Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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 discussed in Note 18, as of December 31, 2017 and December 31, 2016, by fair value hierarchy level were as follows:



December 31, 2017
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	72,993	$	—	$	—	$	72,993
Marketable securities trading:
Sponsored funds	46,849		—		—		46,849
Equity securities	15,810		—		—		15,810
Marketable securities available-for-sale:
Sponsored closed-end funds	3,765		—		—		3,765
Other investments
Investments in collateralized loan obligations	—		18,900		4,439		23,339
Nonqualified retirement plan assets	6,706		—		—		6,706
Total assets measured at fair value	$	146,123	$	18,900	$	4,439	$	169,462



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 by fair value hierarchy level were as follows:



As of December 31, 2017
	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	82,769	$	—	$	—	$	82,769
Debt investments	—		1,527,845		33,887		1,561,732
Equity investments	35,126		—		894		36,020
Total assets measured at fair value	$	117,895	$	1,527,845	$	34,781	$	1,680,521
Liabilities
Notes payable	$	—	$	1,457,435	$	—	$	1,457,435
Derivatives	2		—		—		2
Short sales	719		—		—		719
Total liabilities measured at fair value	$	721	$	1,457,435	$	—	$	1,458,156



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 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 for Level 3 investments for which significant unobservable inputs were used to determine fair value:



	Twelve Months Ended December 31,
($ in thousands)	2017			2016
Level 3 Investments ^(a)
Balance at beginning of period	$	—		$	—
Acquired in business combination	2,916			—
Purchases	2,370			—
Change in unrealized gain (loss), net	(847		)	—
Balance at end of period	$	4,439		$	—


^(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 and liabilities of consolidated investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.



	Year Ended December 31,
	2017			2016
(in thousands)
Level 3 Securities (a)
Balance at beginning of period	$	25		$	1,397
Purchases	3,174			174
Sales	(3,357		)	(1,472		)
Paydowns	—			(5		)
Amortization	9			—
Change in unrealized gains (losses), net	434			348
Realized gains (loss), net	(49		)	(355		)
Acquired in business combination	9,151			—
Transfers to Level 2	(35,258		)	—
Transfers from Level 2	60,652			(62		)
Balance at end of period	$	34,781		$	25


(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.