Consolidation (Tables)

9 Months Ended

Sep. 30, 2016

Variable Interest Entity [Line Items]

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 consolidated sponsored investment products and the consolidated investment product, which are separately discussed in Note 14, as of September 30, 2016 and December 31, 2015 by fair value hierarchy level were as follows:

September 30, 2016



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	138,303	$	—	$	—	$	138,303
Marketable securities trading:
Sponsored funds	66,869		—		—		66,869
Equity securities	11,067		—		—		11,067
Marketable securities available-for-sale:
Sponsored closed-end funds	3,550		—		—		3,550
Other investments:
Nonqualified retirement plan assets	5,662		—		—		5,662
Total assets measured at fair value	$	225,451	$	—	$	—	$	225,451

December 31, 2015



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	54,772	$	—	$	—	$	54,772
Marketable securities trading:
Sponsored funds	29,331		—		—		29,331
Equity securities	9,168		—		—		9,168
Marketable securities available-for-sale:
Sponsored closed-end funds	2,997		—		—		2,997
Other investments
Nonqualified retirement plan assets	5,310		—		—		5,310
Total assets measured at fair value	$	101,578	$	—	$	—	$	101,578

Consolidated Sponsored Investment Products [Member]

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The following table presents the balances of the consolidated sponsored investment products that, after intercompany eliminations, were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015:



	As of
	September 30, 2016						December 31, 2015
	VOEs			VIE			VOEs			VIE
($ in thousands)
Total cash and cash equivalents	$	1,961		$	132		$	11,408		$	458
Total investments	95,452			41,688			291,247			32,088
All other assets	1,943			617			8,281			268
Total liabilities	(2,538		)	(392		)	(14,948		)	(439		)
Redeemable noncontrolling interests	(8,816		)	(21,485		)	(61,236		)	(12,628		)
The Company’s net interests in consolidated sponsored investment products	$	88,002		$	20,560		$	234,752		$	19,747

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 by fair value hierarchy level were as follows:

As of September 30, 2016



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	98,727	$	146	$	98,873
Equity securities	33,524		4,743		—		38,267
Derivatives	—		6		—		6
Total Assets Measured at Fair Value	$	33,524	$	103,476	$	146	$	137,146
Liabilities
Derivatives	$	—	$	188	$	—	$	188
Short sales	522		—		—		522
Total Liabilities Measured at Fair Value	$	522	$	188	$	—	$	710

As of December 31, 2015



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Debt securities	$	—	$	151,156	$	1,397	$	152,553
Equity securities	162,986		7,796		—		170,782
Derivatives	33		738		—		771
Total Assets Measured at Fair Value	$	163,019	$	159,690	$	1,397	$	324,106
Liabilities
Derivatives	$	128	$	844	$	—	$	972
Short sales	5,334		75		—		5,409
Total Liabilities Measured at Fair Value	$	5,462	$	919	$	—	$	6,381

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 consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.



	Nine Months Ended September 30,
($ in thousands)	2016			2015
Level 3 Debt securities (a)
Balance at beginning of period	$	1,397		$	1,065
Realized losses, net	(356		)	—
Purchases	163			135
Paydowns	(5		)	(14		)
Sales	(1,461		)	(13		)
Transferred to Level 2	—			(126		)
Transfers from Level 2	58			—
Change in unrealized gain, net	350			(121		)
Balance at end of period	$	146		$	926


(a)	None of the securities reflected in the table were internally fair valued at September 30, 2016 or September 30, 2015. The investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs.

Consolidated Investment Product [Member]

Variable Interest Entity [Line Items]

Condensed Consolidated Balance Sheets

The following table presents the balances of the consolidated investment product that, after intercompany eliminations, were reflected in the Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015:



	As of
	September 30, 2016			December 31, 2015
($ in thousands)
Total cash equivalents	$	12,703		$	8,297
Total investments	360,210			199,485
Other assets	4,628			1,467
Debt	—			(152,597		)
Notes payable	(323,852		)	—
Securities purchased payable and other liabilities	(25,704		)	(18,487		)
The Company’s net interests in the consolidated investment product	$	27,985		$	38,165

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The assets and liabilities of the consolidated investment product measured at fair value on a recurring basis by fair value hierarchy level were as follows:

As of September 30, 2016:



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	12,703	$	—	$	—	$	12,703
Bank loans	—		360,210		—		360,210
Total Assets Measured at Fair Value	$	12,703	$	360,210	$	—	$	372,913
Liabilities
Notes payable	$	—	$	323,852	$	—	$	323,852
Total Liabilities Measured at Fair Value	$	—	$	323,852	$	—	$	323,852

As of December 31, 2015:



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	8,297	$	—	$	—	$	8,297
Bank loans	—		199,485		—		199,485
Total Assets Measured at Fair Value	$	8,297	$	199,485	$	—	$	207,782

Schedule of VIE Consolidated Investment Product

The Company’s beneficial interests and maximum exposure to loss related to the consolidated investment product is limited to (i) ownership in the subordinated notes and related participations in management fees of the CLOs and (ii) accrued management fees. The secured notes of the CLO have contractual recourse only to the related assets of the CLO and are classified as financial liabilities. Although these beneficial interests are eliminated upon consolidation, the application of the measurement alternative, as adopted on January 1, 2016, prescribed by ASU 2014-13, results in the net amount of the consolidated investment product shown above to be equivalent to the beneficial interests retained by the Company at September 30, 2016 as shown in the table below:



	As of
Beneficial Interests	September 30, 2016
($ in thousands)
Subordinated notes	$	27,443
Accrued investment management fees	542
Total Beneficial Interests	$	27,985

The following table represents revenue and expenses of the consolidated investment product included in the Company’s Consolidated Statements of Operations for the periods indicated:



	Three Months Ended September 30,		Nine Months Ended September 30,
($ in thousands)	2016		2016
Income:
Realized and unrealized gain, net	$	144	$	2,960
Interest Income	4,047		8,835
Total Revenue	$	4,191	$	11,795

Expenses:
Other operating expenses	24		3,921
Interest expense	3,788		10,188
Total Expense	$	3,812	$	14,109

Net Income (loss) attributable to consolidated investment product	$	379	$	(2,314	)

As summarized in the table below, the application of the measurement alternative as prescribed by ASU 2014-13 results in the consolidated net income summarized above to be equivalent to the Company’s own economic interests in the consolidated investment product which are eliminated upon consolidation:



Economic Interests	Three Months Ended September 30,			Nine Months Ended September 30,
($ in thousands)	2016			2016
Distributions received and unrealized losses on the subordinated notes held by the Company	$	(58	)	$	(2,857	)
Investment management fees	437			543
Total Economic Interests	$	379		$	(2,314	)

- 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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