Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
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 | 73,899,791 | ||
Entity Public Float | $ 0.4 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | San Francisco, CA | ||
Auditor Firm ID | 185 | ||
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 2023. 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, 2022. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 123,274 | $ 76,707 |
Restricted cash | 13,000 | 13,000 |
Investments, at fair value | 13,714 | 14,498 |
Fees and other receivables, net | 20,082 | 9,019 |
Income tax receivable, net | 265 | 6,276 |
Prepaid expenses and other current assets | 16,870 | 14,673 |
Total current assets | 187,205 | 134,173 |
Property, plant and equipment, net | 8,495 | 8,015 |
Capitalized software, net | 89,959 | 73,701 |
Other intangible assets, net | 694,627 | 695,093 |
Operating lease right-of-use assets | 22,002 | 22,469 |
Goodwill | 487,225 | 447,864 |
Other assets | 13,417 | 2,090 |
Total assets | 1,502,930 | 1,383,405 |
Current liabilities: | ||
Accounts payable | 4,624 | 2,613 |
Accrued liabilities and other current liabilities | 69,196 | 56,249 |
Total current liabilities | 73,820 | 58,862 |
Long-term debt, net | 112,138 | 115,000 |
Other long-term liabilities | 15,185 | 16,468 |
Long-term portion of operating lease liabilities | 27,924 | 28,316 |
Deferred income tax liabilities, net | 147,497 | 155,373 |
Total long-term liabilities | 302,744 | 315,157 |
Total liabilities | 376,564 | 374,019 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value (675,000,000 shares authorized and 73,847,596 and 73,562,717 shares issued and outstanding as of December 31, 2022 and 2021, respectively) | 74 | 74 |
Additional paid-in capital | 942,946 | 929,070 |
Retained earnings | 183,503 | 80,242 |
Accumulated other comprehensive loss | (157) | |
Total stockholders’ equity | 1,126,366 | 1,009,386 |
Total liabilities and stockholders’ equity | $ 1,502,930 | $ 1,383,405 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 675,000,000 | 675,000,000 |
Common stock, shares issued | 73,847,596 | 73,562,717 |
Common stock, shares outstanding | 73,847,596 | 73,562,717 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Total revenue | $ 618,306 | $ 530,299 | $ 432,079 |
Operating expenses: | |||
Asset-based expenses | 154,100 | 150,836 | 132,695 |
Spread-based expenses | 8,182 | 1,427 | 2,703 |
Employee compensation | 166,330 | 196,701 | 176,483 |
General and operating expenses | 90,122 | 72,941 | 62,466 |
Professional fees | 25,186 | 21,813 | 15,100 |
Depreciation and amortization | 31,149 | 37,929 | 35,126 |
Total operating expenses | 475,069 | 481,647 | 424,573 |
Interest expense | 6,520 | 3,559 | 5,588 |
Other (income) expense, net | (43) | 106 | 1,687 |
Income before income taxes | 136,760 | 44,987 | 231 |
Provision for income taxes | 33,499 | 19,316 | 8,043 |
Net income (loss) | 103,261 | 25,671 | (7,812) |
Change in fair value of convertible notes receivable, net | (157) | ||
Net comprehensive income (loss) | $ 103,104 | $ 25,671 | $ (7,812) |
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ 1.40 | $ 0.36 | $ (0.12) |
Diluted | $ 1.40 | $ 0.35 | $ (0.12) |
Weighted average number of common shares outstanding, basic | 73,724,341 | 72,137,174 | 67,361,995 |
Weighted average number of common shares outstanding, diluted | 73,872,828 | 72,399,213 | 67,361,995 |
Asset Based Revenue | |||
Revenue: | |||
Total revenue | $ 534,182 | $ 512,188 | $ 412,023 |
Spread Based Revenue | |||
Revenue: | |||
Total revenue | 63,409 | 8,568 | 16,618 |
Subscription Based Revenue | |||
Revenue: | |||
Total revenue | 13,020 | 6,381 | |
Other Revenue | |||
Revenue: | |||
Total revenue | $ 7,695 | $ 3,162 | $ 3,438 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive loss |
Beginning balance at Dec. 31, 2019 | $ 858,861 | $ 72 | $ 796,406 | $ 62,383 | |
Beginning balance, shares at Dec. 31, 2019 | 72,390,080 | ||||
Net income (loss) | (7,812) | (7,812) | |||
Share-based employee compensation | 53,837 | 53,837 | |||
Issuance of common stock - vesting of restricted stock units, shares | 60,671 | ||||
Exercise of stock options | 187 | 187 | |||
Exercise of stock options, shares | 8,504 | ||||
Ending balance at Dec. 31, 2020 | 905,073 | $ 72 | 850,430 | 54,571 | |
Ending balance, shares at Dec. 31, 2020 | 72,459,255 | ||||
Net income (loss) | 25,671 | 25,671 | |||
Share-based employee compensation | 53,637 | 53,637 | |||
Issuance of common stock - vesting of restricted stock units | $ 1 | (1) | |||
Issuance of common stock - vesting of restricted stock units, shares | 106,110 | ||||
Common stock issued in connection with business combination | 24,910 | $ 1 | 24,909 | ||
Common stock issued in connection with business, shares | 994,028 | ||||
Exercise of stock options | 95 | 95 | |||
Exercise of stock options, shares | 6,242 | ||||
Cancellation of unvested restricted stock awards, shares | (2,918) | ||||
Ending balance at Dec. 31, 2021 | 1,009,386 | $ 74 | 929,070 | 80,242 | |
Ending balance, shares at Dec. 31, 2021 | 73,562,717 | ||||
Net income (loss) | 103,261 | 103,261 | |||
Share-based employee compensation | 13,876 | 13,876 | |||
Change in fair value of convertible notes receivable, net | (157) | $ (157) | |||
Issuance of common stock - vesting of restricted stock units, shares | 284,168 | ||||
Exercise of stock options, shares | 711 | ||||
Ending balance at Dec. 31, 2022 | $ 1,126,366 | $ 74 | $ 942,946 | $ 183,503 | $ (157) |
Ending balance, shares at Dec. 31, 2022 | 73,847,596 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 103,261 | $ 25,671 | $ (7,812) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 31,149 | 37,929 | 35,126 |
Interest expense, net | 541 | 700 | 606 |
Deferred income taxes | (6,673) | (1,562) | (706) |
Share-based compensation | 13,876 | 53,637 | 53,837 |
Debt acquisition cost write-down | 130 | 1,729 | |
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 | (10,718) | 163 | 1,525 |
Receivables from related party | 568 | (91) | (143) |
Prepaid expenses and other current assets | 2,346 | 2,460 | 2,401 |
Income tax receivable, net | 6,073 | 2,570 | (4,602) |
Accounts payable, accrued liabilities and other liabilities | (252) | 7,500 | (7,534) |
Net cash provided by operating activities | 140,301 | 128,977 | 76,947 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of Adhesion Wealth, net of cash received | (43,861) | ||
Purchase of Voyant, net of cash received | (124,161) | ||
Purchase of OBS, net of cash received | (18,561) | ||
Purchase of convertible notes | (10,300) | ||
Purchase of investments | (2,692) | (3,004) | (2,384) |
Sale of investments | 918 | 833 | 40 |
Purchase of property and equipment | (3,061) | (1,507) | (2,901) |
Purchase of computer software | (35,996) | (33,145) | (26,164) |
Net cash used in investing activities | (94,992) | (160,984) | (49,970) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt, net | 122,508 | ||
Payments on revolving credit facility | (115,000) | (35,000) | |
Payments on long-term debt | (6,250) | (123,750) | |
Proceeds from credit facility draw down | 75,000 | 73,019 | |
Proceeds from exercise of stock options | 95 | 187 | |
Payment of credit facility issuance costs | (155) | ||
Net cash provided by (used in) financing activities | 1,258 | 40,095 | (50,699) |
Net change in cash, cash equivalents, and restricted cash | 46,567 | 8,088 | (23,722) |
Cash, cash equivalents, and restricted cash at beginning of period | 89,707 | 81,619 | 105,341 |
Cash, cash equivalents, and restricted cash at end of period | 136,274 | 89,707 | 81,619 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid, net | 33,637 | 19,796 | 13,456 |
Interest paid | 4,087 | 2,828 | 4,969 |
Non-cash operating, investing, and financing activities: | |||
Non-cash changes to right-of-use assets | 3,775 | 933 | 38,796 |
Non-cash changes to lease liabilities | 3,775 | 933 | $ 40,140 |
Non-cash change in fair value of convertible notes | $ (157) | ||
Common stock issued in acquisition of business | $ 24,910 |
Overview
Overview | 12 Months Ended |
Dec. 31, 2022 | |
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 (“AFHI”) and its subsidiaries, which include AssetMark, Inc., AssetMark Trust Company, AssetMark Brokerage, LLC, AssetMark Retirement Services, Inc., Global Financial Private Capital, Inc., Global Financial Advisory, LLC, Voyant, Inc., Voyant UK Limited, Voyant Financial Technologies Inc., Voyant Australia Pty and Adhesion Financial Advisor Solutions, Inc. (“Adhesion Wealth”) (which is the parent company of Atria Investments, Inc.). The entities listed above are collectively referred to as the “Company”. 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. The following is a description of the products and services offered by our significant operating subsidiaries. AssetMark, Inc. (“AMI”) is a registered investment adviser that 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 solutions 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 (“ATC”) 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. ATC 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. Voyant, Inc. (“Voyant”), is a SaaS-based financial planning, wellness and client digital engagement solutions company that was originally formed in Texas on December 29, 2005 and was converted to a Delaware corporation on November 21, 2008. Atria Investments, Inc. (“Atria”), doing business as Adhesion Wealth, is a registered investment adviser that was formed as a limited liability company under the laws of the State of North Carolina on March 29, 2007, and was converted to a corporation under the laws of the State of North Carolina on December 22, 2022. Atria offers a broad array of services and solutions, including overlay management, investment solutions, flexible desktop technology and a manager marketplace. See Note 21 for additional information regarding subsequent reorganization. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Risks and Uncertainties 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 or 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”). Certain prior period amounts in the accompanying notes have been reclassified to conform to the current period’s presentation. 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 two financial institutions, and accordingly, such deposits regularly exceed federally insured limits. Foreign Currency Policy The Company’s functional currency is the US Dollar, and the related gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts are included in other (income) expense, net in the consolidated statements of income and comprehensive income. Geographic Sources of Revenue Revenues attributable to customers outside of the United States totaled $14,484, $6,926, and $0 in the years ended December 31, 2022, 2021, and 2020 respectively. No single customer accounted for more than 10% of the Company’s revenue in any of the periods presented. There were no customers that represented more than 10% and two customers that represented 40% of the Company’s accounts receivable balance as of December 31, 2022 and 2021, 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 with Arizona Revised Statutes requirements governing trust companies. See Note 18 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, 2022 2021 2020 Cash and cash equivalents $ 123,274 $ 76,707 $ 70,619 Restricted cash 13,000 13,000 11,000 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 136,274 $ 89,707 $ 81,619 Investment Securities The Company’s investments primarily comprise equity security investments for the Company’s rabbi trust and 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 are reported as other (income) expense, net. 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 miscellaneous 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 $39 and $74 allowance for doubtful accounts recorded as of December 31, 2022 and 2021, 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 expenses, approximate their fair values due to their relatively short maturity. 