Cover page
Cover page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33805 | |
Entity Registrant Name | SCULPTOR CAPITAL MANAGEMENT, INC. | |
Entity Central Index Key | 0001403256 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0354783 | |
Entity Address, Address Line One | 9 West 57th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 790-0000 | |
Title of 12(b) Security | Class A Shares | |
Trading Symbol | SCU | |
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 | false | |
Entity Shell Company | false | |
Class A Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,581,124 | |
Class B Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 32,820,413 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 290,297 | $ 240,938 |
Restricted cash | 3,578 | 4,501 |
Investments (includes assets measured at fair value of $340,814 and $329,435, including assets sold under agreements to repurchase of $101,843 and $98,085 as of September 30, 2020 and December 31, 2019, respectively) | 436,095 | 411,426 |
Income and fees receivable | 37,708 | 215,395 |
Due from related parties | 11,523 | 15,355 |
Deferred income tax assets | 333,999 | 310,557 |
Operating lease assets | 107,585 | 115,810 |
Other assets, net | 75,003 | 82,608 |
Assets of consolidated funds: | ||
Other assets of consolidated funds | 737 | 649 |
Total Assets | 1,296,525 | 1,397,239 |
Liabilities | ||
Compensation payable | 67,506 | 187,180 |
Unearned management fee | 66,892 | 60,798 |
Due to related parties | 194,975 | 211,915 |
Operating lease liabilities | 118,091 | 128,043 |
Debt obligations | 258,795 | 286,728 |
Securities sold under agreements to repurchase | 101,892 | 97,508 |
Other liabilities | 176,365 | 59,217 |
Liabilities of consolidated funds: | ||
Other liabilities of consolidated funds | 443 | 389 |
Total Liabilities | 984,959 | 1,031,778 |
Commitments and Contingencies | ||
Redeemable Noncontrolling Interests | 155,598 | 150,000 |
Shareholders’ Equity | ||
Additional paid-in capital | 150,831 | 117,936 |
Accumulated deficit | (396,077) | (343,759) |
Shareholders’ deficit attributable to Class A Shareholders | (244,692) | (225,318) |
Shareholders’ equity attributable to noncontrolling interests | 400,660 | 440,779 |
Total Shareholders’ Equity | 155,968 | 215,461 |
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity | 1,296,525 | 1,397,239 |
Class A Shares | ||
Shareholders’ Equity | ||
Value of stock | 226 | 213 |
Class B Shares | ||
Shareholders’ Equity | ||
Value of stock | $ 328 | $ 292 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments measured at fair value | $ 340,814 | $ 329,435 |
Assets sold under agreements to repurchase at fair value | $ 101,843 | $ 98,085 |
Class A Shares | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 22,557,205 | 21,284,945 |
Common stock, shares outstanding | 22,557,205 | 21,284,945 |
Class B Shares | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 32,820,413 | 29,208,952 |
Common stock, shares outstanding | 32,820,413 | 29,208,952 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Other revenues | $ 2,316 | $ 3,646 | $ 7,693 | $ 12,458 |
Income of consolidated funds | 58 | 1,820 | 90 | 6,732 |
Total Revenues | 111,952 | 98,845 | 292,257 | 325,547 |
Expenses | ||||
Compensation and benefits | 65,030 | 78,343 | 197,739 | 244,767 |
Interest expense | 4,488 | 6,323 | 14,944 | 19,054 |
General, administrative and other | 26,465 | 48,272 | 203,786 | 114,487 |
Expenses of consolidated funds | 34 | 507 | 53 | 646 |
Total Expenses | 96,017 | 133,445 | 416,522 | 378,954 |
Other Income (Loss) | ||||
Changes in tax receivable agreement liability | 0 | 0 | 278 | 5,362 |
Net losses on early retirement of debt | 0 | (218) | (693) | (6,271) |
Net gains (losses) on investments | 8,157 | (2,169) | 3,266 | 3,668 |
Net (losses) gains of consolidated funds | 0 | (460) | 0 | 3,768 |
Total Other Income (Loss) | 8,157 | (2,847) | 2,851 | 6,527 |
Income (Loss) Before Income Taxes | 24,092 | (37,447) | (121,414) | (46,880) |
Income taxes | 9,397 | (1,446) | (17,971) | 12,074 |
Consolidated and Comprehensive Net Income (Loss) | 14,695 | (36,001) | (103,443) | (58,954) |
Less: Net (income) loss attributable to noncontrolling interests | (4,393) | 11,435 | 63,552 | 26,653 |
Less: Net income attributable to redeemable noncontrolling interests | 0 | (574) | 0 | (8,745) |
Net Income (Loss) Attributable to Sculptor Capital Management, Inc. | 10,302 | (25,140) | (39,891) | (41,046) |
Change in redemption value of Preferred Units | (2,285) | 0 | (5,598) | 44,364 |
Net Income (Loss) Attributable to Class A Shareholders | $ 8,017 | $ (25,140) | $ (45,489) | $ 3,318 |
Earnings (Loss) per Class A Share | ||||
Earnings (Loss) Per Class A Share, Basic (in dollars per share) | $ 0.35 | $ (1.20) | $ (2.02) | $ 0.16 |
Earnings (Loss) Per Class A Share, Diluted (in dollars per share) | $ 0.25 | $ (1.20) | $ (2.71) | $ 0.12 |
Weighted-Average Class A Shares Outstanding, Basic (in shares) | 22,729,285 | 20,907,021 | 22,542,047 | 20,703,211 |
Weighted-Average Class A Shares Outstanding, Diluted (in shares) | 49,737,060 | 20,907,021 | 38,559,963 | 28,165,978 |
Management fees | ||||
Revenues | ||||
Investment management revenues | $ 68,053 | $ 62,956 | $ 195,389 | $ 187,979 |
Incentive income | ||||
Revenues | ||||
Investment management revenues | $ 41,525 | $ 30,423 | $ 89,085 | $ 118,378 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Class A Shares | Class B Shares | Common Stock Par ValueClass A Shares | Common Stock Par ValueClass B Shares | Additional Paid-in Capital | Accumulated Deficit | Shareholders’ Deficit Attributable to Class A Shareholders | Shareholders’ Equity Attributable to Noncontrolling Interests |
Dividends Paid per Class A Share (in dollars per share) | $ 0.92 | ||||||||
Balance at Beginning of Period (shares) at Dec. 31, 2018 | 19,905,126 | 29,458,948 | |||||||
Balance at Beginning of Period (values) at Dec. 31, 2018 | $ 0 | $ 0 | $ 3,135,841 | $ (3,564,727) | $ 419,431 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity-based compensation | 844,180 | (249,996) | |||||||
Equity-based compensation, net of taxes | 2 | 0 | 69,376 | 34,377 | |||||
Reclassification upon corporate conversion | 205 | 292 | (3,235,728) | 3,235,231 | |||||
Dividend equivalents on Class A restricted share units | 961 | (961) | |||||||
Impact of changes in Sculptor Operating Group ownership | (124) | 124 | |||||||
Reallocation of equity and income tax effects of Recapitalization | 35,408 | (39,086) | |||||||
Increase In Additional Paid In Capital As A Result Of Waiver Of Certain Payments Due Under The Tax Receivable Agreement | $ 50,318 | 50,318 | |||||||
Change in redemption value of Preferred Units | (101,406) | 44,364 | 57,042 | ||||||
Cash dividends declared on Class A Shares | (18,955) | ||||||||
Comprehensive net income (loss), excluding amounts attributable to redeemable noncontrolling interests | (41,046) | (26,653) | |||||||
Capital contributions | 1,576 | ||||||||
Capital distributions | (891) | ||||||||
Balance at End of Period (shares) at Sep. 30, 2019 | 20,749,306 | 29,208,952 | |||||||
Balance at End of Period (values) at Sep. 30, 2019 | $ 156,377 | 207 | 292 | 100,416 | (390,458) | $ (289,543) | 445,920 | ||
Dividends Paid per Class A Share (in dollars per share) | $ 0.32 | ||||||||
Balance at Beginning of Period (shares) at Jun. 30, 2019 | 20,631,750 | 29,208,952 | |||||||
Balance at Beginning of Period (values) at Jun. 30, 2019 | 206 | 292 | 70,875 | (358,204) | 453,892 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity-based compensation | 117,556 | 0 | |||||||
Equity-based compensation, net of taxes | 1 | 0 | 29,058 | 2,769 | |||||
Reclassification upon corporate conversion | 0 | 0 | 0 | 0 | |||||
Dividend equivalents on Class A restricted share units | 483 | (483) | |||||||
Impact of changes in Sculptor Operating Group ownership | 0 | 0 | |||||||
Reallocation of equity and income tax effects of Recapitalization | 0 | 0 | |||||||
Increase In Additional Paid In Capital As A Result Of Waiver Of Certain Payments Due Under The Tax Receivable Agreement | 0 | ||||||||
Change in redemption value of Preferred Units | $ 0 | 0 | 0 | ||||||
Cash dividends declared on Class A Shares | (6,631) | ||||||||
Comprehensive net income (loss), excluding amounts attributable to redeemable noncontrolling interests | (25,140) | (11,435) | |||||||
Capital contributions | 958 | ||||||||
Capital distributions | (264) | ||||||||
Balance at End of Period (shares) at Sep. 30, 2019 | 20,749,306 | 29,208,952 | |||||||
Balance at End of Period (values) at Sep. 30, 2019 | $ 156,377 | 207 | 292 | 100,416 | (390,458) | (289,543) | 445,920 | ||
Dividends Paid per Class A Share (in dollars per share) | $ 0.53 | ||||||||
Balance at Beginning of Period (shares) at Dec. 31, 2019 | 21,284,945 | 29,208,952 | |||||||
Balance at Beginning of Period (values) at Dec. 31, 2019 | $ 215,461 | 213 | 292 | 117,936 | (343,759) | 440,779 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity-based compensation | 1,272,260 | 3,611,461 | |||||||
Equity-based compensation, net of taxes | 13 | 36 | 37,679 | 19,988 | |||||
Reclassification upon corporate conversion | 0 | 0 | 0 | 0 | |||||
Dividend equivalents on Class A restricted share units | 814 | (814) | |||||||
Impact of changes in Sculptor Operating Group ownership | 0 | 0 | |||||||
Reallocation of equity and income tax effects of Recapitalization | 0 | 0 | |||||||
Increase In Additional Paid In Capital As A Result Of Waiver Of Certain Payments Due Under The Tax Receivable Agreement | 0 | 0 | |||||||
Change in redemption value of Preferred Units | (5,598) | 0 | |||||||
Cash dividends declared on Class A Shares | (11,613) | ||||||||
Comprehensive net income (loss), excluding amounts attributable to redeemable noncontrolling interests | (39,891) | (63,552) | |||||||
Capital contributions | 7,084 | ||||||||
Capital distributions | (3,639) | ||||||||
Balance at End of Period (shares) at Sep. 30, 2020 | 22,557,205 | 32,820,413 | |||||||
Balance at End of Period (values) at Sep. 30, 2020 | $ 155,968 | 226 | 328 | 150,831 | (396,077) | (244,692) | 400,660 | ||
Dividends Paid per Class A Share (in dollars per share) | $ 0 | ||||||||
Balance at Beginning of Period (shares) at Jun. 30, 2020 | 22,311,432 | 32,820,414 | |||||||
Balance at Beginning of Period (values) at Jun. 30, 2020 | 223 | 328 | 142,288 | (406,440) | 386,686 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity-based compensation | 245,773 | (1) | |||||||
Equity-based compensation, net of taxes | 3 | 0 | 10,889 | 6,437 | |||||
Reclassification upon corporate conversion | 0 | 0 | 0 | 0 | |||||
Dividend equivalents on Class A restricted share units | (61) | 61 | |||||||
Impact of changes in Sculptor Operating Group ownership | 0 | 0 | |||||||
Reallocation of equity and income tax effects of Recapitalization | 0 | 0 | |||||||
Increase In Additional Paid In Capital As A Result Of Waiver Of Certain Payments Due Under The Tax Receivable Agreement | 0 | ||||||||
Change in redemption value of Preferred Units | (2,285) | 0 | |||||||
Cash dividends declared on Class A Shares | 0 | ||||||||
Comprehensive net income (loss), excluding amounts attributable to redeemable noncontrolling interests | 10,302 | 4,393 | |||||||
Capital contributions | 3,535 | ||||||||
Capital distributions | (391) | ||||||||
Balance at End of Period (shares) at Sep. 30, 2020 | 22,557,205 | 32,820,413 | |||||||
Balance at End of Period (values) at Sep. 30, 2020 | $ 155,968 | $ 226 | $ 328 | $ 150,831 | $ (396,077) | $ (244,692) | $ 400,660 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities | ||
Consolidated net loss | $ (103,443) | $ (58,954) |
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | ||
Amortization of equity-based compensation | 60,342 | 106,270 |
Depreciation, amortization and net gains and losses on fixed assets | 5,379 | 6,941 |
Net losses on early retirement of debt | 693 | 6,271 |
Deferred income taxes | (23,422) | 6,525 |
Non-cash lease expense | 16,026 | 15,911 |
