Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38980 | |
Entity Registrant Name | ASSETMARK FINANCIAL HOLDINGS, INC. | |
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 $0.001 per share | |
Trading Symbol | AMK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,265,358 | |
Entity Central Index Key | 0001591587 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 214,754 | $ 123,274 |
Restricted cash | 14,000 | 13,000 |
Investments, at fair value | 16,294 | 13,714 |
Fees and other receivables, net | 20,464 | 20,082 |
Income tax receivable, net | 0 | 265 |
Prepaid expenses and other current assets | 13,086 | 16,870 |
Total current assets | 278,598 | 187,205 |
Property, plant and equipment, net | 7,672 | 8,495 |
Capitalized software, net | 105,593 | 89,959 |
Other intangible assets, net | 686,765 | 694,627 |
Operating lease right-of-use assets | 21,625 | 22,002 |
Goodwill | 487,353 | 487,225 |
Other assets | 17,721 | 13,417 |
Total assets | 1,605,327 | 1,502,930 |
Current liabilities: | ||
Accounts payable | 1,781 | 4,624 |
Accrued liabilities and other current liabilities | 65,458 | 69,196 |
Income tax payable, net | 25,755 | 0 |
Total current liabilities | 92,994 | 73,820 |
Long-term debt, net | 93,519 | 112,138 |
Other long-term liabilities | 16,666 | 15,185 |
Long-term portion of operating lease liabilities | 27,539 | 27,924 |
Deferred income tax liabilities, net | 147,497 | 147,497 |
Total long-term liabilities | 285,221 | 302,744 |
Total liabilities | 378,215 | 376,564 |
Stockholders’ equity: | ||
Common stock, $0.001 par value (675,000,000 shares authorized and 74,264,226 and 73,847,596 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively) | 74 | 74 |
Additional paid-in capital | 955,208 | 942,946 |
Retained earnings | 271,987 | 183,503 |
Accumulated other comprehensive loss | (157) | (157) |
Total stockholders’ equity | 1,227,112 | 1,126,366 |
Total liabilities and stockholders’ equity | $ 1,605,327 | $ 1,502,930 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 675,000,000 | 675,000,000 |
Common stock, shares issued (in shares) | 74,264,226 | 73,847,596 |
Common stock, shares outstanding (in shares) | 74,264,226 | 73,847,596 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Total revenue | $ 190,522 | $ 154,663 | $ 550,316 | $ 454,173 |
Operating expenses: | ||||
Asset-based expenses | 43,092 | 36,476 | 119,870 | 118,429 |
Spread-based expenses | 8,492 | 2,142 | 23,052 | 3,188 |
Employee compensation | 46,613 | 41,589 | 141,623 | 121,852 |
General and operating expenses | 22,714 | 21,667 | 72,757 | 65,949 |
Professional fees | 7,369 | 5,877 | 21,134 | 17,104 |
Depreciation and amortization | 8,965 | 7,961 | 26,077 | 23,141 |
Total operating expenses | 137,245 | 115,712 | 404,513 | 349,663 |
Interest expense | 2,305 | 1,560 | 6,789 | 4,207 |
Other (income) expense, net | (2,192) | (11) | 17,385 | 195 |
Income before income taxes | 53,164 | 37,402 | 121,629 | 100,108 |
Provision for income taxes | 14,779 | 7,293 | 33,145 | 22,440 |
Net income | 38,385 | 30,109 | 88,484 | 77,668 |
Net comprehensive income | $ 38,385 | $ 30,109 | $ 88,484 | $ 77,668 |
Net income per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.41 | $ 1.19 | $ 1.05 |
Diluted (in dollars per share) | $ 0.51 | $ 0.41 | $ 1.19 | $ 1.05 |
Weighted average number of common shares outstanding, basic (shares) | 74,261,667 | 73,842,297 | 74,047,412 | 73,682,881 |
Weighted average number of common shares outstanding, diluted (shares) | 74,695,260 | 73,844,689 | 74,521,370 | 73,783,858 |
Asset-based revenue | ||||
Revenue: | ||||
Total revenue | $ 143,840 | $ 128,173 | $ 412,215 | $ 409,498 |
Spread-based revenue | ||||
Revenue: | ||||
Total revenue | 37,329 | 21,160 | 112,863 | 30,265 |
Subscription-based revenue | ||||
Revenue: | ||||
Total revenue | 3,891 | 3,126 | 11,128 | 9,703 |
Other revenue | ||||
Revenue: | ||||
Total revenue | $ 5,462 | $ 2,204 | $ 14,110 | $ 4,707 |
Unaudited Condensed Consolida_2
Unaudited Condensed 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, 2021 | $ 1,009,386 | $ 74 | $ 929,070 | $ 80,242 | |
Beginning balance (in shares) at Dec. 31, 2021 | 73,562,717 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 77,668 | 77,668 | |||
Share-based compensation | 10,096 | 10,096 | |||
Issuance of common stock - vesting of restricted stock units (in shares) | 283,036 | ||||
Exercise of stock options (in shares) | 221 | ||||
Ending balance at Sep. 30, 2022 | 1,097,150 | $ 74 | 939,166 | 157,910 | |
Ending balance (in shares) at Sep. 30, 2022 | 73,845,974 | ||||
Beginning balance at Jun. 30, 2022 | 1,063,118 | $ 74 | 935,243 | 127,801 | |
