Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | ASSETMARK FINANCIAL HOLDINGS, INC. | ||
Entity Central Index Key | 0001591587 | ||
Entity File Number | 001-38980 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 30-0774039 | ||
Entity Address, Address Line One | 1655 Grant Street | ||
Entity Address, Address Line Two | 10th Floor | ||
Entity Address, City or Town | Concord | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94520 | ||
City Area Code | 925 | ||
Local Phone Number | 521-2200 | ||
Title of 12(b) Security | Common stock, par value $0.001 per share | ||
Trading Symbol | AMK | ||
Security Exchange Name | NYSE | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 72,459,255 | ||
Entity Public Float | $ 0.5 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference : Certain information required in response to Item 5 of Part II of Form 10-K and Part III of Form 10-K is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2021. The Proxy Statement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended December 31, 2020. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 70,619 | $ 96,341 |
Restricted cash | 11,000 | 9,000 |
Investments, at fair value | 10,577 | 7,275 |
Fees and other receivables, net | 8,891 | 9,679 |
Income tax receivable, net | 8,596 | 3,994 |
Prepaid expenses and other current assets | 13,637 | 6,565 |
Total current assets | 123,320 | 132,854 |
Property, plant and equipment, net | 7,388 | 7,067 |
Capitalized software, net | 68,835 | 69,814 |
Other intangible assets, net | 655,736 | 651,915 |
Operating lease right-of-use assets | 27,496 | |
Goodwill | 338,848 | 327,310 |
Other assets | 1,965 | |
Total assets | 1,223,588 | 1,188,960 |
Current liabilities: | ||
Accounts payable | 2,199 | 967 |
Accrued liabilities and other current liabilities | 43,694 | 40,610 |
Total current liabilities | 45,893 | 41,577 |
Long-term debt, net | 75,000 | 121,692 |
Other long-term liabilities | 16,302 | 16,440 |
Long-term portion of operating lease liabilities | 31,820 | |
Deferred income tax liabilities, net | 149,500 | 150,390 |
Total long-term liabilities | 272,622 | 288,522 |
Total liabilities | 318,515 | 330,099 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (675,000,000 shares authorized and 72,459,255 and 72,390,080 shares issued and outstanding as of December 31, 2020 and 2019, respectively) | 72 | 72 |
Additional paid-in capital | 850,430 | 796,406 |
Retained earnings | 54,571 | 62,383 |
Total stockholders' equity | 905,073 | 858,861 |
Total liabilities and stockholders' equity | $ 1,223,588 | $ 1,188,960 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 05, 2019 |
Statement Of Financial Position [Abstract] | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 675,000,000 | 675,000,000 | 675,000,000 |
Common stock, shares issued | 72,459,255 | 72,390,080 | |
Common stock, shares outstanding | 72,459,255 | 72,390,080 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Total revenue | $ 432,079 | $ 417,936 | $ 363,634 |
Operating expenses: | |||
Asset-based expenses | 132,695 | 125,985 | 116,763 |
Spread-based expenses | 2,703 | 5,014 | 1,671 |
Employee compensation | 176,483 | 154,999 | 107,091 |
General and operating expenses | 62,466 | 58,028 | 45,383 |
Professional fees | 15,100 | 14,084 | 10,139 |
Depreciation and amortization | 35,126 | 30,356 | 26,104 |
Total operating expenses | 424,573 | 388,466 | 307,151 |
Interest expense | 5,588 | 12,269 | 1,920 |
Other expenses, net | 1,687 | 2,296 | |
Income before income taxes | 231 | 14,905 | 54,563 |
Provision for income taxes | 8,043 | 15,325 | 17,137 |
Net income (loss) | (7,812) | (420) | 37,426 |
Unrealized gain (loss) on investments, net of tax | (5) | ||
Net comprehensive income (loss) | $ (7,812) | $ (420) | $ 37,421 |
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ (0.12) | $ (0.01) | $ 0.57 |
Diluted | $ (0.12) | $ (0.01) | $ 0.57 |
Weighted average number of common shares outstanding, basic | 67,361,995 | 66,298,553 | 66,150,000 |
Weighted average number of common shares outstanding, diluted | 67,361,995 | 66,298,553 | 66,150,000 |
Asset Based Revenue | |||
Revenue: | |||
Total revenue | $ 412,023 | $ 377,718 | $ 338,031 |
Spread Based Revenue | |||
Revenue: | |||
Total revenue | 16,618 | 34,586 | 20,403 |
Other Revenue | |||
Revenue: | |||
Total revenue | $ 3,438 | $ 5,632 | $ 5,200 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2017 | $ 885,958 | $ 66 | $ 784,464 | $ 101,420 | $ 8 |
Beginning balance, shares at Dec. 31, 2017 | 66,150,000 | ||||
Net income (loss) | 37,426 | 37,426 | |||
Other comprehensive income (loss) | (5) | (5) | |||
Share-based employee compensation | 6,568 | 6,568 | |||
Capital contribution | 2,910 | 2,910 | |||
Return of capital | (158,846) | (158,846) | |||
Dividends | (75,000) | (75,000) | |||
Ending balance at Dec. 31, 2018 | 699,011 | $ 66 | 635,096 | 63,846 | 3 |
Ending balance, shares at Dec. 31, 2018 | 66,150,000 | ||||
Net income (loss) | (420) | (420) | |||
2018 dividend reclassification | 1,046 | (1,046) | |||
Initial public offering proceeds, net | 124,068 | $ 6 | 124,062 | ||
Initial public offering proceeds, net, shares | 6,250,000 | ||||
Cancellation of unvested restricted stock awards, shares | (9,920) | ||||
Other comprehensive income (loss) | 3 | $ (3) | |||
Share-based employee compensation | 36,202 | 36,202 | |||
Ending balance at Dec. 31, 2019 | 858,861 | $ 72 | 796,406 | 62,383 | |
Ending balance, shares at Dec. 31, 2019 | 72,390,080 | ||||
Net income (loss) | (7,812) | (7,812) | |||
Share-based employee compensation | 53,837 | 53,837 | |||
Exercise of stock options | 187 | 187 | |||
Exercise of stock options, shares | 8,504 | ||||
Issuance of common stock - vesting of restricted stock units, shares | 60,671 | ||||
Ending balance at Dec. 31, 2020 | $ 905,073 | $ 72 | $ 850,430 | $ 54,571 | |
Ending balance, shares at Dec. 31, 2020 | 72,459,255 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (7,812) | $ (420) | $ 37,426 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 35,126 | 30,356 | 26,104 |
Interest | 606 | 525 | |
Deferred income taxes | (706) | 1,497 | 1,736 |
Share-based compensation | 53,837 | 36,202 | 6,568 |
Debt acquisition cost write-down | 1,729 | 2,296 | |
Impairment of operating lease right-of-use assets and property, plant, and equipment | 2,520 | ||
Changes in certain assets and liabilities: | |||
Fees and other receivables, net | 1,525 | (726) | (1,449) |
Receivables from related party | (143) | (130) | |
Prepaid expenses and other current assets | 2,401 | (1,852) | (1,024) |
Accounts payable, accrued liabilities and other liabilities | (7,534) | (9,719) | (4,167) |
Income tax receivable, net | (4,602) | (3,076) | (3,402) |
Net cash provided by operating activities | 76,947 | 55,083 | 61,662 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of Global Financial Private Capital, LLC | (35,906) | ||
Purchase of WBI OBS Financial, Inc., net of cash received | (18,561) | ||
Purchase of investments | (2,384) | (1,594) | (300) |
Sale of investments | 40 | 82 | |
Purchase of property and equipment | (2,901) | (1,882) | (2,034) |
Purchase of computer software | (26,164) | (20,614) | (15,380) |
Net cash used in investing activities | (49,970) | (59,914) | (17,714) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options | 187 | ||
Initial public offering proceeds | 124,068 | ||
Payments on long-term debt | (123,750) | (126,250) | |
Proceeds from credit facility draw down | 73,019 | ||
Payment of credit facility issuance costs | (155) | ||
Capital distributions | (158,846) | ||
Dividends paid | (75,000) | ||
Proceeds from issuance of long-term debt | 245,105 | ||
Net cash (used in) provided by financing activities | (50,699) | (2,182) | 11,259 |
Net change in cash, cash equivalents, and restricted cash | (23,722) | (7,013) | 55,207 |
Cash, cash equivalents, and restricted cash at beginning of period | 105,341 | 112,354 | 57,147 |
Cash, cash equivalents, and restricted cash at end of period | 81,619 | 105,341 | 112,354 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid | 13,456 | 16,116 | 19,497 |
Interest paid | 4,969 | $ 11,728 | $ 1,258 |
Non-cash operating activities: | |||
Non-cash changes to right-of-use assets | 38,796 | ||
Non-cash changes to lease liabilities | $ 40,140 |
Overview
Overview | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview | Note 1. Overview Organization and Nature of Business These consolidated financial statements include AssetMark Financial Holdings, Inc. and its subsidiaries, which include AssetMark Financial, Inc., which is the parent company of AssetMark, Inc., AssetMark Trust Company, AssetMark Brokerage, LLC, AssetMark Retirement Services, Inc., Global Financial Private Capital, Inc., Global Financial Advisory, LLC, WBI OBS Financial, Inc., OBS Holdings, Inc. and OBS Financial Services, Inc. (collectively, the “Company”). The Company’s legal entity structure as of December 31, 2020 was as follows: The Company offers a broad array of wealth management solutions to individual investors through financial advisers by providing an open-architecture product platform along with tailored client advice, asset allocation options, practice management, support services and technology to the financial adviser channel. AssetMark, Inc. (“AMI”) is a registered investment advisory firm located in Concord, California and was incorporated under the laws of the State of California on May 13, 1999. AMI offers a broad array of wealth management solutions to individual investors through financial advisers by providing an open‑architecture product platform along with tailored client advice, asset allocation options, practice management, support services and technology to the financial adviser channel. AMI serves as investment adviser to the Company’s proprietary GuideMark Funds, GuidePath Funds and the Savos Dynamic Hedging Fund , each of which is a mutual fund offered to clients of financial advisers. AssetMark Trust Company (“AssetMark Trust”) is a licensed trust company incorporated under the laws of the State of Arizona on August 24, 1994 and regulated by the Arizona Department of Insurance and Financial Institutions. AssetMark Trust provides custodial recordkeeping services primarily to investor clients of registered investment advisers (including AMI) located throughout the United States. AssetMark Brokerage, LLC (“AMB”) is a limited-purpose broker-dealer located in Concord, California and was incorporated under the laws of the State of Delaware on September 25, 2013. AMB’s primary function is to distribute the mutual funds of the Company and to sponsor the FINRA licensing of those AssetMark associates who provide distribution support through promotion of the AssetMark programs and strategies that employ the Company’s mutual funds. AssetMark Retirement Services, Inc. (“ARS”), formerly known as Aris Corporation of America, was incorporated under the laws of the State of Pennsylvania on April 30, 1974. ARS serves as the record-keeper and third-party administrator for the Aris Retirement product, which are 401(k) or 403(b) investment offerings utilized by small businesses. Global Financial Private Capital, Inc. (“GFPC”), formerly known as Global Financial Private Capital, LLC and renamed effective July 12, 2019, is a registered investment adviser that was incorporated under the laws of the State of Florida on June 7, 2004. GFPC provides a broad suite of integrated wealth management services for institutional and individual investors. Global Financial Advisory, LLC (“GFA”) is an insurance services company that was incorporated under the laws of the State of Delaware on June 30, 2016. GFA provides insurance services on an intermediary basis and is not a policy writer. WBI OBS Financial, Inc. (“OBL”), formerly known as WBI OBS Financial, LLC and renamed effective June 11, 2020, is a corporation that was incorporated under the laws of the State of Ohio on October 6, 2011. OBL is a holding company whose only assets are the share of common stock of OBS Holdings, Inc. (“OBF”). OBF is a corporation that was incorporated under the laws of the State of Ohio on April 14, 2000. OBF is a holding company whose only assets are the shares of common stock of OBS Financial Services, Inc. (“OBS”). OBS is a registered investment adviser that was incorporated under the laws of the State of Delaware on November 2, 2005. OBS provides a broad suite of integrated wealth management services for institutional and individual investors. See Note 4 for additional details on the acquisition completed February 29, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Certain prior year amounts in the Company’s Consolidated Statements of Comprehensive Income have been reclassified to conform to current year presentation. Specifically, amounts related to debt modification expense that were previously classified in general and operating expenses were reclassified to other expenses. There was no change to consolidated total revenue, net income or cash flows as a result of this change in classification. Risks and Uncertainties The COVID-19 pandemic continues to rapidly evolve and has adversely impacted global commercial activities. Management expects COVID-19 related changes in market and investor behaviors to continue to impact our asset- and spread-based revenue. However, given the uncertainty around the duration and extent of the COVID-19 pandemic, management cannot predict the impact on the Company’s results of operations, financial condition or liquidity in the subsequent periods. Estimates and assumptions about future events and their effects on the Company cannot be determined with certainty and therefore require the exercise of judgment. The Company is not aware of any specific events or circumstances that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. The Company will update the estimates and assumptions underlying the consolidated financial statements in future periods as events and circumstances develop. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to intangible assets and goodwill, useful lives of intangible assets and property and equipment, internal use software, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Concentration of Credit Risk and Significant Clients and Suppliers The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company deposits its cash primarily with one financial institution, and accordingly, such deposits regularly exceed federally insured limits. Geographic Information All of the Company’s revenue was generated in the United States. All of the Company’s property and equipment was located in the United States. No single customer accounted for more than 10% of the Company’s revenue in any of the periods presented. There were two customers that represented 41% and 51% of the Company’s accounts receivable balance as of December 31, 2020 and 2019, respectively. Cash, Cash Equivalents and Restricted Cash Certificates of deposit, money market funds and other time deposits with original maturities of three months or less are considered cash equivalents. Restricted cash consists of certificate of deposits the Company maintains in liquid capital in accordance to Arizona Revised Statutes requirements governing trust companies. See Note 17 for details regarding capital requirements. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: December 31, 2020 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 70,619 $ 96,341 $ 105,354 Restricted cash 11,000 9,000 7,000 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 81,619 $ 105,341 $ 112,354 Investment Securities The Company’s investments comprise equity investment and alternative investment securities funds. The Company determined the appropriate classification of its investment securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes. Available-for-sale investment securities are recorded at fair value. Unrealized holding gains and losses were reported as other income until realized during 2019 and in unrealized gains (losses), net of tax, in prior years. Realized gains and losses from sales are determined on a specific-identification basis. Dividend and interest income are recognized when earned. Fees and Other Receivables Fee and other receivables represent service fees and advisory fees receivable, as well as custody fees in arrears. Fee and other receivables are recorded at the invoiced amount, net of allowances. These allowances are based on historical experience and evaluation of potential risk of loss associated with delinquent accounts. There were a $62 and $14 allowance for doubtful accounts recorded as of December 31, 2020 and 2019, respectively. Fair Value Measurements The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other accrued expense, approximate their fair values due to their relatively short maturity, and in the case of leases, market interest rates. The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs that are directly or indirectly observable in the marketplace. • Level 3 – unobservable inputs that are supported by little or no market activity. As of each reporting period, all assets recorded at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 9 for more information regarding fair value measurements. Business Combinations When the Company acquires a business, management allocates the purchase price to the net tangible and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates are based on market and income approaches that include significant unobservable inputs. These estimates are inherently uncertain and unpredictable. Goodwill, Acquired Intangible Assets and Impairment of Long-Lived Assets Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value. The Company has the option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. No impairment charges were recorded during the years ended December 31, 2020, 2019 and 2018. See Note 6 for additional information related to goodwill. AssetMark’s broad array of wealth management solutions are sold to individual investors through financial advisers associated with broker-dealers. The Company has long-standing, established relationships with these broker-dealers that are expected to result in future revenue and profit. While the relationships with the broker-dealers are contractual, the agreements have no fixed expiration dates or renewal terms, and there have been no instances of terminated agreements by either side to-date. Based on the foregoing, the acquired relationships with broker-dealers are identified and valued as a discrete indefinite-lived intangible asset. Indefinite-lived intangible assets are tested for impairment annually. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. Acquired definite-lived intangible assets consist of trade names, the AssetMark broker-dealer license, and the AssetMark Trust Company regulatory status, resulting from the Company’s acquisitions. Acquired definite-lived intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives on a straight-line basis. The carrying amounts of long-lived assets, including property and equipment, capitalized internal-use software, and acquired definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value exceeds its fair value. There were no events or changes in circumstances identified that indicated that the carrying amount of the long-lived assets were not recoverable during the years ended December 31, 2020 and 2019. See Note 6 for additional information related to intangible assets. Property and Equipment Property and equipment consist primarily of hardware, furniture and equipment and leasehold improvements. Depreciation is calculated on a straight‑line basis over the estimated useful lives of the related asset, generally three to ten years The following table shows balances of major classes of depreciable assets as of the date shown: December 31, 2020 December 31, 2019 Computer software and equipment $ 7,441 $ 6,594 Furniture and equipment 3,440 3,647 Leasehold improvements 4,287 3,361 Total property and equipment 15,168 13,602 Less: accumulated depreciation (7,780 ) (6,535 ) Property, plant and equipment, net $ 7,388 $ 7,067 Capitalized Internal-Use Software The Company capitalizes certain costs incurred during the application development stage in connection with software development for its platform. Costs related to the preliminary project activities and post-implementation activities are expensed as incurred. Capitalized costs are recorded as part of intangible assets. Maintenance and training costs are expensed as incurred. Capitalized internal-use software costs are amortized on a straight-line basis over the software estimated useful life, which is generally five years. The Company records amortization related to capitalized internal-use software within depreciation and amortization expense in the consolidated statements of income and comprehensive income. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were impairments of $211, $578 and $0 of internally developed software during the years ended December 31, 2020, 2019 and 2018, respectively. Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $26,934, $23,497 and $19,935, respectively. Accumulated amortization was $90,714 and $63,688 as of December 31, 2020 and 2019, respectively. Revenue Recognition On January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers, using the full retrospective transition method. As such, results for reporting periods prior to January 1, 2018 are presented under Topic 606. The Company recognizes revenue from services related to asset-based revenue, spread-based revenue and other revenue. • Asset-based revenue — The Company primarily derives revenue from fees assessed against customers’ assets under management or administration for services the Company provides to its customers. Such services include investment manager due diligence and research, portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back office and middle-office operations and custody services. Investment decisions for assets under management or administration are made by the Company’s customers. The fee arrangements are based on a percentage applied to the customers’ assets under management or administration. The performance obligation is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fees are generally calculated, billed and collected quarterly in advance on the preceding quarter-end customer asset values, and are recognized as revenue at the time the services are provided in the period. Fees related to assets under management or administration increase or decrease based on values of existing customer accounts. The values are affected by inflows or outflows of customer funds and market fluctuations. • Spread-based revenue — Spread-based revenue consists of the interest rate return earned on cash assets custodied through AssetMark Trust, one of several custodians offered on the Company’s platform. AssetMark Trust utilizes third-party banks to invest customer cash and uses the proceeds from those investments to credit customer accounts and earn spread-based revenue for the Company. • Other revenue — Other revenue consists primarily of interest earned on operating cash held by the Company. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in asset-based expenses on the consolidated statements of income and comprehensive income. Asset-Based Expenses Asset-based expenses are costs incurred by the Company directly related to the generation of asset-based revenue. Fees paid to third-party strategists, investment managers, proprietary fund sub-advisers and investment advisers are calculated based on a percentage of the customers’ assets under management or administration. As a practical expedient, these costs are paid monthly and quarterly in advance on the preceding quarter-end customer asset values, and expensed as incurred over the period of time that the services are expected to be provided to customers, since the amortization of costs are in one year or less. See Note 11 for a breakout of these costs. Spread-Based Expenses The Company recognizes spread-based expenses when costs are incurred. Spread-based expenses relate to expenses paid to AssetMark Trust’s third-party administrator for administering the custodian’s insured cash deposit program. Share-Based Compensation Share-based compensation issued to all officers of the Company, under the terms of the Amended & Restated Limited Liability Company Agreement of AssetMark Holdings LLC (the “LLC Agreement”), is measured based on the grant date fair value of the award and recognized as an expense over the requisite service and performance period for the Class C common units. The Company’s use of a Monte Carlo simulation to estimate the fair value of the Class C common units requires the input of various estimates and assumptions. The assumptions and estimates are as follows: • Fair value — The fair value of the shares underlying the Class C common units had been established by the Company based in part upon a valuation provided by a third-party valuation firm. • Risk free rate — The Company uses the U.S. Treasury yield that corresponds with the expected term. • Expected volatility — Expected volatility is a measure of the amount by which the stock price is expected to fluctuate. Since the Company does not have sufficient trading history of its common stock, it estimates the expected volatility of its stock options at their grant date by taking the weighted-average historical volatility of a group of comparable publicly traded companies over a period equal to the expected life of options. • Dividend yield — The Company utilizes a dividend yield of zero, given no expectations of or actual dividends to date on the Class C common units. • Discount for lack of marketability — The discount in value for lack of marketability was estimated using generally accepted valuation practices provided by a third-party valuation firm. The Company accounts for forfeitures as they occur. Share-based compensation related to stock options and stock appreciation rights issued to officers and directors is measured based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. The Company uses the Black-Scholes options pricing model to estimate the fair value of stock options and stock appreciation rights. The risk-free interest rate is the U.S. Treasury Yield that corresponds with the expected term. Expected volatility is estimated based on the volatility of a group of comparable public companies. The expected term was estimated using the simplified method due to limited historical information. The Company does not expect to pay dividends on its common shares. The Company accounts for forfeitures as they occur. Share-based compensation related to restricted stock awards and restricted stock units are measured on the grant date fair value of the award based on intrinsic value and are recognized on a straight-line basis over the requisite service period. Operating Leases In certain circumstances, the Company enters into leases with free rent periods, rent escalations or lease incentives over the term of the lease. In such cases, the Company calculates the total payments over the term of the lease and records them ratably as rent expense over that term. Income Taxes The Company uses the asset-and-liability method of accounting for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, existence of available offsetting deferred tax liabilities, expectations of future taxable income and ongoing tax planning strategies. The Company recognizes and measure tax benefits from uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax position on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of issues. The Company follows the policy of releasing residual tax effects from accumulated other comprehensive income based on a portfolio approach, whereby the Company releases the residual tax effects only after the entire accumulated other comprehensive income adjustment has been reversed ( e.g. , when all available-for-sale debt securities are sold). The Company did not make an election to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. The Company records interest and penalties related to underpayment of income taxes as part of its operating expenses. Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted net income (loss) per share is similar to the computation of basic net income (loss) per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. Recent Accounting Pronouncements – Current Adoptions In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted the new standard on January 1, 2020 using the modified retrospective transition method with certain available transitional practical expedients, and elected to apply the short-term lease exemption (described below) to all of its classes of underlying assets. The standard had a material impact on the Company’s consolidated balance sheets, but did not have an impact on the Company’s consolidated statements of comprehensive income. The most significant impact was due to the recognition of ROU assets and lease liabilities for operating leases. Adoption of the standard had no impact on previously reported results. The Company determines if an arrangement is a lease at inception. Operating leases are included in other current assets, operating lease ROU assets, accrued liabilities and other current liabilities, and long-term portion of operating lease liabilities on the Company’s consolidated balance sheets. The Company does not have material finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligations to make payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company uses an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected to use the practical expedient to exclude the non-lease component from the lease for all asset classes. The majority of the Company’s lease agreements are facility leases. Operating lease costs of $5,850 and related variable lease costs of $748 were recorded in general and operating expenses for the year ended December 31, 2020. The Company’s leases had a weighted-average lease term of 7.2 years and used a weighted-average discount rate of 3.64% as of December 31, 2020. The Company paid $4,268 for amounts included in the measurement of lease liabilities for the year ended December 31, 2020. The following table shows the supplemental Consolidated Balance Sheet information related to the Company's leases: December 31, 2020 Current portion of operating lease right-of-use assets $ 4,117 Long-term operating lease right-of-use assets 27,496 Total operating lease right-of-use assets $ 31,613 Current portion of operating lease liabilities (1) $ 4,095 Long-term operating lease liabilities 31,820 Total operating lease liabilities $ 35,915 (1) Included in Other accrued expenses. See Note 7. Future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows: 2021 $ 5,284 2022 5,404 2023 5,343 2024 5,661 2025 and thereafter 19,198 Total future minimum lease payments 40,890 Less: imputed interest (4,975 ) Total operating lease liabilities $ 35,915 In January 2017, the FASB issued ASU 2017-04, Intangibles, Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment, which removes step 2 from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In July 2018, the FASB issued ASU 2018-11, Lease (Topic 842) Targeted Improvements, which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles, Goodwill and Other, Internal-Use Software (Subtopic 350-40), which provides guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a license to internal-use-software, then the software license is accounted for by the customer in accordance with Subtopic ASC 350-40. An intangible asset is recognized for the software license and a liability also recognized. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In October 2018, the FASB issued ASU 2018-17, Consolidation, Targeted Improvements to Related Party Guidance for Variable Interest Entities, which clarifies the determination as to whether a decision-making fee is a variable interest by requiring reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as an equivalent of a direct interest in its entirety. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. Recent Accounting Pronouncements – Issued Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of U.S. GAAP by clarifying and amending existing guidance. The new standard is effective for the Company on January 1, 2021, with early adoption permitted. The Company is currently evaluating the effect that ASU 2019-12 will have on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective for all entities through December 31, 2022. The Company is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company is currently evaluating the effect that ASU 2020-04 will have on its consolidated financial statements |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 3. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2020 December 31, 2019 Prepaid expenses $ 8,182 $ 5,848 Right-of-use leases 4,117 — Other 1,338 717 Total $ 13,637 $ 6,565 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Note 4. Business Combinations On September 30, 2019, the Company entered into a unit purchase agreement to acquire WBI OBS Financial, LLC (now known as WBI OBS Financial, Inc.), subject to closing conditions that included approval from the Committee on Foreign Investment in the United States (“CFIUS”). On February 29, 2020, the Company closed the acquisition and paid a final purchase price of $21,339, net of working capital adjustments. The Company recorded goodwill of $11,538, adviser and trust relationships of $9,500 and deferred tax assets of $188 in connection with the acquisition. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entity Measure Of Activity [Abstract] | |