Net gains on investments, net of dividends | (617) | (823) |
Operating cash flows due to changes in: | ||
Income and fees receivable | 177,687 | 48,031 |
Due from related parties | 3,833 | (961) |
Other assets, net | 6,861 | 8,756 |
Compensation payable | (121,190) | (43,143) |
Unearned incentive income | 6,095 | 1,994 |
Due to related parties | (16,940) | (4,140) |
Operating lease liabilities | (17,160) | (13,485) |
Other liabilities | 117,996 | 798 |
Consolidated funds related items: | ||
Net gains of consolidated funds | 0 | (3,768) |
Purchases of investments | 0 | (128,917) |
Proceeds from sale of investments | 0 | 263,505 |
Other assets of consolidated funds | (90) | (31,815) |
Other liabilities of consolidated funds | 54 | 8,038 |
Net Cash Provided by Operating Activities | 112,104 | 187,034 |
Cash Flows from Investing Activities | ||
Purchases of fixed assets | (1,781) | (1,587) |
Purchases of United States government obligations | 322,439 | 260,445 |
Maturities and sales of United States government obligations | 316,879 | 181,278 |
Investments in funds | (18,501) | (84,906) |
Return of investments in funds | 5,790 | 56,947 |
Net Cash Used in Investing Activities | (20,052) | (108,713) |
Cash Flows from Financing Activities | ||
Contributions from noncontrolling and redeemable noncontrolling interests | 7,084 | 5,323 |
Distributions to noncontrolling and redeemable noncontrolling interests | (3,639) | (103,983) |
Dividends on Class A Shares | (11,613) | (18,955) |
Proceeds from debt obligations, net of issuance costs | 3,276 | 0 |
Repayment of debt obligations, including prepayment costs | (36,668) | (187,790) |
Proceeds from securities sold under agreements to repurchase, net of issuance costs | 0 | 36,134 |
Other, net | (2,056) | (1,166) |
Net Cash Used in Financing Activities | (43,616) | (270,437) |
Net change in cash and cash equivalents and restricted cash | 48,436 | (192,116) |
Cash and Cash Equivalents and Restricted Cash, Beginning of Period | 245,439 | 323,884 |
Cash and Cash Equivalents and Restricted Cash, End of Period | 293,875 | 131,768 |
Cash paid during the period: | ||
Interest | 10,794 | 9,810 |
Income taxes | 5,614 | 4,199 |
Non-cash transactions: | ||
Increase in paid-in capital as a result of tax receivable agreement amendment | 0 | 50,318 |
Reconciliation of cash and cash equivalents and restricted cash | ||
Cash and Cash Equivalents, at Carrying Value | 290,297 | 126,814 |
Restricted cash | $ 3,578 | $ 4,954 |
Overview
Overview | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview | OVERVIEW Sculptor Capital Management, Inc. (the “Registrant”), a Delaware corporation, together with its consolidated subsidiaries (collectively, the “Company” or “Sculptor Capital”), is a global alternative asset management firm providing investment products in a range of areas, including multi-strategy, credit and real estate. With offices in New York, London, Hong Kong and Shanghai, the Company serves global clients through commingled funds, separate accounts and specialized products (collectively, the “funds”). Sculptor Capital’s distinct investment process seeks to generate attractive and consistent risk-adjusted returns across market cycles through a combination of bottom-up fundamental analysis, a high degree of flexibility, a collaborative team and integrated risk management. The Company’s capabilities span all major geographies, in strategies including fundamental equities, corporate credit, real estate debt and equity, merger arbitrage, structured credit and private investments. The Company manages multi-strategy funds, dedicated credit funds, including opportunistic credit funds and Institutional Credit Strategies products, real estate funds and other alternative investment vehicles. Through Institutional Credit Strategies, the Company’s asset management platform that invests in performing credits, the Company manages collateralized loan obligations (“CLOs”), aircraft securitizations, collateralized bond obligations (“CBOs”), commingled products and other customized solutions for clients. The Company’s primary sources of revenues are management fees, which are based on the amount of the Company’s assets under management, and incentive income, which is based on the investment performance of its funds. Accordingly, for any given period, the Company’s revenues will be driven by the combination of assets under management and the investment performance of the funds. The Company has one operating and reportable segment and generates substantially all of its revenues in the United States. The Company conducts its operations through Sculptor Capital LP, Sculptor Capital Advisors LP and Sculptor Capital Advisors II LP (collectively, the “Sculptor Operating Partnerships” and collectively with their consolidated subsidiaries, the “Sculptor Operating Group”). The Registrant holds its interests in the Sculptor Operating Group indirectly through Sculptor Capital Holding Corporation (“Sculptor Corp”), a wholly owned subsidiary of the Registrant. References to the Company’s “executive managing directors” include the current executive managing directors of the Company, and, except where the context requires otherwise, also include certain executive managing directors who are no longer active in the Company’s business. References to the Company’s “active executive managing directors” refer to executive managing directors who remain active in the Company’s business. COVID-19 Pandemic In the first nine months of 2020, a novel strain of coronavirus (“COVID-19”) spread across the world resulting in a wide-spread market and economic downturn. The Company’s largest fund, the Sculptor Master Fund, has generated performance-related appreciation through September 30, 2020. However, in the first quarter of 2020, the fund experienced significant performance-related depreciation driven by the market and economic impacts of the ongoing COVID-19 pandemic, which had a negative impact on the Company’s incentive income during the first quarter of 2020. In the second and third quarters of 2020, the Company generated strong returns that offset the first quarter losses. To the extent that the Company experiences significant performance-related depreciation in the fourth quarter of 2020, whether due to the COVID-19 pandemic or other factors, it would have a material impact on the Company’s ability to earn incentive income in 2020, as well as in future years until the losses are recovered for continuing fund investors. In addition, in the first quarter of 2020, the Company also experienced significant unrealized losses on its risk retention investments held in certain of the CLOs that it manages as a result of the market and economic impacts of the ongoing COVID-19 pandemic. As of September 30, 2020, those unrealized losses had been recovered due to improved market conditions. The Company is required to hold these investments for the entire duration of the CLOs. To the extent that cash flows in the CLOs deteriorate, whether due to the COVID-19 pandemic or other factors, the Company could experience declining interest income and impairments on these investments. A portion of the management fees the Company earns from its CLOs is subordinated to other obligations of the CLOs, including principal and interest on the notes issued by the CLOs. When certain overcollateralization tests are triggered, cash flows received on the underlying collateral in the CLOs that would have otherwise been distributed as subordinated management fees to the Company are redirected to pay principal and interest on the more senior obligations of the CLOs. In the second quarter of 2020, driven by the market and economic impacts of the ongoing COVID-19 pandemic and resulting ratings downgrades and defaults on certain of the collateral held by CLOs, certain impacted CLOs failed to satisfy one or more overcollateralization tests, and therefore, the Company has stopped recognizing management fees for these CLOs until the collateral tests are remedied and such fees are paid. The Company recovered a portion of those management fees in the third quarter, and as of September 30, 2020, the Company had approximately $8.3 million of subordinated management fees on a U.S. GAAP basis for which collection and revenue recognition has been deferred until certain overcollateralization tests have been cured. In the event the persistent market conditions do not sufficiently recover over the life cycle of these CLOs, the Company’s management fees from its securitization vehicles will continue to deteriorate. The Company will continue to evaluate its ability to collect these and any future fees; however, to the extent the overcollateralization tests in the CLOs have not been cured, the amount of fees for which collection and revenue recognition has been deferred would continue to increase, which would negatively impact the Company’s liquidity and the amounts it recognizes as revenue in future periods. The Company has also evaluated its long-lived assets including operating lease assets and goodwill and has not identified any impairments to these assets as of September 30, 2020. Company Structure The Registrant is a holding company that, through Sculptor Corp, holds equity ownership interests in the Sculptor Operating Group. The Registrant had issued and outstanding the following share classes: • Class A Shares —Class A Shares are publicly traded and entitle the holders thereof to one vote per share on matters submitted to a vote of shareholders. The holders of Class A Shares are entitled to any distributions declared on the Class A Shares by the Registrant’s Board of Directors (the “Board”). • Class B Shares —Class B Shares are held by executive managing directors, as further discussed below. These shares are not publicly traded but rather entitle the executive managing directors to one vote per share on matters submitted to a vote of shareholders. These shares do not participate in the earnings of the Registrant, as the executive managing directors participate in the related economics of the Sculptor Operating Group through their direct ownership in the Sculptor Operating Group, subject to the Distribution Holiday discussed below. The Company conducts its operations through the Sculptor Operating Group. The following is a list of the outstanding units of the Sculptor Operating Partnerships as of September 30, 2020: • Group A Units —Group A Units are limited partner interests issued to certain executive managing directors. Beginning on the final day of the Distribution Holiday (as defined in Note 3), each executive managing director may exchange his or her vested and booked-up (as defined below) Group A Units for an equal number of Class A Shares (or the cash equivalent thereof) over a period of two years in three equal installments commencing upon the final day of the Distribution Holiday and on each of the first and second anniversary thereof (or, for units that become vested and booked-up Group A Units after the final day of the Distribution Holiday, from the later of the date on which they would have been exchangeable in accordance with the foregoing and the date on which they become vested and booked-up Group A Units) (and thereafter such units will remain exchangeable), in each case, subject to certain restrictions. A “book-up” is achieved when sufficient appreciation has occurred to meet a prescribed capital account book-up target under the terms of the Sculptor Operating Partnership limited partnership agreements. Holders of Group A Units do not receive distributions during the Distribution Holiday. Group A Unit grants are accounted for as equity-based compensation. See Note 14 in the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2019, dated February 25, 2020 (“Annual Report”) for additional information. The Company completed a recapitalization in February 2019 (“Recapitalization”). See Note 3 for additional details. In connection with the Recapitalization each Group A Unit outstanding