v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 10. 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 March 31, 2025

 

 

As of December 31, 2024

 

 

 

 

 

 

Carrying Value

 

 

Fair Value

 

 

Carrying Value

 

 

Fair Value

 

Fair Value Level

 

Reference

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due from related party - Advisory Agreements

 

$

71,780

 

 

$

46,404

 

 

$

68,010

 

 

$

42,529

 

3

 

Note 12

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Debt Obligations

 

$

357,151

 

 

$

357,151

 

 

$

319,783

 

 

$

319,783

 

2

 

Note 11

As of March 31, 2025 and December 31, 2025, debt obligations' carrying value approximates fair value.

Earnouts associated with the acquisitions of Bonaccord

Included in total consideration of the acquisition of Bonaccord was an earnout payment not to exceed $20 million. The amount ultimately owed to the sellers is based on achieving specific fundraising targets and any amounts paid to the sellers was required to be paid by October 2027, at which point the earnout expires. Payments were made after each fund close. As of March 31, 2025, the full $20.0 million earnout payment had been earned and paid, of which $2.2 million was paid in the three months ended March 31, 2025. Total remeasurement expense recognized for both the three months ended March 31, 2025 and March 31, 2024 was $0. As of December 31, 2024, with all contingent consideration for the acquisition of Bonaccord considered fully earned, the liability transferred out of Level 3 fair value measurement as the liability is recorded at cost at the known payment amount. Until considered fully earned, the Company's contingent consideration was considered to be a Level 3 fair value measurement as the significant inputs are unobservable and require significant judgment or estimation. As of March 31, 2025, there were no remaining liabilities.

The changes in the fair value of Level III financial instruments are set forth below:

 

Contingent Consideration Liability

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

 

 

 

 

2025

 

 

2024

 

Balance, beginning of year:

 

 

 

 

 

$

-

 

 

$

6,693

 

Change in fair value

 

 

 

 

 

 

-

 

 

 

30

 

   Settlements

 

 

 

 

 

 

-

 

 

 

214

 

   Transfers out of level 3 measurement

 

 

 

 

 

 

-

 

 

 

-

 

Balance, end of period:

 

 

 

 

 

$

-

 

 

$

6,509

 

 

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 relate 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. Changes in the fair value of the liability are included in contingent consideration expense on the Consolidated Statements of Operations.