Variable Interest Entities | Note 5. Variable Interest Entities A Variable interest entity (“VIE”) is an entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the ability to control the entity’s activities. Under existing accounting guidance, a VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the economic performance of the VIE and holds a variable interest that could potentially be significant to the VIE. The Company evaluates whether an entity is a VIE upon creation and upon the occurrence of significant events, such as a change in an entity’s assets or activities. The determination of whether the Company is the primary beneficiary involves performing a qualitative analysis of the VIE. The analysis includes its design, capital structure, contractual terms, including the rights of each variable interest holder, the activities of the VIE that most significantly impact its economic performance, and whether the Company has the power to direct those activities and the Company’s obligation to absorb losses or right to receive benefits significant to the VIE. In 2015, the Company created a rabbi trust to support the Company’s Deferred Compensation Plan, under which certain employees may defer their compensation and the Company will contribute the amounts to the rabbi trust. The rabbi trust subsequently invests the deferred compensation into diversified securities, and upon distribution, settles the deferred obligation in cash, which settlement includes the deferred compensation principal and any investment appreciation. The Company selects the investment options available for participants and is the primary beneficiary of the assets upon insolvency. During the fourth quarter of 2019, the Company determined that the rabbi trust was a VIE and it was therefore consolidated. The VIE had investments at fair value of $10,087 and $6,885 as of December 31, 2020 and 2019, respectively, and other long-term liabilities of $10,087 and $6,885 as of December 31, 2020 and 2019, respectively. The VIE had other income and other expense of $900 and $1,089 related to the rabbi trust’s unrealized gains for the year ended December 31, 2020 and 2019, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets Goodwill The Company’s goodwill balance was $338,848 and $327,310 as of December 31, 2020 and 2019, respectively. The Company, which has one reporting unit, performed an annual test for goodwill impairment in October of the years ended December 31, 2020 and 2019, and determined that goodwill was not impaired. There have been no significant events or circumstances affecting the valuation of goodwill subsequent to the Company’s annual assessment. Intangible Assets Information regarding the Company’s intangible assets is as follows: December 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Definite-lived intangible assets: Trade names 45,830 (9,548 ) 36,282 16 years Broker-dealer license 11,550 (2,406 ) 9,144 16 years ATC regulatory status 23,300 (4,854 ) 18,446 16 years GFPC adviser relationships 14,250 (1,739 ) 12,511 12 years OBS adviser and trust relationships 9,500 (627 ) 8,873 12 years Total $ 674,910 $ (19,174 ) $ 655,736 December 31, 2019 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Definite-lived intangible assets: Trade names 45,830 (7,256 ) 38,574 17 years Broker-dealer license 11,550 (1,829 ) 9,721 17 years ATC regulatory status 23,300 (3,689 ) 19,611 17 years GFPC adviser relationships 14,250 (721 ) 13,529 13 years Total $ 665,410 $ (13,495 ) $ 651,915 The weighted average estimated remaining useful life at December 31, 2020 was 14.9 years Estimated amortization expense for definite‑lived intangible assets for future years is as follows: Year Ended December 31: Estimated amortization 2021 $ 5,803 2022 5,803 2023 5,803 2024 5,803 2025 5,803 2026 and thereafter 56,241 Total $ 85,256 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities and Other Current Liabilities | Note The following table shows the breakdown of accrued liabilities and other current liabilities: December 31, 2020 December 31, 2019 Accrued bonus $ 15,336 $ 17,209 Compensation and benefits payable 10,423 7,591 Asset-based payables 1,339 3,718 Other accrued expenses 16,596 12,092 Total $ 43,694 $ 40,610 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Note 8. Other Long-Term Liabilities Other long-term liabilities consisted of the following: December 31, 2020 December 31, 2019 Contractor liability $ 2,305 $ 3,083 Deferred rent — 1,150 Deferred compensation plan liability 10,087 6,885 Purchase commitments related to acquisition of GFPC 3,910 5,322 Total $ 16,302 $ 16,440 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9. Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value in the consolidated balance sheets as of December 31, 2020 and 2019, based on the three-tier fair value hierarchy: December 31, 2020 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 490 $ 490 $ — $ — Assets to fund deferred compensation liability (2) 10,087 10,087 — — Total assets $ 10,577 $ 10,577 $ — $ — Liabilities: Deferred compensation liability (3) $ 10,087 $ 10,087 $ — $ — Total liabilities $ 10,087 $ 10,087 $ — $ — December 31, 2019 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 390 $ 390 $ — $ — Assets to fund deferred compensation liability (2) 6,885 6,885 — — Total assets $ 7,275 $ 7,275 $ — $ — Liabilities: Deferred compensation liability (3) $ 6,885 $ 6,885 $ — $ — Total liabilities $ 6,885 $ 6,885 $ — $ — (1) The fair values of the Company’s equity investment and alternative investment securities funds are based on the month-end quoted market prices for the net asset value of the various funds and securities, which mature on a daily basis. (2) The rabbi trust asset fair value is based on the month-end quoted market prices for the net asset value of the various investment funds. The Company recognized unrealized gains of $ 900 , $ 1,089 and $ 0 related to this asset within the statements of income and comprehensive income for the years ended December 31, 20 20 , 201 9 and 2018 , respectively. See Note 5 for more details. (3) The deferred compensation liability is included in other non-current liabilities in the consolidated balance sheets and its fair market value is based on the month-end market prices for the net asset value of the various funds in the Company’s rabbi trust that the participants have selected. The Company recognized other expenses of $900, $1,089 and $0 related to this liability within the statements of income and comprehensive income for the years ended December 31, 2020, 2019 and 2018, respectively. See Note 5 for more details. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 10. Debt On November 14, 2018, the Company executed a Credit Agreement with Credit Suisse AG for a $250,000 term loan (the “Term Loan”) and a revolving line of credit (the “Revolver”) that permits the Company to borrow up to $20,000. Both the Term Loan and the Revolver bear interest at (x) the London InterBank Offered Rate (“LIBOR”) plus a margin of 3.50%, with a step down to 3.25% or (y) the Alternate Base Rate, as defined and specified in the Credit Agreement, plus a margin of 2.50%, with a step down to 2.25%, in each case based on the Company’s achievement of a specified first-lien leverage ratio. Additionally, the Term Loan’s margin was reduced by 0.25% following the Company’s initial public offering. The Term Loan matures on November 14, 2025 and the Revolver matures on November 14, 2023. On July 26, 2019, the Company made a partial repayment of $125 million of the Company’s outstanding indebtedness under the Term Loan. The repayment was considered a substantial modification and the debt was considered partially extinguished. On December 30, 2020, the Company repaid all remaining outstanding indebtedness under the Term Loan, as discussed below. The repayment was considered a substantial modification and the debt was considered fully extinguished. As of December 31, 2020, the Term Loan was fully repaid. Interest expense was $5,588, $12,269 and $1,920 for the years ended December 31, 2020, 2019 and 2018, respectively. On December 30, 2020, the Company entered into a Credit Agreement with Bank of Montreal for a new senior secured credit facility in an aggregate principal amount of $250,000, consisting of a revolving credit facility with commitments in an aggregate principal amount of $250,000 (the “New Revolving Credit Facility” and the loans thereunder, the “New Revolving Loans”), with an accordion option of up to $25,000. The Company drew down $75,000 under the New Revolving Credit Facility on December 30, 2020, with an annual interest rate of 2.25%, the proceeds of which, together with cash on hand, were used to repay in full the Company’s obligations under the Term Loan. In connection with such repayment in full, the Prior Credit Agreement, the commitments thereunder and the guarantees and security interests with respect thereto were terminated and released, as applicable. The remaining portion of the New Revolving Credit Facility is available to finance the working capital needs and for other general corporate purposes of the Company (including acquisitions, investments, dividends and share repurchases permitted under the New Credit Agreement). The New Revolving Loans bear interest at a rate per annum equal to, at the Company’s option, either (i) LIBOR plus a margin based on the Company’s Total Leverage Ratio (as defined in the New Credit Agreement) or (ii) the Base Rate (as defined in the New Credit Agreement) plus a margin based on the Company’s Total Leverage Ratio. The margin will range between 1.00% and 2.625% for base rate loans and between 2.00% and 3.625% for LIBOR loans. The Company will pay a commitment fee based on the average daily unused portion of the commitments under the New Revolving Credit Facility, a letter of credit fee equal to the margin then in effect with respect to the LIBOR loans under the New Revolving Credit Facility, a fronting fee and any customary documentary and processing charges for any letter of credit issued under the New Credit Agreement. The New Revolving Credit Facility is not subject to amortization and will mature on December 30, 2024. |
Asset-Based Expenses
Asset-Based Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Operating Costs And Expenses [Abstract] | |
Asset-Based Expenses | Note Asset-based expenses incurred by the Company relating to the generation of asset-based revenue were as follows: Year Ended December 31, 2020 2019 2018 Strategist and manager fees $ 107,317 $ 102,480 $ 93,385 Premier broker-dealer fees 11,303 10,197 8,107 Custody fees 6,226 6,187 6,208 Fund advisory fees 4,600 4,493 5,701 Marketing allowance 3,244 2,576 2,573 External managers — — 788 Other 5 52 1 Total $ 132,695 $ 125,985 $ 116,763 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes The Company’s income tax provision was as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Current provision Federal $ 6,331 $ 11,111 $ 12,921 State 2,418 2,717 2,480 Total current provision 8,749 13,828 15,401 Deferred provision (benefit) Federal 391 (970 ) (1,846 ) State (1,097 ) 2,467 3,582 Total deferred provision (benefit) (706 ) 1,497 1,736 Total income tax expense $ 8,043 $ 15,325 $ 17,137 The Company paid income taxes of $13,456, $16,116 and $19,497 for the years ended December 31, 2020, 2019 and 2018, respectively. The reconciliation of the federal statutory tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Statutory U.S. federal income tax rate: 21.00 % 21.00 % 21.00 % Increase in rate resulting from: Non-deductible meals & entertainment 24.98 % 1.09 % 0.44 % Officers life insurance 1.65 % — — Qualified transportation fringe benefits 21.63 % — — Equity compensation 4,284.57 % 48.75 % 2.53 % Executive compensation limitation 224.53 % 3.01 % — State income tax, net of federal income tax effect 359.74 % 26.16 % 8.51 % Unrecognized tax benefits 407.72 % 2.98 % — Research & development tax credit (1,797.83 )% — (1.48 )% Return to provision (66.74 )% — — Other, net 0.57 % (0.18 )% 0.41 % Effective rate 3,481.82 % 102.81 % 31.41 % The components of the Company’s net deferred income tax liability were as follows: December 31, 2020 December 31, 2019 Assets: Accrued expenses $ 6,610 $ 8,159 Federal benefit of state tax expense 4,848 5,132 State net operating loss carryforwards 14,161 14,065 Tax credit carryforwards 1,977 611 Lease liability 9,619 — Other 1,824 3,436 Total deferred income tax assets 39,039 31,403 Liabilities: Other intangible assets 159,361 161,028 Property and equipment, and capitalized software 19,482 19,906 Right-of-use asset 8,467 — Other 1,229 859 Total deferred income tax liabilities 188,539 181,793 Net deferred income tax liability $ 149,500 $ 150,390 In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. The Company considers projected future taxable income and tax planning strategies in making this assessment. During 2020 and 2019, the Company evaluated the realizability of its net deferred tax assets based on available positive and negative evidence. The Company concluded that it is more likely than not that all of the benefits of the deferred tax assets will be realized. As a result, the Company has not established a valuation allowance. The Company’s state net operating loss carryforwards amounted to $279,011 and $277,881 as of December 31, 2020 and 2019, respectively. It is expected that the utilization limitations of Internal Revenue Code Section 382 will cause $113,873 of the Company’s state net operating loss carryforwards to expire unused, and these amounts are not included in the Company’s gross deferred income tax asset. If unused, the Company’s state net operating loss carryforwards will expire between 2028 and 2036. The Company had state tax credit carryforwards of $1,977 and $338 as of December 31, 2020 and 2019, respectively, which do not expire and can be carried forward indefinitely. The reconciliation of the beginning and ending amounts of the Company’s unrecognized tax benefits is as follows: December 31, 2020 December 31, 2019 Balance, beginning of year $ 3,401 $ 530 Increases related to prior year tax positions — 2,707 Decreases related to prior year tax positions (561 ) — Increases related to current year tax positions 438 164 Balance, end of year $ 3,278 $ 3,401 The Company had unrecognized tax benefits of $3,278 and $3,401 as of December 31, 2020 and 2019, respectively, solely related to research and development tax credits and states in which the Company had nexus but did not file tax returns. The total amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate was $2,916 and $2,834 as of December 31, 2020 and 2019, respectively. The consolidated statements of income and comprehensive income for the years ended December 31, 2020, 2019 and 2018 included $73, $116 and $0 of interest. The consolidated