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Fair Value Disclosures (Tables) | 12 Months Ended
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Dec. 31, 2024
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following is a summary categorization of the Company’s financial instruments based on the inputs utilized in determining the value of such financial instruments. Investments at fair value as of December 31, 2024, and December 31, 2023 are presented below:
| As of December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  |
(Dollars in Thousands) | Quoted Prices |  | Observable Inputs |  | Unobservable Inputs |  | Total
Assets: |  |  |  |  |  |  |
Mutual funds | $ | 105 |  |  | $ | — |  |  | $ | — |  |  | $ | 105 |
Exchange-traded funds and BDC funds | 118 |  |  | — |  |  | — |  |  | 118 |
Investments – External Strategic Managers (1) | — |  |  | — |  |  | 147,568 |  |  | 147,568 |
Investments – Affiliated Funds (2) | — |  |  | — |  |  | — |  |  | 883 |
Contingent consideration receivable | — |  |  | — |  |  | 1,389 |  |  | 1,389 |
Total | $ | 223 |  |  | $ | — |  |  | $ | 148,957 |  |  | $ | 150,063 |
Liabilities: |  |  |  |  |  |  |
Preferred stock tranche liability | $ | — |  |  | $ | — |  |  | $ | 3,940 |  |  | $ | 3,940 |
Earn-out liabilities | — |  |  | — |  |  | 64,639 |  |  | 64,639 |
TRA liability (3) | — |  |  | — |  |  | 9,378 |  |  | 9,378 |
Earn-in consideration payable | 932 |  |  | — |  |  | — |  |  | 932 |
Total | $ | 932 |  |  | $ | — |  |  | $ | 77,957 |  |  | $ | 78,889 |
(1) The fair value of certain investments within the Company’s Investments - External Strategic Managers are reported on a one-month lag from the fund financial statements due to timing of the information provided by the funds and third-party entities unless information is available on a timelier basis. As a result, any changes in the markets in which our managed funds operate, and the impact market conditions have on underlying asset valuations, may not yet be reflected in reported amounts. (2) Investments in Affiliated Funds are measured at fair value using the net asset value (or its equivalent) practical expedient. The Company’s investments in Affiliated Funds represent interests that do not trade in an active market and are valued using the NAV of each investment company as reported and without adjustment. The Company does not have any commitments to the Affiliated Funds and redemptions are permitted on a monthly basis and require 30 days’ notice. The strategies of the Affiliated Funds primarily focus on near-dated, hard catalyst events that typically involve hostile deals, proposals, minority interest buy-ins, leverage buyouts, activism, spin-offs, recapitalizations, and agreed upon deals. The investments held in the Affiliated Funds are primarily highly liquid and marketable securities. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statement of Financial Position. (3) The Company carries a portion of its TRA liability at fair value equal to the expected future payments under the TRA.
| As of December 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  |
(Dollars in Thousands) | Quoted Prices |  | Observable Inputs |  | Unobservable Inputs |  | Total
Assets: |  |  |  |  |  |  |
Mutual funds | $ | 75 |  |  | $ | — |  |  | $ | — |  |  | $ | 75 |
Exchange-traded funds | 108 |  |  | — |  |  | — |  |  | 108 |
Investments – External Strategic Managers | 7 |  |  | — |  |  | 164,077 |  |  | 164,084 |
Investments – Affiliated Funds (1) | — |  |  | — |  |  | — |  |  | 1,627 |
Total | $ | 190 |  |  | $ | — |  |  | $ | 164,077 |  |  | $ | 165,894 |
Liabilities: |  |  |  |  |  |  |
Earn-out liabilities | $ | — |  |  | $ | — |  |  | $ | 63,444 |  |  | $ | 63,444 |
TRA liability (2) | — |  |  | — |  |  | 13,233 |  |  | 13,233 |
Earn-in consideration payable | 1,830 |  |  | — |  |  | — |  |  | 1,830 |
Total | $ | 1,830 |  |  | $ | — |  |  | $ | 76,677 |  |  | $ | 78,507 |
(1) Investments in Affiliated Funds are measured at fair value using the net asset value (or its equivalent) practical expedient. The Company’s investments in Affiliated Funds represent interests that do not trade in an active market and are valued using the NAV of each investment company as reported and without adjustment. The Company does not have any commitments to the Affiliated Funds and redemptions are permitted on a monthly basis and require 30 days’ notice. The strategies of the Affiliated Funds primarily focus on near-dated, hard catalyst events that typically involve hostile deals, proposals, minority interest buy-ins, leverage buyouts, activism, spin-offs, recapitalizations, and agreed upon deals. The investments held in the Affiliated Funds are primarily highly liquid and marketable securities. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statement of Financial Position. (2) The Company carries a portion of its TRA liability at fair value based on the expected future payments under the TRA.