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. If after assessing the totality of events or circumstances it is determined that it is more likely than not that the carrying value may exceed fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. No impairment charges related to goodwill were recorded during the years ended December 31, 20 2 2 , 20 2 1 and 20 20 . Indefinite-lived intangible assets are tested for impairment annually and whenever events or changes in circumstances indicate the carrying value of indefinite-lived intangible assets may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, attrition of broker-dealers or enterprise customers, or changes in expected future cash flows. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company’s indefinite-lived intangible assets consist of broker-dealer relationships and enterprise distribution channel customer relationships. 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. Acquired indefinite-lived intangible assets also consists of enterprise distribution channel relationships with financial institutions that are expected to result in future revenue and profit. While these relationships are contractual, they have no fixed expiration date and are expected to be renewed indefinitely. No such contracts have been terminated by either side to date. No impairment charges related to indefinite-lived intangible assets were recorded during the years ended December 31, 2022, 2021 and 2020. Acquired definite-lived intangible assets consist of assets 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. No impairment charges related to long-lived assets and acquired definite-lived intangible assets were recorded during the years ended December 31, 2022, 2021 and 2020. Certain items in prior periods were adjusted to correct an immaterial error relating to the valuation of indefinite-lived intangible assets as part to the Company’s acquisition of Voyant 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. Leasehold improvements are depreciated over the shorter of the economic useful life of the improvement or the remaining lease term. Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $2,646, $2,406 and $2,511, respectively. The following table shows balances of major classes of depreciable assets as of the date shown: December 31, 2022 2021 Computer software and equipment $ 9,760 $ 8,445 Furniture and equipment 3,918 3,852 Leasehold improvements 7,649 5,904 Total property and equipment 21,327 18,201 Less: accumulated depreciation (12,832 ) (10,186 ) Property, plant and equipment, net $ 8,495 $ 8,015 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 c apitalized software, net Capitalized internal-use software costs are amortized on a straight-line basis over the software estimated useful life, which is generally five years to nine 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 $303, $426 and $211 of internally developed software during the years ended December 31, 2022, 2021 and 2020, respectively. Amortization expense for the years ended December 31, 2022, 2021 and 2020 was $19,737, $28,280 and $26,934, respectively. Accumulated amortization was $136,858 and $117,424 as of December 31, 2022 and 2021, respectively. Revenue Recognition The Company accounts for its revenue arrangements in accordance with FASB Topic 606 - Revenue from Contracts with Customers . The Company recognizes revenue from services related to asset-based revenue, spread-based revenue, subscription-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 ATC, one of several custodians offered on the Company’s platform. ATC utilizes third-party banks to invest custodied cash and earn spread-based revenue for the Company. • Subscription-based revenue — Subscription-based revenue represents revenue recognized from subscription fee arrangements in connection with financial planning and wealth management software solutions for use as a hosted application. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the solution is made available to the customer. • 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 1 2 for a breakout of these costs. Spread-Based Expenses The Company recognizes spread-based expenses when costs are incurred. Spread-based expenses relate to interest credited to customer accounts and expenses paid to AssetMark Trust’s third-party administrator for administering the custodian’s insured cash deposit program. Share-Based Compensation 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. 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. The Company accounts for forfeitures as they occur. See Note 15 for additional information related to share-based employee compensation. Operating Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in prepaid expenses and other current assets, operating lease right-of-use (“ROU”) assets, accrued liabilities and other current liabilities, and long-term portion of operating lease liabilities on the Company’s consolidated balance sheets. 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 lease 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. 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. See Note 11 for additional information related to leases. 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. 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 – Issued Not Yet Adopted In August 2021, the FASB issued ASU No. 2021-08, Business Combinations Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Prepaid expenses $ 11,697 $ 9,355 Operating lease right-of-use assets 4,387 4,198 Other 786 1,120 Total $ 16,870 $ 14,673 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Note 4. Business Combinations Acquisition of Adhesion Wealth On December 14, 2022, the Company acquired all of the issued and outstanding equity interests of Adhesion Wealth. Adhesion Wealth is a leading provider of outsourced investment management solutions for RIAs. With Adhesion Wealth, advisors gain access to a scalable, multi-custodian platform upon which to grow successful practices. The Company acquired Adhesion Wealth to complement AssetMark’s curated suite of fully bundled capabilities and services designed specifically for RIAs and delivered through AssetMark Institutional, a fully-assembled holistic solution for RIAs that the Company launched in March of 2021. The Company funded the acquisition with cash on hand. The preliminary estimated consideration transferred in the acquisition, net of cash received, was $46,861. Cash consideration, net of working capital adjustments $ 46,862 Purchase consideration liability 3,000 Less: cash acquired (3,001 ) Total consideration transferred, net of cash acquired and working capital adjustments $ 46,861 The estimated fair values of working capital balances, identifiable intangible assets and goodwill are provisional and are based on the information that was available as of the acquisition date. The estimated fair values of these provisional items are based on certain valuation and other studies that remain in progress and are not yet determinable. The Company believes the preliminary information provides a reasonable basis for estimating the fair values of these amounts, but is waiting for additional information necessary to finalize those fair values. Therefore, provisional measurements of fair values reflected are subject to change and such changes could be significant. The Company expects to finalize the valuation of tangible assets and liabilities and identifiable intangible assets and goodwill and complete the acquisition accounting as soon as practicable, but no later than December 14, 2023. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ 6,136 Total liabilities assumed (3,603 ) Identifiable intangible assets 8,300 Goodwill 39,029 Total net assets acquired $ 49,862 The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to lower future operating expenses and the knowledge and experience of the existing workforce. The goodwill is not deductible for income tax purposes. A summary of preliminary estimated identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Trade name $ 1,500 10 years Customer relationships 3,200 7 years Technology 3,600 3 years Total intangible assets acquired $ 8,300 The results of Adhesion Wealth’s operations were included in the consolidated statements of income and comprehensive income beginning December 14, 2022 and were not considered material to the Company’s results of operations. Acquisition of Voyant On July 1, 2021, the Company acquired all of the issued and outstanding equity interests of Voyant through a merger of Voyant with and into a wholly owned subsidiary of AFHI. Voyant provides software as a service (“SaaS”) based financial planning and wealth management software solutions to advisers across financial institutions and small adviser firms in the United Kingdom, Canada, Australia, and the United States. The Company acquired Voyant to add complementary financial planning tools to its existing suite of offerings and to strengthen Voyant’s growth prospects by leveraging the Company’s U.S. relationships. The Company is continuing to integrate the technology and operations of Voyant into its wealth management channel. The Company funded the acquisition with a combination of cash on hand, borrowings under its 2020 Revolving Credit Facility, and equity. The equity consideration at issuance comprised of 994,028 shares, and was valued at approximately $24,910 using the Company’s closing share price prior to issuance. The consideration transferred in the acquisition, net of cash received, was $157,098. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate Cash and cash equivalents $ 8,027 $ — $ 8,027 Intangible assets 46,600 — 46,600 Goodwill 109,016 333 109,349 Other assets 2,896 — 2,896 Total assets acquired 166,539 333 166,872 Deferred income tax liabilities (7,431 ) (327 ) (7,758 ) Other liabilities (2,010 ) (6 ) (2,016 ) Total liabilities assumed (9,441 ) (333 ) (9,774 ) Total net assets acquired $ 157,098 $ — $ 157,098 The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to lower future operating expenses and the knowledge and experience of the existing workforce. The goodwill is not deductible for income tax purposes. A summary of identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Technology $ 16,000 9 Enterprise distribution channel customer relationships 17,500 Indefinite Non-enterprise distribution channel customer relationships 9,500 14 Trade name 3,200 11 Non-compete agreements 400 3 Total intangible assets acquired $ 46,600 The results of Voyant’s operations were included in the consolidated statements of income and comprehensive income beginning July 1, 2021 and were not considered material to the Company’s results of operations. Acquisition of OBS On February 29, 2020, the Company closed the acquisition of WBI OBS Financial, LLC (now known as WBI OBS Financial, Inc.) 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, 2022 | |
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 $13,602 and $14,379 as of December 31, 2022 and 2021, respectively, and other long-term liabilities of $13,602 and $14,379 as of December 31, 2022 and 2021, respectively. The VIE had other (income) expense of $(2,542), $1,690 and $900 related to the rabbi trust’s unrealized gains (losses) for the years ended December 31, 2022, 2021 and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