balance sheet included $216 and $107 of penalties related to unrecognized tax benefits as of December 31, 2020 and 2019, respectively. The Company files U.S. Federal income tax returns and various state and local tax returns. The Company is no longer subject to U.S. Federal and state tax examinations for years through 201 5 . |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholder's Equity | Note 13. Stockholders’ Equity Each holder of Company common stock is entitled to one vote per share, to receive dividends and, upon liquidation or dissolution, to receive all assets available for distribution to such stockholder. The stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. At the beginning of the year ended December 31, 2019, the Company was a wholly owned subsidiary of AssetMark Holdings LLC (“AssetMark Holdings”), which was organized for the purpose of Huatai Securities Co., Ltd.’s acquisition of the Company effective October 31, 2016. The following information represents the equity information of AssetMark Holdings and does not directly impact the outstanding common shares of the Company. The information is presented to provide information on the Class C common incentive units for which the Company continues to recognize share-based compensation. As of December 31, 2018, there were 100 shares of Company common stock owned by AssetMark Holdings. Under the terms of the LLC Agreement, approved by all AssetMark Holdings’ common members in October 2016, three common unit classes were authorized and issued as follows: • Class A and B common units have equal rights and voting privileges • Class C common units are non-voting units that were issued to AssetMark employees as part of a share-based employee compensation arrangement (see Note 14). The table below shows by unit class the number of units outstanding and the related capital contribution as of December 31, 2018. Service members are employees of the Company. On July 5, 2019, the Company filed an amended and restated certificate of incorporation effecting a 661,500-for-one forward stock split. The par value was adjusted to $0.001 per share of common stock in connection with such filing. The number of authorized shares of common stock was increased to 675,000,000 and 75,000,000 shares of preferred stock were authorized to be issued; no preferred stock had been issued as of December 31, 2019. All share and per share data shown in the consolidated financial statements and related notes thereto have been retroactively revised to reflect the forward stock split. On July 17, 2019, immediately following the pricing of its initial public offering (the “IPO”), AssetMark Holdings liquidated and dissolved and distributed shares of the Company’s common stock to its members as follows: holders of Class A Common Units and Class B Common Units of AssetMark Holdings received an aggregate of 59,840,951 shares of the Company’s common stock, and holders of Class C Common Units of AssetMark Holdings received an aggregate number of restricted stock awards equal to 6,309,049 shares of the Company’s common stock. Upon such liquidation and dissolution, the Company ceased to be a wholly owned subsidiary of AssetMark Holdings. On July 22, 2019, the Company completed its IPO, in which the Company issued and sold an aggregate of 6,250,000 shares of its common stock at a price to the public of $22.00 per share. The Company received aggregate net proceeds of $124.1 million from the IPO after deducting underwriting discounts and commissions and expenses payable by the Company. As of December 31, 2019, the Company had authorized 675,000,000 shares of common stock and 75,000,000 shares of preferred stock, both with a par value of $0.001 per share. As of December 31, 2019, 72,390,080 shares of common stock and zero shares of preferred stock were issued and outstanding. As of December 31, 2020, the Company had authorized 675,000,000 shares of common stock and 75,000,000 shares of preferred stock, both with a par value of $0.001 per share, and, 72,459,255 shares of common stock and zero shares of preferred stock were issued and outstanding. |
Share-Based Employee Compensati
Share-Based Employee Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Employee Compensation | Note Pre-IPO Incentive Units AssetMark Holdings granted share-based compensation in the form of Class C common units (or incentive units) to all officers of the Company in November 2016 pursuant to the terms of the LLC Agreement. The Company had authorized 151,188 incentive units as of December 31, 2018. The incentive units had both service and performance vesting provisions. The incentive units were divided into two tranches: one tranche consists of “time vesting units” with a service condition while the other tranche consists of “performance vesting units” with both service and market conditions. The fair value of both time vesting units and performance vesting units was measured on grant date and remeasured to fair value at the end of each reporting period. Compensation cost for the time vesting units and performance vesting units was recognized on a straight-line basis over a 5-year requisite service period for 50% of the units and over an 8-year requisite service period for the remaining 50% of the units. An implied service period of 8 years was inferred from the performance condition of the performance vesting units because the performance conditions could have been met at multiple dates (i.e. following the 4th, 5th, 6th, 7th and 8th anniversaries of the issuance date). The requisite service period was based on the longer of the derived service period, implicit or explicit service periods. The Company recorded share-based compensation expense related to the Class C common incentive units of $11,407 and $6,568 for the years ended December 31, 2019 and 2018, respectively. These amounts were included in employee compensation in the accompanying consolidated statements of income and comprehensive income. For purposes of determining the fair value of the share-based payment awards on the date of the grant and at the end of each reporting period, the Company used a Monte Carlo simulation to evaluate a number of possible outcomes. While the Class C common units had no expiration date, the Company forecasted the possible value of the common units 8 years in the future. Management periodically evaluates the assumption and methodologies used to calculate the fair value of the share-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies. Valuation assumptions: 2018 Risk free rate 2.49 % Expected volatility 35.0 % Dividend yield — Discount for lack of marketability 15.2 % Incentive unit activity during the year ended December 31, 2018 was as follows: Number of units Weighted-average remaining contractual term (years) Balance at December 31, 2017 8,550.13 6.87 Granted 283.37 7.47 Forfeited (16.67 ) 7.58 Balance at December 31, 2018 8,816.83 5.93 There were no vested units as of December 31, 2018. There were zero and $29,051 of total unrecognized compensation cost related to unvested Class C common incentive unit awards as of December 31, 2019 and 2018, respectively. There were additional 120.02 Class C units granted in the three months ended March 31, 2019. The Class C common incentive units were cancelled and new restricted stock awards were distributed on July 17, 2019. Post-IPO On July 3, 2019, the Company’s Board of Directors adopted, and the Company’s sole stockholder approved, the 2019 Equity Incentive Plan (the “2019 Equity Incentive Plan”), which became effective on July 17, 2019, the date of effectiveness of the Company’s IPO (as defined below) registration statement on Form S-1. As of December 31, 2020, 3,662,611 shares were available for issuance under the 2019 Equity Incentive Plan. Restricted Stock Awards Prior to the liquidation and dissolution of AssetMark Holdings and the IPO, all officers and certain sales employees of AssetMark Holdings held Class C Common Units of AssetMark Holdings, which were intended to be treated as profits interests. Immediately following the pricing of the IPO, AssetMark Holdings liquidated and dissolved and distributed shares of the Company’s common stock to its members, including an aggregate number of restricted stock awards (“RSAs”) equal to 6,309,049 shares of the Company’s common stock to the holders of the Class C Common Units of AssetMark Holdings . These RSAs are subject to the same vesting schedule as the Class C Common Units of AssetMark Holdings, with 50% of the RSAs scheduled to vest in three (3) equal installments on the third, fourth and fifth anniversaries of November 18, 2016, subject to the recipient’s continued employment through the vesting date, and 50% subject to the recipient’s continued employment through February 1, 2021 and the satisfaction of a performance-based vesting condition. The performance condition for these RSAs was deemed to have been satisfied in connection with the IPO. In the event that the vesting conditions are not satisfied for any portion of an award, the shares covered by such RSAs will transfer automatically to the Company. RSA activity during the year ended December 31, 2020 was as follows: Number of RSAs Weighted-average grant-date fair value Balance at December 31, 2019 5,257,541 $ 22.00 Vested (1,049,488 ) 22.00 Forfeited (9,920 ) 22.00 Balance at December 31, 2020 4,198,133 $ 22.00 Share-based compensation expense related to the RSAs was $48,045 and $23,198 for the years ended December 31, 2020 and 2019, respectively. There was $41,798 of total unrecognized compensation cost related to unvested RSAs granted under the 2019 Equity Incentive Plan as of December 31, 2020. These costs are expected to be recognized over a weighted average period of 0.88 years as of December 31, 2020. Stock Options In connection with the 2019 Equity Incentive IPO, the Company issued options to certain officers to acquire an aggregate of 918,981 shares of the Company’s common stock outside of the Plan, with an exercise price of $22 dollars per share. Each of these options is scheduled to vest and become exercisable in substantially equal installments on each of the first three anniversaries of July 18, 2019, subject to the recipient’s continued employment through the vesting date and have a ten-year Share-based compensation expense related to the stock options was $2,346 and $1,067 for the years ended December 31, 2020 and 2019, respectively. The following weighted-average assumptions were used to value options granted during the year ended December 31, 2019: 2019 Grant date fair value of options $ 7.73 Risk free rate 1.9 % Expected volatility 32.8 % Dividend yield — Expected terms (in years) 6.0 Stock option activity during the year ended December 31, 2020 was as follows: Number of options Weighted-average exercise price Aggregate intrinsic value Weighted-average remaining contractual term (years) Balance at December 31, 2019 908,775 $ 22.00 $ 6,380 Exercised (8,504 ) 22.00 44 Balance at December 31, 2020 900,271 22.00 1,981 8.5 Options vested and exercisable at December 31, 2020 294,413 $ 22.00 $ 648 8.5 There was $3,612 and $5,960 of total unrecognized compensation cost related to unvested stock options granted under the 2019 Equity Incentive Plan as of December 31, 2020 and 2019, respectively. These costs are expected to be recognized over a weighted-average period of 1.5 years as of December 31, 2020. Restricted Stock Units In 2020, the Company issued 310,225 restricted stock units (“RSUs”) to all officers, certain employees and independent directors of the board under the 2019 Equity Incentive Plan. Each of these RSUs is scheduled to vest in substantially equal installments on each of the first four anniversaries of their grant date. RSU activity during the year ended December 31, 2020 was as follows: Number of RSUs Weighted-average grant-date fair value Balance at December 31, 2019 114,044 $ 22.79 Granted 310,225 28.27 Vested (60,671 ) 22.49 Forfeited (19,863 ) 25.62 Balance at December 31, 2020 343,735 $ 27.63 Share-based compensation expense related to the RSUs was $2,148 and $530 for the years ended December 31, 2020 and 2019, respectively. There was $8,154 and $2,041 of total unrecognized compensation cost related to unvested RSUs granted under the 2019 Equity Incentive Plan as of December 31, 2020 and 2019, respectively. These costs are expected to be recognized over a weighted average period of 3.3 years as of December 31, 2020. The total fair value of RSUs vested was $1,680 during the year ended December 31, 2020. Stock Appreciation Rights In 2020, the Company issued stock appreciation rights (“SARs”) to certain officers with respect to 831,902 shares of the Company’s common stock under the 2019 Equity Incentive Plan. Each SAR has a strike price equal to the fair market value of the Company’s common stock on the date of grant and is scheduled to vest and become exercisable in substantially equal installments on each of the first four anniversaries of their grant date, subject to the recipient’s continued employment through the vesting date, and have a ten-year value equal to the excess, if any, of the fair market value of the Company’s common stock measured on the exercise date over the strike price. The following assumptions were used to value SARs granted during the year ended December 31, 2020: 2020 Weighted-average grant date fair value of SARs $ 11.18 Risk free rate 0.42% - 0.56% Expected volatility 38% - 40% Dividend yield — Expected terms (in years) 6.25 SAR activity during the year ended December 31, 2020 was as follows: Number of SARs Weighted-average exercise price Aggregate intrinsic value Weighted-average remaining contractual term (years) Balance at December 31, 2019 — $ — $ — Granted 831,902 28.42 139,373 Balance at December 31, 2020 831,902 $ 28.42 $ 139,373 9.4 Share-based compensation expense related to the SARs was $1,298 for the year ended December 31, 2020. There were zero SARs vested as of December 31, 2020. There was $7,942 of total unrecognized compensation cost related to unvested SARs granted under the 2019 Equity Incentive Plan as of December 31, 2020. These costs are expected to be recognized over a weighted-average period of 3.4 years as of December 31, 2020. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 15. Employee Benefit Plan The Company has a tax-qualified defined contribution plan (the “Benefit Plan”). All full-time and part-time employees are eligible to participate in the Benefit Plan upon hire. The Benefit Plan provides retirement benefits, including provisions for early retirement and disability benefits, as well as a tax-deferred savings feature. Participants must attain two years of service to reach full vesting on Company matching contributions. The Company contributed $5,246, $4,811 and $3,334 to the Benefit Plan for the years ended December 31, 2020, 2019 and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Litigation The Company faces the risk of litigation and regulatory investigations and actions in the ordinary course of operating the Company’s businesses, including the risk of class action lawsuits. The Company’s pending legal and regulatory actions include proceedings specific to the Company and others generally applicable to business practices in the industries in which the Company operates. The Company is also subject to litigation arising out of the Company’s general business activities such as the Company’s contractual and employment relationships. In addition, the Company is subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and other authorities. Plaintiffs in class action and other lawsuits against the Company may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. A substantial legal liability or a significant regulatory action against the Company could have an adverse effect on the Company’s business, financial condition and results of operations. Moreover, even if the Company ultimately prevails in the litigation, regulatory action or investigation, the Company could suffer significant reputational harm, which could have an adverse effect on the Company’s business, financial condition or results of operations. In the opinion of management, after discussions with legal counsel, the ultimate resolution of the pending legal proceedings will not have a material effect on the consolidated financial condition, results of operations or cash flows of the Company. |
