v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of CIP discussed in Note 15, as of March 31, 2026 and December 31, 2025 by fair value hierarchy level were as follows:
March 31, 2026  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$99,963 $— $— $99,963 
Investment securities - fair value
Sponsored funds29,130 — — 29,130 
Equity securities21,449 — — 21,449 
Debt securities— 2,881 — 2,881 
Nonqualified retirement plan assets27,556 — — 27,556 
Total assets measured at fair value$178,098 $2,881 $— $180,979 
Liabilities
Contingent consideration$— $— $118,344 $118,344 
Total liabilities measured at fair value$— $— $118,344 $118,344 
December 31, 2025  
(in thousands)Level 1Level 2Level 3Total
Assets
Cash equivalents$340,276 $— $— $340,276 
Investment securities - fair value
Sponsored funds51,013 — — 51,013 
Equity securities22,903 — — 22,903 
Debt securities— 2,546 — 2,546 
Nonqualified retirement plan assets20,090 — — 20,090 
Total assets measured at fair value$434,282 $2,546 $— $436,828 
Liabilities
Contingent consideration$— $— $20,800 $20,800 
Total liabilities measured at fair value$— $— $20,800 $20,800 
The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value.

Cash equivalents represent investments in money market funds. Cash investments in money market funds are valued using published net asset values and are classified as Level 1.

Sponsored funds represent investments in funds for which the Company acts as the investment manager. The fair values of U.S. retail funds and global funds are determined based on their published net asset values and are categorized as Level 1. The fair values of closed-end funds and ETFs are determined based on the official closing price on the exchange on which they are traded and are categorized as Level 1.

Equity securities represent securities traded on active markets, are valued at the official closing price (typically the last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1.

Debt securities represent investments in corporate and government bonds. The fair values of corporate and government bonds traded on active markets, are valued at the official closing price on the exchange on which the securities are primarily traded and are categorized as Level 1. Debt securities for which closing prices are not readily available or are deemed to not reflect readily available market prices, and are valued using an independent pricing service, are categorized as Level 2.
Nonqualified retirement plan assets represent U.S. retail funds within the Company's nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1.

Contingent consideration represents liabilities associated with contingent payment arrangements made in connection with the Company's business combinations. In these contingent payment arrangements, the Company agrees to pay additional transaction consideration to the seller based on future performance and/or the passage of time. Contingent consideration is remeasured at fair value each reporting date using a simulation model or an income approach valuation technique with the assistance of an independent valuation firm, and approved by management, and are categorized as Level 3.

The following table presents a reconciliation of beginning and ending balances of the Company's contingent consideration liabilities:
Three Months Ended
March 31,
(in thousands)20262025
Liabilities
Contingent consideration, beginning of period$20,800 $36,100 
Additions for acquisition109,420 — 
Reduction for payments made(12,285)(13,086)
Increase (reduction) of liability related to re-measurement of fair value409 — 
Contingent consideration, end of period$118,344 $23,014 
The contingent consideration liability as of March 31, 2026 was comprised of the following:

▪Keystone Acquisition liability as of March 31, 2026 was $109.8 million, measured using an options pricing model and discounted cash flow valuation technique. The most significant unobservable inputs used relate to the discount rates (range of 5.94% - 6.05%) and the market price of risk adjustment (5.50%).
▪NFJ Group transaction liability as of March 31, 2026 was $8.5 million measured using an options pricing model valuation technique. The most significant unobservable inputs used relate to the revenue growth rates, discount rates (range of 5.43% - 5.53%) and the market price of risk adjustment (5.80%).

Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.