Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.24.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Equity Securities: Equity securities traded on a national securities exchange are stated at the last reported sales price as of the condensed consolidated balance sheet dates, September 30, 2024 and December 31, 2023. To the extent these equity securities are actively traded and valuation adjustments are not applied, they are classified as Level I.
Exchange traded funds: Valued using the market price of the fund as of the condensed consolidated balance sheet dates, September 30, 2024 and December 31, 2023. Exchange traded funds valued using quoted prices are classified within Level 1 of the fair value hierarchy.
Mutual funds: Valued at the number of shares of the underlying fund multiplied by the closing NAV per share quoted by that fund as of the condensed consolidated balance sheet dates, September 30, 2024 and December 31, 2023. The value of the specific funds the Company has invested in are validated with a sufficient level of observable activity to support classification of the fair value measurement as Level 1 in the fair value hierarchy.
Accrued performance allocations and partnership interests: The Company generally values its investments in accrued performance allocations and partnership interests using the NAV per share equivalent calculated by the investment manager as a practical expedient to determining a fair value. The Company does not categorize within the fair value hierarchy investments where fair value is measured using the NAV per share practical expedient.
Other investments: Investments are accounted for using the measurement alternative to measure at cost adjusted for any impairment and observable price changes. Unrealized gains or losses on other investments are included in unrealized gains (losses) on the condensed consolidated statements of operations.
General Partner Notes Payable: Valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determining an independent fair value.
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following table presents assets that are measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 (in thousands):
Level 1 Level 2 Level 3 Measured at
NAV		 Total
September 30, 2024
Assets:
Common shares in publicly traded company $ 73  $ —  $ —  $ —  $ 73 
Exchange traded funds 2,547  —  —  —  2,547 
Mutual funds 14,397  —  —  —  14,397 
Accrued performance allocations —  —  —  339,467  339,467 
Partnership interests —  —  —  171,238  171,238 
Other investments —  —  12,511  —  12,511 
Total assets at fair value $ 17,017  $ —  $ 12,511  $ 510,705  $ 540,233 
Liabilities:
General Partner Notes Payable $ —  $ —  $ —  $ 2,897  $ 2,897 
December 31, 2023
Assets:
Common shares in publicly traded company $ 135  $ —  $ —  $ —  $ 135 
Exchange traded funds 2,843  —  —  —  2,843 
Mutual funds 16,860  —  —  —  16,860 
Accrued performance allocations —  —  —  381,993  381,993 
Partnership interests —  —  —  191,635  191,635 
Other investments —  —  12,026  —  12,026 
Total assets at fair value $ 19,838  $ —  $ 12,026  $ 573,628  $ 605,492 
Liabilities:
General Partner Notes Payable $ —  $ —  $ —  $ 3,355  $ 3,355 
The following table presents a rollforward of Level 3 assets at cost adjusted for any impairment and observable price changes (in thousands):
Other
Investments
Balance as of December 31, 2023 $ 12,026 
Purchases 259 
Sales (1,559)
Net unrealized gains (losses) 1,785 
Balance as of September 30, 2024 $ 12,511 
Accrued performance allocations, investments in funds, and investments in limited partnership interests in third-party private funds are valued using NAV of the respective vehicle. The following table presents investments carried at fair value using NAV (in thousands):
Fair Value Unfunded
Commitments
September 30, 2024:
Accrued performance allocations $ 339,467  N/A
Partnership interests:
Company-sponsored open-end fund $ 29,147  $ — 
Company-sponsored closed-end funds 126,906  6,388 
Third-party closed-end funds 15,185  6,367 
Total partnership interests $ 171,238  $ 12,755 
 
December 31, 2023:
Accrued performance allocations $ 381,993  N/A
Partnership interests:
Company-sponsored open-end fund $ 46,530  $ — 
Company-sponsored closed-end funds 131,188  7,662 
Third-party closed-end funds 13,917  7,955 
Total partnership interests $ 191,635  $ 15,617 
The Company can redeem its investments in the Company-sponsored open-end funds with a 60-day notice. The Company’s interests in its closed-end funds are not subject to redemption, with distributions to be received through liquidation of underlying investments of the funds. The closed-end funds generally have eight- to ten-year terms, which may be extended in certain circumstances.
Fair Value Information of Financial Instruments Reported at Cost
The carrying values of cash, accounts receivable, due from and to affiliates, interest payable, and accounts payable approximate fair value due to their short-term nature and negligible credit risk.
The following table presents the carrying amounts and estimated fair values of financial instruments reported at amortized cost (in thousands):
Level 1 Level 2 Level 3 Total Carrying
Value
As of September 30, 2024:
Notes payable (private notes) $ —  $ —  $ 432,872  $ 432,872  $ 450,000 
As of December 31, 2023:
Notes payable (private notes) $ —  $ —  $ 423,263  $ 423,263  $ 450,000 
Fair values of the private notes were estimated by discounting expected future cash outlays at interest rates available to the Company for similar instruments. As of September 30, 2024, the discount rate range used in determining the fair value of the private notes was between 5.75% and 7.76%. An increase in market interest rates would decrease the estimated fair value of the private notes.