The following table presents the assets and liabilities that are measured at fair value on a recurring basis on the accompanying condensed consolidated statements of financial condition by caption and by level within the valuation hierarchy as of March 31, 2021 and December 31, 2020:


	Assets at Fair Value as of March 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	19,671	$	—	$	—	$	—	$	19,671
Preferred stock	10,376		—		56,477		—		66,853
Common stock	2,911,824		74		22,706		—		2,934,604
Convertible bonds	—		—		3,137		—		3,137
Corporate bonds	—		81,324		136		—		81,460
Trade claims	—		—		5,905		—		5,905
Term loan	—		—		12,424		—		12,424
Warrants and rights	23,037		—		7,924		—		30,961
Private investments	—		—		1,085		—		1,085
Receivable on derivative contracts, at fair value

Currency forwards	—		384		—		—		384
Swaps	—		142,266		—		(89,238)		53,028
Options	41,883		—		241		—		42,124

Consolidated Funds
Securities owned, at fair value


Common stock	660		—		2,951		—		3,611

Warrants and rights	—		—		5,329		—		5,329





	$	3,007,451	$	224,048	$	118,315	$	(89,238)	$	3,260,576
Portfolio funds measured at net asset value (a)									151,933
Consolidated Funds' portfolio funds measured at net asset value (a)									100,035
Carried interest (a)									180,352
Equity method investments (a)									34,498
Total investments									$	3,727,394


	Liabilities at Fair Value as of March 31, 2021
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
Government bonds	$	—	$	—	$	522	$	—	$	522
Common stock	918,021		—		—		—		918,021
Corporate bonds	—		38		415		—		453
Preferred stock	7,567		—		—		—		7,567
Warrants and rights	4,519		—		—		—		4,519
Payable for derivative contracts, at fair value

Currency forwards	—		16		—		—		16
Swaps	—		82,391		—		(61,806)		20,585
Options	28,227		—		3,297		—		31,524
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		19,579		—		19,579








	$	958,334	$	82,445	$	23,813	$	(61,806)	$	1,002,786

(a) In accordance with US GAAP, portfolio funds are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not classified in the fair value hierarchy. Carried interest and equity method investments presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated statement of financial condition.

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 and the fourth quarter of 2020, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2020 and December 31, 2023. For both the Quarton Acquisition and the MHT Acquisition, the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton Acquisition can range from $10.1 million to $25.0 million. The undiscounted amounts for the MHT Acquisition have no minimum or maximum as it is calculated based on revenue.

(c) Derivatives are reported on a net basis, by counterparty, when a legal right of offset exists under an enforceable netting agreement as well as net of cash collateral received or posted under enforceable credit support agreements. See Note 2f for further information on offsetting of derivative financial instruments.


	Assets at Fair Value as of December 31, 2020
	Level 1		Level 2		Level 3		Netting (c)		Total
			(dollars in thousands)
Operating Entities
Securities owned, at fair value
Government bonds	$	19,721	$	—	$	—	$	—	$	19,721
Preferred stock	9,391		—		59,967		—		69,358
Common stock	1,746,407		108		23,786		—		1,770,301
Convertible bonds	—		—		6,040		—		6,040
Corporate bonds	—		86,368		135		—		86,503
Trade claims	—		—		8,713		—		8,713
Term loan	—		—		12,623		—		12,623
Private investments	—		—		642		—		642
Warrants and rights	21,154		—		6,547		—		27,701

Receivable on derivative contracts, at fair value

Currency forwards	—		15		—		—		15
Swaps	—		64,634		—		(62,269)		2,365
Options	48,851		—		251		—		49,102



Consolidated Funds
Securities owned, at fair value


Common stock	1,865		—		2,951		—		4,816

Warrants and rights	—		—		5,806		—		5,806





	$	1,847,389	$	151,125	$	127,461	$	(62,269)	$	2,063,706
Portfolio funds measured at net asset value (a)									133,454
Consolidated Funds' portfolio funds measured at net asset value (a)									192,670
Carried interest (a)									82,892
Equity method investments (a)									38,681
Total investments									$	2,511,403


	Liabilities at Fair Value as of December 31, 2020
	Level 1		Level 2		Level 3		Netting (c)		Total
	(dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value
US Government securities	$	—	$	—	$	1,500	$	—	$	1,500
Common stock	699,894		—		—		—		699,894
Corporate bonds	—		10,654		704		—		11,358
Preferred stock	6,589		—		—		—		6,589
Warrants and rights	8,774		—		—		—		8,774
Payable for derivative contracts, at fair value

Currency forwards	—		3,067		—		—		3,067
Swaps	—		43,560		—		(37,033)		6,527
Options	62,651		—		3,915		—		66,566
Accounts payable, accrued expenses and other liabilities
Contingent consideration liability (b)	—		—		36,718		—		36,718








	$	777,908	$	57,281	$	42,837	$	(37,033)	$	840,993

(b) In accordance with the terms of the purchase agreements for acquisitions that closed during the first quarter of 2019 and the fourth quarter of 2020, the Company is required to pay to the sellers a portion of future net income and/or revenues of the acquired businesses, if certain targets are achieved through the periods ended December 31, 2020 and December 31, 2023. For both the Quarton Acquisition and the MHT Acquisition, the Company estimated the contingent consideration liabilities using a combination of Monte Carlo and Discounted Cash Flow methods which require the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts for the Quarton Acquisition can range from $10.1 million to $35.1 million. The undiscounted amounts for the MHT Acquisition have no minimum or maximum as it is calculated based on revenue.