Beginning balance (in shares) at Jun. 30, 2022 | 73,745,114 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 30,109 | 30,109 | |||
Share-based compensation | 3,923 | 3,923 | |||
Issuance of common stock - vesting of restricted stock units (in shares) | 100,860 | ||||
Ending balance at Sep. 30, 2022 | 1,097,150 | $ 74 | 939,166 | 157,910 | |
Ending balance (in shares) at Sep. 30, 2022 | 73,845,974 | ||||
Beginning balance at Dec. 31, 2022 | 1,126,366 | $ 74 | 942,946 | 183,503 | $ (157) |
Beginning balance (in shares) at Dec. 31, 2022 | 73,847,596 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 88,484 | 88,484 | |||
Share-based compensation | 12,262 | 12,262 | |||
Issuance of common stock - vesting of restricted stock units (in shares) | 361,901 | ||||
Exercise of stock options (in shares) | 52,765 | ||||
Exercise of stock appreciation rights (in shares) | 1,964 | ||||
Ending balance at Sep. 30, 2023 | 1,227,112 | $ 74 | 955,208 | 271,987 | (157) |
Ending balance (in shares) at Sep. 30, 2023 | 74,264,226 | ||||
Beginning balance at Jun. 30, 2023 | 1,184,439 | $ 74 | 950,920 | 233,602 | (157) |
Beginning balance (in shares) at Jun. 30, 2023 | 74,172,080 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 38,385 | 38,385 | |||
Share-based compensation | 4,288 | 4,288 | |||
Issuance of common stock - vesting of restricted stock units (in shares) | 92,146 | ||||
Ending balance at Sep. 30, 2023 | $ 1,227,112 | $ 74 | $ 955,208 | $ 271,987 | $ (157) |
Ending balance (in shares) at Sep. 30, 2023 | 74,264,226 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 88,484 | $ 77,668 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 26,077 | 23,141 |
Interest (income) expense, net | (184) | 607 |
Share-based compensation | 12,262 | 10,096 |
Debt acquisition cost write-down | 92 | 130 |
Changes in certain assets and liabilities: | ||
Fees and other receivables, net | (879) | (7,338) |
Receivables from related party | 480 | 568 |
Prepaid expenses and other current assets | 7,751 | 6,732 |
Accounts payable, accrued liabilities and other current liabilities | (675) | (12,664) |
Income tax receivable and payable, net | 26,020 | (3,341) |
Net cash provided by operating activities | 159,428 | 95,599 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of Adhesion Wealth | (3,000) | 0 |
Purchase of investments | (1,936) | (2,211) |
Sale of investments | 289 | 384 |
Purchase of property and equipment | (1,155) | (1,440) |
Purchase of computer software | (31,871) | (26,049) |
Purchase of convertible notes | (4,275) | (8,600) |
Net cash used in investing activities | (41,948) | (37,916) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of long-term debt, net | 0 | 122,508 |
Proceeds from revolving credit facility draw down | 50,000 | 0 |
Payments on revolving credit facility | (50,000) | (115,000) |
Payments on term loan | (25,000) | (4,688) |
Net cash (used in) provided by financing activities | (25,000) | 2,820 |
Net change in cash, cash equivalents, and restricted cash | 92,480 | 60,503 |
Cash, cash equivalents, and restricted cash at beginning of period | 136,274 | 89,707 |
Cash, cash equivalents, and restricted cash at end of period | 228,754 | 150,210 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Income taxes paid, net | 6,962 | 26,176 |
Interest paid | 7,837 | 2,714 |
Non-cash operating and investing activities: | ||
Non-cash changes to right-of-use assets | 3,360 | 3,396 |
Non-cash changes to lease liabilities | $ 3,360 | $ 3,396 |
Overview
Overview | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview | Overview Organization and Nature of Business These unaudited condensed consolidated financial statements include AssetMark Financial Holdings, Inc. 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 Ltd. and 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 and GuidePath Funds (“Proprietary Mutual Funds”), 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 underwrite and distribute the Company’s Proprietary Mutual Funds and to sponsor the Financial Industry Regulatory Authority (“FINRA”) licensing of those AssetMark associates who provide distribution support of the Company’s Proprietary Mutual Funds employed in certain AssetMark programs and strategies. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting PoliciesThe accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of only normal recurring adjustments, considered necessary for fair presentation have been included. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ended December 31, 2023 or any future period. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. 