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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

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 September 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

September 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	164,878	$	—	$	—	$	164,878
Investment securities - fair value
Sponsored funds	80,303		—		—		80,303
Equity securities	21,693		—		—		21,693
Debt securities	259		1,216		24,443		25,918

Nonqualified retirement plan assets	14,927		—		—		14,927
Total assets measured at fair value	$	282,060	$	1,216	$	24,443	$	307,719

Liabilities
Contingent consideration	$	—	$	—	$	34,408	$	34,408
Total liabilities measured at fair value	$	—	$	—	$	34,408	$	34,408

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 September 30, 2024 and December 31, 2023 by fair value hierarchy level were as follows:

As of September 30, 2024


(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	113,951	$	—	$	—	$	113,951
Debt investments	427		1,998,089		53,632		2,052,148
Equity investments	20,982		74		2,206		23,262
Derivatives	242		—		—		242
Total assets measured at fair value	$	135,602	$	1,998,163	$	55,838	$	2,189,603
Liabilities
Notes payable	$	—	$	1,940,085	$	—	$	1,940,085
Short sales	415		—		—		415
Derivatives	83		—		—		83
Total liabilities measured at fair value	$	498	$	1,940,085	$	—	$	1,940,583

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 presents a reconciliation of beginning and ending balances of the Company's Level 3 debt securities:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Debt securities, beginning of period	$	—	$	—	$	—	$	—

Purchases (sales), net	24,443		24,339		24,443		24,339


Debt securities, end of period	$	24,443	$	24,339	$	24,443	$	24,339

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:


	Nine Months Ended September 30,
(in thousands)	2024		2023
Balance at beginning of period	$	37,062	$	43,581


Realized and unrealized gains (losses), net	918		(42)

Purchases	19		3,430


Sales	(36,452)		(7,890)
Transfers to Level 2	(71,236)		(79,288)
Transfers from Level 2	125,527		103,491
Balance at end of period (1)	$	55,838	$	63,282

(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.

Schedule of Liabilities of Consolidated Sponsored Investment Products For Level 3 Investments, Unobservable Inputs Used to Determine Fair Value

The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023









Contingent consideration, beginning of period	$	38,408	$	54,910	$	56,200	$	78,100


Reduction for payments made	—		—		(14,492)		(16,390)
Increase (reduction) of liability related to re-measurement of fair value	(4,000)		—		(7,300)		(6,800)
Contingent consideration, end of period	$	34,408	$	54,910	$	34,408	$	54,910

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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