Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2018 and December 31, 2017 by fair value hierarchy level were as follows:

March 31, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	43,715	$	—	$	—	$	43,715
Marketable securities:
Sponsored funds	41,915		—		—		41,915
Equity securities	16,549		—		—		16,549
Sponsored closed-end funds	3,575		—		—		3,575
Other investments:
Investments in collateralized loan obligations	—		37,763		5,532		43,295
Nonqualified retirement plan assets	6,669		—		—		6,669
Total assets measured at fair value	$	112,423	$	37,763	$	5,532	$	155,718

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

As of March 31, 2018



	Level 1		Level 2		Level 3		Total
($ in thousands)
Assets
Cash equivalents	$	54,507	$	—	$	—	$	54,507
Debt investments	—		1,590,952		950		1,591,902
Equity investments	37,649		2,736		1,798		42,183
Total Assets Measured at Fair Value	$	92,156	$	1,593,688	$	2,748	$	1,688,592
Liabilities
Notes payable	$	—	$	1,460,177	$	—	$	1,460,177
Derivatives	—		—		—		—
Short sales	839		—		—		839
Total Liabilities Measured at Fair Value	$	839	$	1,460,177	$	—	$	1,461,016

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 March 31,
($ in thousands)	2018			2017
Level 3 Investments ^(a)
Balance at beginning of period	$	4,439		$	—
Acquired in period	1,326			—
Change in unrealized (loss), net	(233		)	—
Balance at end of period	$	5,532		$	—


^(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:



	Three Months Ended March 31,
($ in thousands)	2018			2017
Level 3 Debt and Equity securities ^(a)
Balance at beginning of period	$	34,781		$	25
Realized gains (losses), net	43			(65		)
Change in unrealized gains (losses), net	2,375			62
Purchases	7,122			100
Paydowns	—			(1		)
Amortization	19			—
Sales	(11,934		)	(36		)
Transfers to Level 2	(29,658		)	—
Transfers from Level 2	—			1,638
Balance at end of period	$	2,748		$	1,723


(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.