Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

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 investment products, which are separately discussed in Note 15, as of June 30, 2017 and December 31, 2016 by fair value hierarchy level were as follows:

June 30, 2017



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	73,434	$	—	$	—	$	73,434
Marketable securities trading:
Sponsored funds	55,660		—		—		55,660
Equity securities	12,740		—		—		12,740
Marketable securities available-for-sale:
Sponsored closed-end funds	3,762		—		—		3,762
Other investments:
Investment in collateralized loan obligation	—		—		2,909		2,909
Nonqualified retirement plan assets	6,396		—		—		6,396
Total assets measured at fair value	$	151,992	$	—	$	2,909	$	154,901

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

The assets and liabilities of the consolidated investment products measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 by fair value hierarchy level were as follows:

As of June 30, 2017



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	48,111	$	—	$	—	$	48,111
Debt investments	—		1,312,126		9,150		1,321,276
Equity investments	33,113		—		—		33,113
Total Assets Measured at Fair Value	$	81,224	$	1,312,126	$	9,150	$	1,402,500
Liabilities
Notes payable	$	—	$	1,096,434	$	—	$	1,096,434
Derivatives	1		—		—		1
Short sales	751		—		—		751
Total Liabilities Measured at Fair Value	$	752	$	1,096,434	$	—	$	1,097,186

As of December 31, 2016



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	14,449	$	—	$	—	$	14,449
Debt investments	—		448,477		87		448,564
Equity investments	40,270		208		—		40,478
Derivatives	4		—		—		4
Total Assets Measured at Fair Value	$	54,723	$	448,685	$	87	$	503,495
Liabilities
Notes payable	$	—	$	328,761	$	—	$	328,761
Derivatives	3		235		62		300
Short sales	649		—		—		649
Total Liabilities Measured at Fair Value	$	652	$	328,996	$	62	$	329,710

Reconciliation of Level Three Investments

The following table is a reconciliation of assets for Level 3 investments for which significant unobservable inputs were used to determine fair value.



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2017		2016		2017		2016
Level 3 Investments (a)
Balance at beginning of period	$	—	$	—	$	—	$	—
Acquired in business combination	2,916		—		2,916		—
Change in unrealized (loss), net	7		—		7		—
Balance at end of period	$	2,923	$	—	$	2,923	$	—

(a) The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment.

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



	Six Months Ended June 30,
($ in thousands)	2017			2016
Level 3 Debt securities (a)
Balance at beginning of period	$	25		$	1,397
Realized losses, net	(4		)	(356		)
Acquired in business combination	9,150			—
Purchases	100			151
Paydowns	—			(5		)
Sales	(121		)	(1,449		)
Transferred to Level 2	—			—
Transfers from Level 2	—			1
Change in unrealized gain, net	—			350
Balance at end of period	$	9,150		$	89


(a)	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.