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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2026
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 11. Fair Value Measurements Financial Instruments not recognized at Fair Value The Company measures certain assets and liabilities at fair value on a recurring basis, which are discussed below. Our financial instruments not recognized at fair value were as follows:
|  | As of June 30, 2026 |  |  | As of December 31, 2025 |  |  |  |
|  | Carrying Value |  |  | Fair Value |  |  | Carrying Value |  |  | Fair Value |  | Fair Value Level |  | Reference
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due from related party - Advisory Agreements |  | $ | 89,897 |  |  | $ | 63,273 |  |  | $ | 83,900 |  |  | $ | 55,455 |  | 3 |  | Note 13
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt Obligations |  | $ | 490,771 |  |  | $ | 490,771 |  |  | $ | 373,204 |  |  | $ | 373,204 |  | 2 |  | Note 12
Earnouts associated with the acquisitions of Qualitas and Stellus On April 4, 2025, included in total consideration of the Qualitas acquisition was an earnout payment not to exceed €31.7 million. The amount ultimately owed to the sellers is based on the run-rate net revenue as of December 31, 2027 from newly launched Qualitas funds post acquisition. Any earnout payment will be paid no later than December 31, 2028 in a mix of cash and Class A common stock at the sellers' election, with no more than 65% payable in cash. As of June 30, 2026, no earnout payment has been earned or paid. The determined risk-adjusted discount rates for the contingent consideration of 8.8% and 13.5% were the significant unobservable inputs as of June 30, 2026 and December 31, 2025. Remeasurement of the contingent consideration resulted in $2.2 million of expense and $1.8 million of a gain recognized for the three and six months ended June 30, 2026, respectively. Total remeasurement expense recognized for the three and six months ended June 30, 2025 wa s $1.1 million. This is included in contingent consideration expense on the Consolidated Statements of Operations. On June 22, 2026, included in total consideration of the Stellus acquisition was an earnout payment not to exceed $60.0 million. The amount ultimately owed to the sellers is based on the fee-related revenue of Stellus for the years ending December 31, 2027, and December 31, 2029. Any earnout payment will be paid in a mix of cash and partnership units in Ridgepost Capital, LLC at the seller's election, with no more than 50% payable in cash. As of June 30, 2026, no earnout payment has been earned or paid. Total remeasurement expense recognized for both the three and six months ended June 30, 2026, was $0. Any remeasurement expense will be included in contingent consideration expense on the Consolidated Statements of Operations. Derivative instruments and hedging activities In September 2025, the Company entered into an interest rate collar agreement to hedge the variability in cash flows associated with its variable-rate borrowings under the Amended and Restated Credit Agreement (as defined below). The collar has a notional amount of $211.3 million, effective as of September 30, 2025, and a termination date of August 1, 2028. The collar references the 3-month United States Dollar ("USD") SOFR Chicago Mercantile Exchange ("CME") term rate ("USD-SOFR-CME"), with a cap strike rate of 4.25% and a floor strike rate of 2.31%. The Company records the effective portion of changes in the fair value of its cash flow hedges to other comprehensive income, net of tax, and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized. Any changes in fair value of hedges that are determined to be ineffective are immediately reclassified from accumulated other comprehensive income into earnings. For the three and six months ended June 30, 2026, the Company recorded an unrealized gain on interest rate derivatives, net of tax of $0.7 million and $0.9 million, respectively, which is included in other comprehensive income. For the three and six months ended June 30, 2025, the Company recorded an unrealized gain on interest rate derivatives, net of tax for $0, which is included in other comprehensive income. The Company estimates that an insignificant amount currently recorded in accumulated other comprehensive income will be recognized in earnings over the next 12 months. When derivatives are used, the Company is exposed to credit loss in the event of non-performance by the counterparties; non-performance risk is incorporated into the valuation of the hedges, but non-performance by any of our derivative counterparties is not anticipated. ASC 815 requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. The fair values of the interest rate derivatives are based on quoted market prices for similar instruments from commercial banks, which are significant observable inputs or Level 2 inputs. The amounts included in accumulated other comprehensive income will be reclassified to interest expense should the hedges no longer be considered effective. No amount of ineffectiveness was included in net income for the three and six months ended June 30, 2026 and 2025.The Company will continue to assess the effectiveness of the hedges on an ongoing basis. The following table presents all recurring items measured at fair value as of June 30, 2026.
|  | As of June 30, 2026 |
|  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | - |  |  | $ | 869 |  |  | $ | - |  |  | $ | 869 |
Total assets |  | $ | - |  |  | $ | 869 |  |  | $ | - |  |  | $ | 869 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration obligation |  | $ | - |  |  | $ | - |  |  | $ | 19,935 |  |  | $ | 19,935 |
Total liabilities |  | $ | - |  |  | $ | - |  |  | $ | 19,935 |  |  | $ | 19,935 |
For the liabilities and assets presented in the tables above, there were no changes in fair value hierarchy levels during the six months ended June 30, 2026. The following table presents all recurring items measured at fair value as of December 31, 2025:
|  | As of December 31, 2025 |
|  | Level I |  |  | Level II |  |  | Level III |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | - |  |  | $ | 74 |  |  | $ | - |  |  | $ | 74 |
Total assets |  | $ | - |  |  | $ | 74 |  |  | $ | - |  |  | $ | 74 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration obligation |  | $ | - |  |  | $ | - |  |  | $ | 15,599 |  |  | $ | 15,599 |
Total liabilities |  | $ | - |  |  | $ | - |  |  | $ | 15,599 |  |  | $ | 15,599 |
The changes in the fair value of Level III financial instruments are set forth below:
Contingent Consideration Liability |  |  |  |  |  | For the Six Months Ended June 30, |
|  |  |  |  |  | 2026 |  |  | 2025 |
Balance, beginning of year: |  |  |  |  |  | $ | 15,599 |  |  | $ | - |
Additions |  |  |  |  |  |  | 6,600 |  |  |  | 11,259 |
Change in fair value |  |  |  |  |  |  | (1,793 | ) |  |  | 1,109 |
Impact of exchange rate movements |  |  |  |  |  |  | (471 | ) |  |  | 758 |
Settlements |  |  |  |  |  |  | - |  |  |  | - |
Balance, end of period: |  |  |  |  |  | $ | 19,935 |  |  | $ | 13,126 |
Until transferred out of Level 3 fair value measurement, the fair value of the contingent consideration liability represents the fair value of future payments upon satisfaction of performance targets. The assumptions used in the analysis are inherently subjective; therefore, the ultimate amount of the contingent consideration liability primarily relates to the expected future payments of obligations with a discount rate applied. The contingent consideration liability is included in contingent consideration on the Consolidated Balance Sheets.

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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 -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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