on the Recapitalization date was recapitalized into 0.65 Group A Units and 0.35 Group A-1 Units. • Group A-1 Units —Group A-1 Units are limited partner interests into which 0.35 of each Group A Unit was recapitalized in connection with the reallocation that was effectuated by the Recapitalization. The Group A-1 Units will be canceled at such time and to the extent that the Group E Units granted in connection with the Recapitalization vest and achieve a book-up. Group A-1 Units are not eligible to receive distributions at any time and do not participate in the net income (loss) of the Sculptor Operating Group. However, the holders of Group A-1 Units shall participate in any sale, change of control or other liquidity event that takes place prior to cancellation of the Group A-1 Units. In the Recapitalization, the holders of the 2016 Preferred Units (as defined below) forfeited an additional 749,813 Group A Units, which were recapitalized into Group A-1 Units. • Group B Units —Sculptor Corp holds a general partner interest and Group B Units in each Sculptor Operating Partnership. Sculptor Corp owns all of the Group B Units, which represent equity interest in the Sculptor Operating Partnerships. Except during the Distribution Holiday as described above, the Group B Units are economically identical to the Group A Units held by executive managing directors but are not exchangeable for Class A Shares and are not subject to vesting, forfeiture or minimum retained ownership requirements. • Group E Units —Group E Units are limited partner interests issued to certain executive managing directors that are only entitled to future profits and gains. Each Group E Unit converts into a Group A Unit and becomes exchangeable for one Class A Share (or the cash equivalent thereof) to the extent there has been a sufficient amount of appreciation for a Group E Unit to achieve a book-up target and, subject to other conditions contained in the limited partnership agreements of the Sculptor Operating Partnerships, the Distribution Holiday has ended (or an earlier exchange date is established by the Exchange Committee). The Group E Units are entitled to share in residual assets upon liquidation, dissolution or winding up and become eligible to participate in any tag along right , in a change of control transaction or other liquidity event only to the extent of their relative positive capital accounts (if any). In connection with the Recapitalization, all outstanding Group D Units, which were non-equity profits interests, converted into Group E Units on a one-for-one basis. Holders of Group E Units do not receive distributions during the Distribution Holiday. See Note 3 for additional information. Group E Unit grants are accounted for as equity-based compensation. See Note 14 in the Annual Report for additional information. • Group P Units —Group P Units are limited partner interests issued to certain executive managing directors that are only entitled to future profits and gains. Each Group P Unit becomes exchangeable for one Class A Share (or the cash equivalent thereof), in each case upon satisfaction of certain service and performance conditions at such time and, with respect to exchanges, to the extent there has been sufficient appreciation for a Group P Unit to achieve a book-up target and, subject to other conditions contained in the limited partnership agreements of the Sculptor Operating Partnerships, the Distribution Holiday has ended (or an earlier exchange date is established by the Exchange Committee). The Group P Units are entitled to share in residual assets upon liquidation, dissolution or winding up and become eligible to participate in any tag along right , in a change of control transaction or other liquidity event only to the extent that certain performance conditions are met and to the extent of their relative positive capital accounts (if any). The terms of the Group P Units may be varied for certain executive managing directors. Group P Unit grants are accounted for as equity-based compensation. See Note 14 in the Annual Report for additional information. • Preferred Units — The Preferred Units are non-voting preferred equity interests in the Sculptor Operating Partnerships. Preferred Units issued in 2016 and 2017 are collectively referred to as the “2016 Preferred Units.” The Preferred Units issued in 2019 are referred to as the “2019 Preferred Units.” See Note 10 for additional information. Executive managing directors hold a number of Class B Shares equal to the number of Group A Units, vested Group E Units, Group A-1 Units (to the extent the corresponding Class B Shares have not been canceled in connection with the vesting of certain Group E Units issued in connection with the Recapitalization, as further discussed in Note 3) and Group P Units held. Upon the exchange of a Group A Unit or a Group P Unit for a Class A Share, the corresponding Class B Share is canceled and a Group B Unit is issued to Sculptor Corp. The following table presents the number of shares and units (excluding Preferred Units) of the Registrant and the Sculptor Operating Partnerships, respectively, that were outstanding as of September 30, 2020: As of September 30, 2020 Sculptor Capital Management, Inc. Class A Shares 22,557,205 Class B Shares 32,820,413 Sculptor Operating Partnerships Group A Units 16,019,506 Group A-1 Units 9,779,446 Group B Units 22,557,205 Group E Units 12,975,820 Group P Units 3,385,000 In addition, the Company grants Class A restricted share units (“RSUs”) and performance-based RSUs (“PSUs”) to its employees and executive managing directors as a form of compensation. RSU and PSU grants are accounted for as equity-based compensation. See Note 14 in the Annual Report for additional information. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited, interim, consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”), and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s unaudited, interim, consolidated financial statements have been included and are of a normal and recurring nature. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations presented for the interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. For example, incentive income for the majority of the Company’s multi-strategy assets under management is recognized in the fourth quarter each year, based on full year investment performance. Recently Adopted Accounting Pronouncements In March 2020, the FASB issued and the Company adopted an accounting standards update ASU 2020-04, Reference Rate Reform (“ASU 2020-04 ”), related to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates that are expected to be discontinued due to reference rate reform. ASU 2020-04 provides optional practical expedients and exceptions related to modifications of contracts, hedging relationships and other transactions affected by reference rate reform to ease the administrative burden in accounting for the future effects of the reform. There was no impact to the Company’s consolidated financial statements upon adoption of ASU 2020-04. The Company expects to apply the practical expedients, where appropriate, as relevant contract modifications are made during the reference rate reform transition period through December 31, 2022. No other changes to GAAP that went into effect in the nine months ended September 30, 2020, had a material effect on the Company’s consolidated financial statements. Future Adoption of Accounting Pronouncements No changes to GAAP that are not yet effective are expected to have a material effect on the Company’s consolidated financial statements. |
Recapitalization
Recapitalization | 9 Months Ended |
Sep. 30, 2020 | |
Recapitalization [Abstract] | |
Recapitalization | RECAPITALIZATION On February 7, 2019, the Company completed the Recapitalization, which included a series of transactions that involved the reallocation of certain ownership interests in the Sculptor Operating Partnerships to existing members of senior management, a “Distribution Holiday” on interests held by active and former executive managing directors, an amendment to the tax receivable agreement, a “Cash Sweep” to pay down the 2018 Term Loan (as defined in Note 8) and 2019 Preferred Units, and various other related transactions. In addition, (i) $200.0 million of the 2016 Preferred Units was restructured into the Debt Securities (as described in Note 8) and (ii) $200.0 million of the 2016 Preferred Units was restructured into the 2019 Preferred Units. Reallocation of Equity In connection with the Recapitalization, holders of Group A Units collectively reallocated 35% of their Group A Units to existing members of senior management and for potential grants to new hires. The reallocation was effected by (i) recapitalizing such Group A Units into Group A-1 Units and (ii) creating and making grants to existing members of senior management (and reserving for future grants to active managing directors and new hires) of Group E Units. An equivalent number of Group A-1 Units will be canceled at such time and to the extent that Group E Units vest and achieve a book-up. Upon vesting, holders of Group E Units received in connection with the reallocation of Group A Units will be entitled to vote a corresponding number of Class B Shares previously allocated to Group A-1 Units. Until such time as the relevant Group E Units become vested, the Class B Shares corresponding to the Group A-1 Units will be voted pro rata in accordance with the vote of the Class A Shares. In connection with the Recapitalization, the holders of the 2016 Preferred Units forfeited an additional 749,813 Group A Units (which were recapitalized into Group A-1 Units). Distribution Holiday The Sculptor Operating Partnerships initiated a distribution holiday (the “Distribution Holiday”) on the Group A Units, Group D Units, Group E Units and Group P Units and on certain RSUs that will terminate on the earlier of (x) 45 days after the last day of the first calendar quarter as of which the achievement of $600.0 million of Distribution Holiday Economic Income (as defined in the Sculptor Operating Partnerships’ limited partnership agreements) is realized and (y) April 1, 2026. During the Distribution Holiday, (i) the Sculptor Operating Partnerships shall only make distributions with respect to Group B Units, (ii) the performance thresholds of Group P Units and PSUs shall be adjusted to take into account performance and distributions during such period, and (iii) RSUs will continue to receive dividend equivalents in respect of dividends or distributions paid on the Class A Shares. For executive managing directors that have received Group E Units, distributions on RSUs, as well as distributions counted in determining whether performance conditions of Group P Units and PSUs are met, are limited to an aggregate amount not to exceed $4.00 per Group P Unit, PSU or RSU, as applicable, cumulatively during the Distribution Holiday. Following the termination of the Distribution Holiday, Group A Units and Group E Units (whether vested or unvested) shall receive distributions even if such units have not been booked-up. The Distribution Holiday was effective retroactively to October 1, 2018. As a result, the Company recorded an adjustment to additional paid-in capital and noncontrolling interests to reallocate a portion of pre-Recapitalization earnings and related income tax effects from noncontrolling interests to the Company’s additional paid-in capital. Such adjustment is recorded within Recapitalization adjustment in the consolidated statement of shareholders’ equity (deficit). Cash Sweep |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | NONCONTROLLING INTERESTS Noncontrolling interests represent ownership interests in the Company’s subsidiaries held by parties other than the Company, and primarily relate to the Group A Units held by executive managing directors. Prior to the Recapitalization, the attribution of net income (loss) of each Sculptor Operating