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 $487,225 and $447,864 as of December 31, 2022 and 2021, respectively. Other Intangible Assets Information regarding the Company’s intangible assets is as follows: December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Voyant enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 45,830 (14,131 ) 31,699 14 years Broker-dealer license 11,550 (3,561 ) 7,989 14 years ATC regulatory status 23,300 (7,184 ) 16,116 14 years Voyant non-enterprise distribution channel customer relationships 9,500 (1,018 ) 8,482 13 years GFPC adviser relationships 14,250 (3,775 ) 10,475 10 years OBS adviser and trust relationships 9,500 (2,130 ) 7,370 10 years Voyant trade name 3,200 (436 ) 2,764 10 years Voyant technology 16,000 (2,667 ) 13,333 8 years Voyant non-compete agreement 400 (200 ) 200 2 years Adhesion Wealth trade name 1,500 (6 ) 1,494 10 years Adhesion Wealth customer relationships 3,200 (25 ) 3,175 7 years Adhesion Wealth technology 3,600 (50 ) 3,550 3 years Total $ 729,810 $ (35,183 ) $ 694,627 December 31, 2021 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Voyant enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 45,830 (11,839 ) 33,991 15 years Broker-dealer license 11,550 (2,984 ) 8,566 15 years ATC regulatory status 23,300 (6,019 ) 17,281 15 years Voyant non-enterprise distribution channel customer relationships 9,500 (339 ) 9,161 14 years GFPC adviser relationships 14,250 (2,757 ) 11,493 11 years OBS adviser and trust relationships 9,500 (1,378 ) 8,122 11 years Voyant trade name 3,200 (145 ) 3,055 11 years Voyant technology 16,000 (889 ) 15,111 9 years Voyant non-compete agreement 400 (67 ) 333 3 years Total $ 721,510 $ (26,417 ) $ 695,093 The weighted average estimated remaining useful life was 11.6 years Estimated amortization expense for definite‑lived intangible assets for future years is as follows: Year Ended December 31: Estimated amortization 2023 $ 10,484 2024 10,425 2025 10,308 2026 9,158 2027 9,158 2028 and thereafter 57,114 Total $ 106,647 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Accrued bonus $ 19,813 $ 20,718 Compensation and benefits payable 13,403 7,182 Current portion of long-term debt, net 6,123 — Current portion of operating lease liabilities 4,485 4,223 Reserve for uncertain tax positions 4,136 3,695 Asset-based payables 840 1,709 Other accrued expenses 20,396 18,722 Total $ 69,196 $ 56,249 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Note 8. Other Long-Term Liabilities Other long-term liabilities consisted of the following: December 31, 2022 2021 Deferred compensation plan liability $ 13,602 $ 14,379 Contractor liability 1,178 1,602 Other 405 487 Total $ 15,185 $ 16,468 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021, based on the three-tier fair value hierarchy: December 31, 2022 Fair Value Level I Level II Level III Assets: Equity security investments $ 112 $ 112 $ — $ — Assets to fund deferred compensation liability 13,602 13,602 — — Convertible notes receivable 10,352 — — 10,352 Total assets $ 24,066 $ 13,714 $ — $ 10,352 Liabilities: Deferred compensation liability $ 13,602 $ 13,602 $ — $ — Total liabilities $ 13,602 $ 13,602 $ — $ — December 31, 2021 Fair Value Level I Level II Level III Assets: Equity security investments $ 119 $ 119 $ — $ — Assets to fund deferred compensation liability 14,379 14,379 — — Total assets $ 14,498 $ 14,498 $ — $ — Liabilities: Deferred compensation liability $ 14,379 $ 14,379 $ — $ — Total liabilities $ 14,379 $ 14,379 $ — $ — Fair Value of Equity Security Investments The fair values of the Company’s assets consisting of investment funds that invest in listed equity securities are based on the month end quoted market prices for the net asset value of the various funds, which mature on a daily basis. Fair Value of Deferred Compensation Asset and Liability The deferred compensation 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 (losses) of $(2,542), $1,690 and $900 related to this asset within other (income) expense, net within the consolidated statements of income and comprehensive income for the years ended December 31, 2022, 2021 and 2020, respectively. The deferred compensation liability is included in other long-term 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 investment funds in the Company’s rabbi trust that the participants have selected. The Company recognized other (income) expense, net of $2,542, $(1,690) and $(900) related to this liability within the consolidated statements of income and comprehensive income for the years ended December 31, 2022, 2021 and 2020, respectively. See Note 5 for more details. Fair Value of Convertible Notes Receivable On August 9, 2022, the Company, as lender, entered into a loan and security agreement under which the Company agreed to purchase up to $25,000 in principal amount of convertible notes from the borrower. The notes are convertible, at the Company’s election, into shares of the borrower’s common stock at the end of 2025. The convertible notes are classified as available for sale, and included in other assets in the Company’s consolidated balance sheets. The fair value of the convertible notes receivables issued by the Company were estimated using a market yield method with significant inputs that are not observable in the market and thus represents a Level III fair value measurement. The significant inputs in the Company's Level III fair value measurement not supported by market activity included creditworthiness of the borrower, which management believes are appropriately discounted considering the uncertainties associated with these obligations, and are calculated in accordance with the terms of the respective agreement. Changes to these estimated fair values are recognized as other comprehensive income in the consolidated statements of income and comprehensive income. During the year ended December 31, 2022, the Company recognized a fair value adjustment, net of tax, of $(157). |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 10. Debt On December 30, 2020, the Company entered into a Credit Agreement (the “2020 Credit Agreement”) with Bank of Montreal for a 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 “2020 Revolving Credit Facility” and the loans thereunder, the “2020 Revolving Loans”), with an accordion option of up to $25,000. The total outstanding principal under the 2020 Credit Agreement was paid in full on January 12, 2022 On January 12, 2022, the Company amended the 2020 Credit Agreement to, among other things, add a term loan facility (as amended and restated, the “2022 Credit Agreement”). Joint lead arrangers and joint bookrunners for the 2022 Credit Agreement are BMO Capital Markets Corp., JPMorgan Chase Bank, N.A., Truist Securities, Inc., U.S. Bank National Association and Wells Fargo Securities, LLC. The 2022 Credit Agreement provides for a senior secured credit facility in an aggregate principal amount of $500,000, consisting of a revolving credit facility with commitments in an aggregate principal amount of $375,000 (the “2022 Revolving Credit Facility”) and a term loan facility with commitments in an aggregate amount of $125,000 (the “2022 Term Loans”), with an accordion option to increase the revolving commitments by $100,000. On October 25, 2022, the Company entered into an amendment (the “ESG Amendment”) to the 2022 Credit Agreement, for the purpose of incorporating key performance indicators (“KPIs”) and environmental, social and governance pricing provisions into the 2022 Credit Agreement. The 2022 Term Loans bear interest at a rate per annum equal to, at the Company’s option, either (i) SOFR plus a margin based on the Company’s Total Leverage Ratio (as defined in the 2022 Credit Agreement) or (ii) the Base Rate (as defined in the 2022 Credit Agreement) plus a margin based on the Company’s Total Leverage Ratio. The margin ranges between 0.875% and 2.5% for base rate loans and between 1.875% and 3.5% for SOFR loans. The Company will pay a commitment fee based on the average daily unused portion of the commitments under the 2022 Revolving Credit Facility, a letter of credit fee equal to the margin then in effect with respect to the SOFR loans under the 2022 Revolving Credit Facility, a fronting fee and any customary documentary and processing charges for any letter of credit issued under the 2022 Credit Agreement. The 2022 Term Loans are subject to quarterly amortization payments and will mature on January 12, 2027. The ESG Amendment provides for up to (i) 0.05% positive or negative adjustments to the applicable margin and (ii) 0.01% positive or negative adjustments to the commitment fee, in each case, based on the Company’s performance against the KPIs, and includes customary affirmative covenants and representations and warranties with respect to the KPIs. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 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 $5,321, $5,170 and $5,850 and related variable lease costs of $651, $773 and $716, were recorded in general and operating expenses in the consolidated statements of income and comprehensive income for the years ended December 31, 2022, 2021 and 2020, respectively. The Company’s leases had a weighted-average lease term of 5.9 years and 6.3 years, and used a weighted-average discount rate of 4.65% and 3.62% as of December 31, 2022 and 2021. The Company paid $ 5,713 and $ 5,407 for amounts included in the measurement of lease liabilities for the years ended December 31, 2022 and 2021, respectively. The Company received a cash allowance of $ 541 from lessors for leasehold improvements for the year ended December 31, 2022 which is included within the operating activities section of the consolidated s tatement of c ash f lows under accounts payable, accrued liabilities and other current liabilities . Future minimum lease payments under non-cancellable leases, as of December 31, 2022, were as follows: 2023 $ 5,486 2024 6,685 2025 6,405 2026 6,231 2027 6,091 2028 and thereafter 6,493 Total future minimum lease payments 37,391 Less: imputed interest (4,982 ) Total operating lease liabilities $ 32,409 |
Asset-Based Expenses
Asset-Based Expenses | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Strategist and manager fees $ 135,992 $ 128,490 $ 107,317 Premier broker-dealer fees 6,300 9,461 11,303 Custody fees 6,676 6,712 6,226 Fund advisory fees 4,837 4,402 4,600 Marketing allowance 254 1,769 3,244 Other 41 2 5 Total $ 154,100 $ 150,836 $ 132,695 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes The Company’s income tax provision was as follows: Year Ended December 31, 2022 2021 2020 Current provision Federal $ 31,348 $ 16,273 $ 6,331 State 8,798 4,605 2,418 Foreign 26 — — Total current provision 40,172 20,878 8,749 Deferred provision (benefit) Federal (5,061 ) (578 ) 391 State (1,608 ) (984 ) (1,097 ) Foreign (4 ) — — Total deferred provision (benefit) (6,673 ) (1,562 ) (706 ) Total income tax expense $ 33,499 $ 19,316 $ 8,043 The Company paid income taxes of $34,059, $19,796 and $13,456 for the years ended December 31, 2022, 2021 and 2020, respectively. The reconciliation of the federal statutory tax rate to the Company’s effective income tax rate was as follows: Year Ended December 31, 2022 2021 2020 Statutory U.S. federal income tax rate: 21.00 % 21.00 % 21.00 % Increase in rate resulting from: Non-deductible meals & entertainment 0.01 % 0.10 % 24.98 % Officers life insurance — — 1.65 % Qualified transportation fringe benefits 0.03 % 0.09 % 21.63 % Equity compensation 0.27 % 19.22 % 4284.57 % Executive compensation limitation 0.16 % 1.28 % 224.53 % State income tax, net of federal income tax effect 4.05 % 6.03 % 359.74 % Unrecognized tax benefits 0.05 % 1.70 % 407.72 % Research & development tax credit (1.39 )% (5.21 )% (1797.83 )% Return to provision 0.06 % (1.76 )% (66.74 )% Other, net 0.25 % 0.48 % 0.57 % Effective rate 24.49 % 42.93 % 3,481.82 % The components of the Company’s deferred income tax liability, net was as follows: December 31, 2022 2021 Assets: Accrued expenses $ 7,633 $ 7,031 Federal benefit of state tax expense 5,790 5,544 Federal and state net operating loss carryforwards 15,598 17,108 Tax credit carryforwards 2,885 2,537 Lease liability 8,549 8,797 Stock-based compensation 5,359 3,756 Other 103 24 Total deferred income tax assets 45,917 44,797 Liabilities: Other intangible assets 170,407 170,131 Property and equipment, and capitalized software 14,307 20,529 Right-of-use asset 6,960 7,221 Other 1,740 2,289 Total deferred income tax liabilities 193,414 200,170 Net deferred income tax liability $ 147,497 $ 155,373 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 2022 and 2021, the Company evaluated the realizability of its net deferred tax assets based on available positive and negative evidence. During 2021, the Company concluded that it is more likely than not that all of the benefits of the deferred tax assets will be realized. During 2022, the Company concluded that it is more likely than not that all of the benefits of the deferred tax assets will be realized, except for a portion of its state net operating loss carryforwards that would expire unused. As a result, the Company has established a valuation allowance of $87. The Company's federal net operating loss carryforwards amounted to $13,380 and $14,962 as of December 31, 2022 and 2021, respectively. If unused, $11,335 of the Company’s federal net operating loss carryforwards will begin to expire in 2023. $2,045 of the Company’s net operating losses were generated after 2017 and will carryforward indefinitely. The Company's state net operating loss carryforwards amounted to $261,037 and $275,032, as of December 31, 2022 and 2021, respectively. It is expected that the utilization limitation 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 begin to expire in 202 3 . The Company had state tax credit carryforwards of $ 2,762 and $ 2,422 as of December 31, 20 2 2 and 20 2 1 , 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, 2022 2021 Balance, beginning of year $ 4,918 $ 3,278 Increases related to prior year tax positions 313 497 Decreases related to prior year tax positions due to closure of statute (389 ) (131 ) Increases related to current year tax positions 813 1,274 Balance, end of year $ 5,655 $ 4,918 The Company had unrecognized tax benefits of $5,655 and $4,918 as of December 31, 2022 and 2021, respectively, primarily 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 $4,979 and $4,385 as of December 31, 2022 and 2021, respectively. For the years ended December 31, 2022, 2021 and 2020, the Company recorded an expense of $145, $296 and $182 for interest and penalties related to unrecognized tax benefits as part of income tax expense, respectively. Total accrued interest and penalties related to unrecognized tax benefits as of December 31, 2022 and December 31, 2021, were $845 and $700, 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 2017. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholder's Equity | Note 14. 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. As of December 31, 2022, 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, 73,847,596 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, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Employee Compensation | Note 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 initial public offering (the “IPO”) registration statement on Form S-1. As of December 31, 2022, 650,562 shares were available for issuance under the 2019 Equity Incentive Plan. Restricted Stock Awards Immediately following the pricing of the IPO, the Company issued an aggregate number of restricted stock awards (“RSAs”) equal to 6,309,049 shares of the Company’s common stock to the Company’s officers, certain sales employees and an independent director of the board . Subject to the recipient’s continued employment through the vesting date, 50% of these RSAs vested in three (3) equal installments on the third, fourth and fifth anniversaries of November 18, 2016, and 50% vested 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 were not satisfied for any portion of an award, the shares covered by such RSAs transferred automatically to the Company. On November 18, 2021, the last installment of outstanding RSAs vested . The following is a summary of the activity for RSAs: 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 Vested (4,195,215 ) 22.00 Forfeited (2,918 ) 22.00 Balance at December 31, 2021 — Share-based compensation expense related to the RSAs was $0, $41,715 and $48,045 for the years ended December 31, 2022, 2021 and 2020, respectively. Stock Options In connection with the 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 2019 Equity Incentive Plan, with an exercise price of $22 dollars per share. Each of these options vested and became 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 On July 18, 2022, the last installment of outstanding options vested. 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 The following is a summary of the activity for stock options: 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 Exercised (17,860 ) 22.00 67 — Forfeited (10,206 ) 22.00 37 — Balance at December 31, 2021 872,205 22.00 3,672 5.5 Exercised (17,010 ) 22.00 17 — Expired (51,602 ) 22.00 29 — Forfeited (20,699 ) 22.00 16 — Balance at December 31, 2022 782,894 22.00 783 4.3 Options vested and exercisable at December 31, 2022 782,894 $ 22.00 $ 783 4.3 Share-based compensation expense related to the stock options was $670, $2,386 and $2,346 for the years ended December 31, 2022, 2021 and 2020, respectively. Restricted Stock Units Periodically, the Company issues 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. The following is a summary of the activity for unvested RSUs: 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 Granted 819,011 25.35 Vested (106,110 ) 27.30 Forfeited (33,237 ) 26.65 Balance at December 31, 2021 1,023,399 25.87 Granted 525,195 21.29 Vested (284,168 ) 25.93 Forfeited (82,387 ) 25.41 Balance at December 31, 2022 1,182,039 $ 23.85 Share-based compensation expense related to the RSUs was $8,129, $6,104 and $2,148 for the years ended December 31, 2022, 2021 and 2020, respectively. There was $22,838 of total unrecognized compensation cost related to unvested RSUs granted under the 2019 Equity Incentive Plan as of December 31, 2022. These costs are expected to be recognized over a weighted average period of 2.7 years as of December 31, 2022. The total fair value of RSUs vested was $5,718 during the year ended December 31, 2022. Stock Appreciation Rights Periodically, the Company issues stock appreciation rights (“SARs”) to certain officers with respect to 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 The following assumptions were used to value SARs granted during the periods indicated: 2022 2021 2020 Weighted-average grant date fair value of SARs $ 8.67 $ 9.81 $ 11.18 Risk free rate 3.05 % 0.63% - 1.04% 0.42% - 0.56% Expected volatility 37 % 37% - 39% 38% - 40% Dividend yield — — — Expected terms (in years) 6.25 6.25 6.25 The following is a summary of the activity for SARs: 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 Balance at December 31, 2020 831,902 $ 28.42 139 9.4 Granted 894,411 25.59 363 Forfeited (38,111 ) 27.12 10 Expired (4,688 ) 28.48 — Balance at December 31, 2021 1,683,514 $ 26.94 571 8.6 Granted 1,030,037 20.72 — Forfeited (85,551 ) 26.58 31 Expired (31,361 ) 27.88 — Balance at December 31, 2022 2,596,639 $ 24.48 2,324 8.3 SARs vested and exercisable at December 31, 2022 582,229 $ 27.38 $ 100 7.3 Share-based compensation expense related to the SARs was $5,077, $3,432 and $1,298 for the years ended December 31, 2022, 2021 and 2020, respectively. There was $15,148 of total unrecognized compensation cost related to unvested SARs granted under the 2019 Equity Incentive Plan as of December 31, 2022. These costs are expected to be recognized over a weighted-average period of 2.8 years as of December 31, 2022. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 16. 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 $6,779, $6,043 and $5,246 to the Benefit Plan for the years ended December 31, 2022, 2021 and 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 17. 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. Other Contingencies In connection with the acquisition of Adhesion Wealth, the Company may incur contingent compensation for certain employees based upon the achievement of certain milestones and their continued employment. The payouts were indeterminable at the balance sheet date and no amounts have been accrued or disclosed in the accompanying consolidated financial statements with respect to these contingencies. |
Net Capital and Minimum Capital
Net Capital and Minimum Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital Requirements [Abstract] | |
Net Capital and Minimum Capital Requirements | Note 18. Net Capital and Minimum Capital Requirements AssetMark Trust Company, regulated by the Arizona Department of Insurance and Financial Institutions (“AZDIFI”) is required by state regulation 6-856 to maintain $11,500 and $12,375 in liquid capital (as defined by the AZDIFI) based on asset levels as of December 31, 2022 and 2021, respectively. AssetMark Brokerage, LLC, regulated by the SEC, is required to maintain $16 and $5 in net capital (as defined by the SEC) as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, 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, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 19. Related Party Transactions As of December 31, 2022 and 2021, the Company had a receivable due from Huatai Securities Co., Ltd. (“HTSC”) of $0 and $234, respectively, which represents the cash paid by the Company on behalf of HTSC for certain professional services rendered to HTSC related to International Financial Reporting Standards 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, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Note 20. 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, 2022 2021 2020 Net income (loss) attributable to common stockholders $ 103,261 $ 25,671 $ (7,812 ) Weighted average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders, basic 73,724,341 72,137,174 67,361,995 Net income (loss) per share attributable to common stockholders, basic $ 1.40 $ 0.36 $ (0.12 ) Weighted average shares used in computing net income (loss) per share attributable to common stockholders, basic 73,724,341 72,137,174 67,361,995 Effect of dilutive shares: Options to purchase common stock — 9,913 — Unvested RSUs 148,487 252,126 — Diluted number of weighted-average shares outstanding 73,872,828 72,399,213 67,361,995 Net income (loss) per share attributable to common stockholders, diluted $ 1.40 $ 0.35 $ (0.12 ) Since the Company was in a loss position for the year ended December 31, 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, 2022 2021 2020 RSAs — — 4,198,133 Stock options 782,894 — 900,271 RSUs 599,398 207,232 343,735 SARs 2,596,639 1,683,514 831,902 Total 3,978,931 1,890,746 6,274,041 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21. Subsequent Events The Company has evaluated subsequent events from the balance sheet date through the date of the accompanying independent auditors’ report, which is the date at which the consolidated financial statements were available to be issued. Based on the Company’s evaluation, the following matter was identified subsequent to the balance sheet date: We completed an internal restructuring of Adhesion Wealth and Atria on January 30, 2023 whereby Adhesion Wealth was merged out of existence and Atria became a direct subsidiary of AFHI, and will continue to do business as Adhesion Wealth. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Risks And Uncertainties | Risks and Uncertainties 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 or 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”). Certain prior period amounts in the accompanying notes have been reclassified to conform to the current period’s presentation. |
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 two financial institutions, and accordingly, such deposits regularly exceed federally insured limits. |
Foreign Currency Policy | Foreign Currency Policy The Company’s functional currency is the US Dollar, and the related gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts are included in other (income) expense, net in the consolidated statements of income and comprehensive income. |
Geographic Sources of Revenue | Geographic Sources of Revenue Revenues attributable to customers outside of the United States totaled $14,484, $6,926, and $0 in the years ended December 31, 2022, 2021, and 2020 respectively. No single customer accounted for more than 10% of the Company’s revenue in any of the periods presented. There were no customers that represented more than 10% and two customers that represented 40% of the Company’s accounts receivable balance as of December 31, 2022 and 2021, 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 with Arizona Revised Statutes requirements governing trust companies. See Note 18 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, 2022 2021 2020 Cash and cash equivalents $ 123,274 $ 76,707 $ 70,619 Restricted cash 13,000 13,000 11,000 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 136,274 $ 89,707 $ 81,619 |
