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Investments | 9 Months Ended
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Sep. 30, 2022
Investments, All Other Investments [Abstract] |
Investments | 5. INVESTMENTS Investments Measured at Fair Value Fair value investments are presented within investments on the Company’s condensed consolidated statements of financial condition. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring investments at fair value. See Note 2 for further information on the Company's fair value hierarchy. The estimated fair value of money market securities, U.S. Treasury instruments, common stock, and warrants are based on quoted prices for recent trading activity in identical or similar instruments. The Company generally invests in U.S. Treasury instruments with maturities of less than twelve months and considers U.S. Treasury instruments to be risk free and does not reserve for expected credit losses on these investments. Common stock and warrants held of publicly-traded companies are categorized as Level 1 in the fair value hierarchy. The fair value of the Company's financial assets as of September 30, 2022, have been categorized based upon the fair value hierarchy as follows:
| Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury instruments | $ |  | 22,924 |  |  | $ |  | — |  |  | $ |  | 22,924 |  |  | $ |  | — |
Money market securities |  |  | 52,937 |  |  |  |  | — |  |  |  |  | 52,937 |  |  |  |  | — |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury instruments |  |  | 192,699 |  |  |  |  | — |  |  |  |  | 192,699 |  |  |  |  | — |
Common stock |  |  | 6,234 |  |  |  |  | 6,234 |  |  |  |  | — |  |  |  |  | — |
Warrants |  |  | 313 |  |  |  |  | 313 |  |  |  |  | — |  |  |  |  | — |
Total financial assets | $ |  | 275,107 |  |  | $ |  | 6,547 |  |  | $ |  | 268,560 |  |  | $ |  | — |
For the three months ended September 30, 2022 and 2021, unrealized losses of $1,055 and $4,899 were recognized related to equity investments measured at fair value held at the reporting date, respectively. For the nine months ended September 30, 2022 and 2021, unrealized losses of $9,991 and $4,899 were recognized related to equity investments held at the reporting date, respectively. All losses were recognized in other income and expenses on the condensed consolidated statement of operations. The cost basis of the financial assets recorded at fair value included in investments on the condensed consolidated statement of financial condition was $212,260 as of September 30, 2022. The fair value of the Company's financial assets as of December 31, 2021 have been categorized based upon the fair value hierarchy as follows:
| Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury instruments | $ |  | 301,992 |  |  | $ |  | — |  |  | $ |  | 301,992 |  |  | $ |  | — |
Money market securities |  |  | 83,004 |  |  |  |  | — |  |  |  |  | 83,004 |  |  |  |  | — |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury instruments |  |  | 200,973 |  |  |  |  | — |  |  |  |  | 200,973 |  |  |  |  | — |
Common stock |  |  | 15,964 |  |  |  |  | 15,964 |  |  |  |  | — |  |  |  |  | — |
Warrants |  |  | 684 |  |  |  |  | 684 |  |  |  |  | — |  |  |  |  | — |
Total financial assets | $ |  | 602,617 |  |  | $ |  | 16,648 |  |  | $ |  | 585,969 |  |  | $ |  | — |
The cost basis of the financial assets recorded at fair value included in investments on the condensed consolidated statement of financial condition was $220,422 as of December 31, 2021. Investments Held at Cost The Company made investments in the sponsors (collectively referred to herein as "Atlas Crest Sponsors") of several Atlas Crest Investment Corp. entities (each an "Atlas Crest Entity" and collectively referred to as "Atlas Crest Entities"), each a special purpose acquisition company ("SPAC"). The Company's Chief Executive Officer, Kenneth Moelis, is the managing member of the Atlas Crest Sponsors and serves as Non-Executive Chairman of the Atlas Crest Entities. The Company does not direct the activities of the Atlas Crest Sponsors or the related SPACs. Investments in the Atlas Crest Sponsors (discussed in the preceding section) that do not have readily determinable fair values are measured at cost less impairment and are included in investments on the condensed consolidated statements of financial condition. As of September 30, 2022, and December 31, 2021, the aggregate investment balances of the Atlas Crest Sponsors held at cost was $1,955 and $1,895, respectively. Equity Method Investments Equity-method investments are presented within investments on the Company’s condensed consolidated statements of financial condition. As of September 30, 2022 and December 31, 2021, the carrying value of the Company's equity method investment in MA Financial (formerly known as Moelis Australia Limited) was $46,206 and $43,825, respectively. The Company's share of earnings on this investment is recorded in other income and expenses on the condensed consolidated statements of operations. During the nine months ended September 30, 2022 and 2021, MA Financial declared dividends, of which the Company received $2,936 and $3,356, respectively. The Company accounted for the dividends as returns on investment and reduced the carrying value of the investment in MA Financial by the amount of dividends received. From time to time, MA Financial may issue shares in connection with a transaction or employee compensation which reduces the Company's ownership interest in MA Financial and can result in dilution gains or losses. Such gains or losses are recorded in other income and expenses on the condensed consolidated statements of operation.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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