Partnership was based on the relative ownership percentages of the Group A Units (noncontrolling interests) and the Group B Units (indirectly held by the Registrant). In applying the substantive profit-sharing arrangements in the Sculptor Operating Partnerships’ limited partnership agreements to the Company’s consolidated financial statements, for periods subsequent to the Recapitalization and for the duration of the Distribution Holiday, the Company will allocate net income of each Sculptor Operating Partnership in any fiscal year solely to the Group B Units and any net loss on a pro rata basis based on the relative ownership percentages of the Group A Units and Group B Units. To the extent a Sculptor Operating Partnership incurs a net loss in an interim period, any net income recognized in a subsequent interim period in the same fiscal year is allocated on a pro rata basis to the extent of previously allocated net loss. Conversely, to the extent a Sculptor Operating Partnership recognizes net income in an interim period, any net loss incurred in a subsequent interim period in the same fiscal year is allocated solely to the Group B Units to the extent of previously allocated net income. The table below sets forth the calculation of noncontrolling interests related to the Group A Units for each Sculptor Operating Partnership (rounding differences may occur). The blended participation percentages presented below take into account ownership changes throughout the periods presented. In addition, the blended participation percentages in 2019 take into account the difference in methodology described above for the period prior to the Recapitalization Date compared to the period following the Recapitalization Date. For example, Sculptor Capital Advisors LP had net income in the period prior to the Recapitalization Date, and as a result, allocates a portion of its net income for the nine months ended September 30, 2019 to the Group A Units. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Sculptor Capital LP Net income (loss) $ 8,836 $ (23,983) $ (133,304) $ (74,801) Blended participation percentage 46 % 43 % 42 % 44 % Net Income (Loss) Attributable to Group A Units $ 4,049 $ (10,377) $ (55,356) $ (32,589) Sculptor Capital Advisors LP Net income (loss) $ 948 $ (10,838) $ (18,343) $ (2,864) Blended participation percentage 47 % 12 % 42 % n/m Net Income (Loss) Attributable to Group A Units $ 445 $ (1,248) $ (7,617) $ 5,447 Sculptor Capital Advisors II LP Net income (loss) $ 13,043 $ (4,562) $ 29,822 $ 12,041 Blended participation percentage 0 % 0 % 0 % 0 % Net Income (Loss) Attributable to Group A Units $ — $ — $ — $ — Total Sculptor Operating Group Net income (loss) $ 22,827 $ (39,383) $ (121,825) $ (65,624) Blended participation percentage 20 % 30 % 52 % 41 % Net Income (Loss) Attributable to Group A Units $ 4,494 $ (11,625) $ (62,973) $ (27,142) The following table presents the components of the net income (loss) attributable to noncontrolling interests: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Group A Units $ 4,494 $ (11,625) $ (62,973) $ (27,142) Other (101) 190 (579) 489 $ 4,393 $ (11,435) $ (63,552) $ (26,653) The following table presents the components of the shareholders’ equity attributable to noncontrolling interests: September 30, 2020 December 31, 2019 (dollars in thousands) Group A Units $ 391,959 $ 434,943 Other 8,701 5,836 $ 400,660 $ 440,779 The Preferred Units and fund investors’ interests in certain consolidated funds (which were deconsolidated in the third quarter of 2019) are redeemable outside of the Company’s control. These interests are classified within redeemable noncontrolling interests in the consolidated balance sheets. The following tables present the activity in redeemable noncontrolling interests: Three Months Ended September 30, 2020 2019 Preferred Units Funds Preferred Units Total (dollars in thousands) Beginning Balance $ 153,313 $ 97,229 $ 150,000 $ 247,229 Change in redemption value of Preferred Units 2,285 — — — Capital contributions — 102 — 102 Capital distributions — (54,532) — (54,532) Funds deconsolidation — (43,373) — (43,373) Comprehensive income — 574 — 574 Ending Balance $ 155,598 $ — $ 150,000 $ 150,000 Nine Months Ended September 30, 2020 2019 Preferred Units Funds Preferred Units Total (dollars in thousands) Beginning balance $ 150,000 $ 157,660 $ 420,000 $ 577,660 Fair value of Debt Securities exchanged for 2016 Preferred Units — — (167,799) (167,799) Fair value of 2019 Preferred Units exchanged for 2016 Preferred Units — — (137,759) (137,759) Issuance of 2019 Preferred Units, net of issuance costs — — 136,964 136,964 Change in redemption value of Preferred Units 5,598 — (101,406) (101,406) Capital contributions — 3,747 — 3,747 Capital distributions — (126,779) — (126,779) Funds deconsolidation — (43,373) — (43,373) Comprehensive income — 8,745 — 8,745 Ending Balance $ 155,598 $ — $ 150,000 $ 150,000 |
Investments and Fair Value Disc
Investments and Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Disclosures | INVESTMENTS AND FAIR VALUE DISCLOSURES The following table presents the components of the Company’s investments as reported in the consolidated balance sheets: September 30, 2020 December 31, 2019 (dollars in thousands) United States government obligations, at fair value $ 152,174 $ 146,565 CLOs, at fair value 188,640 182,870 Other investments, equity method 95,281 81,991 Total Investments $ 436,095 $ 411,426 Fair Value Disclosures Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date (i.e., an exit price). Due to the inherent uncertainty of valuations of investments that are determined to be illiquid or do not have readily ascertainable fair values, the estimates of fair value may differ from the values ultimately realized, and those differences can be material. GAAP prioritizes the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is impacted by a number of factors, including the type of assets and liabilities and the specific characteristics of the assets and liabilities. Assets and liabilities with readily available, actively quoted prices or for which fair value can be measured from actively-quoted prices generally will have a higher degree of market price observability and lesser degree of judgment used in measuring fair value. Assets and liabilities measured at fair value are classified into one of the following categories: • Level I – Fair value is determined using quoted prices that are available in active markets for identical assets or liabilities. The types of assets and liabilities that would generally be included in this category are certain listed equities, U.S. government obligations and certain listed derivatives. • Level II – Fair value is determined using quotations received from dealers making a market for these assets or liabilities (“broker quotes”), valuations obtained from independent third-party pricing services, the use of models or other valuation methodologies based on pricing inputs that are either directly or indirectly market observable as of the measurement date. The types of assets and liabilities that would generally be included in this category are certain corporate bonds, certain credit default swap contracts, certain bank debt securities, certain commercial real estate debt, less liquid equity securities, forward contracts and certain over the-counter (“OTC”) derivatives. • Level III – Fair value is determined using pricing inputs that are unobservable in the market and includes situations where there is little, if any, market activity for the asset or liability. The fair value of assets and liabilities in this category may require significant judgment or estimation in determining fair value of the assets or liabilities. The fair value of these assets and liabilities may be estimated using a combination of observed transaction prices, independent pricing services, relevant broker quotes, models or other valuation methodologies based on pricing inputs that are neither directly or indirectly market observable. The types of assets and liabilities that would generally be included in this category include CLOs, real estate investments, equity and debt securities issued by private entities, limited partnerships, certain corporate bonds, certain credit default swap contracts, certain bank debt securities, certain commercial real estate debt, certain OTC derivatives, residential and commercial mortgage-backed securities, asset-backed securities, collateralized debt obligations and investments in affiliated credit funds. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of an input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair Value Measurements Categorized within the Fair Value Hierarchy The following table summarizes the Company’s investments measured at fair value on a recurring basis within the fair value hierarchy as of September 30, 2020: As of September 30, 2020 Level I Level II Level III Total (dollars in thousands) Assets, at Fair Value Included within cash and cash equivalents: United States government obligations $ 83,899 $ — $ — $ 83,899 Included within investments: United States government obligations $ 152,174 $ — $ — $ 152,174 CLOs (1) $ — $ — $ 188,640 $ 188,640 _______________ (1) As of September 30, 2020, investments in CLOs had contractual principal amounts of $178.9 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments. The following table summarizes the Company’s investments measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2019: As of December 31, 2019 Level I Level II Level III Total (dollars in thousands) Assets, at Fair Value Included within cash and cash equivalents: United States government obligations $ 97,034 $ — $ — $ 97,034 Included within investments: United States government obligations $ 146,565 $ — $ — $ 146,565 CLOs (1) $ — $ — $ 182,870 $ 182,870 _______________ (1) As of December 31, 2019, investments in CLOs had contractual principal amounts of $170.0 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments. Reconciliation of Fair Value Measurements Categorized within Level III Gains and losses, excluding those of the consolidated funds are recorded within net gains (losses) on investments in the consolidated statements of comprehensive income (loss), and gains and losses of the consolidated funds are recorded within net (losses) gains of consolidated funds. Amortization of premium, accretion of discount and foreign exchange gains and losses on non-U.S. Dollar investments are also included within gains and losses in the tables below. The following table summarizes the changes in the Company’s Level III assets and liabilities for the three months ended September 30, 2020: June 30, 2020 Transfers Transfers Investment Investment Gains / Losses September 30, 2020 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 178,842 $ — $ — $ 778 $ (103) $ 9,123 $ 188,640 The following table summarizes the changes in the Company’s Level III assets and liabilities for the three months ended September 30, 2019: June 30, 2019 Transfers Transfers Investment Investment Gains / Losses September 30, 2019 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 181,547 $ — $ — $ 1,709 $ (28) $ (6,489) $ 176,739 Investments of consolidated funds: Bank debt $ 36,130 $ 5,326 $ (17,427) $ 9,231 $ (33,283) $ 23 $ — The following table summarizes the changes in the Company’s Level III assets and liabilities for the nine months ended September 30, 2020: December 31, 2019 Transfers In Transfers Out Investment Purchases / Issuances Investment Sales / Settlements Gains / Losses September 30, 2020 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 182,870 $ — $ — $ 5,185 $ (288) $ 873 $ 188,640 The following table summarizes the changes in the Company’s Level III assets and liabilities for the nine months ended September 30, 2019: December 31, 2018 Transfers In Transfers Out Investment Purchases / Issuances Investment Sales / Settlements Gains / Losses September 30, 2019 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 