XML 47 R37.htm IDEA: XBRL DOCUMENT

Consolidation (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021:


	As of
	June 30, 2022						December 31, 2021
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		Other				CLOs		Other
Cash and cash equivalents	$	798	$	104,348	$	3,155	$	787	$	205,192	$	1,245
Investments	19,049		1,917,076		54,034		21,544		2,055,107		63,587
Other assets	94		15,920		1,027		64		43,327		819
Notes payable	—		(1,904,444)		—		—		(2,033,617)		—
Securities purchased payable and other liabilities	(417)		(65,314)		(159)		(558)		(184,214)		(296)
Noncontrolling interests	(4,634)		(6,997)		(8,416)		(4,935)		(8,350)		(7,481)
Net interests in CIP	$	14,890	$	60,589	$	49,641	$	16,902	$	77,445	$	57,874

Schedule of Consolidated Collateralized Loan Obligations

June 30, 2022, as shown in the table below:





	(in thousands)
Subordinated notes	$	59,446
Accrued investment management fees	1,143
Total Beneficial Interests	$	60,589

The following table represents income and expenses of the consolidated CLOs included on the Company’s Condensed Consolidated Statements of Operations for the period indicated:


	Six Months Ended June 30, 2022
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	(21,668)
Interest income	40,633

Total Income	18,965

Expenses:
Other operating expenses	1,126
Interest expense	26,504
Total Expense	27,630
Noncontrolling interests	335
Net Income (Loss) Attributable to CIP	$	(8,330)

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 consolidated CLOs, which are eliminated upon consolidation:


	Six Months Ended June 30, 2022
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	(12,458)
Investment management fees	4,128

Total Economic Interests	$	(8,330)

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 CIP discussed in Note 16, as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

June 30, 2022


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	180,574	$	—	$	—	$	180,574
Investment securities - fair value
Sponsored funds	65,121		—		—		65,121
Equity securities	12,063		—		—		12,063


Nonqualified retirement plan assets	11,546		—		—		11,546
Total assets measured at fair value	$	269,304	$	—	$	—	$	269,304

Liabilities
Contingent consideration	$	—	$	—	$	72,980	$	72,980
Total liabilities measured at fair value	$	—	$	—	$	72,980	$	72,980

December 31, 2021


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	307,277	$	—	$	—	$	307,277
Investment securities - fair value
Sponsored funds	66,326		—		—		66,326
Equity securities	14,009		—		—		14,009


Nonqualified retirement plan assets	13,321		—		—		13,321
Total assets measured at fair value	$	400,933	$	—	$	—	$	400,933

Liabilities
Contingent consideration	$	—	$	—	$	88,400	$	88,400
Total liabilities measured at fair value	$	—	$	—	$	88,400	$	88,400

The assets and liabilities of CIP measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by fair value hierarchy level were as follows:

As of June 30, 2022


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	104,348	$	—	$	—	$	104,348
Debt investments	197		1,932,308		30,396		1,962,901
Equity investments	22,767		3,130		1,361		27,258

Total assets measured at fair value	$	127,312	$	1,935,438	$	31,757	$	2,094,507
Liabilities
Notes payable	$	—	$	1,904,444	$	—	$	1,904,444

Short sales	345		—		—		345
Total liabilities measured at fair value	$	345	$	1,904,444	$	—	$	1,904,789

As of December 31, 2021


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	205,192	$	—	$	—	$	205,192
Debt investments	273		2,107,736		2,695		2,110,704
Equity investments	26,111		2,961		462		29,534

Total assets measured at fair value	$	231,576	$	2,110,697	$	3,157	$	2,345,430
Liabilities
Notes payable	$	—	$	2,033,617	$	—	$	2,033,617

Short sales	515		—		—		515
Total liabilities measured at fair value	$	515	$	2,033,617	$	—	$	2,034,132

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


	Six Months Ended June 30,
(in thousands)	2022		2021
Balance at beginning of period	$	3,157	$	54,182
Realized gains (losses), net	27		(214)
Change in unrealized gains (losses), net	(930)		3,281

Purchases	—		4,395

Amortization	(9)		60
Sales	(2,135)		(27,309)
Transfers to Level 2	(36,833)		(44,578)
Transfers from Level 2	68,480		62,264
Balance at end of period (1)	$	31,757	$	52,081

(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers between Level 2 and Level 3 were due to trading activities at period end.

- 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.

+ References + Details