Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2026

Valuation of Financial Instruments by Pricing Observability Levels

The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in FASB Accounting Standards Codification Topic 820, "Fair Value Measurement" ("ASC 820") as of June 30, 2026:


							Counterparty
							and Cash
							Collateral
(Amounts in thousands)	Level I		Level II		Level III		Netting (1)		Total
Assets
Financial instruments and other inventory positions owned:
Corporate securities:
Convertible securities	$	—	$	147,513	$	—	$	—	$	147,513

Fixed income securities	—		9,677		—		—		9,677
Municipal securities:
Taxable securities	—		26,132		—		—		26,132
Tax-exempt securities	—		126,827		—		—		126,827
Short-term securities	—		39,095		—		—		39,095
Asset-backed securities	—		133,356		—		—		133,356
U.S. government agency securities	—		63,341		—		—		63,341
U.S. government securities	6,763		—		—		—		6,763
Derivative contracts	—		4,894		4,056		(3,570)		5,380
Total financial instruments and other inventory positions owned	6,763		550,835		4,056		(3,570)		558,084

Cash equivalents	270,026		—		—		—		270,026
Investments at fair value (2)	90,131		—		195,756		—		285,887
Total assets	$	366,920	$	550,835	$	199,812	$	(3,570)	$	1,113,997

Liabilities
Financial instruments and other inventory positions sold, but not yet purchased:
Corporate securities:
Equity securities	$	56,262	$	—	$	—	$	—	$	56,262
Fixed income securities	—		2,481		—		—		2,481


U.S. government securities	20,177		—		—		—		20,177
Derivative contracts	—		3,394		4,461		(6,230)		1,625
Total financial instruments and other inventory positions sold, but not yet purchased	$	76,439	$	5,875	$	4,461	$	(6,230)	$	80,545

(1)Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties.

(2)Includes noncontrolling interests of $195.0 million attributable to unrelated third-party ownership in consolidated alternative asset management funds, of which $154.4 million is classified as Level III.

At June 30, 2026, the Company's Level I investments at fair value included $18.6 million of equity securities subject to contractual sale restrictions, of which $15.8 million will expire in the fourth quarter of 2026 and $2.8 million will expire in the first quarter of 2027.

The following table summarizes the valuation of the Company's financial instruments by pricing observability levels defined in ASC 820 as of December 31, 2025:


							Counterparty
							and Cash
							Collateral
(Amounts in thousands)	Level I		Level II		Level III		Netting (1)		Total
Assets
Financial instruments and other inventory positions owned:
Corporate securities:
Convertible securities	$	—	$	140,306	$	—	$	—	$	140,306

Fixed income securities	—		2,831		—		—		2,831
Municipal securities:
Taxable securities	—		33,021		—		—		33,021
Tax-exempt securities	—		125,419		—		—		125,419
Short-term securities	—		19,531		—		—		19,531
Asset-backed securities	—		92,472		—		—		92,472
U.S. government agency securities	—		82,666		—		—		82,666
U.S. government securities	201		—		—		—		201
Derivative contracts	—		5,744		2,352		(2,273)		5,823
Total financial instruments and other inventory positions owned	201		501,990		2,352		(2,273)		502,270

Cash equivalents	717,600		—		—		—		717,600
Investments at fair value (2)	87,507		—		217,966		—		305,473
Total assets	$	805,308	$	501,990	$	220,318	$	(2,273)	$	1,525,343

Liabilities
Financial instruments and other inventory positions sold, but not yet purchased:
Corporate securities:

Fixed income securities	$	—	$	3,300	$	—	$	—	$	3,300


U.S. government securities	43,403		—		—		—		43,403
Derivative contracts	—		4,039		6,534		(8,762)		1,811
Total financial instruments and other inventory positions sold, but not yet purchased	$	43,403	$	7,339	$	6,534	$	(8,762)	$	48,514

(1)Represents cash collateral and the impact of netting on a counterparty basis. The Company had no securities posted as collateral to its counterparties.

(2)Includes noncontrolling interests of $216.8 million attributable to unrelated third-party ownership in consolidated alternative asset management funds, of which $171.8 million is classified as Level III.