181,868 $ — $ — $ 28,420 $ (27,778) $ (5,771) $ 176,739 Investments of consolidated funds: Bank debt $ 75,613 $ 7,982 $ (40,272) $ 29,601 $ (73,772) $ 848 $ — Corporate bonds $ — $ — $ — $ 987 $ (981) $ (6) $ — Transfers out of Level III presented in the tables above resulted from the fair values of certain securities becoming market observable, with fair value determined using independent pricing services. Transfers into Level III presented in the tables above resulted from the valuation of certain investments with decreased market observability, with fair values determined using independent pricing services. The table below summarizes the net change in unrealized gains and losses on the Company’s Level III investments held as of the reporting date: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 3,185 $ (463) $ 873 $ (5,612) Valuation Methodologies for Fair Value Measurements Categorized within Levels II and III Investments in CLOs, bank debt and corporate bonds are valued using independent pricing services, and therefore the Company does not have transparency into the significant inputs used by such services. The Company elected to measure its investments in CLOs at fair value through consolidated net income (loss) in order to simplify its accounting for these instruments. Changes in fair value of these investments are included within net gains on investments in the consolidated statements of comprehensive income (loss). The Company accrues interest income on its investments in CLOs using the effective interest method. Fair Value of Other Financial Instruments Management estimates that the carrying value of the Company’s other financial instruments, including its debt obligations and repurchase agreements, approximated their fair values as of September 30, 2020. The fair value measurements for the Company’s debt obligations and repurchase agreements are categorized as Level III within the fair value hierarchy and were determined using independent pricing services. Loans Sold to CLOs Managed by the Company From time to time the Company sells loans to CLOs managed by the Company. These loans are purchased by the Company in the open market and sold for cash at cost to the CLOs. The loans are accounted for as transfers of financial assets as they meet the criteria for derecognition under GAAP. No loans were sold in the nine months ended September 30, 2020 and 2019. The Company invests in senior secured and subordinated notes issued by certain CLOs to which it sold loans in the past. These investments represent retained interests to the Company and are in the form of a 5% vertical strip (i.e., 5% of each of the senior and subordinated tranches of notes issued by each CLO). The retained interests are reported within investments on the Company’s consolidated balance sheet. As of September 30, 2020 and December 31, 2019, the Company’s investments in these retained interests had a fair value of $86.7 million and $88.2 million, respectively. The Company is subject to risks associated with the performance of the underlying collateral and the market yield of the assets. The Company’s risk of loss from retained interest is limited to its investments in these interests. The Company receives quarterly payments of interest and principal, as applicable, on these retained interests. In the nine months ended September 30, 2020 and 2019, the Company received $2.3 million and $3.0 million, respectively, of interest and principal payments related to the retained interests. The Company uses independent pricing services to value its investments in the CLOs, including the retained interests, and therefore the only key assumption is the price provided by such service. A corresponding adverse change of 10% or 20% on price would have a corresponding impact on the fair value of the Company’s investments in CLOs. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES In the ordinary course of business, the Company sponsors the formation of funds that are considered VIEs. See Note 2 of the Company's Annual Report for a discussion of entities that are VIEs and the evaluation of those entities for consolidation by the Company. The assets and liabilities of consolidated VIEs were not material as of September 30, 2020 and December 31, 2019. The Company’s direct involvement with funds that are VIEs and not consolidated by the Company is generally limited to providing asset management services and, in certain cases, insignificant investments in the VIEs. The maximum exposure to loss represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback, in the event of any future fund losses. The Company has commitments to certain funds that are VIEs as discussed in Note 18. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support to its VIEs that are not consolidated. The table below presents the net assets of VIEs in which the Company has variable interests along with the maximum risk of loss as a result of the Company’s involvement with VIEs: September 30, 2020 December 31, 2019 (dollars in thousands) Net assets of unconsolidated VIEs in which the Company has a variable interest $ 9,531,763 $ 8,805,128 Maximum risk of loss as a result of the Company’s involvement with VIEs: Unearned revenues 72,421 63,337 Income and fees receivable 11,023 21,841 Investments 208,691 200,215 Maximum Exposure to Loss $ 292,135 $ 285,393 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | LEASES The Company has non-cancelable operating leases for its headquarters in New York and its offices in London, Hong Kong, Shanghai, and various other locations and data centers. The Company does not have renewal options, other than a three-year renewal option for its lease in Hong Kong, which was not included in the determination of the related lease asset and liability. The Company also subleases a portion of its office space in London through the end of the lease term. Finally, the Company has finance leases for computer hardware. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Lease Cost Operating lease cost $ 5,152 $ 5,135 $ 15,440 $ 15,430 Short-term lease cost 13 13 38 45 Finance lease cost - amortization of leased assets 199 137 529 411 Finance lease cost - imputed interest on lease liabilities 19 22 57 71 Less: Sublease income (391) (380) (1,145) (1,145) Net Lease Cost $ 4,992 $ 4,927 $ 14,919 $ 14,812 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Supplemental Lease Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 5,634 $ 8,731 $ 16,837 $ 20,109 Operating cash flows for finance leases $ 1 $ 22 $ 6 $ 71 Finance cash flows for finance leases $ 256 $ 154 $ 907 $ 611 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — $ 6 $ 126,007 Finance leases $ — $ — $ 745 $ 1,702 September 30, 2020 December 31, 2019 Lease Term and Discount Rate Weighted average remaining lease term Operating leases 8.7 years 9.3 years Finance leases 1.9 years 2.1 years Weighted average discount rate Operating leases 7.9 % 7.9 % Finance leases 7.2 % 7.9 % Operating Finance (dollars in thousands) Maturity of Lease Liabilities October 1, 2020 to December 31, 2020 $ 5,635 $ — 2021 21,028 867 2022 19,831 248 2023 19,125 — 2024 15,353 — Thereafter 82,234 — Total Lease Payments 163,206 1,115 Imputed interest (45,115) (49) Total Lease Liabilities $ 118,091 $ 1,066 As of September 30, 2020, the Company has pledged collateral related to its lease obligations of $6.2 million, which is included within investments in the consolidated balance sheets. Operating Leases (dollars in thousands) Sublease Rent Payments Receivable October 1, 2020 to December 31, 2020 $ 384 2021 1,537 2022 1,537 2023 1,204 2024 — Thereafter — Total Sublease Rent Payments Receivable $ 4,662 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Debt Instruments [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS Debt Securities 2018 Term Loan CLO Investments Loans Total (dollars in thousands) Maturity of Debt Obligations October 1, 2020 to December 31, 2020 $ — $ — $ — $ — 2021 — — 6,576 6,576 2022 40,000 — 484 40,484 2023 40,000 8,500 — 48,500 2024 40,000 — 19,120 59,120 Thereafter 80,000 — 39,035 119,035 Total Payments 200,000 8,500 65,215 273,715 Unamortized discounts & deferred financing costs (14,480) (130) (310) (14,920) Total Debt Obligations $ 185,520 $ 8,370 $ 64,905 $ 258,795 Debt Securities In connection with the Recapitalization, the Sculptor Operating Partnerships, each as a borrower, entered into an unsecured senior subordinated term loan credit and guaranty agreement (the “Subordinated Credit Agreement”) under which $200.0 million of Debt Securities were issued in exchange for an equal amount of 2016 Preferred Units. In the near future, the Company is expected to repay all amounts outstanding under the Debt Securities at a 5% discount upon the closing of the 2020 Term Loan (as defined below). See the Company’s Annual Report for additional information regarding the Debt Securities. 2018 Term Loan On April 10, 2018, Sculptor Capital LP, as borrower, and certain other subsidiaries of the Company, as guarantors, entered into a senior secured credit and guaranty agreement consisting of (i) a $250.0 million term loan facility (the “2018 Term Loan”) and (ii) a $100.0 million revolving credit facility (the “2018 Revolving Credit Facility”). Effective as of February 7, 2019, the Company terminated in full the commitments under the 2018 Revolving Credit Facility. In accordance with the Cash Sweep described in Note 3, the Company repaid $36.5 million of the 2018 Term Loan during the first nine months of 2020. In the near future, the Company is expected to repay all amounts outstanding under the 2018 Term Loan upon the closing of the 2020 Term Loan. See the Company’s Annual Report for additional information regarding the 2018 Term Loan. 2020 Credit Agreement On September 25, 2020, Sculptor Capital LP, as borrower, (the “Borrower”), and certain other subsidiaries of the Company, as guarantors, entered into a credit and guaranty agreement (the “2020 Credit Agreement”), with Delaware Life Insurance Company (“Delaware Life”), consisting of (i) a senior secured term loan facility in an initial aggregate principal amount of $320.0 million (the “2020 Term Loan”) and (ii) a senior secured revolving credit facility in an initial aggregate principal amount of $25.0 million (the “2020 Revolving Credit Facility”). The 2020 Term Loan and the 2020 Revolving Credit Facility mature on the seventh and sixth anniversary, respectively, of the initial funding of the 2020 Term Loan, which, we expect will occur in the near future (the “Closing Date”). Proceeds from the 2020 Term Loan, together with cash on hand, will be used on the Closing Date to repay the Debt Securities and the 2018 Term Loan, as well as to redeem the 2019 Preferred Units in full. Borrowings under the 2020 Credit Agreement bear interest at a per annum rate equal to, at the Company’s option, one, two, three or six month LIBOR (subject to a 0.75% floor) plus 6.25%, or a base rate (subject to a 1.75% floor) plus 5.25%. The interest rate will increase to LIBOR plus 8.25%, or a base rate plus 7.25%, in the event that (i) certain repayments of the 2020 Term Loan plus any repurchases of Sculptor Operating Group units for up to $50.0 million (the “Minimum Prepayment/Buyback Amount”) are less than $100.0 million as of May 15, 2021, (ii) certain repayments of the 2020 Term Loan (the “Minimum Term Loan Prepayment Amount”) are less than $100.0 million as of March 31, 2022, (clauses (i) and (ii), each a “Prepayment Based Step-Up Event”) or (iii) only in the event that a “Fall-Away Trigger” (as described below) has not occurred, the Total Net Leverage Ratio (as defined in the 2020 Credit Agreement) exceeds 3.00 to 1.00 (“Leverage Based Step-Up Event”); provided, that the interest rate will subsequently decrease back to LIBOR plus 6.25%, or base rate plus 5.25%, in the event (a) following the occurrence of a Leverage Based Step-Up Event, the Total Net Leverage Ratio no longer exceeds 3.00 to 1.00 