Net Capital and Minimum Capital
Net Capital and Minimum Capital Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Net Capital and Minimum Capital Requirements | Note 17. Net Capital and Minimum Capital Requirements AssetMark Trust Company, regulated by the Arizona Department of Financial Institutions (“ADFI”) is required by state regulation 6-856 to maintain $9,375 and $7,750 in liquid capital (as defined by the ADFI) based on asset levels as of December 31, 2020 and 2019, respectively. AssetMark Brokerage, LLC, regulated by the SEC, is required to maintain $5 and $6 in net capital (as defined by the SEC) as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, these entities have met the liquid capital requirements set forth by their respective regulatory authority. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 18. Related Party Transactions As of December 31, 2020 and 2019, the Company had a receivable due from Huatai Securities Co., Ltd. (“HTSC”) of $143 and $0, respectively, which receivable represents the cash paid by the Company on behalf of HTSC for certain professional services rendered to HTSC related to IFRS audit fees required for HTSC’s consolidated audit. |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Note 19. Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted net income per share, the basic weighted average number of shares of common stock outstanding is increased by the dilutive effect (if any) of stock options, restricted stock awards, restricted stock units and stock appreciation rights. The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per (loss) share attributable to common stockholders: Year Ended December 31, 2020 2019 2018 Net income (loss) attributable to common stockholders (7,812 ) $ (420 ) $ 37,426 Weighted average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders, basic and diluted 67,361,995 66,298,553 66,150,000 Net income (loss) per share attributable to common stockholders, basic and diluted $ (0.12 ) $ (0.01 ) $ 0.57 Since the Company was in a loss position for the year ended 2020, basic net loss per share is the same as diluted net loss per share, as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would have been anti-dilutive were as follows: As of December 31, 2020 2019 2018 RSAs 4,198,133 5,247,621 — Stock Options 900,271 908,775 — RSUs 343,735 114,044 — SARs 831,902 — — Total 6,274,041 6,270,440 — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events On March 1, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which it has agreed to acquire 100% of the equity interest of Voyant, Inc., a Delaware corporation (“Voyant”) (the “Acquisition”) for a total purchase price of approximately $145 million, subject to adjustment, to be paid in a mix of cash and shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”). Pursuant to the Merger Agreement, AssetMark has agreed to issue at the closing of the Acquisition 994,036 unregistered shares of Common Stock, of an approximate value of $25 million, to the founders of Voyant as a portion of the total purchase price for the Acquisition. The Common Stock to be issued pursuant to the Merger Agreement is expected to be subject to an eighteen (18) month lock-up period following the closing of the Acquisition. The completion of the Acquisition is subject to customary terms and conditions, including regulatory approval. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Risks And Uncertainties | Risks and Uncertainties The COVID-19 pandemic continues to rapidly evolve and has adversely impacted global commercial activities. Management expects COVID-19 related changes in market and investor behaviors to continue to impact our asset- and spread-based revenue. However, given the uncertainty around the duration and extent of the COVID-19 pandemic, management cannot predict the impact on the Company’s results of operations, financial condition or liquidity in the subsequent periods. Estimates and assumptions about future events and their effects on the Company cannot be determined with certainty and therefore require the exercise of judgment. The Company is not aware of any specific events or circumstances that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. The Company will update the estimates and assumptions underlying the consolidated financial statements in future periods as events and circumstances develop. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Segment Information | Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to intangible assets and goodwill, useful lives of intangible assets and property and equipment, internal use software, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Concentration of Credit Risk and Significant Clients and Suppliers | Concentration of Credit Risk and Significant Clients and Suppliers The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company deposits its cash primarily with one financial institution, and accordingly, such deposits regularly exceed federally insured limits. |
Geographic Information | Geographic Information All of the Company’s revenue was generated in the United States. All of the Company’s property and equipment was located in the United States. No single customer accounted for more than 10% of the Company’s revenue in any of the periods presented. There were two customers that represented 41% and 51% of the Company’s accounts receivable balance as of December 31, 2020 and 2019, respectively. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Certificates of deposit, money market funds and other time deposits with original maturities of three months or less are considered cash equivalents. Restricted cash consists of certificate of deposits the Company maintains in liquid capital in accordance to Arizona Revised Statutes requirements governing trust companies. See Note 17 for details regarding capital requirements. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: December 31, 2020 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 70,619 $ 96,341 $ 105,354 Restricted cash 11,000 9,000 7,000 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 81,619 $ 105,341 $ 112,354 |
Investment Securities | Investment Securities The Company’s investments comprise equity investment and alternative investment securities funds. The Company determined the appropriate classification of its investment securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes. Available-for-sale investment securities are recorded at fair value. Unrealized holding gains and losses were reported as other income until realized during 2019 and in unrealized gains (losses), net of tax, in prior years. Realized gains and losses from sales are determined on a specific-identification basis. Dividend and interest income are recognized when earned. |
Fees and Other Receivables | Fees and Other Receivables Fee and other receivables represent service fees and advisory fees receivable, as well as custody fees in arrears. Fee and other receivables are recorded at the invoiced amount, net of allowances. These allowances are based on historical experience and evaluation of potential risk of loss associated with delinquent accounts. There were a $62 and $14 allowance for doubtful accounts recorded as of December 31, 2020 and 2019, respectively. |
Fair Value Measurement | Fair Value Measurements The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other accrued expense, approximate their fair values due to their relatively short maturity, and in the case of leases, market interest rates. The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs that are directly or indirectly observable in the marketplace. • Level 3 – unobservable inputs that are supported by little or no market activity. As of each reporting period, all assets recorded at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 9 for more information regarding fair value measurements. |
Business Combinations | Business Combinations When the Company acquires a business, management allocates the purchase price to the net tangible and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates are based on market and income approaches that include significant unobservable inputs. These estimates are inherently uncertain and unpredictable. |
Goodwill, Acquired Intangible Assets and Impairment of Long-Lived Assets | Goodwill, Acquired Intangible Assets and Impairment of Long-Lived Assets Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value. The Company has the option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. No impairment charges were recorded during the years ended December 31, 2020, 2019 and 2018. See Note 6 for additional information related to goodwill. AssetMark’s broad array of wealth management solutions are sold to individual investors through financial advisers associated with broker-dealers. The Company has long-standing, established relationships with these broker-dealers that are expected to result in future revenue and profit. While the relationships with the broker-dealers are contractual, the agreements have no fixed expiration dates or renewal terms, and there have been no instances of terminated agreements by either side to-date. Based on the foregoing, the acquired relationships with broker-dealers are identified and valued as a discrete indefinite-lived intangible asset. Indefinite-lived intangible assets are tested for impairment annually. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. Acquired definite-lived intangible assets consist of trade names, the AssetMark broker-dealer license, and the AssetMark Trust Company regulatory status, resulting from the Company’s acquisitions. Acquired definite-lived intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives on a straight-line basis. The carrying amounts of long-lived assets, including property and equipment, capitalized internal-use software, and acquired definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value exceeds its fair value. There were no events or changes in circumstances identified that indicated that the carrying amount of the long-lived assets were not recoverable during the years ended December 31, 2020 and 2019. See Note 6 for additional information related to intangible assets. |
Property and Equipment | Property and Equipment Property and equipment consist primarily of hardware, furniture and equipment and leasehold improvements. Depreciation is calculated on a straight‑line basis over the estimated useful lives of the related asset, generally three to ten years The following table shows balances of major classes of depreciable assets as of the date shown: December 31, 2020 December 31, 2019 Computer software and equipment $ 7,441 $ 6,594 Furniture and equipment 3,440 3,647 Leasehold improvements 4,287 3,361 Total property and equipment 15,168 13,602 Less: accumulated depreciation (7,780 ) (6,535 ) Property, plant and equipment, net $ 7,388 $ 7,067 |
Capitalized Internal-Use Software | Capitalized Internal-Use Software The Company capitalizes certain costs incurred during the application development stage in connection with software development for its platform. Costs related to the preliminary project activities and post-implementation activities are expensed as incurred. Capitalized costs are recorded as part of intangible assets. Maintenance and training costs are expensed as incurred. Capitalized internal-use software costs are amortized on a straight-line basis over the software estimated useful life, which is generally five years. The Company records amortization related to capitalized internal-use software within depreciation and amortization expense in the consolidated statements of income and comprehensive income. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were impairments of $211, $578 and $0 of internally developed software during the years ended December 31, 2020, 2019 and 2018, respectively. Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $26,934, $23,497 and $19,935, respectively. Accumulated amortization was $90,714 and $63,688 as of December 31, 2020 and 2019, respectively. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers, using the full retrospective transition method. As such, results for reporting periods prior to January 1, 2018 are presented under Topic 606. The Company recognizes revenue from services related to asset-based revenue, spread-based revenue and other revenue. • Asset-based revenue — The Company primarily derives revenue from fees assessed against customers’ assets under management or administration for services the Company provides to its customers. Such services include investment manager due diligence and research, portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back office and middle-office operations and custody services. Investment decisions for assets under management or administration are made by the Company’s customers. The fee arrangements are based on a percentage applied to the customers’ assets under management or administration. The performance obligation is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fees are generally calculated, billed and collected quarterly in advance on the preceding quarter-end customer asset values, and are recognized as revenue at the time the services are provided in the period. Fees related to assets under management or administration increase or decrease based on values of existing customer accounts. The values are affected by inflows or outflows of customer funds and market fluctuations. • Spread-based revenue — Spread-based revenue consists of the interest rate return earned on cash assets custodied through AssetMark Trust, one of several custodians offered on the Company’s platform. AssetMark Trust utilizes third-party banks to invest customer cash and uses the proceeds from those investments to credit customer accounts and earn spread-based revenue for the Company. • Other revenue — Other revenue consists primarily of interest earned on operating cash held by the Company. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in asset-based expenses on the consolidated statements of income and comprehensive income. |
Asset-Based Expenses | Asset-Based Expenses Asset-based expenses are costs incurred by the Company directly related to the generation of asset-based revenue. Fees paid to third-party strategists, investment managers, proprietary fund sub-advisers and investment advisers are calculated based on a percentage of the customers’ assets under management or administration. As a practical expedient, these costs are paid monthly and quarterly in advance on the preceding quarter-end customer asset values, and expensed as incurred over the period of time that the services are expected to be provided to customers, since the amortization of costs are in one year or less. See Note 11 for a breakout of these costs. |
Spread-Based Expenses | Spread-Based Expenses The Company recognizes spread-based expenses when costs are incurred. Spread-based expenses relate to expenses paid to AssetMark Trust’s third-party administrator for administering the custodian’s insured cash deposit program. |