The following table includes a roll forward of the amounts for the three months ended March 31, 2021 and 2020 for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement.


	Three Months Ended March 31, 2021
	Balance at December 31, 2020		Transfers in		Transfers out			Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2021		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	59,967	$	—	$	—		$	1,859	$	(4,651)	$	(698)	$	56,477	$	(698)
Common stock	23,786		—		(5,353)		(b)	3,226		(1,387)		2,434		22,706		1,679
Convertible bonds	6,040		—		—			1,050		(3,930)		(23)		3,137		(23)
Corporate bond	135		—		—			70		(49)		(20)		136		(49)
Options, asset	251		—		—			—		—		(10)		241		(10)
Options, liability	3,915		—		—			—		—		(618)		3,297		(618)
Term loan	12,623		—		—			322		—		(521)		12,424		(521)
Warrants and rights	6,547		—		—			3,406		(1,206)		(823)		7,924		(895)

Trade claims	8,713		—					1,378		(4,216)		30		5,905		(1,021)
Private investments	642		—		—			443		—		—		1,085		—
Corporate bond, liability	704		—		—			—		(289)		—		415		—
Government bonds, liability	1,500		—		—			—		(1,278)		300		522		87
Contingent consideration liability	37,952		—		—			(11,312)		—		(7,061)		19,579		(7,061)
Consolidated Funds

Common stock	2,951		—		—			—		—		—		2,951		—

Warrants and rights	5,806		—		—			—		(670)		193		5,329		(477)


	Three Months Ended March 31, 2020
	Balance at December 31, 2019		Transfers in			Transfers out		Purchases/(covers)		(Sales)/shorts		Realized and Unrealized gains/losses		Balance at March 31, 2020		Change in unrealized gains/losses relating to instruments still held (1)
	(dollars in thousands)
Operating Entities
Preferred stock	$	7,835	$	—		$	—	$	365	$	—	$	—	$	8,200	$	—
Common stock	17,466		—			—		1,798		(593)		(1,161)		17,510		(1,257)
Convertible bonds	2,500		—			—		286		—		—		2,786		—

Corporate Bond, asset	2,421		—			—		422		(24)		(7)		2,812		12
Options, asset	336		—			—		—		—		(4)		332		(4)
Options, liability	2,920		—			—		—		—		(1,118)		1,802		(1,118)
Warrants and rights	594		—			—		—		—		4		598		4



Trade claim	7,083		1,044		(a)	—		1,166		—		(110)		9,183		(110)
Private investments	237		—			—		233		—		(5)		465		(5)
Corporate bond, liability	1,000		—			—		—		—		(200)		800		(200)
Government bonds, liability	1,950		—			—		—		—		(450)		1,500		(450)
Contingent consideration liability	30,896		—			—		—		(1,400)		(838)		28,658		(838)
Consolidated Funds
Preferred stock	4,393		—			—		—		—		—		4,393		—
Common stock	—		—			—		100,000		—		—		100,000		—
Warrants and rights	$	5,567	$	—		$	—	$	—	$	—	$	44	$	5,611	$	44

The following table includes quantitative information as of March 31, 2021 and December 31, 2020 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments.

Quantitative Information about Level 3 Fair Value Measurements

Fair Value

March 31, 2021

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Level 3 Assets

(dollars in thousands)

Common and preferred stocks

70,935

Discounted cash flows

Guideline companies

Probability of Success

Discount rate

EBITDA Market Multiples

Probability of Success

11% - 20%

6.25x - 6.75x

70%

12%

6.5x

70%

Options

241

Discounted cash flows

Guideline companies

Discount rate

EBITDA Market Multiples

11% - 12%

6.25x - 6.75x

12%

6.5x

Trade claims

3,713

Discounted cash flows

Discount rate

20%

Warrants and rights

10,394

Discounted cash flows

Guideline companies

Discount rate

EBITDA Market Multiples

4% - 12%

6.25x - 6.75x

7.0%

6.5x

Corporate, convertible bonds and term loan

12,424

Discounted cash flows

Guideline companies

Discount rate

EBITDA Market Multiples

11% - 12%

6.25x - 6.75x

12%

6.5x

Other level 3 assets (a)

20,608

Total level 3 assets

118,315

Level 3 Liabilities

Options

3,297

Option pricing models

Volatility

35%

Contingent consideration liability

19,579

Discounted cash flows

Monte Carlo simulation

Discount rate

Volatility

7% - 15%

18% - 20%

13%

18%

Other level 3 liabilities (a)

937

Total level 3 liabilities

23,813

Quantitative Information about Level 3 Fair Value Measurements

Fair Value at December 31, 2020

Valuation Techniques

Unobservable Inputs

Range

Weighted Average

Level 3 Assets

(dollars in thousands)

