Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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 17, as of March 31, 2019 and December 31, 2018 by fair value hierarchy level were as follows:

March 31, 2019



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	110,304	$	—	$	—	$	110,304
Investment securities - fair value
Sponsored funds	33,075		—		—		33,075
Equity securities	18,827		—		—		18,827
Debt securities	—		43		4,417		4,460
Nonqualified retirement plan assets	7,519		—		—		7,519
Total assets measured at fair value	$	169,725	$	43	$	4,417	$	174,185

December 31, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	158,596	$	—	$	—	$	158,596
Investment securities - fair value
Sponsored funds	40,191		—		—		40,191
Equity securities	16,981		—		—		16,981
Debt securities	—		—		2,099		2,099
Investment securities - available for sale	—		—		2,023		2,023
Nonqualified retirement plan assets	6,716		—		—		6,716
Total assets measured at fair value	$	222,484	$	—	$	4,122	$	226,606

The assets and liabilities of the consolidated investment products measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 by fair value hierarchy level were as follows:

As of March 31, 2019



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	54,805	$	—	$	—	$	54,805
Debt investments	5,681		1,715,732		31,759		1,753,172
Equity investments	14,770		—		—		14,770
Total Assets Measured at Fair Value	$	75,256	$	1,715,732	$	31,759	$	1,822,747
Liabilities
Notes payable	$	—	$	1,640,360	$	—	$	1,640,360
Short sales	297		—		—		297
Total Liabilities Measured at Fair Value	$	297	$	1,640,360	$	—	$	1,640,657

As of December 31, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	51,363	$	—	$	—	$	51,363
Debt investments	5,306		1,724,714		6,848		1,736,868
Equity investments	12,700		—		—		12,700
Total Assets Measured at Fair Value	$	69,369	$	1,724,714	$	6,848	$	1,800,931
Liabilities
Notes payable	$	—	$	1,620,260	$	—	$	1,620,260
Short sales	707		—		—		707
Total Liabilities Measured at Fair Value	$	707	$	1,620,260	$	—	$	1,620,967

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 March 31,
($ in thousands)	2019		2018
Level 3 Investments (a)
Balance at beginning of period	$	4,122	$	4,439
Purchases (sales), net	232		1,326
Change in realized and unrealized gain (loss), net	63		(233		)
Balance at end of period	$	4,417	$	5,532


^(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:



	Three Months Ended March 31,
($ in thousands)	2019			2018
Level 3 Investments of CIPs ^(a)
Balance at beginning of period	$	6,848		$	34,781
Realized gains (losses), net	6			43
Change in unrealized gains (losses), net	(45		)	2,375
Purchases	1,595			7,122
Amortization	2			19
Sales	(429		)	(11,934		)
Transfers to Level 2	(7,199		)	(29,658		)
Transfers from Level 2	30,981			—
Balance at end of period	$	31,759		$	2,748


(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 trading activities at period end.