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 condensed consolidated financial statements have been prepared in accordance with GAAP. Certain prior period amounts in the accompanying notes have been reclassified to conform to the current period’s presentatio n. Geographic Sources of Revenue |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: September 30, 2023 December 31, 2022 Prepaid expenses $ 7,110 $ 11,697 Operating lease right-of-use assets 4,747 4,387 Other 1,229 786 Total $ 13,086 $ 16,870 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Acquisition of Adhesion Wealth On December 14, 2022, the Company acquired all of the issued and outstanding equity interests of Adhesion Financial Advisor Solutions (“Adhesion Wealth”). 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 and no later than December 14, 2023. On January 30, 2023, the Company completed an internal restructuring of Adhesion Wealth and Atria whereby Adhesion Wealth was merged out of existence and Atria became a direct subsidiary of AssetMark Financial Holdings, Inc., and will continue to do business as Adhesion Wealth. In January 2023, the Company settled a purchase consideration liability in the amount of $3,000. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The Company’s goodwill balance was $487,353 and $487,225 as of September 30, 2023 and December 31, 2022, respectively. The Company performed an annual test for goodwill impairment based on the financial information available as of October 31, 2022 and 2021 for the years ended December 31, 2022 and 2021 and determined that goodwill was not impaired. The Company performed a qualitative analysis of factors and determined that goodwill was not impaired as of September 30, 2023. Other Intangible Assets Information regarding the Company’s intangible assets is as follows: September 30, 2023 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (16,622) 33,908 Technology 19,600 (4,950) 14,650 Customer relationships 36,450 (9,120) 27,330 Regulatory licenses 34,850 (12,053) 22,797 Non-compete agreements 400 (300) 100 Total $ 729,810 $ (43,045) $ 686,765 December 31, 2022 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (14,573) 35,957 Technology 19,600 (2,717) 16,883 Customer relationships 36,450 (6,948) 29,502 Regulatory licenses 34,850 (10,745) 24,105 Non-compete agreements 400 (200) 200 Total $ 729,810 $ (35,183) $ 694,627 A mortization expense for definite-lived intangible assets was $2,623 and $2,171 for the three months ended September 30, 2023 and 2022, respectively, and $7,862 and $6,513 for the nine months ended September 30, 2023 and 2022, respectively. The Company performed an annual test for intangible assets impairment in October for the years ended December 31, 2022 and 2021 and determined that intangible assets were not impaired. The Company performed a qualitative analysis of factors and determined that intangible assets were not impaired as of September 30, 2023. Estimated amortization expense for definite‑lived intangible assets for future years is as follows: Remainder of 2023 $ 2,623 2024 10,425 2025 10,308 2026 9,158 2027 9,158 2028 and thereafter 57,113 Total $ 98,785 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Current Liabilities | Accrued Liabilities and Other Current Liabilities The following table shows the breakdown of accrued liabilities and other current liabilities: September 30, 2023 December 31, 2022 Accrued bonus $ 17,976 $ 19,813 Asset-based payables 7,870 840 Compensation and benefits payable 7,801 13,403 Current portion of operating lease liabilities 4,586 4,485 Reserve for uncertain tax positions 4,136 4,136 Current portion of long-term debt, net — 6,123 Other accrued expenses 23,089 20,396 Total $ 65,458 $ 69,196 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consisted of the following: September 30, 2023 December 31, 2022 Deferred compensation plan liability $ 15,817 $ 13,602 Other 849 1,583 Total $ 16,666 $ 15,185 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, based on the three-tier fair value hierarchy: September 30, 2023 Fair Value Level I Level II Level III Assets: Equity securities investments $ 477 $ 477 $ — $ — Assets to fund deferred compensation liability 15,817 15,817 — — Convertible notes receivable 15,385 — — 15,385 Total assets $ 31,679 $ 16,294 $ — $ 15,385 Liabilities: Deferred compensation liability $ 15,817 $ 15,817 $ — $ — Total liabilities $ 15,817 $ 15,817 $ — $ — December 31, 2022 Fair Value Level I Level II Level III Assets: Equity securities 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 $ — $ — Fair Value of Equity Securities 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. Fair Value of Assets to Fund Deferred Compensation Liability and Deferred Compensation Liability The assets to fund deferred compensation liability are included in investments, at fair value in the condensed consolidated balance sheets, with fair market value based on the month-end quoted market prices for the net asset value of the various investment funds. The deferred compensation liability is included in other long-term liabilities in the condensed 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. Fair Value of Convertible Notes Receivable |