Investment Securities | Investment Securities The Company’s investments primarily comprise equity security investments for the Company’s rabbi trust and 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 are reported as other (income) expense, net. 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 miscellaneous 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 $39 and $74 allowance for doubtful accounts recorded as of December 31, 2022 and 2021, respectively. |
Fair Value Measurements | 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 expenses, approximate their fair values due to their relatively short maturity. 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. If after assessing the totality of events or circumstances it is determined that it is more likely than not that the carrying value may exceed fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. No impairment charges related to goodwill were recorded during the years ended December 31, 20 2 2 , 20 2 1 and 20 20 . Indefinite-lived intangible assets are tested for impairment annually and whenever events or changes in circumstances indicate the carrying value of indefinite-lived intangible assets may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, attrition of broker-dealers or enterprise customers, or changes in expected future cash flows. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company’s indefinite-lived intangible assets consist of broker-dealer relationships and enterprise distribution channel customer relationships. 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. Acquired indefinite-lived intangible assets also consists of enterprise distribution channel relationships with financial institutions that are expected to result in future revenue and profit. While these relationships are contractual, they have no fixed expiration date and are expected to be renewed indefinitely. No such contracts have been terminated by either side to date. No impairment charges related to indefinite-lived intangible assets were recorded during the years ended December 31, 2022, 2021 and 2020. Acquired definite-lived intangible assets consist of assets 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. No impairment charges related to long-lived assets and acquired definite-lived intangible assets were recorded during the years ended December 31, 2022, 2021 and 2020. Certain items in prior periods were adjusted to correct an immaterial error relating to the valuation of indefinite-lived intangible assets as part to the Company’s acquisition of Voyant |
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. Leasehold improvements are depreciated over the shorter of the economic useful life of the improvement or the remaining lease term. Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $2,646, $2,406 and $2,511, respectively. The following table shows balances of major classes of depreciable assets as of the date shown: December 31, 2022 2021 Computer software and equipment $ 9,760 $ 8,445 Furniture and equipment 3,918 3,852 Leasehold improvements 7,649 5,904 Total property and equipment 21,327 18,201 Less: accumulated depreciation (12,832 ) (10,186 ) Property, plant and equipment, net $ 8,495 $ 8,015 |
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 c apitalized software, net Capitalized internal-use software costs are amortized on a straight-line basis over the software estimated useful life, which is generally five years to nine 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 $303, $426 and $211 of internally developed software during the years ended December 31, 2022, 2021 and 2020, respectively. Amortization expense for the years ended December 31, 2022, 2021 and 2020 was $19,737, $28,280 and $26,934, respectively. Accumulated amortization was $136,858 and $117,424 as of December 31, 2022 and 2021, respectively. |
Revenue Recognition | Revenue Recognition The Company accounts for its revenue arrangements in accordance with FASB Topic 606 - Revenue from Contracts with Customers . The Company recognizes revenue from services related to asset-based revenue, spread-based revenue, subscription-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 ATC, one of several custodians offered on the Company’s platform. ATC utilizes third-party banks to invest custodied cash and earn spread-based revenue for the Company. • Subscription-based revenue — Subscription-based revenue represents revenue recognized from subscription fee arrangements in connection with financial planning and wealth management software solutions for use as a hosted application. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the solution is made available to the customer. • 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 1 2 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 interest credited to customer accounts and 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 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. 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. The Company accounts for forfeitures as they occur. See Note 15 for additional information related to share-based employee compensation. |
Operating Leases | Operating Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in prepaid expenses and other current assets, operating lease right-of-use (“ROU”) assets, accrued liabilities and other current liabilities, and long-term portion of operating lease liabilities on the Company’s consolidated balance sheets. 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 lease 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. 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. See Note 11 for additional information related to leases. |
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. |
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 – Issued Not Yet Adopted | Recent Accounting Pronouncements – Issued Not Yet Adopted In August 2021, the FASB issued ASU No. 2021-08, Business Combinations Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Cash and cash equivalents $ 123,274 $ 76,707 $ 70,619 Restricted cash 13,000 13,000 11,000 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 136,274 $ 89,707 $ 81,619 |
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, 2022 2021 Computer software and equipment $ 9,760 $ 8,445 Furniture and equipment 3,918 3,852 Leasehold improvements 7,649 5,904 Total property and equipment 21,327 18,201 Less: accumulated depreciation (12,832 ) (10,186 ) Property, plant and equipment, net $ 8,495 $ 8,015 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Prepaid expenses $ 11,697 $ 9,355 Operating lease right-of-use assets 4,387 4,198 Other 786 1,120 Total $ 16,870 $ 14,673 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Adhesion Wealth | |
Schedule of preliminary estimated consideration transferred | The Company funded the acquisition with cash on hand. The preliminary estimated consideration transferred in the acquisition, net of cash received, was $46,861. Cash consideration, net of working capital adjustments $ 46,862 Purchase consideration liability 3,000 Less: cash acquired (3,001 ) Total consideration transferred, net of cash acquired and working capital adjustments $ 46,861 |
Summary of estimated fair values of assets acquired and liabilities assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ 6,136 Total liabilities assumed (3,603 ) Identifiable intangible assets 8,300 Goodwill 39,029 Total net assets acquired $ 49,862 |
Summary of Intangible Assets Acquired | A summary of preliminary estimated identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Trade name $ 1,500 10 years Customer relationships 3,200 7 years Technology 3,600 3 years Total intangible assets acquired $ 8,300 |
Voyant | |
Summary of estimated fair values of assets acquired and liabilities assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate Cash and cash equivalents $ 8,027 $ — $ 8,027 Intangible assets 46,600 — 46,600 Goodwill 109,016 333 109,349 Other assets 2,896 — 2,896 Total assets acquired 166,539 333 166,872 Deferred income tax liabilities (7,431 ) (327 ) (7,758 ) Other liabilities (2,010 ) (6 ) (2,016 ) Total liabilities assumed (9,441 ) (333 ) (9,774 ) Total net assets acquired $ 157,098 $ — $ 157,098 |
Summary of Intangible Assets Acquired | A summary of identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Technology $ 16,000 9 Enterprise distribution channel customer relationships 17,500 Indefinite Non-enterprise distribution channel customer relationships 9,500 14 Trade name 3,200 11 Non-compete agreements 400 3 Total intangible assets acquired $ 46,600 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Information regarding the Company’s intangible assets is as follows: December 31, 2022 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Voyant enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 45,830 (14,131 ) 31,699 14 years Broker-dealer license 11,550 (3,561 ) 7,989 14 years ATC regulatory status 23,300 (7,184 ) 16,116 14 years Voyant non-enterprise distribution channel customer relationships 9,500 (1,018 ) 8,482 13 years GFPC adviser relationships 14,250 (3,775 ) 10,475 10 years OBS adviser and trust relationships 9,500 (2,130 ) 7,370 10 years Voyant trade name 3,200 (436 ) 2,764 10 years Voyant technology 16,000 (2,667 ) 13,333 8 years Voyant non-compete agreement 400 (200 ) 200 2 years Adhesion Wealth trade name 1,500 (6 ) 1,494 10 years Adhesion Wealth customer relationships 3,200 (25 ) 3,175 7 years Adhesion Wealth technology 3,600 (50 ) 3,550 3 years Total $ 729,810 $ (35,183 ) $ 694,627 December 31, 2021 Gross carrying amount Accumulated amortization Net carrying amount Estimated remaining useful life Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Voyant enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 45,830 (11,839 ) 33,991 15 years Broker-dealer license 11,550 (2,984 ) 8,566 15 years ATC regulatory status 23,300 (6,019 ) 17,281 15 years Voyant non-enterprise distribution channel customer relationships 9,500 (339 ) 9,161 14 years GFPC adviser relationships 14,250 (2,757 ) 11,493 11 years OBS adviser and trust relationships 9,500 (1,378 ) 8,122 11 years Voyant trade name 3,200 (145 ) 3,055 11 years Voyant technology 16,000 (889 ) 15,111 9 years Voyant non-compete agreement 400 (67 ) 333 3 years Total $ 721,510 $ (26,417 ) $ 695,093 |
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 2023 $ 10,484 2024 10,425 2025 10,308 2026 9,158 2027 9,158 2028 and thereafter 57,114 Total $ 106,647 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Accrued bonus $ 19,813 $ 20,718 Compensation and benefits payable 13,403 7,182 Current portion of long-term debt, net 6,123 — Current portion of operating lease liabilities 4,485 4,223 Reserve for uncertain tax positions 4,136 3,695 Asset-based payables 840 1,709 Other accrued expenses 20,396 18,722 Total $ 69,196 $ 56,249 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following: December 31, 2022 2021 Deferred compensation plan liability $ 13,602 $ 14,379 Contractor liability 1,178 1,602 Other 405 487 Total $ 15,185 $ 16,468 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021, based on the three-tier fair value hierarchy: December 31, 2022 Fair Value Level I Level II Level III Assets: Equity security investments $ 112 $ 112 $ — $ — Assets to fund deferred compensation liability 13,602 13,602 — — Convertible notes receivable 10,352 — — 10,352 Total assets $ 24,066 $ 13,714 $ — $ 10,352 Liabilities: Deferred compensation liability $ 13,602 $ 13,602 $ — $ — Total liabilities $ 13,602 $ 13,602 $ — $ — December 31, 2021 Fair Value Level I Level II Level III Assets: Equity security investments $ 119 $ 119 $ — $ — Assets to fund deferred compensation liability 14,379 14,379 — — Total assets $ 14,498 $ 14,498 $ — $ — Liabilities: Deferred compensation liability $ 14,379 $ 14,379 $ — $ — Total liabilities $ 14,379 $ 14,379 $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-cancellable Leases | Future minimum lease payments under non-cancellable leases, as of December 31, 2022, were as follows: 2023 $ 5,486 2024 6,685 2025 6,405 2026 6,231 2027 6,091 2028 and thereafter 6,493 Total future minimum lease payments 37,391 Less: imputed interest (4,982 ) Total operating lease liabilities $ 32,409 |
Asset-Based Expenses (Tables)