Share-Based Compensation | Share-Based Compensation Share-based compensation issued to all officers of the Company, under the terms of the Amended & Restated Limited Liability Company Agreement of AssetMark Holdings LLC (the “LLC Agreement”), is measured based on the grant date fair value of the award and recognized as an expense over the requisite service and performance period for the Class C common units. The Company’s use of a Monte Carlo simulation to estimate the fair value of the Class C common units requires the input of various estimates and assumptions. The assumptions and estimates are as follows: • Fair value — The fair value of the shares underlying the Class C common units had been established by the Company based in part upon a valuation provided by a third-party valuation firm. • Risk free rate — The Company uses the U.S. Treasury yield that corresponds with the expected term. • Expected volatility — Expected volatility is a measure of the amount by which the stock price is expected to fluctuate. Since the Company does not have sufficient trading history of its common stock, it estimates the expected volatility of its stock options at their grant date by taking the weighted-average historical volatility of a group of comparable publicly traded companies over a period equal to the expected life of options. • Dividend yield — The Company utilizes a dividend yield of zero, given no expectations of or actual dividends to date on the Class C common units. • Discount for lack of marketability — The discount in value for lack of marketability was estimated using generally accepted valuation practices provided by a third-party valuation firm. The Company accounts for forfeitures as they occur. Share-based compensation related to stock options and stock appreciation rights issued to officers and directors is measured based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. The Company uses the Black-Scholes options pricing model to estimate the fair value of stock options and stock appreciation rights. The risk-free interest rate is the U.S. Treasury Yield that corresponds with the expected term. Expected volatility is estimated based on the volatility of a group of comparable public companies. The expected term was estimated using the simplified method due to limited historical information. The Company does not expect to pay dividends on its common shares. The Company accounts for forfeitures as they occur. Share-based compensation related to restricted stock awards and restricted stock units are measured on the grant date fair value of the award based on intrinsic value and are recognized on a straight-line basis over the requisite service period. |
Operating Leases | Operating Leases In certain circumstances, the Company enters into leases with free rent periods, rent escalations or lease incentives over the term of the lease. In such cases, the Company calculates the total payments over the term of the lease and records them ratably as rent expense over that term. |
Income Taxes | Income Taxes The Company uses the asset-and-liability method of accounting for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, existence of available offsetting deferred tax liabilities, expectations of future taxable income and ongoing tax planning strategies. The Company recognizes and measure tax benefits from uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax position on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of issues. The Company follows the policy of releasing residual tax effects from accumulated other comprehensive income based on a portfolio approach, whereby the Company releases the residual tax effects only after the entire accumulated other comprehensive income adjustment has been reversed ( e.g. , when all available-for-sale debt securities are sold). The Company did not make an election to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. The Company records interest and penalties related to underpayment of income taxes as part of its operating expenses. |
Net Income (Loss) per Share | Net Income (Loss) per Share Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted net income (loss) per share is similar to the computation of basic net income (loss) per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – Current Adoptions In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted the new standard on January 1, 2020 using the modified retrospective transition method with certain available transitional practical expedients, and elected to apply the short-term lease exemption (described below) to all of its classes of underlying assets. The standard had a material impact on the Company’s consolidated balance sheets, but did not have an impact on the Company’s consolidated statements of comprehensive income. The most significant impact was due to the recognition of ROU assets and lease liabilities for operating leases. Adoption of the standard had no impact on previously reported results. The Company determines if an arrangement is a lease at inception. Operating leases are included in other current assets, operating lease ROU assets, accrued liabilities and other current liabilities, and long-term portion of operating lease liabilities on the Company’s consolidated balance sheets. The Company does not have material finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligations to make payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company uses an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected to use the practical expedient to exclude the non-lease component from the lease for all asset classes. The majority of the Company’s lease agreements are facility leases. Operating lease costs of $5,850 and related variable lease costs of $748 were recorded in general and operating expenses for the year ended December 31, 2020. The Company’s leases had a weighted-average lease term of 7.2 years and used a weighted-average discount rate of 3.64% as of December 31, 2020. The Company paid $4,268 for amounts included in the measurement of lease liabilities for the year ended December 31, 2020. The following table shows the supplemental Consolidated Balance Sheet information related to the Company's leases: December 31, 2020 Current portion of operating lease right-of-use assets $ 4,117 Long-term operating lease right-of-use assets 27,496 Total operating lease right-of-use assets $ 31,613 Current portion of operating lease liabilities (1) $ 4,095 Long-term operating lease liabilities 31,820 Total operating lease liabilities $ 35,915 (1) Included in Other accrued expenses. See Note 7. Future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows: 2021 $ 5,284 2022 5,404 2023 5,343 2024 5,661 2025 and thereafter 19,198 Total future minimum lease payments 40,890 Less: imputed interest (4,975 ) Total operating lease liabilities $ 35,915 In January 2017, the FASB issued ASU 2017-04, Intangibles, Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment, which removes step 2 from the goodwill impairment test. As a result, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In July 2018, the FASB issued ASU 2018-11, Lease (Topic 842) Targeted Improvements, which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles, Goodwill and Other, Internal-Use Software (Subtopic 350-40), which provides guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a license to internal-use-software, then the software license is accounted for by the customer in accordance with Subtopic ASC 350-40. An intangible asset is recognized for the software license and a liability also recognized. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. In October 2018, the FASB issued ASU 2018-17, Consolidation, Targeted Improvements to Related Party Guidance for Variable Interest Entities, which clarifies the determination as to whether a decision-making fee is a variable interest by requiring reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as an equivalent of a direct interest in its entirety. The Company adopted the ASU on January 1, 2020 and it did not have a significant impact on the Company’s consolidated financial statements and related disclosures. Recent Accounting Pronouncements – Issued Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of U.S. GAAP by clarifying and amending existing guidance. The new standard is effective for the Company on January 1, 2021, with early adoption permitted. The Company is currently evaluating the effect that ASU 2019-12 will have on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective for all entities through December 31, 2022. The Company is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company is currently evaluating the effect that ASU 2020-04 will have on its consolidated financial statements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: December 31, 2020 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 70,619 $ 96,341 $ 105,354 Restricted cash 11,000 9,000 7,000 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 81,619 $ 105,341 $ 112,354 |
Schedule of Major Classes of Depreciable Assets | The following table shows balances of major classes of depreciable assets as of the date shown: December 31, 2020 December 31, 2019 Computer software and equipment $ 7,441 $ 6,594 Furniture and equipment 3,440 3,647 Leasehold improvements 4,287 3,361 Total property and equipment 15,168 13,602 Less: accumulated depreciation (7,780 ) (6,535 ) Property, plant and equipment, net $ 7,388 $ 7,067 |
Schedule of Supplemental Consolidated Balance Sheet information | The following table shows the supplemental Consolidated Balance Sheet information related to the Company's leases: December 31, 2020 Current portion of operating lease right-of-use assets $ 4,117 Long-term operating lease right-of-use assets 27,496 Total operating lease right-of-use assets $ 31,613 Current portion of operating lease liabilities (1) $ 4,095 Long-term operating lease liabilities 31,820 Total operating lease liabilities $ 35,915 (1) Included in Other accrued expenses. See Note 7. |
Schedule of Future Minimum Lease Payments Under Non-cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows: 2021 $ 5,284 2022 5,404 2023 5,343 2024 5,661 2025 and thereafter 19,198 Total future minimum lease payments 40,890 Less: imputed interest (4,975 ) Total operating lease liabilities $ 35,915 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 31, 2020 December 31, 2019 Prepaid expenses $ 8,182 $ 5,848 Right-of-use leases 4,117 — Other 1,338 717 Total $ 13,637 $ 6,565 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Information regarding the Company’s intangible assets is as follows: December 31, 2020 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Definite-lived intangible assets: Trade names 45,830 (9,548 ) 36,282 16 years Broker-dealer license 11,550 (2,406 ) 9,144 16 years ATC regulatory status 23,300 (4,854 ) 18,446 16 years GFPC adviser relationships 14,250 (1,739 ) 12,511 12 years OBS adviser and trust relationships 9,500 (627 ) 8,873 12 years Total $ 674,910 $ (19,174 ) $ 655,736 December 31, 2019 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Definite-lived intangible assets: Trade names 45,830 (7,256 ) 38,574 17 years Broker-dealer license 11,550 (1,829 ) 9,721 17 years ATC regulatory status 23,300 (3,689 ) 19,611 17 years GFPC adviser relationships 14,250 (721 ) 13,529 13 years Total $ 665,410 $ (13,495 ) $ 651,915 |
Summary of Estimated Amortization Expense for Definite-Lived Intangible Assets | Estimated amortization expense for definite‑lived intangible assets for future years is as follows: Year Ended December 31: Estimated amortization 2021 $ 5,803 2022 5,803 2023 5,803 2024 5,803 2025 5,803 2026 and thereafter 56,241 Total $ 85,256 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | The following table shows the breakdown of accrued liabilities and other current liabilities: December 31, 2020 December 31, 2019 Accrued bonus $ 15,336 $ 17,209 Compensation and benefits payable 10,423 7,591 Asset-based payables 1,339 3,718 Other accrued expenses 16,596 12,092 Total $ 43,694 $ 40,610 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following: December 31, 2020 December 31, 2019 Contractor liability $ 2,305 $ 3,083 Deferred rent — 1,150 Deferred compensation plan liability 10,087 6,885 Purchase commitments related to acquisition of GFPC 3,910 5,322 Total $ 16,302 $ 16,440 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value in the consolidated balance sheets as of December 31, 2020 and 2019, based on the three-tier fair value hierarchy: December 31, 2020 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 490 $ 490 $ — $ — Assets to fund deferred compensation liability (2) 10,087 10,087 — — Total assets $ 10,577 $ 10,577 $ — $ — Liabilities: Deferred compensation liability (3) $ 10,087 $ 10,087 $ — $ — Total liabilities $ 10,087 $ 10,087 $ — $ — December 31, 2019 Fair Value Level I Level II Level III Assets: Equity investment and alternative investment securities funds (1) $ 390 $ 390 $ — $ — Assets to fund deferred compensation liability (2) 6,885 6,885 — — Total assets $ 7,275 $ 7,275 $ — $ — Liabilities: Deferred compensation liability (3) $ 6,885 $ 6,885 $ — $ — Total liabilities $ 6,885 $ 6,885 $ — $ — (1) The fair values of the Company’s equity investment and alternative investment securities funds are based on the month-end quoted market prices for the net asset value of the various funds and securities, which mature on a daily basis. (2) The rabbi trust asset fair value is based on the month-end quoted market prices for the net asset value of the various investment funds. The Company recognized unrealized gains of $ 900 , $ 1,089 and $ 0 related to this asset within the statements of income and comprehensive income for the years ended December 31, 20 20 , 201 9 and 2018 , respectively. See Note 5 for more details. (3) The deferred compensation liability is included in other non-current liabilities in the consolidated balance sheets and its fair market value is based on the month-end market prices for the net asset value of the various funds in the Company’s rabbi trust that the participants have selected. The Company recognized other expenses of $900, $1,089 and $0 related to this liability within the statements of income and comprehensive income for the years ended December 31, 2020, 2019 and 2018, respectively. See Note 5 for more details. |
Asset-Based Expenses (Tables)
Asset-Based Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Costs And Expenses [Abstract] | |
Schedule of Asset-Based Expenses | Asset-based expenses incurred by the Company relating to the generation of asset-based revenue were as follows: Year Ended December 31, 2020 2019 2018 Strategist and manager fees $ 107,317 $ 102,480 $ 93,385 Premier broker-dealer fees 11,303 10,197 8,107 Custody fees 6,226 6,187 6,208 Fund advisory fees 4,600 4,493 5,701 Marketing allowance 3,244 2,576 2,573 External managers — — 788 Other 5 52 1 Total $ 132,695 $ 125,985 $ 116,763 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision (Benefit) | The Company’s income tax provision was as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Current provision Federal $ 6,331 $ 11,111 $ 12,921 State 2,418 2,717 2,480 Total current provision 8,749 13,828 15,401 Deferred provision (benefit) Federal 391 (970 ) (1,846 ) State (1,097 ) 2,467 3,582 Total deferred provision (benefit) (706 ) 1,497 1,736 Total income tax expense $ 8,043 $ 15,325 $ 17,137 |
Schedule of Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate | The reconciliation of the federal statutory tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Statutory U.S. federal income tax rate: 21.00 % 21.00 % 21.00 % Increase in rate resulting from: Non-deductible meals & entertainment 24.98 % 1.09 % 0.44 % Officers life insurance 1.65 % — — Qualified transportation fringe benefits 21.63 % — — Equity compensation 4,284.57 % 48.75 % 2.53 % Executive compensation limitation 224.53 % 3.01 % — State income tax, net of federal income tax effect 359.74 % 26.16 % 8.51 % Unrecognized tax benefits 407.72 % 2.98 % — Research & development tax credit (1,797.83 )% — (1.48 )% Return to provision (66.74 )% — — Other, net 0.57 % (0.18 )% 0.41 % Effective rate 3,481.82 % 102.81 % 31.41 % |
Summary of Components of Net Deferred Income Tax Liability | The components of the Company’s net deferred income tax liability were as follows: December 31, 2020 December 31, 2019 Assets: Accrued expenses $ 6,610 $ 8,159 Federal benefit of state tax expense 4,848 5,132 State net operating loss carryforwards 14,161 14,065 Tax credit carryforwards 1,977 611 Lease liability 9,619 — Other 1,824 3,436 Total deferred income tax assets 39,039 31,403 Liabilities: Other intangible assets 159,361 161,028 Property and equipment, and capitalized software 19,482 19,906 Right-of-use asset 8,467 — Other 1,229 859 Total deferred income tax liabilities 188,539 181,793 Net deferred income tax liability $ 149,500 $ 150,390 |