Asset-Based Expenses
Asset-Based Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Operating Costs and Expenses [Abstract] | |
Asset-Based Expenses | Asset-Based Expenses Asset-based expenses incurred by the Company relating to the generation of asset-based revenue are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Strategist and manager fees $ 36,663 $ 32,437 $ 104,818 $ 104,554 Premier broker-dealer fees 3,348 1,272 6,090 5,055 Custody fees 1,655 1,519 4,723 5,098 Fund advisory fees 1,323 1,226 3,967 3,443 Other 103 22 272 279 Total $ 43,092 $ 36,476 $ 119,870 $ 118,429 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 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”), 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, solely 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. In March 2023, the Company paid down a total of $25,000, with the excess repayment above the scheduled amortizing payment to be applied to future quarterly principal payments. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based CompensationOn 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 September 30, 2023, 514,521 shares were available for issuance under the 2019 Equity Incentive Plan. 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 contractual term. On July 18, 2022, the last installment of outstanding options vested. Share-based compensation expense related to the stock options was $0 and $64 for the three months ended September 30, 2023 and 2022, respectively, and $0 and $670 for the nine months ended September 30, 2023 and 2022, 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. Most of these RSUs are scheduled to vest in substantially equal installments on each of the first four anniversaries of their grant date. During the nine months ended September 30, 2023, the Company issued 593,653 RSUs in aggregate to its officers, certain employees and independent directors of the board. Share-based compensation expense related to the RSUs was $3,150 and $2,321 for the three months ended September 30, 2023 and 2022, respectively, and $8,103 and $5,850 for the nine months ended September 30, 2023 and 2022, respectively. Stock Appreciation Rights Equity-settled Stock Appreciation Rights P eriodically, the Company issues equity-settled stock appreciation rights (“Equity-settled SARs”) to certain officers with respect to shares of the Company’s common stock under the 2019 Equity Incentive Plan. Each Equity-settled 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. Upon exercise, each of these Equity-settled SARs will be settled in shares of the Company’s common stock with a value equal to the excess, if any, of the fair market value of the Company’s common stock measured on the exercise date over the strike price. During the nine months ended September 30, 2023, the Company issued 109,889 Equity-settled SARs to certain officers. Share-based compensation expense related to Equity-settled SARs was $1,138 and $1,538 for the three months ended September 30, 2023 and 2022, respectively, and $4,159 and $3,576 for the nine months ended September 30, 2023 and 2022, respectively. Cash-settled Stock Appreciation Rights The Company issued cash-settled stock appreciation rights (“Cash-settled SARs”) to certain officers with respect to shares of the Company’s common stock under the 2019 Equity Incentive Plan. Each Cash-settled 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. Upon exercise, each of these Cash-settled SARs will be settled in cash with a value equal to the excess, if any, of the fair market value of the Company’s common stock measured on the exercise date over the strike price. During the nine months ended September 30, 2023, the Company issued 338,907 Cash-settled SARs to certain officers. Share-based compensation expense related to Cash-settled SARs was $77 and $0 for the three months ended September 30, 2023 and 2022, respectively, and $159 and $0 for the nine months ended September 30, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. Because the Company operates in a highly regulated industry, the Company and its subsidiaries are regularly subject to examinations by the SEC and other relevant regulators. As