Asset-Based Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Strategist and manager fees $ 135,992 $ 128,490 $ 107,317 Premier broker-dealer fees 6,300 9,461 11,303 Custody fees 6,676 6,712 6,226 Fund advisory fees 4,837 4,402 4,600 Marketing allowance 254 1,769 3,244 Other 41 2 5 Total $ 154,100 $ 150,836 $ 132,695 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision (Benefit) | The Company’s income tax provision was as follows: Year Ended December 31, 2022 2021 2020 Current provision Federal $ 31,348 $ 16,273 $ 6,331 State 8,798 4,605 2,418 Foreign 26 — — Total current provision 40,172 20,878 8,749 Deferred provision (benefit) Federal (5,061 ) (578 ) 391 State (1,608 ) (984 ) (1,097 ) Foreign (4 ) — — Total deferred provision (benefit) (6,673 ) (1,562 ) (706 ) Total income tax expense $ 33,499 $ 19,316 $ 8,043 |
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 was as follows: Year Ended December 31, 2022 2021 2020 Statutory U.S. federal income tax rate: 21.00 % 21.00 % 21.00 % Increase in rate resulting from: Non-deductible meals & entertainment 0.01 % 0.10 % 24.98 % Officers life insurance — — 1.65 % Qualified transportation fringe benefits 0.03 % 0.09 % 21.63 % Equity compensation 0.27 % 19.22 % 4284.57 % Executive compensation limitation 0.16 % 1.28 % 224.53 % State income tax, net of federal income tax effect 4.05 % 6.03 % 359.74 % Unrecognized tax benefits 0.05 % 1.70 % 407.72 % Research & development tax credit (1.39 )% (5.21 )% (1797.83 )% Return to provision 0.06 % (1.76 )% (66.74 )% Other, net 0.25 % 0.48 % 0.57 % Effective rate 24.49 % 42.93 % 3,481.82 % |
Summary of Components of Net Deferred Income Tax Liability | The components of the Company’s deferred income tax liability, net was as follows: December 31, 2022 2021 Assets: Accrued expenses $ 7,633 $ 7,031 Federal benefit of state tax expense 5,790 5,544 Federal and state net operating loss carryforwards 15,598 17,108 Tax credit carryforwards 2,885 2,537 Lease liability 8,549 8,797 Stock-based compensation 5,359 3,756 Other 103 24 Total deferred income tax assets 45,917 44,797 Liabilities: Other intangible assets 170,407 170,131 Property and equipment, and capitalized software 14,307 20,529 Right-of-use asset 6,960 7,221 Other 1,740 2,289 Total deferred income tax liabilities 193,414 200,170 Net deferred income tax liability $ 147,497 $ 155,373 |
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, 2022 2021 Balance, beginning of year $ 4,918 $ 3,278 Increases related to prior year tax positions 313 497 Decreases related to prior year tax positions due to closure of statute (389 ) (131 ) Increases related to current year tax positions 813 1,274 Balance, end of year $ 5,655 $ 4,918 |
Share-Based Employee Compensa_2
Share-Based Employee Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of RSA Activity | The following is a summary of the activity for RSAs: 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 Vested (4,195,215 ) 22.00 Forfeited (2,918 ) 22.00 Balance at December 31, 2021 — |
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 | The following is a summary of the activity for stock options: 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 Exercised (17,860 ) 22.00 67 — Forfeited (10,206 ) 22.00 37 — Balance at December 31, 2021 872,205 22.00 3,672 5.5 Exercised (17,010 ) 22.00 17 — Expired (51,602 ) 22.00 29 — Forfeited (20,699 ) 22.00 16 — Balance at December 31, 2022 782,894 22.00 783 4.3 Options vested and exercisable at December 31, 2022 782,894 $ 22.00 $ 783 4.3 |
Schedule of RSU Activity | The following is a summary of the activity for unvested RSUs: 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 Granted 819,011 25.35 Vested (106,110 ) 27.30 Forfeited (33,237 ) 26.65 Balance at December 31, 2021 1,023,399 25.87 Granted 525,195 21.29 Vested (284,168 ) 25.93 Forfeited (82,387 ) 25.41 Balance at December 31, 2022 1,182,039 $ 23.85 |
Schedule of SARs Valuation Assumptions | The following assumptions were used to value SARs granted during the periods indicated: 2022 2021 2020 Weighted-average grant date fair value of SARs $ 8.67 $ 9.81 $ 11.18 Risk free rate 3.05 % 0.63% - 1.04% 0.42% - 0.56% Expected volatility 37 % 37% - 39% 38% - 40% Dividend yield — — — Expected terms (in years) 6.25 6.25 6.25 |
Schedule of SAR Activity | The following is a summary of the activity for SARs: 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 Balance at December 31, 2020 831,902 $ 28.42 139 9.4 Granted 894,411 25.59 363 Forfeited (38,111 ) 27.12 10 Expired (4,688 ) 28.48 — Balance at December 31, 2021 1,683,514 $ 26.94 571 8.6 Granted 1,030,037 20.72 — Forfeited (85,551 ) 26.58 31 Expired (31,361 ) 27.88 — Balance at December 31, 2022 2,596,639 $ 24.48 2,324 8.3 SARs vested and exercisable at December 31, 2022 582,229 $ 27.38 $ 100 7.3 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Net income (loss) attributable to common stockholders $ 103,261 $ 25,671 $ (7,812 ) Weighted average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders, basic 73,724,341 72,137,174 67,361,995 Net income (loss) per share attributable to common stockholders, basic $ 1.40 $ 0.36 $ (0.12 ) Weighted average shares used in computing net income (loss) per share attributable to common stockholders, basic 73,724,341 72,137,174 67,361,995 Effect of dilutive shares: Options to purchase common stock — 9,913 — Unvested RSUs 148,487 252,126 — Diluted number of weighted-average shares outstanding 73,872,828 72,399,213 67,361,995 Net income (loss) per share attributable to common stockholders, diluted $ 1.40 $ 0.35 $ (0.12 ) |
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 December 31, 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, 2022 2021 2020 RSAs — — 4,198,133 Stock options 782,894 — 900,271 RSUs 599,398 207,232 343,735 SARs 2,596,639 1,683,514 831,902 Total 3,978,931 1,890,746 6,274,041 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment Customer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) | |
Summaryof Significant Accounting Policies [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Allowance for doubtful accounts | $ 39,000 | $ 74,000 | |
Impairment charges related to goodwill | 0 | 0 | $ 0 |
Impairment charges related to indefinite-lived intangible assets | 0 | 0 | 0 |
Impairment charges related to long-lived assets and acquired definite-lived intangible assets | 0 | 0 | 0 |
Depreciation expense | 2,646,000 | 2,406,000 | 2,511,000 |
Impairments of internally developed software | 303,000 | 426,000 | 211,000 |
Amortization expense of capitalized internal-use software | 19,737,000 | 28,280,000 | 26,934,000 |
Accumulated amortization of capitalized internal-use software | $ 136,858,000 | 117,424,000 | |
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 | ||
Amortization of capitalized internal-use software, estimated useful life | 5 years | ||
Maximum | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 10 years | ||
Amortization of capitalized internal-use software, estimated useful life | 9 years | ||
Reclassification | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Decrease of intangible assets | 14,600,000 | ||
Decrease of deferred income tax liabilities | 3,557,000 | ||
Increase to goodwill | $ 11,043,000 | ||
Customer Concentration Risk | Revenue Not More Than 10% | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 0 | 0 | |
Customer Concentration Risk | Accounts Receivable | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 0 | 2 | |
Customer Concentration Risk | Accounts Receivable | Two Customers | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 40% | ||
Outside United States | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Revenues | $ 14,484,000,000 | $ 6,926,000,000 | $ 0 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 123,274 | $ 76,707 | $ 70,619 | |
Restricted cash | 13,000 | 13,000 | 11,000 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 136,274 | $ 89,707 | $ 81,619 | $ 105,341 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Major Classes of Depreciable Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 21,327 | $ 18,201 |
Less: accumulated depreciation | (12,832) | (10,186) |
Property, plant and equipment, net | 8,495 | 8,015 |
Computer Software and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 9,760 | 8,445 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,918 | 3,852 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 7,649 | $ 5,904 |
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, 2022 | Dec. 31, 2021 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid expenses | $ 11,697 | $ 9,355 |
Operating lease right-of-use assets | 4,387 | 4,198 |
Other | 786 | 1,120 |
Total | $ 16,870 | $ 14,673 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 14, 2022 | Feb. 29, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill recorded | $ 487,225 | $ 447,864 | ||
2020 Revolving Credit Facility [Member] | ||||
Business Acquisition [Line Items] | ||||
Final purchase price, net of working capital adjustments | $ 157,098 | |||
Common stock issued in connection with business, shares | 994,028 | |||
Amount of equity consideration | $ 24,910 | |||
Adhesion Wealth | ||||
Business Acquisition [Line Items] | ||||
Acquisition agreement date | Dec. 14, 2022 | |||
Final purchase price, net of working capital adjustments | $ 46,861 | |||
Goodwill recorded | $ 39,029 | |||
W B I O B S 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 |
Business Combinations -Schedule
Business Combinations -Schedule of preliminary estimated consideration transferred (Details) - Adhesion Wealth $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Cash consideration, net of working capital adjustments | $ 46,862 |
Purchase consideration liability | 3,000 |
Less: cash acquired | (3,001) |
Total consideration transferred, net of cash acquired and working capital adjustments | $ 46,861 |
Business Combinations - Summary
Business Combinations - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 14, 2022 | Dec. 31, 2021 | Jul. 01, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 487,225 | $ 447,864 | ||
Adhesion Wealth | ||||
Business Acquisition [Line Items] | ||||
Total tangible assets acquired | $ 6,136 | |||
Identifiable intangible assets | 8,300 | |||
Goodwill | 39,029 | |||
Total liabilities assumed | (3,603) | |||
Total net assets acquired | $ 49,862 | |||
Voyant | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 8,027 | |||
Identifiable intangible assets | 46,600 | |||
Goodwill | 109,349 | |||
Other assets | 2,896 | |||
Total assets acquired | 166,872 | |||
Deferred income tax liabilities | (7,758) | |||
Other liabilities | (2,016) | |||
Total liabilities assumed | (9,774) | |||
Total net assets acquired | 157,098 | |||
Voyant | Preliminary Estimate | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 8,027 | |||
Identifiable intangible assets | 46,600 | |||
Goodwill | 109,016 | |||
Other assets | 2,896 | |||
Total assets acquired | 166,539 | |||
Deferred income tax liabilities | (7,431) | |||
Other liabilities | (2,010) | |||
Total liabilities assumed | (9,441) | |||
Total net assets acquired | 157,098 | |||
Voyant | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 333 | |||
Total assets acquired | 333 | |||
Deferred income tax liabilities | (327) | |||
Other liabilities | (6) | |||
Total liabilities assumed | $ (333) |
Business Combinations - Summa_2
Business Combinations - Summary of Intangible Assets Acquired (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Adhesion Wealth | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 8,300 |
Adhesion Wealth | Trade Names | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 1,500 |
Estimated Useful Life in Years | 10 years |
Adhesion Wealth | Customer Relationship | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 3,200 |
Estimated Useful Life in Years | 7 years |
Adhesion Wealth | Technology | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 3,600 |
Estimated Useful Life in Years | 3 years |
Voyant | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 46,600 |
Voyant | Trade Names | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 3,200 |
Estimated Useful Life in Years | 11 years |
Voyant | Technology | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 16,000 |
Estimated Useful Life in Years | 9 years |