Schedule of Reconciliation of Unrecognized Tax Benefits | The reconciliation of the beginning and ending amounts of the Company’s unrecognized tax benefits is as follows: December 31, 2020 December 31, 2019 Balance, beginning of year $ 3,401 $ 530 Increases related to prior year tax positions — 2,707 Decreases related to prior year tax positions (561 ) — Increases related to current year tax positions 438 164 Balance, end of year $ 3,278 $ 3,401 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Number of Units Outstanding and Related Capital Contribution | The table below shows by unit class the number of units outstanding and the related capital contribution as of December 31, 2018. Service members are employees of the Company. |
Share-Based Employee Compensa_2
Share-Based Employee Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Assumption and Methodologies Used to Calculate Fair Value of Share-based Compensation | Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies. Valuation assumptions: 2018 Risk free rate 2.49 % Expected volatility 35.0 % Dividend yield — Discount for lack of marketability 15.2 % |
Schedule of Incentive Unit Activity | Incentive unit activity during the year ended December 31, 2018 was as follows: Number of units Weighted-average remaining contractual term (years) Balance at December 31, 2017 8,550.13 6.87 Granted 283.37 7.47 Forfeited (16.67 ) 7.58 Balance at December 31, 2018 8,816.83 5.93 |
Schedule of RSA Activity | RSA activity during the year ended December 31, 2020 was as follows: Number of RSAs Weighted-average grant-date fair value Balance at December 31, 2019 5,257,541 $ 22.00 Vested (1,049,488 ) 22.00 Forfeited (9,920 ) 22.00 Balance at December 31, 2020 4,198,133 $ 22.00 |
Schedule of Stock Options Valuation Assumptions | The following weighted-average assumptions were used to value options granted during the year ended December 31, 2019: 2019 Grant date fair value of options $ 7.73 Risk free rate 1.9 % Expected volatility 32.8 % Dividend yield — Expected terms (in years) 6.0 |
Schedule of Stock Option Activity | Stock option activity during the year ended December 31, 2020 was as follows: Number of options Weighted-average exercise price Aggregate intrinsic value Weighted-average remaining contractual term (years) Balance at December 31, 2019 908,775 $ 22.00 $ 6,380 Exercised (8,504 ) 22.00 44 Balance at December 31, 2020 900,271 22.00 1,981 8.5 Options vested and exercisable at December 31, 2020 294,413 $ 22.00 $ 648 8.5 |
Schedule of RSU Activity | RSU activity during the year ended December 31, 2020 was as follows: Number of RSUs Weighted-average grant-date fair value Balance at December 31, 2019 114,044 $ 22.79 Granted 310,225 28.27 Vested (60,671 ) 22.49 Forfeited (19,863 ) 25.62 Balance at December 31, 2020 343,735 $ 27.63 |
Schedule of SARs Valuation Assumptions | The following assumptions were used to value SARs granted during the year ended December 31, 2020: 2020 Weighted-average grant date fair value of SARs $ 11.18 Risk free rate 0.42% - 0.56% Expected volatility 38% - 40% Dividend yield — Expected terms (in years) 6.25 |
Schedule of SAR Activity | SAR activity during the year ended December 31, 2020 was as follows: Number of SARs Weighted-average exercise price Aggregate intrinsic value Weighted-average remaining contractual term (years) Balance at December 31, 2019 — $ — $ — Granted 831,902 28.42 139,373 Balance at December 31, 2020 831,902 $ 28.42 $ 139,373 9.4 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income Per (Loss) Share | The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per (loss) share attributable to common stockholders: Year Ended December 31, 2020 2019 2018 Net income (loss) attributable to common stockholders (7,812 ) $ (420 ) $ 37,426 Weighted average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders, basic and diluted 67,361,995 66,298,553 66,150,000 Net income (loss) per share attributable to common stockholders, basic and diluted $ (0.12 ) $ (0.01 ) $ 0.57 |
Schedule of Anti-dilutive Securities Were Not Included in Computation of Diluted Shares Outstanding | Since the Company was in a loss position for the year ended 2020, basic net loss per share is the same as diluted net loss per share, as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would have been anti-dilutive were as follows: As of December 31, 2020 2019 2018 RSAs 4,198,133 5,247,621 — Stock Options 900,271 908,775 — RSUs 343,735 114,044 — SARs 831,902 — — Total 6,274,041 6,270,440 — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)SegmentCustomer | Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | |
Summaryof Significant Accounting Policies [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Allowance for doubtful accounts | $ 62,000 | $ 14,000 | |
Impairment charges | 0 | 0 | $ 0 |
Depreciation expense | $ 2,511,000 | 2,012,000 | 2,063,000 |
Amortization of capitalized internal-use software, estimated useful life | 5 years | ||
Impairments of internally developed software | $ 211,000 | 578,000 | 0 |
Amortization expense of capitalized internal-use software | 26,934,000 | 23,497,000 | $ 19,935,000 |
Accumulated amortization of capitalized internal-use software | $ 90,714,000 | $ 63,688,000 | |
Weighted-average lease term | 7 years 2 months 12 days | ||
Weighted-average discount rate | 3.64% | ||
Operating lease liability payments | $ 4,268,000 | ||
Operating lease cost | 5,850,000 | ||
General and Operating Expenses | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Variable lease components recorded as general and operating expenses | $ 748,000 | ||
Class C Common Units | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Dividend yield | 0.00% | ||
Topic 606 | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Revenue, practical expedient to recognize incremental costs of obtaining contracts | true | ||
Minimum | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 3 years | ||
Maximum | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 10 years | ||
Customer Concentration Risk | Revenue Not More Than 10% | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 0 | 0 | 0 |
Customer Concentration Risk | Accounts Receivable | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 2 | 2 | |
Concentration risk, percentage | 41.00% | 51.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 70,619 | $ 96,341 | $ 105,354 | |
Restricted cash | 11,000 | 9,000 | 7,000 | |
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 81,619 | $ 105,341 | $ 112,354 | $ 57,147 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Major Classes of Depreciable Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 15,168 | $ 13,602 |
Less: accumulated depreciation | (7,780) | (6,535) |
Property, plant and equipment, net | 7,388 | 7,067 |
Computer Software and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,441 | 6,594 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,440 | 3,647 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 4,287 | $ 3,361 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Supplemental Consolidated Balance Sheet information (Details) $ in Thousands | Dec. 31, 2020USD ($) | |
Accounting Policies [Abstract] | ||
Current portion of operating lease right-of-use assets | $ 4,117 | |
Long-term operating lease right-of-use assets | 27,496 | |
Total operating lease right-of-use assets | 31,613 | |
Current portion of operating lease liabilities | 4,095 | [1] |
Long-term operating lease liabilities | 31,820 | |
Total operating lease liabilities | $ 35,915 | |
[1] | Included in Other accrued expenses. See Note 7. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Future Minimum Lease Payments Under Non-cancellable Leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 5,284 |
2022 | 5,404 |
2023 | 5,343 |
2024 | 5,661 |
2025 and thereafter | 19,198 |
Total future minimum lease payments | 40,890 |
Less: imputed interest | (4,975) |
Total operating lease liabilities | $ 35,915 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 8,182 | $ 5,848 |
Right-of-use leases | 4,117 | |
Other | 1,338 | 717 |
Total | $ 13,637 | $ 6,565 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill recorded | $ 338,848 | $ 327,310 | |
WBI OBS Financial, Inc | |||
Business Acquisition [Line Items] | |||
Final purchase price, net of working capital adjustments | $ 21,339 | ||
Goodwill recorded | 11,538 | ||
Adviser and trust relationships | 9,500 | ||
Deferred tax assets | $ 188 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - Deferred Compensation Plan - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
VIE, fair value of investments | $ 10,087 | $ 6,885 |
VIE, other long term liabilities | 10,087 | 6,885 |
VIE, other income and other expense related to unrealized gains | $ 900 | $ 1,089 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)ReportingUnit | Dec. 31, 2019USD ($)ReportingUnit | Dec. 31, 2018USD ($) | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | $ 338,848 | $ 327,310 | |
Number of reporting units | ReportingUnit | 1 | 1 | |
Amortization of Intangible Assets | $ 5,678 | $ 4,755 | $ 4,034 |
Trade Names | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 14 years 10 months 24 days | ||
AssetMark Trust Company Regulatory Status | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 14 years 10 months 24 days | ||
Broker-Dealer License | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 14 years 10 months 24 days | ||
GFPC Adviser Relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 14 years 10 months 24 days | ||
OBS Adviser and Trust Relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 14 years 10 months 24 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated amortization | $ (19,174) | $ (13,495) |
Definite-lived intangible assets, Net carrying amount | $ 85,256 | |
Definite-lived intangible assets, Estimated remaining useful life | 5 years | |
Intangible assets, Gross carrying amount | $ 674,910 | 665,410 |
Intangible assets, Net carrying amount | 655,736 | 651,915 |
Broker-Dealer Relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | 570,480 | 570,480 |
Trade Names | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 45,830 | 45,830 |
Definite-lived intangible assets, Accumulated amortization | (9,548) | (7,256) |
Definite-lived intangible assets, Net carrying amount | $ 36,282 | $ 38,574 |
Definite-lived intangible assets, Estimated remaining useful life | 16 years | 17 years |
Broker-Dealer License | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 11,550 | $ 11,550 |
Definite-lived intangible assets, Accumulated amortization | (2,406) | (1,829) |
Definite-lived intangible assets, Net carrying amount | $ 9,144 | $ 9,721 |
Definite-lived intangible assets, Estimated remaining useful life | 16 years | 17 years |
ATC Regulatory Status | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 23,300 | $ 23,300 |
Definite-lived intangible assets, Accumulated amortization | (4,854) | (3,689) |
Definite-lived intangible assets, Net carrying amount | $ 18,446 | $ 19,611 |
Definite-lived intangible assets, Estimated remaining useful life | 16 years | 17 years |
GFPC Adviser Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 14,250 | $ 14,250 |
Definite-lived intangible assets, Accumulated amortization | (1,739) | (721) |
Definite-lived intangible assets, Net carrying amount | $ 12,511 | $ 13,529 |
Definite-lived intangible assets, Estimated remaining useful life | 12 years | 13 years |
OBS Adviser and Trust Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 9,500 | |
Definite-lived intangible assets, Accumulated amortization | (627) | |
Definite-lived intangible assets, Net carrying amount | $ 8,873 | |
Definite-lived intangible assets, Estimated remaining useful life | 12 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense for Definite-Lived Intangible Assets (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 | $ 5,803 |
2022 | 5,803 |
2023 | 5,803 |
2024 | 5,803 |
2025 | 5,803 |
2026 and thereafter | 56,241 |
Definite-lived intangible assets, Net carrying amount | $ 85,256 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued bonus | $ 15,336 | $ 17,209 |
Compensation and benefits payable | 10,423 | 7,591 |
Asset-based payables | 1,339 | 3,718 |
Other accrued expenses | 16,596 | 12,092 |
Total | $ 43,694 | $ 40,610 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Contractor liability | $ 2,305 | $ 3,083 |
Deferred rent | 1,150 | |
Deferred compensation plan liability | 10,087 | 6,885 |
Purchase commitments related to acquisition of GFPC | 3,910 | 5,322 |
Total | $ 16,302 | $ 16,440 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Total assets | $ 10,577 | $ 7,275 |
Liabilities: | ||
Total liabilities | 10,087 | 6,885 |
Equity And Alternative Investments Securities Fund | ||
Assets: | ||
Total assets | 490 | 390 |
Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 10,087 | 6,885 |
Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | 10,087 | 6,885 |
Level I | ||
Assets: | ||
Total assets | 10,577 | 7,275 |
Liabilities: | ||
Total liabilities | 10,087 | 6,885 |
Level I | Equity And Alternative Investments Securities Fund | ||
Assets: | ||
Total assets | 490 | 390 |
Level I | Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 10,087 | 6,885 |
Level I | Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | $ 10,087 | $ 6,885 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unrealized gains on deferred compensation asset | $ 900 | $ 1,089 | $ 0 |
Other Expenses | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Deferred compensation liability | $ 900 | $ 1,089 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jul. 26, 2019 | Nov. 14, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Interest expense | $ 5,588,000 | $ 12,269,000 | $ 1,920,000 | ||
Proceeds from credit facility draw down | 73,019,000 | ||||
Credit Agreement | Credit Suisse AG | |||||
Debt Instrument [Line Items] | |||||
Interest expense | 5,588,000 | $ 12,269,000 | $ 1,920,000 | ||
Accordion Option | $ 25,000,000 | ||||
Line of Credit Facility, Interest Rate During Period | 2.25% | ||||
Credit Agreement | Credit Suisse AG | Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 20,000,000 | $ 250,000,000 | |||
Credit facility, maturity date | Nov. 14, 2023 | ||||
Proceeds from credit facility draw down | 75,000,000 | ||||
Credit Agreement | Credit Suisse AG | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 250,000,000 | ||||
Credit Agreement | Credit Suisse AG | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 250,000,000 | ||||
Debt instrument, percentage of additional reduction in margin following initial public offering | 0.25% | ||||
Term loan, maturity date | Nov. 14, 2025 | ||||
Partial repayment of outstanding indebtedness | $ 125,000,000 | ||||
Credit Agreement | Credit Suisse AG | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 200.00% | ||||
Credit Agreement | Credit Suisse AG | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 362.50% | ||||
Credit Agreement | Credit Suisse AG | LIBOR | Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 3.50% | ||||
Debt instrument, step down percentage | 3.25% | ||||
Credit Agreement | Credit Suisse AG | LIBOR | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 3.50% | ||||
Debt instrument, step down percentage | 3.25% | ||||
Credit Agreement | Credit Suisse AG | Alternate Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 100.00% | ||||
Credit Agreement | Credit Suisse AG | Alternate Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 262.50% | ||||
Credit Agreement | Credit Suisse AG | Alternate Base Rate | Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 2.50% | ||||
Debt instrument, step down percentage | 2.25% | ||||
Credit Agreement | Credit Suisse AG | Alternate Base Rate | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, margin percentage | 2.50% | ||||
Debt instrument, step down percentage | 2.25% |
Asset-Based Expenses - Schedule
Asset-Based Expenses - Schedule of Asset-Based Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Costs And Expenses [Abstract] | |||
Strategist and manager fees | $ 107,317 | $ 102,480 | $ 93,385 |
Premier broker-dealer fees | 11,303 | 10,197 | 8,107 |
Custody fees | 6,226 | 6,187 | 6,208 |
Fund advisory fees | 4,600 | 4,493 | 5,701 |