or (b) following the occurrence of a Prepayment Based Step-Up Event, (i) prior to March 31, 2022, the Minimum Prepayment/Buyback Amount is equal to or greater than $100.0 million and (ii) on or after March 31, 2022, the Minimum Term Loan Prepayment Amount is equal to or greater than $100.0 million. A Fall-Away Trigger occurs upon the earlier of (i) when the Company has repaid, under certain provisions of the 2020 Credit Agreement, at least $175.0 million on the 2020 Term Loan and (ii) receipt by the Borrower of a senior unsecured debt rating (a “Debt Rating”) that is equal to or higher than BBB- by S&P or Fitch or Baa3 by Moody’s (a “Rating Upgrade”). The Borrower is also required to pay an undrawn commitment fee at a rate per annum equal to 0.50% of the undrawn portion of the 2020 Revolving Credit Facility. The “Financial Covenant Period” means the period from the Closing Date to the date on which a Fall-Away Trigger has occurred. To the extent the Fall-Away Trigger relates to a Ratings Upgrade and occurs prior to the repayment of at least $175.0 million on the 2020 Term Loan as discussed above, then the Financial Covenant Period will again apply if the Borrower receives a Debt Rating equal to or less than BB+ by S&P or Fitch or Ba1 by Moody’s (or the absence of a Debt Rating), provided the highest rating will control, and will continue until a Fall-Away Trigger occurs again. The 2020 Term Loan will amortize in equal quarterly installments in aggregate annual amounts equal to 0.75% of the original principal amount of the 2020 Term Loan. On or prior to the 95th day after the end of each fiscal year, the Borrower is required to prepay the 2020 Term Loan in an amount equal to (a) 100% of Adjusted Distributable Earnings (as defined in the 2020 Credit Agreement), so long as an aggregate amount not exceeding $100.0 million of the 2020 Term Loan has been repaid, (b) 25% of Adjusted Distributable Earnings, so long as an aggregate amount of at least $100.0 million but not more than $150.0 million of the 2020 Term Loan has been repaid and (c) 0% of Adjusted Distributable Earnings, so long as an aggregate amount exceeding $150.0 million of the 2020 Term Loan has been repaid. These prepayments are reduced by any amounts of the 2020 Term Loan voluntarily prepaid during such applicable fiscal year (or contractually committed during such fiscal year to be made within 90 days of the last day of such fiscal year). The foregoing Adjusted Distributable Earnings prepayment shall only be required if, after giving pro forma effect to such mandatory prepayment, the Free Cash Balance (as defined in the 2020 Credit Agreement) as of the end of such fiscal year would not be less than $75.0 million. With respect to the fiscal year ending December 31, 2020, the prepayments will be for any Adjusted Distributable Earnings earned during the period from the Closing Date to December 31, 2020. The 2020 Credit Agreement contains other customary prepayment provisions. Certain prepayments of the 2020 Term Loan are subject to a prepayment premium (the “Call Premium”) equal to (a) prior to the second anniversary of the Closing Date, a customary “make-whole” premium equal to the present value of all required interest payments that would be due from the date of prepayment through and including the second anniversary of the Closing Date plus a premium of 3.0% of the principal amount of loans prepaid, (b) on or after the second anniversary of the Closing Date but prior to the third anniversary of the Closing Date, a premium of 3.0% of the principal amount of loans prepaid, (c) on or after the third anniversary of the Closing Date but prior to the four anniversary of the Closing Date, a premium of 2.0% of the principal amount of loans prepaid and (d) thereafter, 0%. The Call Premium shall not apply to voluntary prepayments of the 2020 Term Loan of up to (x) $175.0 million in the aggregate on or prior to March 31, 2022 or (y) $100.0 million of aggregate principal amount at any time. The 2020 Credit Agreement includes three financial maintenance covenants. The first financial maintenance covenant prohibits the total fee-paying assets under management, subject to certain exclusions, of the Borrower, the guarantors and their consolidated subsidiaries as of the last day of any fiscal quarter to be less than $20.0 billion. The second financial maintenance covenant, which only applies during the Financial Covenant Period, prohibits the total net leverage ratio as of the last day of any fiscal quarter, commencing with the first full fiscal quarter ending after the Closing Date, to exceed 4.50 to 1.00. The third financial maintenance covenant, which only applies during the Financial Covenant Period, prohibits, as of the last day of two consecutive fiscal quarters, the sum of (i) cash and cash equivalents (including U.S. government obligations with a maturity of twelve months or less), (ii) undrawn commitments under the 2020 Revolving Credit Facility, and (iii) certain income and fees receivable and other revenue receivables of the Borrower, the guarantors and their consolidated subsidiaries to be less than (i) from the Closing Date until at least $100.0 million of the 2020 Term Loan has been repaid, under certain provisions of the 2020 Credit Agreement, $100.0 million and (ii) thereafter, $50.0 million. The 2020 Credit Agreement allows a limited right to cure an event of default resulting from noncompliance with the total net leverage ratio test described above with an equity contribution made to the Borrower. The 2020 Credit Agreement contains customary events of default for a transaction of this type, after which obligations under the 2020 Credit Agreement may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Borrower, the guarantors or any of the material subsidiaries of the foregoing after which the obligations under the 2020 Credit Agreement become automatically due and payable. Pursuant to the 2020 Credit Agreement, the Company expects in the near future to issue Delaware Life warrants to purchase approximately 4.3 million Class A Shares. The warrants have a 10-year term and an exercise price per share equal to $11.93. The exercise price is subject to reduction for to any dividends paid on the Class A Shares. The warrants will provide for customary adjustments in the event of a stock split, stock dividend, recapitalization or similar event. If the Company undergoes a change of control prior to the expiration date, the holder will have the right to require the Company to repurchase any remaining portion of the warrants not yet exercised at their Black-Scholes value as provided for in the agreement. The warrants will restrict transfers and other dispositions for 18 months from the Closing Date, subject to certain exceptions. CLO Investments Loans The Company entered into loans to finance portions of investments in certain CLOs (collectively, the “CLO Investments Loans”). In general, the Company will make interest and principal payments on the loans at such time interest payments are received on its investments in the CLOs, and will make principal payments on the loans to the extent principal payments are received on its investments in the CLOs, with any remaining balance due upon maturity. The loans are subject to customary events of default and covenants and also include terms that require the Company’s continued involvement with the CLOs. In addition to customary events of default included in financing arrangements of this type, an event of default would also be triggered if there is an event of default at the CLO level. Prior to the relevant CLO’s maturity date, this would include certain material covenant breaches, regulatory and insolvency events for the relevant CLO issuer, as well as a payment default, where the relevant CLO is unable to make interest payments on the senior, non-deferrable interest notes issued by the CLO. The CLO Investments Loans do not have any financial maintenance covenants and are secured by the related investments in CLOs, which investments had fair values of $64.5 million and $65.9 million as of September 30, 2020 and December 31, 2019, respectively. Carrying amounts presented in the table below are net of discounts, if any, and unamortized deferred financing costs. The interest rates on the CLO Investments Loans are variable based on LIBOR or EURIBOR (subject to a floor of zero percent). The maturity date for each CLO Investments Loan is the earlier of the final maturity date presented in the table below or the date at which the Company no longer holds a risk retention investment in the respective CLO. Initial Borrowing Date Contractual Rate Final Maturity Date Carrying Value September 30, 2020 December 31, 2019 (dollars in thousands) June 7, 2017 LIBOR plus 1.48% November 16, 2029 $ 17,195 $ 17,245 August 2, 2017 LIBOR plus 1.41% January 21, 2030 21,582 21,679 September 14, 2017 EURIBOR plus 2.21% September 14, 2024 19,067 18,237 August 1, 2019 EURIBOR plus 1.15% June 29, 2021 6,576 3,464 February 27, 2020 EURIBOR plus 0.80% January 11, 2022 485 — $ 64,905 $ 60,625 |
Securities Sold under Agreement
Securities Sold under Agreements to Repurchase | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Securities sold under agreements to repurchase | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE On May 29, 2018, the Company entered into a €100.0 million master credit facility agreement (the “CLO Financing Facility”) to finance a portion of the risk retention investments in certain European CLOs managed by the Company. Subject to the terms and conditions of the CLO Financing Facility, the Company and the counterparty may enter into repurchase agreements on such terms agreed upon by the parties. Each transaction entered into under the CLO Financing Facility will bear interest at a rate based on the weighted average effective interest rate of each class of securities that have been sold plus a spread to be agreed upon by the parties. As of September 30, 2020, €12.3 million of the CLO Financing Facility remained available. On October 12, 2020, the Company amended the CLO Financing Facility to increase its borrowing capacity to €200.0 million. Each transaction entered into under the CLO Financing Facility provides for payment netting and, in the case of a default or similar event with respect to the counterparty to the CLO Financing Facility, provides for netting across transactions. Generally, upon a counterparty default, the Company can terminate all transactions under the CLO Financing Facility and offset amounts it owes in respect of any one transaction against collateral it has received in respect of any other transactions under the CLO Financing Facility; provided, however, that in the case of certain defaults, the Company may only be able to terminate and offset solely with respect to the transaction affected by the default. During the term of a transaction entered into under the CLO Financing Facility, the Company will deliver cash or additional securities acceptable to the counterparty if the securities sold are in default. In addition to customary events of default included in financing arrangements of this type, an event of default would also be triggered if there is an event of default at the CLO level. Prior to the relevant CLO’s maturity date, this would include certain material covenant breaches, regulatory and insolvency events for the relevant CLO issuer, as well as a payment default where the relevant CLO is unable to make interest payments on the senior, non-deferrable interest notes issued by the CLO. Upon termination of a transaction, the Company will repurchase the previously sold securities from the counterparty at a previously determined repurchase price. The CLO Financing Facility may be terminated at any time upon certain defaults or circumstances agreed upon by the parties. The repurchase agreements may result in credit exposure in the event the counterparty to the transaction is unable to fulfill its contractual obligations. The Company minimizes the credit risk associated with these activities by monitoring counterparty credit exposure and collateral values. Other than margin requirements, the Company is not subject to additional terms or contingencies which would expose the Company to additional obligations based upon the performance of the securities pledged as collateral. The table below presents securities sold under agreements to repurchase that are offset, if any, as well as securities transferred to counterparties related to such transactions (capped so that the net amount presented will not be reduced below zero). No other material financial instruments were subject to master netting agreements or other similar agreements: Securities Sold under Agreements to Repurchase Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities in the Consolidated Balance Sheet Securities Transferred Net Amount (dollars in thousands) As of September 30, 2020 $ 101,892 $ — $ 101,892 $ 101,843 $ 49 As of December 31, 2019 $ 97,508 $ — $ 97,508 $ 97,508 $ — The securities sold under agreements to repurchase have a set scheduled maturity date that corresponds to the maturities of the securities sold under such transaction. The table below presents the remaining final contractual maturity of the securities sold under agreement to repurchase by class of collateral pledged: Investments in CLOs Securities Sold under Agreements to Repurchase Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total (dollars in thousands) As of September 30, 2020 $ — $ — $ — $ 101,892 $ 101,892 As of December 31, 2019 $ — $ — $ — $ 97,508 $ 97,508 |