disclosed since the fall of 2020, in July 2020, AMI received an examination report from the SEC’s Division of Examinations requesting that AMI and certain subsidiaries of AFHI take corrective actions. The Company’s subsidiaries also received related subpoenas from the SEC Division of Enforcement for production of documents and testimony. The matter at issue concerned allegedly inadequate disclosure of potential conflicts of interest by AMI between 2016 and 2021. Based on discussions with the SEC enforcement staff, the Company recorded an accrual of $20,000 in its financial statements in March 2023 for the expected resolution of this matter. In September 2023, the Company reached a settlement with the SEC regarding the matter at issue without admitting or denying the SEC’s findings. The Company paid a civil penalty of $9,500 as well as disgorgement and prejudgment interest of $8,827, which will be distributed to impacted customers once the SEC approves the distribution plan. The Company also consented to, and intends to, comply with certain undertakings under the settlement. The adjustment related to the settlement has been included within other (income) expense, net within the unaudited condensed consolidated statements of comprehensive income for the three months ended September 30, 2023. Other Contingencies |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate differs from the federal corporate tax rate of 21.0%, primarily as a result of state taxes, the effect of research and development tax credits, and permanent non-deductible items. The Company’s effective tax rate was 27.8% and 19.5% for the three months ended September 30, 2023 and 2022, respectively, and 27.3% and 22.4% for the nine months ended September 30, 2023 and 2022, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of September 30, 2023 and December 31, 2022, the Company had no amounts due from Huatai Securities Co., Ltd. (“HTSC”). |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders Basic net income per share is computed by dividing net income 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 share attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income attributable to common stockholders $ 38,385 $ 30,109 $ 88,484 $ 77,668 Weighted average number of shares of common stock used in computing net income per share attributable to common stockholders, basic 74,261,667 73,842,297 74,047,412 73,682,881 Net income per share attributable to common stockholders, basic $ 0.52 $ 0.41 $ 1.19 $ 1.05 Weighted average shares used in computing net income per share attributable to common stockholders, basic 74,261,667 73,842,297 74,047,412 73,682,881 Effect of dilutive shares: Stock options 109,324 — 111,283 — Unvested RSUs 236,794 2,392 289,708 100,977 SARs 87,475 — 72,967 — Diluted number of weighted-average shares outstanding 74,695,260 73,844,689 74,521,370 73,783,858 Net income per share attributable to common stockholders, diluted $ 0.51 $ 0.41 $ 1.19 $ 1.05 The following securities were not included in the computation of diluted shares because such securities did not have a dilutive effect. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options — 803,306 — 803,306 SARs 1,571,831 2,631,761 1,571,831 2,631,761 RSUs 31,980 1,038,682 54,221 671,935 Total 1,603,811 4,473,749 1,626,052 4,107,002 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 38,385 | $ 30,109 | $ 88,484 | $ 77,668 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 condensed consolidated financial statements have been prepared in accordance with GAAP. Certain prior period amounts in the accompanying notes have been reclassified to conform to the current period’s presentatio n. |
Geographic Sources of Revenue | Geographic Sources of RevenueRevenue attributable to customers outside of the United States totaled $4,167 and $3,527 in the three months ended September 30, 2023 and 2022, respectively, and $12,065 and $10,691 in the nine months ended September 30, 2023 and 2022, respectively. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 Prepaid expenses $ 7,110 $ 11,697 Operating lease right-of-use assets 4,747 4,387 Other 1,229 786 Total $ 13,086 $ 16,870 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Information regarding the Company’s intangible assets is as follows: September 30, 2023 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (16,622) 33,908 Technology 19,600 (4,950) 14,650 Customer relationships 36,450 (9,120) 27,330 Regulatory licenses 34,850 (12,053) 22,797 Non-compete agreements 400 (300) 100 Total $ 729,810 $ (43,045) $ 686,765 December 31, 2022 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (14,573) 35,957 Technology 19,600 (2,717) 16,883 Customer relationships 36,450 (6,948) 29,502 Regulatory licenses 34,850 (10,745) 24,105 Non-compete agreements 400 (200) 200 Total $ 729,810 $ (35,183) $ 694,627 |
