Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

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 16, as of September 30, 2018 and December 31, 2017 by fair value hierarchy level were as follows:

September 30, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	138,301	$	—	$	—	$	138,301
Marketable securities:
Sponsored funds	39,951		—		—		39,951
Equity securities	18,641		—		—		18,641
Sponsored closed-end funds	3,738		—		—		3,738
Other investments:
Investments in collateralized loan obligations	—		—		5,043		5,043
Nonqualified retirement plan assets	7,409		—		—		7,409
Total assets measured at fair value	$	208,040	$	—	$	5,043	$	213,083

December 31, 2017



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	72,993	$	—	$	—	$	72,993
Marketable securities:
Sponsored funds	46,849		—		—		46,849
Equity securities	15,810		—		—		15,810
Sponsored closed-end funds	3,765		—		—		3,765
Other investments
Investment 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

The assets and liabilities of the consolidated investment products measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 by fair value hierarchy level were as follows:

As of September 30, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	49,329	$	—	$	—	$	49,329
Debt investments	—		1,756,552		1,004		1,757,556
Equity investments	30,997		2,826		—		33,823
Total Assets Measured at Fair Value	$	80,326	$	1,759,378	$	1,004	$	1,840,708
Liabilities
Notes payable	$	—	$	1,608,735	$	—	$	1,608,735
Short sales	661		—		—		661
Total Liabilities Measured at Fair Value	$	661	$	1,608,735	$	—	$	1,609,396

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

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 September 30,						Nine Months Ended September 30,
($ in thousands)	2018			2017			2018			2017
Level 3 Investments ^(a)
Balance at beginning of period	$	5,744		$	2,909		$	4,439		$	—
Acquired in period	—			—			1,326			2,916
Change in unrealized gain (loss), net	(701		)	(168		)	(722		)	(175		)
Balance at end of period	$	5,043		$	2,741		$	5,043		$	2,741


^(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:



	Nine Months Ended September 30,
($ in thousands)	2018			2017
Level 3 Debt and Equity securities ^(a)
Balance at beginning of period	$	34,781		$	25
Realized gains (losses), net	1,993			(90		)
Change in unrealized gains (losses), net	583			87
Acquired in business combination	—			9,151
Purchases	7,122			1,212
Amortization	19			12
Sales	(13,892		)	(765		)
Transfers to Level 2	(34,119		)	(4,944		)
Transfers from Level 2	4,517			44,634
Balance at end of period	$	1,004		$	49,322


(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 are due to trading activities at period end.