Marketing allowance | 3,244 | 2,576 | 2,573 |
External managers | 788 | ||
Other | 5 | 52 | 1 |
Total | $ 132,695 | $ 125,985 | $ 116,763 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision | |||
Federal | $ 6,331 | $ 11,111 | $ 12,921 |
State | 2,418 | 2,717 | 2,480 |
Total current provision | 8,749 | 13,828 | 15,401 |
Deferred provision (benefit) | |||
Federal | 391 | (970) | (1,846) |
State | (1,097) | 2,467 | 3,582 |
Total deferred provision (benefit) | (706) | 1,497 | 1,736 |
Total income tax expense | $ 8,043 | $ 15,325 | $ 17,137 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes Disclosure [Line Items] | |||
Income taxes paid | $ 13,456 | $ 16,116 | $ 19,497 |
Unrecognized tax benefits | 3,278 | 3,401 | 530 |
Unrecognized tax benefits, if recognized, impact in effective tax rate | 2,916 | 2,834 | |
Interest related to unrecognized tax benefits | 73 | 116 | $ 0 |
Penalties related to unrecognized tax benefits | 216 | 107 | |
State | |||
Income Taxes Disclosure [Line Items] | |||
Net operating loss carryforwards | 279,011 | 277,881 | |
Operating loss carryforwards to expire unused | 113,873 | ||
Tax credit carryforwards | $ 1,977 | $ 338 | |
Operating loss carryforwards, expiration beginning year | 2028 | ||
Operating loss carryforwards, expiration ending year | 2036 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate: | 21.00% | 21.00% | 21.00% |
Increase in rate resulting from: | |||
Non-deductible meals & entertainment | 24.98% | 1.09% | 0.44% |
Officers life insurance | 1.65% | ||
Qualified transportation fringe benefits | 21.63% | ||
Equity compensation | 4284.57% | 48.75% | 2.53% |
Executive compensation limitation | 224.53% | 3.01% | |
State income tax, net of federal income tax effect | 359.74% | 26.16% | 8.51% |
Unrecognized tax benefits | 407.72% | 2.98% | |
Research & development tax credit | (1797.83%) | (1.48%) | |
Return to provision | (66.74%) | ||
Other, net | 0.57% | (0.18%) | 0.41% |
Effective rate | 3481.82% | 102.81% | 31.41% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Net Deferred Income Tax Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Accrued expenses | $ 6,610 | $ 8,159 |
Federal benefit of state tax expense | 4,848 | 5,132 |
State net operating loss carryforwards | 14,161 | 14,065 |
Tax credit carryforwards | 1,977 | 611 |
Lease liability | 9,619 | |
Other | 1,824 | 3,436 |
Total deferred income tax assets | 39,039 | 31,403 |
Liabilities: | ||
Other intangible assets | 159,361 | 161,028 |
Property and equipment, and capitalized software | 19,482 | 19,906 |
Right-of-use asset | 8,467 | |
Other | 1,229 | 859 |
Total deferred income tax liabilities | 188,539 | 181,793 |
Net deferred income tax liability | $ 149,500 | $ 150,390 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 3,401 | $ 530 |
Increases related to prior year tax positions | 2,707 | |
Decreases related to prior year tax positions | (561) | |
Increases related to current year tax positions | 438 | 164 |
Balance, end of year | $ 3,278 | $ 3,401 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) | Jul. 22, 2019USD ($)$ / sharesshares | Jul. 17, 2019shares | Jul. 05, 2019$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019USD ($)VoteRightClass$ / sharesshares | Dec. 31, 2018shares |
Capital Unit [Line Items] | ||||||
Common stock voting rights description | Each holder of Company common stock is entitled to one vote per share | |||||
Common stock, number of votes per share | Vote | 1 | |||||
Common stock preemptive and other subscription rights | Right | 0 | |||||
Common stock redemption or sinking fund provision | $ | $ 0 | |||||
Common stock shares owned by parent | 100 | |||||
Number of classes common units | Class | 3 | |||||
Stock Split conversion ratio | 661,500 | |||||
Common stock adjusted par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized | 675,000,000 | 675,000,000 | 675,000,000 | |||
Number of preferred shares authorized | 75,000,000 | 75,000,000 | 75,000,000 | |||
Preferred Stock issued | 0 | 0 | ||||
Net proceeds from IPO | $ | $ 124,068,000 | |||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||
Common stock, shares issued | 72,459,255 | 72,390,080 | ||||
Common stock, shares outstanding | 72,459,255 | 72,390,080 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
IPO | ||||||
Capital Unit [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 6,250,000 | |||||
Sale of Stock Price Per Share | $ / shares | $ 22 | |||||
Net proceeds from IPO | $ | $ 124,100,000 | |||||
Restricted Stock | ||||||
Capital Unit [Line Items] | ||||||
Exchange of shares with stockholders on liquidation | 6,309,049 | 6,309,049 | ||||
Common Stock | ||||||
Capital Unit [Line Items] | ||||||
Exchange of shares with stockholders on liquidation | 59,840,951 | |||||
Stock Issued During Period, Shares, New Issues | 6,250,000 |
Share-Based Employee Compensa_3
Share-Based Employee Compensation - Additional Information (Details) | Jul. 17, 2019shares | Mar. 31, 2019shares | Dec. 31, 2020USD ($)TrancheInstallment$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017shares |
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
Vesting description | 50% of the RSAs scheduled to vest in three (3) equal installments on the third, fourth and fifth anniversaries of November 18, 2016, subject to the recipient’s continued employment through the vesting date, and 50% subject to the recipient’s continued employment through February 1, 2021 and the satisfaction of a performance-based vesting condition. | |||||
Share-based compensation expense | $ | $ 48,045,000 | $ 23,198,000 | ||||
Unrecognized compensation cost | $ | $ 41,798,000 | |||||
Exchange of shares with stockholders on liquidation | shares | 6,309,049 | 6,309,049 | ||||
Number of equal vesting installments | Installment | 3 | |||||
Vesting upon satisfaction of condition | 50.00% | |||||
Expected to be recognized period | 10 months 17 days | |||||
Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | $ 2,346,000 | 1,067,000 | ||||
Unrecognized compensation cost | $ | $ 3,612,000 | 5,960,000 | ||||
Expected to be recognized period | 1 year 6 months | |||||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | $ 2,148,000 | 530,000 | ||||
Unrecognized compensation cost | $ | $ 8,154,000 | 2,041,000 | ||||
Expected to be recognized period | 3 years 3 months 18 days | |||||
Restricted stock units granted under the plan | shares | 310,225 | |||||
Fair value of RSUs vested | $ | $ 1,680,000 | |||||
Stock Appreciation Rights (SARs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | $ 1,298,000 | |||||
Vested units | shares | 0 | |||||
Unrecognized compensation cost | $ | $ 7,942,000 | |||||
Number of shares, granted | shares | 831,902 | |||||
Expected to be recognized period | 3 years 4 months 24 days | |||||
Exercise price | $ / shares | $ 28.42 | |||||
2019 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share available for issuance under the plan | shares | 3,662,611 | |||||
2019 Equity Incentive Plan | Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting description | Each of these options is scheduled to vest and become exercisable in substantially equal installments on each of the first three anniversaries of July 18, 2019, subject to the recipient’s continued employment through the vesting date and have a ten-year contractual term. | |||||
Number of shares, granted | shares | 918,981 | |||||
Exercise price | $ / shares | $ 22 | |||||
Contractual term | 10 years | |||||
2019 Equity Incentive Plan | Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock units granted under the plan | shares | 310,225 | |||||
2019 Equity Incentive Plan | Stock Appreciation Rights (SARs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting description | Each SAR has a strike price equal to the fair market value of the Company’s common stock on the date of grant and is scheduled to vest and become exercisable in substantially equal installments on each of the first four anniversaries of their grant date, subject to the recipient’s continued employment through the vesting date, and have a ten-year contractual term. | |||||
Share available for issuance under the plan | shares | 831,902 | |||||
Contractual term | 10 years | |||||
Class C Common Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized | shares | 151,188 | |||||
Possible expiration period | 8 years | |||||
Vested units | shares | 0 | |||||
Unrecognized compensation cost | $ | 0 | $ 29,051,000 | ||||
Number of shares, granted | shares | 120.02 | |||||
Class C Common Units | AssetMark Holdings LLC | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of tranches | Tranche | 2 | |||||
Vesting description | 5-year requisite service period for 50% of the units and over an 8-year requisite service period for the remaining 50% of the units. | |||||
Share-based compensation expense | $ | $ 11,407,000 | $ 6,568,000 | ||||
Class C Common Units | Time Vesting Units | AssetMark Holdings LLC | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting units requisite service period | 5 years | |||||
Vesting percentage | 50.00% | |||||
Class C Common Units | Performance Vesting Units | AssetMark Holdings LLC | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting units requisite service period | 8 years | |||||
Vesting percentage | 50.00% |
Share-Based Employee Compensa_4
Share-Based Employee Compensation - Summary of Assumption and Methodologies Used to Calculate Fair Value of Share-based Compensation (Details) - Class C Common Units | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Valuation assumptions: | ||
Risk free rate | 2.49% | |
Expected volatility | 35.00% | |
Dividend yield | 0.00% | |
Discount for lack of marketability | 15.20% |
Share-Based Employee Compensa_5
Share-Based Employee Compensation - Schedule of Incentive Unit Activity (Details) - Class C Common Units - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Balance | 8,550.13 | |
Number of units, Granted | 283.37 | |
Number of units, Forfeited | (16.67) | |
Number of units, Balance | 8,816.83 | 8,550.13 |
Weighted average remaining contractual term, Balance | 5 years 11 months 4 days | 6 years 10 months 13 days |
Weighted average remaining contractual term, Granted | 7 years 5 months 19 days | |
Weighted average remaining contractual term, Forfeited | 7 years 6 months 29 days |
Share-Based Employee Compensa_6
Share-Based Employee Compensation - Schedule of RSA Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of units, Balance | shares | 5,257,541 |
Number of units, Vested | shares | (1,049,488) |
Number of units, Forfeited | shares | (9,920) |
Number of units, Balance | shares | 4,198,133 |
Weighted average grant date fair value, Balance | $ / shares | $ 22 |
Weighted average grant date fair value, Vested | $ / shares | 22 |
Weighted average grant date fair value, Forfeited | $ / shares | 22 |
Weighted average grant date fair value, Balance | $ / shares | $ 22 |
Share-Based Employee Compensa_7
Share-Based Employee Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock Option | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant date fair value of options | $ 7,730 |
Risk free rate | 1.90% |
Expected volatility | 32.80% |
Expected terms (in years) | 6 years |
Share-Based Employee Compensa_8
Share-Based Employee Compensation - Schedule of Stock Option Activity (Details) - Stock Option $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of options, Balance | shares | 908,775 |
Number of options, Exercised | shares | (8,504) |
Number of options, Balance | shares | 900,271 |
Number of options, Vested and Exercised | shares | 294,413 |
Weighted average exercise price, Balance | $ / shares | $ 22 |
Weighted average exercise price, Exercised | $ / shares | 22 |
Weighted average exercise price, Balance | $ / shares | 22 |
Weighted average exercise price, Vested and Exercised | $ / shares | $ 22 |
Aggregate intrinsic value, Balance | $ | $ 6,380 |
Aggregate intrinsic value, Exercised | $ | 44 |
Aggregate intrinsic value, Balance | $ | 1,981 |
Aggregate intrinsic value, Vested and Exercised | $ | $ 648 |
Weighted average remaining contractual term, Balance | 8 years 6 months |
Weighted average remaining contractual term, Vested and Exercised | 8 years 6 months |
Share-Based Employee Compensa_9
Share-Based Employee Compensation - Schedule of RSU Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of units, Balance | shares | 114,044 |
Restricted stock units granted under the plan | shares | 310,225 |
Number of units, Vested | shares | (60,671) |
Number of units, Forfeited | shares | (19,863) |
Number of units, Balance | shares | 343,735 |
Weighted average grant date fair value, Balance | $ / shares | $ 22.79 |
Weighted average grant date fair value, Granted | $ / shares | 28.27 |
Weighted average grant date fair value, Vested | $ / shares | 22.49 |
Weighted average grant date fair value, Forfeited | $ / shares | 25.62 |
Weighted average grant date fair value, Balance | $ / shares | $ 27.63 |
Share-Based Employee Compens_10
Share-Based Employee Compensation - Schedule of SARs Valuation Assumptions (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted-average grant date fair value of SARs | $ 11.18 |
Expected terms (in years) | 6 years 3 months |
Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk free rate | 0.42% |
Expected volatility | 38.00% |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk free rate | 0.56% |
Expected volatility | 40.00% |
Share-Based Employee Compens_11
Share-Based Employee Compensation - Schedule of SAR Activity (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Granted | shares | 831,902 |
Number of options, Balance | shares | 831,902 |
Exercise price | $ 28.42 |
Weighted average exercise price, Balance | 28.42 |
Aggregate intrinsic value, Granted | $ 139,373 |
Aggregate intrinsic value, Balance | $ | $ 139,373 |
Weighted average remaining contractual term, Balance | 9 years 4 months 24 days |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Defined contribution plan, employers matching contribution, period of service | 2 years | ||
Defined contribution plan, cost | $ 5,246 | $ 4,811 | $ 3,334 |
Net Capital and Minimum Capit_2
Net Capital and Minimum Capital Requirements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
AssetMark Trust Company | ||
Net Capital And Minimum Capital Requirements [Line Items] | ||
Liquid capital | $ 9,375 | $ 7,750 |
AssetMark Brokerage, LLC | ||
Net Capital And Minimum Capital Requirements [Line Items] | ||
Net capital | $ 5 | $ 6 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Huatai Securities Co., Ltd. | ||
Related Party Transaction [Line Items] | ||
Receivable due from related parties | $ 143 | $ 0 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income Per (Loss) Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to common stockholders | $ (7,812) | $ (420) | $ 37,426 |
Weighted average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders, basic and diluted | 67,361,995 | 66,298,553 | 66,150,000 |
Net income (loss) per share attributable to common stockholders, basic and diluted | $ (0.12) | $ (0.01) | $ 0.57 |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Anti-dilutive Securities Were Not Included in Computation of Diluted Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 6,274,041 | 6,270,440 |
Restricted Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 4,198,133 | 5,247,621 |
Stock Option | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 900,271 | 908,775 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 343,735 | 114,044 |
Stock Appreciation Rights (SARs) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 831,902 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 05, 2019 |
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Subsequent Event | Voyant, Inc | ||||
Subsequent Event [Line Items] | ||||
Equity ownership percentage | 100.00% | |||
Final purchase price, net of working capital adjustments | $ 145 | |||
Business acquisition lock up period | 18 months | |||
Subsequent Event | Voyant, Inc | Common Stock | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.001 | |||
Business acquisition, Issued number of shares | 994,036 | |||
Business acquisition, Issued number of shares value | $ 25 |