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table sets forth a summary of changes in the fair value of Level 3 measurements as of December 31, 2024 and December 31, 2023:
| Level 3 Liabilities as of December 31, 2024
(Dollars in Thousands) | TRA liability |  | Earn-out liability |  | AWMS earn-out liability |  | EEA earn-out liability |  | Envoi earn-out consideration liability |  | Envoi earn-out growth consideration liability |  |  |  |  |  |  |  | Preferred stock tranche liability |  | Total
Beginning balance | $ | 13,233 |  |  | $ | 62,380 |  |  | $ | 1,064 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  | $ | 76,677 |
Issuances | — |  |  | — |  |  | — |  |  | 23,308 |  |  | 7,980 |  |  | 1,020 |  |  |  |  |  |  |  |  | 4,540 |  |  | 36,848 |
Settlements | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  | — |  |  | — |
Net (gains) losses | (3,855) |  |  | (38,532) |  |  | 39 |  |  | 6,563 |  |  | 1,620 |  |  | 300 |  |  |  |  |  |  |  |  | (600) |  |  | (34,465) |
Transfers out of Level 3 | $ | — |  |  | $ | — |  |  | (1,103) |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  | $ | — |  |  | $ | (1,103) |
Ending balance | $ | 9,378 |  |  | $ | 23,848 |  |  | $ | — |  |  | $ | 29,871 |  |  | $ | 9,600 |  |  | $ | 1,320 |  |  |  |  |  |  |  |  | $ | 3,940 |  |  | $ | 77,957 |
| Level 3 Liabilities as of December 31, 2023
(Dollars in Thousands) | TRA Liability |  | Earn-out Liability |  | AWMS earn-out liability |  | Earn-in consideration payable |  | Total
Beginning balance | $ | 13,000 |  |  | $ | 91,761 |  |  | $ | — |  |  | $ | 1,519 |  |  | $ | 106,280 |
Issuances | — |  |  | — |  |  | 2,721 |  |  | — |  |  | 2,721 |
Settlements | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net (gains) losses | 233 |  |  | (29,381) |  |  | (1,657) |  |  | 311 |  |  | (30,494) |
Transfers out of Level 3 | $ | — |  |  | $ | — |  |  | — |  |  | $ | (1,830) |  |  | $ | (1,830) |
Ending balance | $ | 13,233 |  |  | $ | 62,380 |  |  | $ | 1,064 |  |  | $ | — |  |  | $ | 76,677 |
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
| Level 3 Assets as of December 31, 2024
(Dollars in Thousands) | Investments – External Strategic Managers |  | Contingent Consideration Receivable |  | Total
Beginning balance | $ | 164,077 |  |  | $ | — |  |  | $ | 164,077 |
Realized and Unrealized Gains (Losses) | (16,509) |  |  | (546) |  |  | (17,055) |
Purchases | — |  |  | 1,935 |  |  | 1,935 |
Ending balance | $ | 147,568 |  |  | $ | 1,389 |  |  | $ | 148,957 |
| Level 3 Assets as of December 31, 2023
(Dollars in Thousands) | Investments – External Strategic Managers |  |  |  | Total
Beginning balance | $ | 146,130 |  |  |  |  | $ | 146,130 |
Realized and Unrealized Gains (Losses) | $ | 2,580 |  |  |  |  | $ | 2,580 |
Purchases | $ | 15,367 |  |  |  |  | $ | 15,367 |
Ending balance | $ | 164,077 |  |  |  |  | $ | 164,077 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques |
(Dollars in Thousands) | Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Ranges |  | Impact to Valuation from an Increase in Input
Level 3 Assets: |  |  |  |  |  |  |  |  |
Investments – External Strategic Managers | $ | 147,568 |  |  | Discounted Cash Flow |  | Discount rate |  | 18.0% -33% |  | Lower
|  |  |  |  | Long-term growth rate |  | 4.0 | % |  | Higher
Contingent consideration receivable | $ | 1,389 |  |  | Monte Carlo |  | Risk-free rate |  | 4.2 | % |  | Higher