Voyant | Enterprise Distribution Channel Customer Relationships | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 17,500 |
Estimated Useful Life in Years | 0 years |
Voyant | Non Enterprise Distribution Channel Customer Relationships | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 9,500 |
Estimated Useful Life in Years | 14 years |
Voyant | Noncompete Agreements | |
Business Acquisition [Line Items] | |
Total intangible assets acquired | $ 400 |
Estimated Useful Life in Years | 3 years |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - Deferred Compensation Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
VIE, fair value of investments | $ 13,602 | $ 14,379 | |
VIE, other long term liabilities | 13,602 | 14,379 | |
VIE, other (income) expense related to unrealized gains (losses) | $ (2,542) | $ 1,690 | $ 900 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | $ 487,225 | $ 447,864 | |
Amortization of Intangible Assets | $ 8,766 | $ 7,243 | $ 5,678 |
Trade Names | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
AssetMark Trust Company Regulatory Status | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
Broker-Dealer License | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
Voyant Non-enterprise Distribution Channel Customer Relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
GFPC Adviser Relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
OBS Adviser and Trust Relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
Voyant Trade Name | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
Voyant Technology | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days | ||
Voyant Non-compete Agreement | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 11 years 7 months 6 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated amortization | $ (35,183) | $ (26,417) |
Definite-lived intangible assets, Net carrying amount | 106,647 | |
Intangible assets, Gross carrying amount | 729,810 | 721,510 |
Intangible assets, Net carrying amount | 694,627 | 695,093 |
Broker-Dealer Relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | 570,480 | 570,480 |
Voyant Enterprise Distribution Channel Customer Relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | 17,500 | 17,500 |
Trade Names | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 45,830 | 45,830 |
Definite-lived intangible assets, Accumulated amortization | (14,131) | (11,839) |
Definite-lived intangible assets, Net carrying amount | $ 31,699 | $ 33,991 |
Definite-lived intangible assets, Estimated remaining useful life | 14 years | 15 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 | (3,561) | (2,984) |
Definite-lived intangible assets, Net carrying amount | $ 7,989 | $ 8,566 |
Definite-lived intangible assets, Estimated remaining useful life | 14 years | 15 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 | (7,184) | (6,019) |
Definite-lived intangible assets, Net carrying amount | $ 16,116 | $ 17,281 |
Definite-lived intangible assets, Estimated remaining useful life | 14 years | 15 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 | (3,775) | (2,757) |
Definite-lived intangible assets, Net carrying amount | $ 10,475 | $ 11,493 |
Definite-lived intangible assets, Estimated remaining useful life | 10 years | 11 years |
Voyant Non-enterprise Distribution Channel Customer Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 9,500 | $ 9,500 |
Definite-lived intangible assets, Accumulated amortization | (1,018) | (339) |
Definite-lived intangible assets, Net carrying amount | $ 8,482 | $ 9,161 |
Definite-lived intangible assets, Estimated remaining useful life | 13 years | 14 years |
OBS Adviser and Trust Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 9,500 | $ 9,500 |
Definite-lived intangible assets, Accumulated amortization | (2,130) | (1,378) |
Definite-lived intangible assets, Net carrying amount | $ 7,370 | $ 8,122 |
Definite-lived intangible assets, Estimated remaining useful life | 10 years | 11 years |
Voyant Trade Name | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 3,200 | $ 3,200 |
Definite-lived intangible assets, Accumulated amortization | (436) | (145) |
Definite-lived intangible assets, Net carrying amount | $ 2,764 | $ 3,055 |
Definite-lived intangible assets, Estimated remaining useful life | 10 years | 11 years |
Voyant Technology | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 16,000 | $ 16,000 |
Definite-lived intangible assets, Accumulated amortization | (2,667) | (889) |
Definite-lived intangible assets, Net carrying amount | $ 13,333 | $ 15,111 |
Definite-lived intangible assets, Estimated remaining useful life | 8 years | 9 years |
Voyant Non-compete Agreement | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 400 | $ 400 |
Definite-lived intangible assets, Accumulated amortization | (200) | (67) |
Definite-lived intangible assets, Net carrying amount | $ 200 | $ 333 |
Definite-lived intangible assets, Estimated remaining useful life | 2 years | 3 years |
Adhesion Wealth Trade Name | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 1,500 | |
Definite-lived intangible assets, Accumulated amortization | (6) | |
Definite-lived intangible assets, Net carrying amount | $ 1,494 | |
Definite-lived intangible assets, Estimated remaining useful life | 10 years | |
Adhesion Wealth Customer Relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 3,200 | |
Definite-lived intangible assets, Accumulated amortization | (25) | |
Definite-lived intangible assets, Net carrying amount | $ 3,175 | |
Definite-lived intangible assets, Estimated remaining useful life | 7 years | |
Adhesion Wealth Technology | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | $ 3,600 | |
Definite-lived intangible assets, Accumulated amortization | (50) | |
Definite-lived intangible assets, Net carrying amount | $ 3,550 | |
Definite-lived intangible assets, Estimated remaining useful life | 3 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, 2022 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2023 | $ 10,484 |
2024 | 10,425 |
2025 | 10,308 |
2026 | 9,158 |
2027 | 9,158 |
2028 and thereafter | 57,114 |
Definite-lived intangible assets, Net carrying amount | $ 106,647 |
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, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Accrued bonus | $ 19,813 | $ 20,718 |
Compensation and benefits payable | 13,403 | 7,182 |
Current portion of long-term debt, net | 6,123 | |
Current portion of operating lease liabilities | 4,485 | 4,223 |
Reserve for uncertain tax positions | 4,136 | 3,695 |
Asset-based payables | 840 | 1,709 |
Other accrued expenses | 20,396 | 18,722 |
Total | $ 69,196 | $ 56,249 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation plan liability | $ 13,602 | $ 14,379 |
Contractor liability | 1,178 | 1,602 |
Other | 405 | 487 |
Total | $ 15,185 | $ 16,468 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Total assets | $ 24,066 | $ 14,498 |
Liabilities: | ||
Total liabilities | 13,602 | 14,379 |
Equity Security Investments | ||
Assets: | ||
Total assets | 112 | 119 |
Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 13,602 | 14,379 |
Convertible Notes Receivable | ||
Assets: | ||
Total assets | 10,352 | |
Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | 13,602 | 14,379 |
Level I | ||
Assets: | ||
Total assets | 13,714 | 14,498 |
Liabilities: | ||
Total liabilities | 13,602 | 14,379 |
Level I | Equity Security Investments | ||
Assets: | ||
Total assets | 112 | 119 |
Level I | Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 13,602 | 14,379 |
Level I | Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | 13,602 | $ 14,379 |
Level III | ||
Assets: | ||
Total assets | 10,352 | |
Level III | Convertible Notes Receivable | ||
Assets: | ||
Total assets | $ 10,352 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 09, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Convertible Notes Receivable | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value adjustment of convertible notes receivable | $ (157) | |||
Loan and Security Agreement | Convertible Notes Receivable | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Debt conversion, description | On August 9, 2022, the Company, as lender, entered into a loan and security agreement under which the Company agreed to purchase up to $25,000 in principal amount of convertible notes from the borrower. The notes are convertible, at the Company’s election, into shares of the borrower’s common stock at the end of 2025. The convertible notes are classified as available for sale, and included in other assets in the Company’s consolidated balance sheets | |||
Loan and Security Agreement | Convertible Notes Receivable | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Principal amount of convertible notes | $ 25,000 | |||
Other (Income) Expense, Net | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Unrealized gains on deferred compensation asset | (2,542) | $ 1,690 | $ 900 | |
Deferred compensation liability | $ 2,542 | $ (1,690) | $ (900) |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | Jan. 12, 2022 | Dec. 31, 2020 |
2020 Credit Agreement | Bank of Montreal | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 250,000 | |
2020 Credit Agreement | Bank of Montreal | 2020 Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 250,000 | |
2020 Credit Agreement | Bank of Montreal | 2020 Revolving Credit Facility [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Accordion Option | $ 25,000 | |
2022 Credit Agreement | 2022 Term Loans | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 125,000 | |
Line of credit facility, description | The 2022 Term Loans are subject to quarterly amortization payments and will mature on January 12, 2027. The ESG Amendment provides for up to (i) 0.05% positive or negative adjustments to the applicable margin and (ii) 0.01% positive or negative adjustments to the commitment fee, in each case, based on the Company’s performance against the KPIs, and includes customary affirmative covenants and representations and warranties with respect to the KPIs. | |
2022 Credit Agreement | Maximum | 2022 Term Loans | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.50% | |
2022 Credit Agreement | Maximum | 2022 Term Loans | SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 3.50% | |
2022 Credit Agreement | Minimum | 2022 Term Loans | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 0.875% | |
2022 Credit Agreement | Minimum | 2022 Term Loans | SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.875% | |
2022 Credit Agreement | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000 | |
2022 Credit Agreement | 2022 Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 375,000 | |
Accordion Option | $ 100,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 5,321 | $ 5,170 | $ 5,850 |
Variable lease components recorded as general and operating expenses | $ 651 | $ 773 | $ 716 |
Weighted-average lease term | 5 years 10 months 24 days | 6 years 3 months 18 days | |
Weighted-average discount rate | 4.65% | 3.62% | |
Operating lease liability payments | $ 5,713 | $ 5,407 | |
Cash allowance received from lessor | $ 541 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-cancellable Leases (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 5,486 |
2024 | 6,685 |
2025 | 6,405 |
2026 | 6,231 |
2027 | 6,091 |
2028 and thereafter | 6,493 |
Total future minimum lease payments | 37,391 |
Less: imputed interest | (4,982) |
Total operating lease liabilities | $ 32,409 |
Asset-Based Expenses - Schedule
Asset-Based Expenses - Schedule of Asset-Based Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Costs And Expenses [Abstract] | |||
Strategist and manager fees | $ 135,992 | $ 128,490 | $ 107,317 |
Premier broker-dealer fees | 6,300 | 9,461 | 11,303 |
Custody fees | 6,676 | 6,712 | 6,226 |
Fund advisory fees | 4,837 | 4,402 | 4,600 |
Marketing allowance | 254 | 1,769 | 3,244 |
Other | 41 | 2 | 5 |
Total | $ 154,100 | $ 150,836 | $ 132,695 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current provision | |||
Federal | $ 31,348 | $ 16,273 | $ 6,331 |
State | 8,798 | 4,605 | 2,418 |
Foreign | 26 | ||
Total current provision | 40,172 | 20,878 | 8,749 |
Deferred provision (benefit) | |||
Federal | (5,061) | (578) | 391 |
