Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 14, as of March 31, 2025 and December 31, 2024 by fair value hierarchy level were as follows:

March 31, 2025  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	101,092	$	—	$	—	$	101,092
Investment securities - fair value
Sponsored funds	60,247		—		—		60,247
Equity securities	19,197		—		—		19,197
Debt securities	—		2,068		—		2,068
Nonqualified retirement plan assets	17,164		—		—		17,164
Total assets measured at fair value	$	197,700	$	2,068	$	—	$	199,768
Liabilities
Contingent consideration	$	—	$	—	$	23,014	$	23,014
Total liabilities measured at fair value	$	—	$	—	$	23,014	$	23,014

December 31, 2024  

(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	225,736	$	—	$	—	$	225,736
Investment securities - fair value
Sponsored funds	63,296		—		—		63,296
Equity securities	19,019		—		—		19,019
Debt securities	—		1,456		—		1,456
Nonqualified retirement plan assets	15,159		—		—		15,159
Total assets measured at fair value	$	323,210	$	1,456	$	—	$	324,666
Liabilities
Contingent consideration	$	—	$	—	$	36,100	$	36,100
Total liabilities measured at fair value	$	—	$	—	$	36,100	$	36,100

The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value:

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in funds for which the Company acts as the investment manager. The fair values of U.S. retail funds and global funds are determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds and ETFs is determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1.

Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Debt securities represent investments in corporate and government bonds. The fair values of corporate and government bonds traded on active markets are valued at the official closing price on the exchange on which the securities are primarily traded and are categorized as Level 1. Debt securities for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service, are categorized as Level 2.

    Nonqualified retirement plan assets represent U.S. retail funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Contingent consideration represents liabilities associated with contingent payment arrangements made in connection with the Company's business combinations. In these contingent payment arrangements, the Company agrees to pay additional transaction consideration to the seller based on future performance. Contingent consideration is remeasured at fair value each reporting date using a simulation model with the assistance of an independent valuation firm and approved by management and are categorized as Level 3.

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

	Three Months Ended March 31,
(in thousands)	2025		2024
Contingent consideration, beginning of period	$	36,100	$	56,200
Reduction for payments made	(13,086)		(14,492)
Contingent consideration, end of period	$	23,014	$	41,708

The contingent consideration related to the Westchester Capital Management transaction as of March 31, 2025 was $1.9 million, measured using an options pricing model valuation technique. The most significant unobservable inputs used relate to revenue growth rates, discount rates (range of 6.3%-6.4%) and the market price of risk adjustment (7.3%). The NFJ Investment Group contingent consideration liability as of March 31, 2025 was $21.1 million, measured using an options pricing

model valuation technique. The most significant unobservable inputs used relate to the revenue growth rates, discount rates (range of 6.3% - 6.4%) and the market price of risk adjustment (6.5%).

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.