|  |  |  |  | Volatility |  | 26.5 | % |  | Lower
|  |  |  |  | Credit spread |  | 0.8 | % |  | Lower
Level 3 Liabilities: |  |  |  |  |  |  |  |  |
TRA liability | $ | 9,378 |  |  | Monte Carlo |  | Volatility |  | 55.0 | % |  | Lower
|  |  |  |  | Correlation |  | 22.5 | % |  | Higher
|  |  |  |  | Cost of debt range |  | 10.2% - 10.9% |  | Lower
|  |  |  |  | Equity risk premium |  | 6.1% - 13.2% |  | Lower
Business Combination earn-out liability | $ | 23,848 |  |  | Monte Carlo |  | Volatility |  | 70.0 | % |  | Higher
|  |  |  |  | Risk-free rate |  | 4.3 | % |  | Higher
EEA earn-out liability | $ | 29,871 |  |  | Discounted Cash Flow |  | EBITDA Discount Rate |  | 16.3 | % |  | Lower
|  |  |  |  | Risk-free rate |  | 4.3 | % |  | Lower
|  |  |  |  | Credit spread |  | 7.9 | % |  | Lower
Envoi earn-out consideration liability | $ | 9,600 |  |  | Discounted Cash Flow |  | Growth rate |  | 10.9 | % |  | Higher
|  |  |  |  | Revenue risk-adjusted discount rate |  | 12.5 | % |  | Lower
|  |  |  |  | Risk-free rate |  | 4.2 | % |  | Lower
|  |  |  |  | Credit spread |  | 7.7 | % |  | Lower
Envoi earn-out growth consideration liability | $ | 1,320 |  |  | Monte Carlo |  | Metric volatility |  | 33.0 | % |  | Lower
|  |  |  |  | Risk-free rate |  | 4.3 | % |  | Lower
|  |  |  |  | Revenue discount rate |  | 12.5 | % |  | Lower
|  |  |  |  | Credit Risk Adjusted Discount Rate |  | 11.9 | % |  | Lower
Preferred stock tranche liability | $ | 3,940 |  |  | Binomial lattice model |  | Volatility |  | 50.0 | % |  | Higher
|  |  |  |  | Probability of option exercise |  | 50.0 | % |  | Higher
|  |  |  |  | Risk-free rate |  | 4.8 | % |  | Lower
|  |  |  |  | Credit spread |  | 7.9 | % |  | Lower
Valuation Methodologies for Fair Value Measurements Categorized within Level 3 as of December 31, 2023
(Dollars in Thousands) | Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Ranges |  | Impact to Valuation from an Increase in Input |  |
Level 3 Assets: |  |  |  |  |  |  |  |  |  |  |
Investments – External Strategic Managers | $ | 164,077 |  |  | Discounted Cash Flow |  | Discount rate |  | 21.5% -29.0% |  | Lower |  |
|  |  |  |  | Long-term growth rate |  | 4.0 | % |  | Higher |  |
Level 3 Liabilities: |  |  |  |  |  |  |  |  |  |  |
TRA liability | $ | 13,233 |  |  | Monte Carlo |  | Volatility |  | 40.0 | % |  | Lower |  |
|  |  |  |  | Correlation |  | 20.0 | % |  | Higher |  |
|  |  |  |  | Cost of debt range |  | 4.1% - 5.1% |  | Lower |  |
|  |  |  |  | Equity risk premium |  | 7.4% - 13.1% |  | Lower |  |
Business Combination earn-out liability | $ | 62,380 |  |  | Monte Carlo |  | Volatility |  | 40.0 | % |  | Higher |  |
|  |  |  |  | Risk-free rate |  | 3.9 | % |  | Higher |  |
AWMS earn-out liability | $ | 1,064 |  |  | Monte Carlo |  | Revenue Volatility |  | 14.0 | % |  | Higher |  |
|  |  |  |  | Risk-free rate |  | 1.1 | % |  | Higher |  |
|  |  |  |  | Revenue Discount Rate |  | 3.5 | % |  | Lower |  |
|  |  |  |  | Liability Discount Rate |  | 5.6 | % |  | Lower |  |
|  |  |  |  | Deferred Payment Liability Discount Rate |  | 5.3 | % |  | Lower |  |

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 103 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-103 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: 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 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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