Summary of Estimated Amortization Expense for Definite-Lived Intangible Assets | Estimated amortization expense for definite‑lived intangible assets for future years is as follows: Remainder of 2023 $ 2,623 2024 10,425 2025 10,308 2026 9,158 2027 9,158 2028 and thereafter 57,113 Total $ 98,785 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The following table shows the breakdown of accrued liabilities and other current liabilities: September 30, 2023 December 31, 2022 Accrued bonus $ 17,976 $ 19,813 Asset-based payables 7,870 840 Compensation and benefits payable 7,801 13,403 Current portion of operating lease liabilities 4,586 4,485 Reserve for uncertain tax positions 4,136 4,136 Current portion of long-term debt, net — 6,123 Other accrued expenses 23,089 20,396 Total $ 65,458 $ 69,196 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following: September 30, 2023 December 31, 2022 Deferred compensation plan liability $ 15,817 $ 13,602 Other 849 1,583 Total $ 16,666 $ 15,185 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, based on the three-tier fair value hierarchy: September 30, 2023 Fair Value Level I Level II Level III Assets: Equity securities investments $ 477 $ 477 $ — $ — Assets to fund deferred compensation liability 15,817 15,817 — — Convertible notes receivable 15,385 — — 15,385 Total assets $ 31,679 $ 16,294 $ — $ 15,385 Liabilities: Deferred compensation liability $ 15,817 $ 15,817 $ — $ — Total liabilities $ 15,817 $ 15,817 $ — $ — December 31, 2022 Fair Value Level I Level II Level III Assets: Equity securities 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 $ — $ — |
Asset-Based Expenses (Tables)
Asset-Based Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Strategist and manager fees $ 36,663 $ 32,437 $ 104,818 $ 104,554 Premier broker-dealer fees 3,348 1,272 6,090 5,055 Custody fees 1,655 1,519 4,723 5,098 Fund advisory fees 1,323 1,226 3,967 3,443 Other 103 22 272 279 Total $ 43,092 $ 36,476 $ 119,870 $ 118,429 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income Per Share | The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income attributable to common stockholders $ 38,385 $ 30,109 $ 88,484 $ 77,668 Weighted average number of shares of common stock used in computing net income per share attributable to common stockholders, basic 74,261,667 73,842,297 74,047,412 73,682,881 Net income per share attributable to common stockholders, basic $ 0.52 $ 0.41 $ 1.19 $ 1.05 Weighted average shares used in computing net income per share attributable to common stockholders, basic 74,261,667 73,842,297 74,047,412 73,682,881 Effect of dilutive shares: Stock options 109,324 — 111,283 — Unvested RSUs 236,794 2,392 289,708 100,977 SARs 87,475 — 72,967 — Diluted number of weighted-average shares outstanding 74,695,260 73,844,689 74,521,370 73,783,858 Net income per share attributable to common stockholders, diluted $ 0.51 $ 0.41 $ 1.19 $ 1.05 |
Schedule of Anti-dilutive Securities Were Not Included in Computation of Diluted Shares Outstanding | The following securities were not included in the computation of diluted shares because such securities did not have a dilutive effect. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options — 803,306 — 803,306 SARs 1,571,831 2,631,761 1,571,831 2,631,761 RSUs 31,980 1,038,682 54,221 671,935 Total 1,603,811 4,473,749 1,626,052 4,107,002 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Outside United States | ||||
Product Information [Line Items] | ||||
Revenue | $ 4,167 | $ 3,527 | $ 12,065 | $ 10,691 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 7,110 | $ 11,697 |
Operating lease right-of-use assets | 4,747 | 4,387 |
Other | 1,229 | 786 |
Total | $ 13,086 | $ 16,870 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Asset Acquisition [Line Items] | |||
Consideration liability | $ 3,000 | $ 0 | |
Adhesion Financial Advisor Solutions "Adhesion Wealth" | |||
Asset Acquisition [Line Items] | |||
Consideration liability | $ 3,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 487,353 | $ 487,353 | $ 487,225 | ||
Amortization expense | $ 2,623 | $ 2,171 | $ 7,862 | $ 6,513 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated amortization | $ (43,045) | $ (35,183) |
Total | 98,785 | |
Intangible assets, Gross carrying amount | 729,810 | 729,810 |
Intangible assets, Net carrying amount | 686,765 | 694,627 |
Trade names | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 50,530 | 50,530 |