Common and preferred stocks

65,735

Discounted cash flows

Guideline companies

Discount rate

EBITDA Market Multiples

10% - 12%

6.25x - 6.75x

11%

6.5x

Trade claims

3,500

Discounted cash flows

Discount rate

15%

Warrants and rights

11,217

Discounted cash flows

Guideline companies

Discount rate

EBITDA Market Multiples

4% - 11%

6.25x - 6.75x

6.5x

Options

251

Discounted cash flows

Guideline companies

Discount rate

EBITDA Market Multiples

10% - 12%

6.25x - 6.75x

11%

6.5x

Corporate, convertible bonds and term loan

12,623

Discounted cash flows

Guideline companies

Discount rate

EBITDA Market Multiples

10% - 12%

6.25x - 6.75x

11%

6.5x

Other level 3 assets (a)

34,135

Total level 3 assets

127,461

Level 3 Liabilities

Options

3,915

Option pricing models

Volatility

35%

Contingent consideration liability

36,718

Discounted cash flows

Monte Carlo simulation

Discount rate

Volatility

9% - 16%

22% - 24%

15%

22%

Other level 3 liabilities (a)

2,204

Total level 3 liabilities

42,837

The Company has established valuation policies, procedures and internal control infrastructure over the fair value measurement of financial instruments. In the event that observable inputs are not available, the control processes are designed to ensure that the valuation approach utilized is applicable, reasonable and consistently applied. Where a pricing model is used to determine fair value, these control processes include reviews of the methodology and inputs for both reasonableness and applicability. Consistent with best practices, recently executed comparable transactions and other observable market data are used

for the purposes of validating both the model and the assumptions used to calculate fair value. Independent of trading and valuation functions, the Company’s Valuation Committee in conjunction with its Price Verification team, plays an important role in determining that financial instruments are appropriately valued and that fair value measurements are both reasonable and reliable. This is particularly important where prices or valuations that require inputs are less observable. The Valuation Committee is comprised of senior management, including non-investment professionals, who are responsible for overseeing and monitoring the pricing of the Company's investments.

The US GAAP fair value leveling hierarchy is designated and monitored on an ongoing basis. In determining the designation, the Company takes into consideration a number of factors including the observability of inputs, liquidity of the investment and the significance of a particular input to the fair value measurement. Designations, models, pricing vendors, third party valuation providers and inputs used to derive fair market value are subject to review by the valuation committee and the internal audit group. The Company reviews its valuation policy guidelines on an ongoing basis and may adjust them in light of improved valuation metrics and models, the availability of reliable inputs and information, and prevailing market conditions. The Company regularly reviews a profit and loss report, as well as other periodic reports, and analyzes material changes from period to period in the valuation of its investments as part of its control procedures. The Company also performs back testing on a regular basis by comparing prices observed in executed transactions to previous valuations.

The fair market value for level 3 securities may be highly sensitive to the use of industry-standard models, unobservable inputs and subjective assumptions. The degree of fair market value sensitivity is also contingent upon the subjective weight given to specific inputs and valuation metrics. The Company holds various equity and debt instruments where different weight may be applied to industry-standard models representing standard valuation metrics such as: discounted cash flows, market multiples, comparative transactions, capital rates, recovery rates and timing, and bid levels. Generally, changes in the weights ascribed to the various valuation metrics and the significant unobservable inputs in isolation may result in significantly lower or higher fair value measurements. Volatility levels for warrants and options are not readily observable and subject to interpretation. Changes in capital rates, discount rates and replacement costs could significantly increase or decrease the valuation of the real estate investments. The interrelationship between unobservable inputs may vary significantly amongst level 3 securities as they are generally highly idiosyncratic. Significant increases (decreases) in any of those inputs in isolation can result in a significantly lower (higher) fair value measurement.

The following table presents the carrying values and fair values, at March 31, 2021 and December 31, 2020, of financial assets and liabilities and information on their classification within the fair value hierarchy which are not measured at fair value on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value (see Note 2e).


	March 31, 2021						December 31, 2020						Fair Value Hierarchy
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
				(dollars in thousands)
Financial Assets
Operating companies
Cash and cash equivalents	$	1,147,531		$	1,147,531		$	645,169		$	645,169		Level 1
Cash collateral pledged	110,303			110,303			110,743			110,743			Level 2
Segregated cash	168,942			168,942			185,141			185,141			Level 1
Securities purchased under agreements to resell	—			—			191			204			Level 2
Securities borrowed	1,996,757			1,996,757			1,908,187			1,908,187			Level 2
Loans receivable	4,467			4,467		(d)	7,682			7,682		(d)	Level 3
Consolidated Funds
Cash and cash equivalents	935			935			417			417			Level 1
Financial Liabilities
Securities sold under agreements to repurchase	2,546			2,759			5,036			5,544			Level 2
Securities loaned	3,083,945			3,083,945			2,476,414			2,476,414			Level 2
Convertible debt	81,682		(a)	181,597		(b)	80,808		(a)	135,444		(b)	Level 2
Notes payable and other debt	542,519		(e)	568,212		(c)	383,067		(e)	405,840		(c)	Level 2