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Consolidation (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Condensed Consolidated Balance Sheets

The following table presents the balances of CIP that, after intercompany eliminations, were reflected on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023:


	As of
	March 31, 2024						December 31, 2023
	VOEs		VIEs				VOEs		VIEs
(in thousands)			CLOs		GFs				CLOs		GFs
Cash and cash equivalents	$	1,271	$	119,914	$	2,612	$	1,223	$	98,101	$	2,088
Investments	40,591		1,962,697		77,937		30,985		1,972,342		79,386
Other assets	616		30,064		1,168		174		41,985		1,076
Notes payable	—		(1,922,051)		—		—		(1,922,243)		—
Securities purchased payable and other liabilities	(1,019)		(88,270)		(1,999)		(740)		(89,167)		(616)
Noncontrolling interests	(12,311)		(4,351)		(22,878)		(7,316)		(4,363)		(23,327)
Net interests in CIP	$	29,148	$	98,003	$	56,840	$	24,326	$	96,655	$	58,607

Schedule of VIE Consolidated Investment Product

Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative prescribed by ASU 2014-13, Consolidation (Topic 810) ("ASU 2014-13"), results in the net assets of the consolidated CLOs shown above to be equivalent to the beneficial interests retained by the Company at March 31, 2024, as shown in the table below:





	(in thousands)
Subordinated notes	$	96,416
Accrued investment management fees	1,587
Total Beneficial Interests	$	98,003

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:


	Three Months Ended March 31, 2024
	(in thousands)
Income:
Realized and unrealized gain (loss), net	$	1
Interest income	49,280

Total Income	49,281

Expenses:
Other operating expenses	499
Interest expense	40,011
Total Expense	40,510
Noncontrolling interests	(391)
Net Income (Loss) Attributable to CLOs	$	8,380

The following table represents the Company’s own economic interests in the consolidated CLOs, which are eliminated upon consolidation:


	Three Months Ended March 31, 2024
	(in thousands)
Distributions received and unrealized gains (losses) on the subordinated notes held by the Company	$	6,083
Investment management fees	2,297

Total Economic Interests	$	8,380

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 March 31, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

March 31, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	92,458	$	—	$	—	$	92,458
Investment securities - fair value
Sponsored funds	69,514		—		—		69,514
Equity securities	20,983		—		—		20,983


Nonqualified retirement plan assets	13,743		—		—		13,743
Total assets measured at fair value	$	196,698	$	—	$	—	$	196,698

Liabilities
Contingent consideration	$	—	$	—	$	41,708	$	41,708
Total liabilities measured at fair value	$	—	$	—	$	41,708	$	41,708

December 31, 2023


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	197,240	$	—	$	—	$	197,240
Investment securities - fair value
Sponsored funds	77,433		—		—		77,433
Equity securities	19,871		—		—		19,871


Nonqualified retirement plan assets	12,682		—		—		12,682
Total assets measured at fair value	$	307,226	$	—	$	—	$	307,226

Liabilities
Contingent consideration	$	—	$	—	$	56,200	$	56,200
Total liabilities measured at fair value	$	—	$	—	$	56,200	$	56,200

The assets and liabilities of CIP measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

As of March 31, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	119,914	$	—	$	—	$	119,914
Debt investments	—		2,003,579		47,551		2,051,130
Equity investments	29,469		384		242		30,095

Total assets measured at fair value	$	149,383	$	2,003,963	$	47,793	$	2,201,139
Liabilities
Notes payable	$	—	$	1,922,051	$	—	$	1,922,051

Short sales	485		—		—		485
Total liabilities measured at fair value	$	485	$	1,922,051	$	—	$	1,922,536

As of December 31, 2023


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	98,101	$	—	$	—	$	98,101
Debt investments	241		2,012,760		36,616		2,049,617
Equity investments	32,642		8		446		33,096

Total assets measured at fair value	$	130,984	$	2,012,768	$	37,062	$	2,180,814
Liabilities
Notes payable	$	—	$	1,922,243	$	—	$	1,922,243

Short sales	518		—		—		518
Total liabilities measured at fair value	$	518	$	1,922,243	$	—	$	1,922,761

Schedule of 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:


	Three Months Ended March 31,
(in thousands)	2024		2023
Balance at beginning of period	$	37,062	$	43,581


Realized and unrealized gains (losses), net	(324)		111

Purchases	—		4


Sales	(14,625)		(7,195)
Transfers to Level 2	(13,468)		(35,747)
Transfers from Level 2	39,148		9,904
Balance at end of period (1)	$	47,793	$	10,658

(1)The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. Transfers in and/or out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable/unobservable 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.

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