Definite-lived intangible assets, Accumulated amortization | (16,622) | (14,573) |
Total | 33,908 | 35,957 |
Technology | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 19,600 | 19,600 |
Definite-lived intangible assets, Accumulated amortization | (4,950) | (2,717) |
Total | 14,650 | 16,883 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 36,450 | 36,450 |
Definite-lived intangible assets, Accumulated amortization | (9,120) | (6,948) |
Total | 27,330 | 29,502 |
Regulatory licenses | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 34,850 | 34,850 |
Definite-lived intangible assets, Accumulated amortization | (12,053) | (10,745) |
Total | 22,797 | 24,105 |
Non-compete agreements | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 400 | 400 |
Definite-lived intangible assets, Accumulated amortization | (300) | (200) |
Total | 100 | 200 |
Broker-Dealer Relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | 570,480 | 570,480 |
Enterprise Distribution Channel Customer Relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | $ 17,500 | $ 17,500 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense for Definite-Lived Intangible Assets (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 2,623 |
2024 | 10,425 |
2025 | 10,308 |
2026 | 9,158 |
2027 | 9,158 |
2028 and thereafter | 57,113 |
Total | $ 98,785 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued bonus | $ 17,976 | $ 19,813 |
Asset-based payables | 7,870 | 840 |
Compensation and benefits payable | 7,801 | 13,403 |
Current portion of operating lease liabilities | 4,586 | 4,485 |
Reserve for uncertain tax positions | 4,136 | 4,136 |
Current portion of long-term debt, net | 0 | 6,123 |
Other accrued expenses | 23,089 | 20,396 |
Total | $ 65,458 | $ 69,196 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation plan liability | $ 15,817 | $ 13,602 |
Other | 849 | 1,583 |
Total | $ 16,666 | $ 15,185 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Total assets | $ 31,679 | $ 24,066 |
Liabilities: | ||
Total liabilities | 15,817 | 13,602 |
Equity Security Investments | ||
Assets: | ||
Total assets | 477 | 112 |
Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 15,817 | 13,602 |
Convertible Notes Receivable | ||
Assets: | ||
Total assets | 15,385 | 10,352 |
Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | 15,817 | 13,602 |
Level I | ||
Assets: | ||
Total assets | 16,294 | 13,714 |
Liabilities: | ||
Total liabilities | 15,817 | 13,602 |
Level I | Equity Security Investments | ||
Assets: | ||
Total assets | 477 | 112 |
Level I | Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 15,817 | 13,602 |
Level I | Convertible Notes Receivable | ||
Assets: | ||
Total assets | 0 | 0 |
Level I | Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | 15,817 | 13,602 |
Level II | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level II | Equity Security Investments | ||
Assets: | ||
Total assets | 0 | 0 |
Level II | Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 0 | 0 |
Level II | Convertible Notes Receivable | ||
Assets: | ||
Total assets | 0 | 0 |
Level II | Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Level III | ||
Assets: | ||
Total assets | 15,385 | 10,352 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level III | Equity Security Investments | ||
Assets: | ||
Total assets | 0 | 0 |
Level III | Assets To Fund Deferred Compensation Liability | ||
Assets: | ||
Total assets | 0 | 0 |
Level III | Convertible Notes Receivable | ||
Assets: | ||
Total assets | 15,385 | 10,352 |
Level III | Deferred Compensation Liability | ||
Liabilities: | ||
Total liabilities | $ 0 | $ 0 |
Asset-Based Expenses - Schedule
Asset-Based Expenses - Schedule of Asset-Based Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Costs and Expenses [Abstract] | ||||
Strategist and manager fees | $ 36,663 | $ 32,437 | $ 104,818 | $ 104,554 |
Premier broker-dealer fees | 3,348 | 1,272 | 6,090 | 5,055 |
Custody fees | 1,655 | 1,519 | 4,723 | 5,098 |
Fund advisory fees | 1,323 | 1,226 | 3,967 | 3,443 |
Other | 103 | 22 | 272 | 279 |
Total | $ 43,092 | $ 36,476 | $ 119,870 | $ 118,429 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Jan. 12, 2022 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 30, 2020 | |
Debt Instrument [Line Items] | |||||
Repayments of long term debt | $ 25,000 | $ 25,000 | $ 4,688 | ||
2022 Credit Agreement | 2022 Term Loans | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 125,000 | ||||
Applicable margin percentage, adjustment based on performance (as a percent) | 0.05% | ||||
Commitment fee percentage, adjustment based on performance (as a percent) | 0.01% | ||||
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 | ||||
