Quarterly report [Sections 13 or 15(d)]

FAIR VALUE MEASUREMENTS

v3.25.2
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2025
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, June 30, 2025 and December 31, 2024. 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, June 30, 2025 and December 31, 2024. 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, June 30, 2025 and December 31, 2024. 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 June 30, 2025 and December 31, 2024 (in thousands):
Level 1 Level 2 Level 3 Measured at
NAV		 Total
June 30, 2025
Assets:
Common shares in publicly traded company $ 51  $ —  $ —  $ —  $ 51 
Exchange traded funds 1,440  —  —  —  1,440 
Mutual funds 13,187  —  —  —  13,187 
Accrued performance allocations —  —  —  328,616  328,616 
Partnership interests —  —  —  161,354  161,354 
Other investments —  —  13,403  —  13,403 
Total assets at fair value $ 14,678  $ —  $ 13,403  $ 489,970  $ 518,051 
Liabilities:
General Partner Notes Payable $ —  $ —  $ —  $ 2,222  $ 2,222 
December 31, 2024
Assets:
Common shares in publicly traded company $ 73  $ —  $ —  $ —  $ 73 
Exchange traded funds 3,157  —  —  —  3,157 
Mutual funds 17,889  —  —  —  17,889 
Accrued performance allocations —  —  —  339,560  339,560 
Partnership interests —  —  —  168,545  168,545 
Other investments —  —  12,615  —  12,615 
Total assets at fair value $ 21,119  $ —  $ 12,615  $ 508,105  $ 541,839 
Liabilities:
General Partner Notes Payable $ —  $ —  $ —  $ 2,782  $ 2,782 
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, 2024 $ 12,615 
Purchases 774 
Net unrealized gains 14 
Balance as of June 30, 2025 $ 13,403 
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
June 30, 2025:
Accrued performance allocations $ 328,616  N/A
Partnership interests:
Company-sponsored open-end fund $ 27,980  $ — 
Company-sponsored closed-end funds 117,242  7,672 
Third-party closed-end funds 16,132  6,208 
Total partnership interests $ 161,354  $ 13,880 
 
December 31, 2024:
Accrued performance allocations $ 339,560  N/A
Partnership interests:
Company-sponsored open-end fund $ 29,147  $ — 
Company-sponsored closed-end funds 124,034  9,994 
Third-party closed-end funds 15,364  6,257 
Total partnership interests $ 168,545  $ 16,251 
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 June 30, 2025:
Notes payable (private notes) $ —  $ —  $ 432,326  $ 432,326  $ 450,000 
As of December 31, 2024:
Notes payable (private notes) $ —  $ —  $ 418,347  $ 418,347  $ 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 June 30, 2025, the discount rate range used in determining the fair value of the private notes was between 6.02% and 7.91%. An increase in market interest rates would decrease the estimated fair value of the private notes.