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Fair Value Measurements for Operating Entities and Consolidated Funds (Tables)
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
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 1Level 2Level 3Netting (c)Total
  (dollars in thousands) 
Operating Entities
    Securities owned, at fair value 
Government bonds$19,671 $— $— $— $19,671 
Preferred stock10,376 — 56,477 — 66,853 
Common stock2,911,824 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 rights23,037 — 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 
Options41,883 — 241 — 42,124 
Consolidated Funds
    Securities owned, at fair value
Common stock660 — 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 $3,727,394 
 Liabilities at Fair Value as of March 31, 2021
 Level 1Level 2Level 3Netting (c)Total
 (dollars in thousands)
Operating Entities
     Securities sold, not yet purchased, at fair value    
Government bonds$— $— $522 $— $522 
Common stock918,021 — — — 918,021 
Corporate bonds— 38 415 — 453 
Preferred stock7,567 — — — 7,567 
Warrants and rights4,519 — — — 4,519 
    Payable for derivative contracts, at fair value
Currency forwards— 16 — — 16 
Swaps— 82,391 — (61,806)20,585 
Options28,227 — 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 1Level 2Level 3Netting (c)Total
  (dollars in thousands) 
Operating Entities
    Securities owned, at fair value    
Government bonds$19,721 $— $— $— $19,721 
Preferred stock9,391 — 59,967 — 69,358 
Common stock1,746,407 108 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 rights21,154 — 6,547 — 27,701 
    Receivable on derivative contracts, at fair value
Currency forwards— 15 — — 15 
Swaps— 64,634 — (62,269)2,365 
Options48,851 — 251 — 49,102 
Consolidated Funds
    Securities owned, at fair value
Common stock1,865 — 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 1Level 2Level 3Netting (c)Total
 (dollars in thousands)
Operating Entities
Securities sold, not yet purchased, at fair value    
US Government securities$— $— $1,500 $— $1,500 
Common stock699,894 — — — 699,894 
Corporate bonds— 10,654 704 — 11,358 
Preferred stock6,589 — — — 6,589 
Warrants and rights8,774 — — — 8,774 
Payable for derivative contracts, at fair value
Currency forwards— 3,067 — — 3,067 
Swaps— 43,560 — (37,033)6,527 
Options62,651 — 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 
(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 $35.1 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.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
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, 2020Transfers inTransfers outPurchases/(covers)(Sales)/shortsRealized and Unrealized gains/lossesBalance at March 31, 2021Change 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 stock23,786 — (5,353)(b)3,226 (1,387)2,434 22,706 1,679 
Convertible bonds6,040 — — 1,050 (3,930)(23)3,137 (23)
Corporate bond135 — — 70 (49)(20)136 (49)
Options, asset251 — — — — (10)241 (10)
Options, liability3,915 — — — — (618)3,297 (618)
Term loan12,623 — — 322 — (521)12,424 (521)
Warrants and rights6,547 — — 3,406 (1,206)(823)7,924 (895)
Trade claims8,713 — 1,378 (4,216)30 5,905 (1,021)
Private investments642 — — 443 — — 1,085 — 
Corporate bond, liability704 — — — (289)— 415 — 
Government bonds, liability1,500 — — — (1,278)300 522 87 
Contingent consideration liability37,952 — — (11,312)— (7,061)19,579 (7,061)
Consolidated Funds
Common stock2,951 — — — — — 2,951 — 
Warrants and rights5,806 — — — (670)193 5,329 (477)
Three Months Ended March 31, 2020
Balance at December 31, 2019Transfers inTransfers outPurchases/(covers)(Sales)/shortsRealized and Unrealized gains/lossesBalance at March 31, 2020Change in unrealized gains/losses relating to instruments still held (1)
(dollars in thousands)
Operating Entities
Preferred stock$7,835 $— $— $365 $— $— $8,200 $— 
Common stock17,466 — — 1,798 (593)(1,161)17,510 (1,257)
Convertible bonds2,500 — — 286 — — 2,786 — 
Corporate Bond, asset2,421 — — 422 (24)(7)2,812 12 
Options, asset336 — — — — (4)332 (4)
Options, liability2,920 — — — — (1,118)1,802 (1,118)
Warrants and rights594 — — — — 4 598 4 
Trade claim7,083 1,044 (a)— 1,166 — (110)9,183 (110)
Private investments237 — — 233 — (5)465 (5)
Corporate bond, liability1,000 — — — — (200)800 (200)
Government bonds, liability1,950 — — — — (450)1,500 (450)
Contingent consideration liability30,896 — — — (1,400)(838)28,658 (838)
Consolidated Funds
Preferred stock4,393 — — — — — 4,393 — 
Common stock— — — 100,000 — — 100,000 — 
Warrants and rights$5,567 $— $— $— $— $44 $5,611 $44 
(1) Unrealized gains/losses are reported in Investment income - Securities principal transactions, net in the accompanying condensed consolidated statements of operations.