State | (1,608) | (984) | (1,097) |
Foreign | (4) | ||
Total deferred provision (benefit) | (6,673) | (1,562) | (706) |
Total income tax expense | $ 33,499 | $ 19,316 | $ 8,043 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes Disclosure [Line Items] | |||
Income taxes paid | $ 34,059 | $ 19,796 | $ 13,456 |
Operating Loss Carryforwards | 13,380 | 14,962 | |
Unrecognized tax benefits | 5,655 | 4,918 | 3,278 |
Unrecognized tax benefits, if recognized, impact in effective tax rate | 4,979 | 4,385 | |
Interest and Penalties related to unrecognized tax benefits | 145 | 296 | $ 182 |
Accrued Interest and penalties related to unrecognized tax benefits | 845 | 700 | |
Federal | |||
Income Taxes Disclosure [Line Items] | |||
Operating Loss Carryforwards | 2,045 | ||
Operating loss carryforwards to expire unused | 11,335 | ||
State | |||
Income Taxes Disclosure [Line Items] | |||
Operating Loss Carryforwards | 261,037 | 275,032 | |
Operating loss carryforwards to expire unused | $ 113,873 | ||
Operating loss carryforwards, expiration beginning year | 2023 | ||
Tax credit carryforwards | $ 2,762 | $ 2,422 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate: | 21% | 21% | 21% |
Increase in rate resulting from: | |||
Non-deductible meals & entertainment | 0.01% | 0.10% | 24.98% |
Officers life insurance | 1.65% | ||
Qualified transportation fringe benefits | 0.03% | 0.09% | 21.63% |
Equity compensation | 0.27% | 19.22% | 4,284.57% |
Executive compensation limitation | 0.16% | 1.28% | 224.53% |
State income tax, net of federal income tax effect | 4.05% | 6.03% | 359.74% |
Unrecognized tax benefits | 0.05% | 1.70% | 407.72% |
Research & development tax credit | (1.39%) | (5.21%) | (1797.83%) |
Return to provision | 0.06% | (1.76%) | (66.74%) |
Other, net | 0.25% | 0.48% | 0.57% |
Effective rate | 24.49% | 42.93% | 3,481.82% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Net Deferred Income Tax Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Accrued expenses | $ 7,633 | $ 7,031 |
Federal benefit of state tax expense | 5,790 | 5,544 |
Federal and state net operating loss carryforwards | 15,598 | 17,108 |
Tax credit carryforwards | 2,885 | 2,537 |
Lease liability | 8,549 | 8,797 |
Stock-based compensation | 5,359 | 3,756 |
Other | 103 | 24 |
Total deferred income tax assets | 45,917 | 44,797 |
Liabilities: | ||
Other intangible assets | 170,407 | 170,131 |
Property and equipment, and capitalized software | 14,307 | 20,529 |
Right-of-use asset | 6,960 | 7,221 |
Other | 1,740 | 2,289 |
Total deferred income tax liabilities | 193,414 | 200,170 |
Net deferred income tax liability | $ 147,497 | $ 155,373 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Balance, beginning of year | $ 4,918 | $ 3,278 |
Increases related to prior year tax positions | 313 | 497 |
Decreases related to prior year tax positions due to closure of statute | (389) | (131) |
Increases related to current year tax positions | 813 | 1,274 |
Balance, end of year | $ 5,655 | $ 4,918 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) Vote Right $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Equity [Abstract] | ||
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 authorized | 675,000,000 | 675,000,000 |
Preferred stock shares authorized | 75,000,000 | |
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock par or stated value per share | $ / shares | $ 0.001 | |
Common stock, shares issued | 73,847,596 | 73,562,717 |
Common stock, shares outstanding | 73,847,596 | 73,562,717 |
Preferred stock shares issued | 0 | |
Preferred stock shares outstanding | 0 |
Share-Based Employee Compensa_3
Share-Based Employee Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Installment $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting percentage | 50% | ||
Vesting description | 50% of these RSAs vested in three (3) equal installments on the third, fourth and fifth anniversaries of November 18, 2016, and 50% vested subject to the recipient’s continued employment through February 1, 2021 and the satisfaction of a performance-based vesting condition. | ||
Share-based compensation expense | $ 0 | $ 41,715 | $ 48,045 |
Exchange of shares with stockholders on liquidation | shares | 6,309,049 | ||
Number of equal vesting installments | Installment | 3 | ||
Vesting upon satisfaction of condition | 50% | ||
Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 670 | 2,386 | 2,346 |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 8,129 | 6,104 | 2,148 |
Unrecognized compensation cost | $ 22,838 | ||
Expected to be recognized period | 2 years 8 months 12 days | ||
Fair value of RSUs vested | $ 5,718 | ||
Stock Appreciation Rights (SARs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 5,077 | $ 3,432 | $ 1,298 |
Unrecognized compensation cost | $ 15,148 | ||
Number of shares, granted | shares | 1,030,037 | 894,411 | 831,902 |
Exercise price | $ / shares | $ 20.72 | $ 25.59 | $ 28.42 |
Expected to be recognized period | 2 years 9 months 18 days | ||
2019 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share available for issuance under the plan | shares | 650,562 | ||
2019 Equity Incentive Plan | Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting description | Each of these options vested and became 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. On July 18, 2022, the last installment of outstanding options vested. | ||
Number of shares, granted | shares | 918,981 | ||
Exercise price | $ / shares | $ 22 | ||
Contractual term | 10 years | ||
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. | ||
Contractual term | 10 years |
Share-Based Employee Compensa_4
Share-Based Employee Compensation - Schedule of RSA Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units, Balance | 4,198,133 | 5,257,541 |
Number of units, Vested | (4,195,215) | (1,049,488) |
Number of units, Forfeited | (2,918) | (9,920) |
Number of units, Balance | 4,198,133 | |
Weighted average grant date fair value, Balance | $ 22 | $ 22 |
Weighted average grant date fair value, Vested | 22 | 22 |
Weighted average grant date fair value, Forfeited | $ 22 | 22 |
Weighted average grant date fair value, Balance | $ 22 |
Share-Based Employee Compensa_5
Share-Based Employee Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock Option | 12 Months Ended |
Dec. 31, 2019 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant date fair value of options | $ 7.73 |
Risk free rate | 1.90% |
Expected volatility | 32.80% |
Expected terms (in years) | 6 years |
Share-Based Employee Compensa_6
Share-Based Employee Compensation - Schedule of Stock Option Activity (Details) - Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options, Balance | 872,205 | 900,271 | 908,775 |
Number of options, Exercised | (17,010) | (17,860) | (8,504) |
Number of options, Balance | 782,894 | 872,205 | 900,271 |
Number of options, Forfeited | (20,699) | (10,206) | |
Number of options, Expired | (51,602) | ||
Number of options, Vested and Exercised | 782,894 | ||
Weighted average exercise price, Balance | $ 22 | $ 22 | $ 22 |
Weighted average exercise price, Exercised | 22 | 22 | 22 |
Weighted average exercise price, Balance | 22 | 22 | $ 22 |
Weighted average exercise price, Forfeited | 22 | $ 22 | |
Weighted average exercise price, Expired | 22 | ||
Weighted average exercise price, Vested and Exercised | $ 22 | ||
Aggregate intrinsic value, Balance | $ 3,672 | $ 1,981 | $ 6,380 |
Aggregate intrinsic value, Exercised | 17 | 67 | 44 |
Aggregate intrinsic value, Balance | 783 | 3,672 | $ 1,981 |
Aggregate intrinsic value, Forfeited | 16 | $ 37 | |
Aggregate intrinsic value, Expired | 29 | ||
Aggregate intrinsic value, Vested and Exercised | $ 783 | ||
Weighted average remaining contractual term, Balance | 4 years 3 months 18 days | 5 years 6 months | 8 years 6 months |
Weighted average remaining contractual term, Vested and Exercised | 4 years 3 months 18 days |
Share-Based Employee Compensa_7
Share-Based Employee Compensation - Schedule of RSU Activity (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of units, Balance | 1,023,399 | 343,735 | 114,044 |
Number of units, Granted | 525,195 | 819,011 | 310,225 |
Number of units, Vested | (284,168) | (106,110) | (60,671) |
Number of units, Forfeited | (82,387) | (33,237) | (19,863) |
Number of units, Balance | 1,182,039 | 1,023,399 | 343,735 |
Weighted average grant date fair value, Balance | $ 25.87 | $ 27.63 | $ 22.79 |
Weighted average grant date fair value, Granted | 21.29 | 25.35 | 28.27 |
Weighted average grant date fair value, Vested | 25.93 | 27.30 | 22.49 |
Weighted average grant date fair value, Forfeited | 25.41 | 26.65 | 25.62 |
Weighted average grant date fair value, Balance | $ 23.85 | $ 25.87 | $ 27.63 |
Share-Based Employee Compensa_8
Share-Based Employee Compensation - Schedule of SARs Valuation Assumptions (Details) - Stock Appreciation Rights (SARs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value of SARs | $ 8.67 | $ 9.81 | $ 11.18 |
Risk free rate | 3.05% | ||
Expected volatility | 37% | ||
Expected terms (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk free rate | 0.63% | 0.42% | |
Expected volatility | 37% | 38% | |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk free rate | 1.04% | 0.56% | |
Expected volatility | 39% | 40% |
Share-Based Employee Compensa_9
Share-Based Employee Compensation - Schedule of SAR Activity (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options, Balance | 1,683,514 | 831,902 | |
Number of options, granted | 1,030,037 | 894,411 | 831,902 |
Number of options, Balance | 2,596,639 | 1,683,514 | 831,902 |
Number of units, Forfeited | (85,551) | (38,111) | |
Number of options, expired | (31,361) | (4,688) | |
Number of options, Vested and Exercised | 582,229 | ||
Weighted average exercise price, Balance | $ 26.94 | $ 28.42 | |
Exercise price | 20.72 | 25.59 | $ 28.42 |
Weighted average exercise price, Balance | 24.48 | 26.94 | 28.42 |
Weighted average exercise price, Forfeited | 26.58 | 27.12 | |
Weighted average exercise price, Expired | 27.88 | $ 28.48 | |
Weighted average exercise price | $ 27.38 | ||
Aggregate intrinsic value, Balance | $ 571 | $ 139 | |
Aggregate intrinsic value, Granted | $ 363 | $ 139 | |
Aggregate intrinsic value, Balance | 2,324 | $ 571 | $ 139 |
Aggregate intrinsic value, Forfeited | 31 | $ 10 | |
Aggregate intrinsic value, Vested and Exercised | $ 100 | ||
Weighted average remaining contractual term, Balance | 8 years 3 months 18 days | 8 years 7 months 6 days | 9 years 4 months 24 days |
Weighted average remaining contractual term, Vested and Exercised | 7 years 3 months 18 days |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |||
Defined contribution plan, employers matching contribution, period of service | 2 years | ||
Defined contribution plan, cost | $ 6,779 | $ 6,043 | $ 5,246 |
Net Capital and Minimum Capit_2
Net Capital and Minimum Capital Requirements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
AssetMark Trust Company | ||
Net Capital And Minimum Capital Requirements [Line Items] | ||
Liquid capital | $ 11,500 | $ 12,375 |
AssetMark Brokerage, LLC | ||
Net Capital And Minimum Capital Requirements [Line Items] | ||
Net capital | $ 16 | $ 5 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Huatai Securities Co., Ltd. | ||
Related Party Transaction [Line Items] | ||
Receivable due from related parties | $ 0 | $ 234 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to common stockholders | $ 103,261 | $ 25,671 | $ (7,812) |
Weighted average number of common shares outstanding, basic | 73,724,341 | 72,137,174 | 67,361,995 |
Basic | $ 1.40 | $ 0.36 | $ (0.12) |
Effect of dilutive shares: | |||
Options to purchase common stock | $ 9,913 | ||
Unvested RSUs | $ 148,487 | $ 252,126 | |
Weighted average number of common shares outstanding, diluted | 73,872,828 | 72,399,213 | 67,361,995 |
Diluted | $ 1.40 | $ 0.35 | $ (0.12) |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 3,978,931 | 1,890,746 | 6,274,041 |
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 | ||
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 | 782,894 | 900,271 | |
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 | 599,398 | 207,232 | 343,735 |
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 | 2,596,639 | 1,683,514 | 831,902 |