Minimum | 2022 Credit Agreement | 2022 Term Loans | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 0.875% | ||||
Minimum | 2022 Credit Agreement | 2022 Term Loans | SOFR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 1.875% | ||||
Maximum | 2022 Credit Agreement | 2022 Term Loans | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 2.50% | ||||
Maximum | 2022 Credit Agreement | 2022 Term Loans | SOFR | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 3.50% | ||||
Bank of Montreal | 2020 Credit Agreement | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 250,000 | ||||
Bank of Montreal | 2020 Credit Agreement | 2020 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 250,000 | ||||
Bank of Montreal | Maximum | 2020 Credit Agreement | 2020 Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Accordion option | $ 25,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 03, 2019 Anniversary $ / shares shares | Sep. 30, 2023 USD ($) Anniversary shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | |
Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 0 | $ 64 | $ 0 | $ 670 | |
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted (in shares) | 593,653 | ||||
Number of award anniversaries | Anniversary | 4 | ||||
Share-based compensation expense | $ | $ 3,150 | 2,321 | $ 8,103 | 5,850 | |
Stock Appreciation Rights, Equity Settled | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted (in shares) | 109,889 | ||||
Number of award anniversaries | Anniversary | 4 | ||||
Contractual term | 10 years | ||||
Share-based compensation expense | $ | $ 1,138 | 1,538 | $ 4,159 | 3,576 | |
Stock Appreciation Rights, Cash Settled | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted (in shares) | 338,907 | ||||
Number of award anniversaries | Anniversary | 4 | ||||
Contractual term | 10 years | ||||
Share-based compensation expense | $ | $ 77 | $ 0 | $ 159 | $ 0 | |
2019 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share available for issuance under the plan (in shares) | 514,521 | 514,521 | |||
2019 Equity Incentive Plan | Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted (in shares) | 918,981 | ||||
Exercise price (in dollars per share) | $ / shares | $ 22 | ||||
Number of award anniversaries | Anniversary | 3 | ||||
Contractual term | 10 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Sep. 30, 2023 | Mar. 31, 2023 | |
Other Commitments [Line Items] | ||
Loss contingency accrual | $ 20,000 | |
Civil Penalty | ||
Other Commitments [Line Items] | ||
Civil penalty paid in litigation settlement | $ 9,500 | |
Disgorgement and Prejudgment Interest | ||
Other Commitments [Line Items] | ||
Civil penalty paid in litigation settlement | $ 8,827 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Federal corporate tax rate (as a percent) | 21% | |||
Effective tax rate (as a percent) | 27.80% | 19.50% | 27.30% | 22.40% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Other receivables | $ 0 | $ 0 |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Common Stockholders - Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Net income | $ 38,385 | $ 30,109 | $ 88,484 | $ 77,668 |
Weighted average number of shares of common stock used in computing net income per share attributable to common stockholders, basic (shares) | 74,261,667 | 73,842,297 | 74,047,412 | 73,682,881 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 0.52 | $ 0.41 | $ 1.19 | $ 1.05 |
Effect of dilutive shares: | ||||
Diluted number of weighted-average shares outstanding (shares) | 74,695,260 | 73,844,689 | 74,521,370 | 73,783,858 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 0.51 | $ 0.41 | $ 1.19 | $ 1.05 |
Stock Option | ||||
Effect of dilutive shares: | ||||
Effect of dilutive shares | 109,324 | 0 | 111,283 | 0 |
Restricted Stock Units (RSUs) | ||||
Effect of dilutive shares: | ||||
Effect of dilutive shares | 236,794 | 2,392 | 289,708 | 100,977 |
Stock Appreciation Rights (SARs) | ||||
Effect of dilutive shares: | ||||
Effect of dilutive shares | 87,475 | 0 | 72,967 | 0 |
Net Income Per Share Attribut_4
Net Income Per Share Attributable to Common Stockholders - Schedule of Anti-dilutive Securities Were Not Included in Computation of Diluted Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 1,603,811 | 4,473,749 | 1,626,052 | 4,107,002 |
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 | 0 | 803,306 | 0 | 803,306 |
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 | 1,571,831 | 2,631,761 | 1,571,831 | 2,631,761 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities were not included in computation of diluted shares outstanding | 31,980 | 1,038,682 | 54,221 | 671,935 |