 or March 31, 2016. The investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. All transfers are deemed to occur at the end of period. Transfers between Level 2 and Level 3 were due to a decrease in trading activities at period end.

Consolidated Investment Product

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The following table presents the balances of the CIP that, after intercompany eliminations, were reflected in the Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016:



	As of
	March 31, 2017			December 31, 2016
($ in thousands)
Cash equivalents	$	13,957		$	14,449
Investments	354,002			346,967
Other assets	6,152			5,888
Notes payable	(325,843		)	(328,761		)
Securities purchased payable and other liabilities	(20,806		)	(12,534		)
The Company’s net interests in the consolidated investment product	$	27,462		$	26,009

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

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

As of March 31, 2017:



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	13,957	$	—	$	—	$	13,957
Bank loans	—		352,440		$	1,562	$	354,002
Total Assets Measured at Fair Value	$	13,957	$	352,440	$	1,562	$	367,959
Liabilities
Notes payable	$	—	$	325,843	$	—	$	325,843
Total Liabilities Measured at Fair Value	—		325,843		—		325,843

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

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 of CIPs for Level 3 investments for which significant unobservable inputs were used to determine fair value.



	Three Months Ended March 31,
($ in thousands)	2017
Level 3 Debt securities (a)
Balance at beginning of period	$	—
Purchases	—
Sales	—
Transferred from Level 2	1,562
Realized gains	—
Balance at end of period	$	1,562


(a)	None of the securities reflected in the table were internally fair valued at March 31, 2017. The investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. All transfers are deemed to occur at the end of period. Transfers between Level 2 and Level 3 were due to a decrease in trading activities at period end.

Schedule of VIE Consolidated Investment Product

The Company’s beneficial interests and maximum exposure to loss related to the CIP is limited to (i) ownership in the subordinated notes 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, as adopted on January 1, 2016, prescribed by ASU 2014-13, results in the net amount of the CIP shown above to be equivalent to the beneficial interests retained by the Company at March 31, 2017 as shown in the table below:



	As of
Beneficial Interests	March 31, 2017
($ in thousands)
Subordinated notes	$	27,091
Accrued investment management fees	371
Total Beneficial Interests	$	27,462

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



	Three Months Ended March 31,
($ in thousands)	2017
Income:
Realized and unrealized gain, net	$	718
Interest Income	4,161
Total Income	$	4,879

Expenses:
Other operating expenses	65
Interest expense	2,857
Total Expense	$	2,922
Net Income (loss) attributable to consolidated investment product	$	1,957

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 CIP which are eliminated upon consolidation:



Economic Interests	Three Months Ended March 31,
($ in thousands)	2017
Distributions received and unrealized gains on the subordinated notes held by the Company	$	1,477
Investment management fees	480
Total Economic Interests	$	1,957

- 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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