Preferred Units
Preferred Units | 9 Months Ended |
Sep. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Preferred Units | PREFERRED UNITSIn the near future, the Company is expected to redeem the 2019 Preferred Units in full at a 25% discount upon the closing of the 2020 Term Loan. See the Company’s Annual Report for additional information regarding the 2019 Preferred Units. |
Other Assets, Net
Other Assets, Net | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, Net | OTHER ASSETS, NET The following table presents the components of other assets, net as reported in the consolidated balance sheets: September 30, 2020 December 31, 2019 (dollars in thousands) Fixed Assets: Leasehold improvements $ 52,798 $ 52,798 Computer hardware and software 49,484 47,361 Furniture, fixtures and equipment 8,411 8,411 Accumulated depreciation and amortization (79,108) (73,730) Fixed assets, net 31,585 34,840 Goodwill 22,691 22,691 Prepaid expenses 14,497 18,507 Other 6,230 6,570 Total Other Assets, Net $ 75,003 $ 82,608 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | OTHER LIABILITIES The following table presents the components of other liabilities as reported in the consolidated balance sheets: September 30, 2020 December 31, 2019 (dollars in thousands) Legal provisions {1) $ 138,040 $ 19,100 Accrued expenses 12,637 19,275 Uncertain tax positions 8,250 8,250 Unearned management fee 6,410 311 Unused trade commissions 3,863 5,192 Other 7,165 7,089 Total Other Liabilities $ 176,365 $ 59,217 |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The following table presents management fees and incentive income recognized as revenues for the three months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Management Fees Incentive Income Management Fees Incentive Income (dollars in thousands) Multi-strategy funds $ 33,239 $ 22,013 $ 34,201 $ 13,732 Credit Opportunistic credit funds 12,512 16,585 11,217 2,664 Institutional Credit Strategies 13,302 — 14,713 — Real estate funds 9,000 2,927 2,613 14,027 Other — — 212 — Total $ 68,053 $ 41,525 $ 62,956 $ 30,423 The following table presents management fees and incentive income recognized as revenues for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Management Fees Incentive Income Management Fees Incentive Income (dollars in thousands) Multi-strategy funds $ 94,826 $ 58,377 $ 102,801 $ 59,516 Credit Opportunistic credit funds 33,308 24,005 32,356 35,653 Institutional Credit Strategies 36,653 — 42,284 — Real estate funds 30,594 6,703 9,862 23,209 Other 8 — 676 — Total $ 195,389 $ 89,085 $ 187,979 $ 118,378 A liability for unearned incentive income is generally recognized when the Company receives incentive income distributions from its funds, primarily its real estate funds, whereby the distributions received have not yet met the recognition threshold of being probable that a significant reversal of cumulative revenue will not occur. The following table presents the activity in the Company’s unearned incentive income for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 (dollars in thousands) Beginning of Period $ 60,798 $ 61,397 Amounts collected during the period 8,887 20,168 Amounts recognized during the period (2,793) (18,174) End of Period $ 66,892 $ 63,391 The Company recognizes management fees over the period in which the performance obligation is satisfied. The Company records incentive income when it is probable that a significant reversal of income will not occur. The majority of management fees and incentive income receivable at each balance sheet date is generally collected during the following quarter. The following table presents the composition of the Company’s income and fees receivable as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (dollars in thousands) Management fees $ 23,767 $ 25,726 Incentive income 13,941 189,669 Income and Fees Receivable $ 37,708 $ 215,395 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The computation of the effective tax rate and provision at each interim period requires the use of certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent differences, and the likelihood of recovering deferred tax assets existing as of the balance sheet date. The estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as tax laws and regulations change. Accordingly, the effective tax rate for interim periods is not indicative of the tax rate expected for a full year. The Sculptor Operating Partnerships are partnerships for U.S. federal income tax purposes. The Registrant was a partnership for U.S. federal income tax purposes until the Corporate Classification Change on April 1, 2019. Prior to the Corporate Classification Change, only a portion of the income the Company earned has been subject to corporate-level income taxes in the United States and foreign jurisdictions. Following the Corporate Classification Change, generally all of the income the Registrant earns will be subject to corporate-level income taxes in the United States allowing us to realize a portion of our deferred tax assets on an accelerated basis as compared to under our prior structure. The Company’s income tax provision and related income tax assets and liabilities are based on, among other things, an estimate of the impact of the Corporate Classification Change, inclusive of an analysis of tax basis and state tax implications of certain partnerships and their underlying assets and liabilities as of April 1, 2019. The Company’s estimate is based on the most recent information available; however, the impact of the conversion cannot be finally determined until the Company’s 2019 tax returns have been finalized. The Company does not currently expect such information to become available until the fourth quarter of 2020. The tax basis and state impact of the partnerships and their underlying assets and liabilities are based on estimates subject to finalization of the Company’s tax returns, and the impact of the Corporate Classification Change may differ, possibly materially, from the current estimates described herein. The following is a reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Statutory U.S. federal income tax rate 21.00 % 21.00 % 21.00 % 21.00 % Income passed through to noncontrolling interests -0.39 % 0.44 % -1.38 % 4.18 % Nondeductible transaction costs — % — % — % -4.66 % Tax effects of income recorded to equity in connection with the Recapitalization — % — % — % 3.46 % Foreign income taxes 4.57 % -2.93 % -2.03 % -7.38 % RSU excess income tax benefit or expense 2.29 % -0.29 % -0.44 % -3.72 % State and local income taxes 5.44 % 1.62 % 3.47 % -13.44 % Nondeductible amortization of Partner Equity Units 5.66 % -10.19 % -4.36 % -22.99 % Nondeductible interest expense 0.85 % -5.72 % -0.74 % -4.57 % Other, net -0.42 % -0.07 % -0.72 % 2.36 % Effective Income Tax Rate 39.00 % 3.86 % 14.80 % -25.76 % The Company recognizes tax benefits for amounts that are “more likely than not” to be sustained upon examination by tax authorities. For uncertain tax positions in which the benefit to be realized does not meet the “more likely than not” threshold, the Company establishes a liability, which is included within other liabilities in the consolidated balance sheets. As of September 30, 2020 and December 31, 2019, the Company had a liability for unrecognized tax benefits of $8.3 million. As of and for the nine months ended September 30, 2020, the Company did not accrue interest or penalties related to uncertain tax positions. As of September 30, 2020, the Company does not believe that there will be a significant change to the uncertain tax positions during the next 12 months. The Company’s total unrecognized tax benefits that, if recognized, would affect its effective tax rate was $4.8 million as of September 30, 2020. |
General, Administrative and Oth
General, Administrative and Other | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
General, Administrative and Other | GENERAL, ADMINISTRATIVE AND OTHER The following table presents the components of general, administrative and other expenses as reported in the consolidated statements of comprehensive income (loss): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Occupancy and equipment $ 7,549 $ 7,555 $ 22,685 $ 22,663 Information processing and communications 5,223 5,074 15,881 15,924 Recurring placement and related service fees 4,057 3,527 14,229 10,372 Professional services 3,836 8,111 18,781 29,801 Insurance 2,118 2,176 6,374 6,500 Business development 237 1,032 1,600 2,989 Foreign exchange (gains) losses (84) 173 (394) (181) Other expenses 1,489 1,524 5,690 7,319 24,425 29,172 84,846 95,387 Legal provisions 2,040 19,100 118,940 19,100 Total General, Administrative and Other $ 26,465 $ 48,272 $ 203,786 $ 114,487 |
Earnings (Loss) Per Class A Sha