Changes in Fair Value Associated with Level III Financial Instruments

The following tables summarize the changes in fair value associated with Level III financial instruments held at the beginning or end of the periods presented:


	Level III
	Assets				Liabilities
(Amounts in thousands)	Derivative Contracts		Investments at Fair Value		Derivative Contracts
Balance at March 31, 2026	$	4,488	$	212,376	$	5,246
Purchases	—		6,062		—
Sales	—		(6,959)		—
Settlements	(1,086)		—		(3,589)
Transfers in (1)	—		—		—
Transfers out (2)	—		(7,349)		—
Total realized and unrealized gains/(losses)	654		(8,374)		2,804
Balance at June 30, 2026	$	4,056	$	195,756	$	4,461

Balance at March 31, 2025	$	4,356	$	166,264	$	2,278
Purchases	—		23,001		—
Sales	—		—		—
Settlements	(1,403)		—		(1,553)
Transfers in (1)	—		—		—
Transfers out (2)	—		—		—
Total realized and unrealized gains/(losses)	2,570		(4,063)		3,645
Balance at June 30, 2025	$	5,523	$	185,202	$	4,370

Unrealized gains/(losses) for assets/liabilities held at:
June 30, 2026	$	2,504	$	(12,034)	$	3,627
June 30, 2025	$	2,125	$	(4,063)	$	3,109

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	Level III
	Assets				Liabilities
(Amounts in thousands)	Derivative Contracts		Investments at Fair Value		Derivative Contracts
Balance at December 31, 2025	$	2,352	$	217,966	$	6,534
Purchases	—		7,345		—
Sales	—		(13,238)		—
Settlements	(1,780)		—		(6,071)
Transfers in (1)	—		—		—
Transfers out (2)	—		(7,349)		—
Total realized and unrealized gains/(losses)	3,484		(8,968)		3,998
Balance at June 30, 2026	$	4,056	$	195,756	$	4,461

Balance at December 31, 2024	$	1,819	$	176,970	$	991
Purchases	—		34,487		—
Sales	—		—		—
Settlements	(1,330)		—		(1,385)
Transfers in (1)	—		—		—
Transfers out (2)	—		(8,182)		—
Total realized and unrealized gains/(losses)	5,034		(18,073)		4,764
Balance at June 30, 2025	$	5,523	$	185,202	$	4,370

Unrealized gains/(losses) for assets/liabilities held at:
June 30, 2026	$	3,984	$	(16,455)	$	3,546
June 30, 2025	$	4,532	$	(18,073)	$	4,016

(1)Transfers into Level III are primarily due to observable inputs becoming unobservable.

(2)Transfers out of Level III are primarily due to unobservable inputs becoming observable.

Information about Significant Unobservable Inputs used in Fair Value Measurement

The following table summarizes quantitative information about the significant unobservable inputs used in the fair value measurement of the Company's Level III financial instruments as of June 30, 2026:

Valuation

Weighted

Technique

Unobservable Input

Range

Average (1)

Assets

Derivative contracts

Discounted cash flow

Premium over the MMD curve in basis points ("bps") (3)

0 - 28 bps

10.8 bps

Investments at fair value (2)

Market approach

Revenue multiple (3)

3 - 10 times

7.1 times

EBITDA multiple (3)

10 - 19 times

14.8 times

Equity value as multiple of independent financing value (3)

1 - 2 times

1.8 times

Discounted cash flow

Discount rate (4)

15 - 25%

22.0%

Liabilities

Derivative contracts

Discounted cash flow

Premium over the MMD curve in bps (4)

0.7 - 36 bps

16.5 bps

(1)Unobservable inputs were weighted by the relative fair value of the financial instruments.

(2)As of June 30, 2026, the Company had $195.8 million of Level III investments at fair value, of which $62.2 million was valued based on a recent round of independent financing.

(3)There is uncertainty in the determination of fair value. Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly higher/(lower) fair value measurement.

(4)There is uncertainty in the determination of fair value. Significant increase/(decrease) in the unobservable input in isolation would have resulted in a significantly lower/(higher) fair value measurement.