(a) The security stopped trading on an open market.
(b) The entity in which the Company is invested completed an initial public offering.
Fair Value Inputs, Assets, Quantitative Information 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 TechniquesUnobservable InputsRangeWeighted 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%
Options241 
Discounted cash flows
Guideline companies
Discount rate
EBITDA Market Multiples
11% - 12%
6.25x - 6.75x
12%
6.5x
Trade claims3,713 Discounted cash flowsDiscount rate
20%
20%
Warrants and rights10,394 
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 loan12,424 
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
Options3,297 Option pricing modelsVolatility
35%
35%
Contingent consideration liability19,579 
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, 2020Valuation TechniquesUnobservable InputsRangeWeighted 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 claims3,500 Discounted cash flowsDiscount rate
15%
15%
Warrants and rights11,217 
Discounted cash flows
Guideline companies
Discount rate
EBITDA Market Multiples
4% - 11%
6.25x - 6.75x
7%
6.5x
Options251 
Discounted cash flows
Guideline companies
Discount rate
EBITDA Market Multiples
10% - 12%
6.25x - 6.75x
11%
6.5x
Corporate, convertible bonds and term loan12,623 
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
Options3,915 Option pricing modelsVolatility
35%
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 
(a)The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from recent transactions.
Fair Value Measurements, Nonrecurring 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, 2021December 31, 2020Fair Value Hierarchy
 Carrying AmountFair ValueCarrying AmountFair 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 pledged110,303 110,303 110,743 110,743 Level 2
Segregated cash168,942 168,942 185,141 185,141 Level 1
Securities purchased under agreements to resell— — 191 204 Level 2
Securities borrowed1,996,757 1,996,757 1,908,187 1,908,187 Level 2
Loans receivable4,467 4,467 (d)7,682 7,682 (d)Level 3
Consolidated Funds
Cash and cash equivalents935 935 417 417 Level 1
Financial Liabilities
Securities sold under agreements to repurchase2,546 2,759 5,036 5,544 Level 2
Securities loaned3,083,945 3,083,945 2,476,414 2,476,414 Level 2
Convertible debt81,682 (a)181,597 (b)80,808 (a)135,444 (b)Level 2
Notes payable and other debt542,519 (e)568,212 (c)383,067 (e)405,840 (c)Level 2
(a)The carrying amount of the convertible debt includes an unamortized discount of $5.8 million and $6.7 million as of March 31, 2021 and December 31, 2020, respectively.
(b)The convertible debt includes the conversion option and is based on the last broker quote available.
(c)Notes payable and other debt are based on the last broker quote available.
(d)The fair market value of level 3 loans is calculated using discounted cash flows where applicable.
(e)The carrying amount of the notes payable and other debt includes an unamortized discount and unamortized premium of $1.5 million and $0.3 million as of March 31, 2021, respectively and unamortized premium of $0.4 million as of December 31, 2020