| 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 investment products, which are separately discussed in Note 15, as of September 30, 2017 and December 31, 2016 by fair value hierarchy level were as follows: September 30, 2017 | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | ($ in thousands) | | | | | | | | Assets | | | | | | | | Cash equivalents | $ | 96,500 |
| | $ | — |
| | $ | — |
| | $ | 96,500 |
| Marketable securities - trading: | | | | | | | | Sponsored funds | 56,574 |
| | — |
| | — |
| | 56,574 |
| Equity securities | 15,232 |
| | — |
| | — |
| | 15,232 |
| Marketable securities - available-for-sale: | | | | | | | | Sponsored closed-end funds | 3,896 |
| | — |
| | — |
| | 3,896 |
| Other investments: | | | | | | | | Investment in collateralized loan obligation | — |
| | — |
| | 2,741 |
| | 2,741 |
| Nonqualified retirement plan assets | 6,813 |
| | — |
| | — |
| | 6,813 |
| Total assets measured at fair value | $ | 179,015 |
| | $ | — |
| | $ | 2,741 |
| | $ | 181,756 |
|
December 31, 2016 | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | ($ in thousands) | | | | | | | | Assets | | | | | | | | Cash equivalents | $ | 48,620 |
| | $ | — |
| | $ | — |
| | $ | 48,620 |
| Marketable securities - trading: | | | | | | | | Sponsored funds | 60,019 |
| | — |
| | — |
| | 60,019 |
| Equity securities | 11,473 |
| | — |
| | — |
| | 11,473 |
| Marketable securities - available-for-sale: | | | | | | | | Sponsored closed-end funds | 3,415 |
| | — |
| | — |
| | 3,415 |
| Other investments | | | | | | | | Nonqualified retirement plan assets | 5,808 |
| | — |
| | — |
| | 5,808 |
| Total assets measured at fair value | $ | 129,335 |
| | $ | — |
| | $ | — |
| | $ | 129,335 |
|
The assets and liabilities of the consolidated investment products measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 by fair value hierarchy level were as follows:
As of September 30, 2017 | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | ($ in thousands) | | | | | | | | Assets | | | | | | | | Cash equivalents | $ | 217,708 |
| | $ | — |
| | $ | — |
| | $ | 217,708 |
| Debt investments | — |
| | 1,511,791 |
| | 48,760 |
| | 1,560,551 |
| Equity investments | 34,614 |
| | — |
| | 562 |
| | 35,176 |
| Total Assets Measured at Fair Value | $ | 252,322 |
| | $ | 1,511,791 |
| | $ | 49,322 |
| | $ | 1,813,435 |
| Liabilities | | | | | | | | Notes payable | $ | — |
| | $ | 1,455,932 |
| | $ | — |
| | $ | 1,455,932 |
| Derivatives | 2 |
| | — |
| | — |
| | 2 |
| Short sales | 751 |
| | — |
| | — |
| | 751 |
| Total Liabilities Measured at Fair Value | $ | 753 |
| | $ | 1,455,932 |
| | $ | — |
| | $ | 1,456,685 |
|
As of December 31, 2016 | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | ($ in thousands) | | | | | | | | Assets | | | | | | | | Cash equivalents | $ | 14,449 |
| | $ | — |
| | $ | — |
| | $ | 14,449 |
| Debt investments | — |
| | 448,477 |
| | 87 |
| | 448,564 |
| Equity investments | 40,270 |
| | 208 |
| | — |
| | 40,478 |
| Derivatives | 4 |
| | — |
| | — |
| | 4 |
| Total Assets Measured at Fair Value | $ | 54,723 |
| | $ | 448,685 |
| | $ | 87 |
| | $ | 503,495 |
| Liabilities | | | | | | | | Notes payable | $ | — |
| | $ | 328,761 |
| | $ | — |
| | $ | 328,761 |
| Derivatives | 3 |
| | 235 |
| | 62 |
| | 300 |
| Short sales | 649 |
| | — |
| | — |
| | 649 |
| Total Liabilities Measured at Fair Value | $ | 652 |
| | $ | 328,996 |
| | $ | 62 |
| | $ | 329,710 |
|
|
| Reconciliation of Level Three Investments |
The following table is a reconciliation of assets for Level 3 investments for which significant unobservable inputs were used to determine fair value. | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | ($ in thousands) | 2017 | | 2016 | | 2017 | | 2016 | Level 3 Investments (a) | | | | | | | | Balance at beginning of period | $ | 2,909 |
| | $ | — |
| | $ | — |
| | $ | — |
| Acquired in business combination |
| | — |
| | 2,916 |
| | — |
| Change in unrealized (loss), net | (168 | ) | | — |
| | (175 | ) | | — |
| Balance at end of period | $ | 2,741 |
| | $ | — |
| | $ | 2,741 |
| | $ | — |
|
(a) The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. The following table is a reconciliation of assets of consolidated investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value. | | | | | | | | | | Nine Months Ended September 30, | ($ in thousands) | 2017 | | 2016 | Level 3 Debt securities (a) | | | | Balance at beginning of period | $ | 25 |
| | $ | 1,397 |
| Realized gains(losses,), net | (90 | ) | | (356 | ) | Change in unrealized gains (losses), net | 87 |
| | 350 |
| Acquired in business combination | 9,151 |
| | — |
| Purchases | 1,212 |
| | 163 |
| Paydowns | — |
| | (5 | ) | Amortization | 12 |
| | — |
| Sales | (765 | ) | | (1,461 | ) | Transferred to Level 2 | 44,634 |
| | — |
| Transfers from Level 2 | (4,944 | ) | | 58 |
| Balance at end of period | $ | 49,322 |
| | $ | 146 |
|
| | (a) | The investments that are categorized as Level 3 were valued utilizing third-party pricing information without adjustment. All transfers are deemed to occur at the end of period. Transfers between Level 2 and Level 3 were due to a decrease in trading activities at period end. |
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