Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

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 June 30, 2018 and December 31, 2017 by fair value hierarchy level were as follows:

June 30, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	99,441	$	—	$	—	$	99,441
Marketable securities:
Sponsored funds	40,673		—		—		40,673
Equity securities	17,008		—		—		17,008
Sponsored closed-end funds	3,720		—		—		3,720
Other investments:
Investments in collateralized loan obligations	—		—		5,744		5,744
Nonqualified retirement plan assets	6,909		—		—		6,909
Total assets measured at fair value	$	167,751	$	—	$	5,744	$	173,495

December 31, 2017



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	72,993	$	—	$	—	$	72,993
Marketable securities:
Sponsored funds	46,849		—		—		46,849
Equity securities	15,810		—		—		15,810
Sponsored closed-end funds	3,765		—		—		3,765
Other investments
Investment in collateralized loan obligations	—		18,900		4,439		23,339
Nonqualified retirement plan assets	6,706		—		—		6,706
Total assets measured at fair value	$	146,123	$	18,900	$	4,439	$	169,462

The assets and liabilities of the consolidated investment products measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 by fair value hierarchy level were as follows:

As of June 30, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	39,937	$	—	$	—	$	39,937
Debt investments	—		1,740,396		3,514		1,743,910
Equity investments	29,241		1,918		—		31,159
Total Assets Measured at Fair Value	$	69,178	$	1,742,314	$	3,514	$	1,815,006
Liabilities
Notes payable	$	—	$	1,569,663	$	—	$	1,569,663
Short sales	804		—		—		804
Total Liabilities Measured at Fair Value	$	804	$	1,569,663	$	—	$	1,570,467

As of December 31, 2017



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	82,769	$	—	$	—	$	82,769
Debt investments	—		1,527,845		33,887		1,561,732
Equity investments	35,126		—		894		36,020
Total Assets Measured at Fair Value	$	117,895	$	1,527,845	$	34,781	$	1,680,521
Liabilities
Notes payable	$	—	$	1,457,435	$	—	$	1,457,435
Derivatives	2		—		—		2
Short sales	719		—		—		719
Total Liabilities Measured at Fair Value	$	721	$	1,457,435	$	—	$	1,458,156

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 June 30,				Six Months Ended June 30,
($ in thousands)	2018		2017		2018			2017
Level 3 Investments ^(a)
Balance at beginning of period	$	5,532	$	—	$	4,439		$	—
Acquired in period	—		2,916		1,326			2,916
Change in unrealized gain (loss), net	212		7		(21		)	7
Balance at end of period	$	5,744	$	2,923	$	5,744		$	2,923

^(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:



	Six Months Ended June 30,
($ in thousands)	2018			2017
Level 3 Debt and Equity securities ^(a)
Balance at beginning of period	$	34,781		$	25
Realized gains (losses), net	1,993			(4		)
Change in unrealized gains (losses), net	575			—
Acquired in business combination	—			9,150
Purchases	7,122			100
Paydowns	—			—
Amortization	19			—
Sales	(13,884		)	(121		)
Transfers to Level 2	(30,606		)	—
Transfers from Level 2	3,514			—
Balance at end of period	$	3,514		$	9,150


(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 are due to trading activities at period end.