Earnings (Loss) Per Class A Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Class A Share | EARNINGS (LOSS) PER CLASS A SHARE Basic earnings (loss) per Class A Share is computed by dividing the net income (loss) attributable to Class A Shareholders by the weighted-average number of Class A Shares outstanding for the period. For the three months ended September 30, 2020 and 2019, the Company included 297,927 and 196,216 RSUs respectively, that have vested but have not been settled in Class A Shares in the weighted-average Class A Shares outstanding used to calculate basic and diluted earnings (loss) per Class A Share. For the nine months ended September 30, 2020 and 2019, the Company included 473,070 and 181,793 RSUs respectively, that have vested but have not been settled in Class A Shares in the weighted-average Class A Shares outstanding used to calculate basic and diluted earnings (loss) per Class A Share. When calculating dilutive earnings (loss) per Class A Share, the Company applies the treasury stock method to unvested RSUs and the if-converted method to vested Group A Units and Group E Units. The Company applies the treasury stock method to unvested Group A Units and Group E Units and the if-converted method on the resulting number of units that would be issued. The Company did not include the Group P Units or PSUs in the calculations of dilutive earnings (loss) per Class A Share, as the applicable market performance conditions have not yet been met as of September 30, 2020. The following tables present the computation of basic and diluted earnings (loss) per Class A Share: Three Months Ended September 30, 2020 Net Income Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Earnings Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ 8,017 22,729,285 $ 0.35 Effect of dilutive securities: Group A Units 4,264 16,019,506 — Group E Units — 10,988,269 — RSUs — — 4,110,587 Diluted $ 12,281 49,737,060 $ 0.25 Three Months Ended September 30, 2019 Net Loss Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Loss Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ (25,140) 20,907,021 $ (1.20) Effect of dilutive securities: Group A Units — — 16,019,506 Group E Units — — 13,476,211 RSUs — — 4,903,263 Diluted $ (25,140) 20,907,021 $ (1.20) Nine Months Ended September 30, 2020 Net Loss Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Loss Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ (45,489) 22,542,047 $ (2.02) Effect of dilutive securities: Group A Units (59,134) 16,017,916 — Group E Units — — 13,386,679 RSUs — — 4,186,109 Diluted $ (104,623) 38,559,963 $ (2.71) Nine Months Ended September 30, 2019 Net Income Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Earnings Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ 3,318 20,703,211 $ 0.16 Effect of dilutive securities: Group A Units — — 17,344,925 Group E Units — 6,908,523 — RSUs — 554,244 — Diluted $ 3,318 28,165,978 $ 0.12 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Due from Related Parties Amounts due from related parties relate primarily to amounts due from the funds for expenses paid on their behalf. These amounts are reimbursed to the Company on an ongoing basis. Due to Related Parties Amounts due to related parties relate primarily to future payments owed to current and former executive managing directors and Ziff Investors Partnership, L.P. II and certain of its affiliates and control persons (the “Ziffs”) under the tax receivable agreement, as discussed further in Note 18. The Company made payments totaling $18.2 million under the tax receivable agreement (inclusive of interest thereon) in the nine months ended September 30, 2020. No payments were made in the three months ended September 30, 2020 and three and nine months ended September 30, 2019. Management Fees and Incentive Income Earned from Related Parties and Waived Fees The Company earns substantially all of its management fees and incentive income from the funds, which are considered related parties as the Company manages the operations of and makes investment decisions for these funds. As of September 30, 2020 and 2019, respectively, approximately $957.1 million and $1.0 billion of the Company’s assets under management represented investments by the Company, its executive managing directors, employees and certain other related parties in the Company’s funds. As of September 30, 2020 and 2019, approximately 48% and 32%, of these assets under management were not charged management fees or incentive income. The following table presents management fees and incentive income charged on investments held by the Company’s executive managing directors, employees and certain other related parties: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Fees charged on investments held by related parties: Management fees $ 982 $ 1,613 $ 2,881 $ 6,009 Incentive income $ 257 $ 2,646 $ 688 $ 7,414 Other |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Tax Receivable Agreement The purchase of Group A Units from current and former executive managing directors and the Ziffs with the proceeds from the 2007 Offerings, and subsequent taxable exchanges by them of Partner Equity Units for Class A Shares on a one-for-one basis (or, at the Company’s option, a cash equivalent), resulted, and, in the case of future exchanges, are anticipated to result, in an increase in the tax basis of the assets of the Sculptor Operating Group that would not otherwise have been available. The Company anticipates that any such tax basis adjustment resulting from an exchange will be allocated principally to certain intangible assets of the Sculptor Operating Group, and the Company will derive its tax benefits principally through amortization of these intangibles over a 15-year period. Consequently, these tax basis adjustments will increase, for tax purposes, the Company’s depreciation and amortization expenses and will therefore reduce the amount of tax that Sculptor Corp and any other future corporate taxpaying entities that acquire Group B Units in connection with an exchange, if any, would otherwise be required to pay in the future. Accordingly, pursuant to the tax receivable agreement, such corporate taxpaying entities (including Sculptor Capital Management, Inc. once it became treated as a corporate taxpayer following the Corporate Classification Change) have agreed to pay the executive managing directors and the Ziffs a percentage of the amount of cash savings, if any, in federal, state and local income taxes in the United States that these entities actually realize related to their units as a result of such increases in tax basis. For tax years prior to 2019, such percentage was 85% of such annual cash savings under the tax receivable agreement. In connection with the Recapitalization, the Company amended the tax receivable agreement to provide that, conditioned on Sculptor Capital Management, Inc. electing to be classified as, or converting into, a corporation for U.S. tax purposes, (i) no amounts are due or payable with respect to the 2017 tax year, (ii) only partial payments equal to 85% of the excess of such cash savings that would otherwise be due over 85% of such cash savings determined assuming that taxable income equals Economic Income are due and payable in respect of the 2018 tax year and (iii) the percentage of cash savings required to be paid with respect to the 2019 tax year and thereafter, as well as with respect to cash savings from subsequent exchanges, is reduced to 75%. The amendment to the tax receivable agreement was effective on April 1, 2019, the date on which the Registrant changed its tax classification from a partnership to a corporation. As a result of the amendment to the tax receivable agreement, the Company released $67.2 million of previously accrued tax receivable agreement liability, which reduced its deferred income tax assets by $16.3 million. The net impact of $51.0 million was recognized as an increase to additional paid-in capital. In connection with the departure of certain former executive managing directors since the 2007 Offerings, the right to receive payments under the tax receivable agreement by those former executive managing directors was contributed to the Sculptor Operating Group. As a result, the Company expects to pay to the other executive managing directors and the Ziffs approximately 69% of the amount of cash savings, if any, in federal, state and local income taxes in the United States that the Company realizes as a result of such increases in tax basis with respect to future tax years. To the extent that the Company does not realize any cash savings, it would not be required to make corresponding payments under the tax receivable agreement. The Company recorded its initial estimate of future payments under the tax receivable agreement as a decrease to additional paid-in capital and an increase in amounts due to related parties in the consolidated financial statements. Subsequent adjustments to the liability for future payments under the tax receivable agreement related to changes in estimated future tax rates or state income tax apportionment are recognized through current period earnings in the consolidated statements of comprehensive income (loss). The estimate of the timing and the amount of future payments under the tax receivable agreement involves several assumptions that do not account for the significant uncertainties associated with these potential payments, including an assumption that Sculptor Corp will have sufficient taxable income in the relevant tax years to utilize the tax benefits that would give rise to an obligation to make payments. The actual timing and amount of any actual payments under the tax receivable agreement will vary based upon these and a number of other factors. As of September 30, 2020, the estimated future payment under the tax receivable agreement was $187.5 million, which is recorded in due to related parties on the consolidated balance sheets. The table below presents management’s estimate as of September 30, 2020, of the maximum amounts that would be payable under the tax receivable agreement assuming that the Company will have sufficient taxable income each year to fully realize the expected tax savings. In light of the numerous factors affecting the Company’s obligation to make such payments, the timing and amounts of any such actual payments may differ materially from those presented in the table. The impact of any net operating losses is included in the “Thereafter” amount in the table below. Potential Payments Under Tax Receivable Agreement (dollars in thousands) October 1, 2020 to December 31, 2020 $ 11,805 2021 9,935 2022 29,559 2023 46,089 2024 43,002 Thereafter 47,071 Total Payments $ 187,461 Litigation From time to time, the Company is involved in litigation and claims incidental to the conduct of the Company’s business. The Company is also subject to extensive scrutiny by regulatory agencies globally that have, or may in the future have, regulatory authority over the Company and its business activities. This has resulted, or may in the future result, in regulatory agency investigations, litigation and subpoenas and costs related to each. In U.S. v. Oz Africa Management GP, LLC, Cr. No. 16-515 (NGG) (EDNY), on November 4, 2020, the U.S. District Court for the Eastern District of New York (the “Court”) ordered restitution consistent with the terms of the settlement agreement between Oz Africa Management GP, LLC (“Oz Africa”) and certain former shareholders of Africo Resources Ltd. (the “Claimants”), and imposed a sentence otherwise consistent with the Plea Agreement, dated September 29, 2016, between Oz Africa and the Department of Justice (the “DOJ”) and U.S. Attorney’s Office for the Eastern District of New York (the “USAO”). Per the Court’s sentence and the settlement agreement, Oz Africa paid approximately $138.0 million to former shareholders of Africo Resources Ltd. On November 3, 2020, the DOJ and USAO agreed with the Company to terminate the Deferred Prosecution Agreement (the “DPA”) between the Company, the DOJ and the USAO upon (i) the Court entering its final judgment stating the sentence in the matter of U.S. v. Oz Africa Management GP, LLC, Cr. No. 16-515 (NGG) (EDNY), (ii) Oz Africa paying full restitution as ordered by the Court and (iii) the monetary penalty the Company paid under the DPA in 2016 being released from a DOJ suspense account to the United States Treasury, which will be within 10 days after the final judgment. With completion of the above events, the Company will have put all legal issues stemming from legacy dealings in Africa behind us. Investment Commitments The Company has unfunded capital commitments of $83.5 million to certain funds it manages. Approximately $57.7 million of these commitments will be funded by contributions to the Company from certain employees and executive managing directors. The Company expects to fund these commitments over the next eight years. In addition, certain current and former executive managing directors of the Company, collectively, have unfunded capital commitments to funds managed by the Company of up to $14.5 million. The Company has guaranteed these commitments in the event any executive managing director fails to fund any portion when called by the fund. The Company has historically not funded any of these commitments and does not expect to in the future, as these commitments are expected to be funded by the Company’s executive managing directors individually. Other Contingencies In the normal course of business, the Company enters into contracts that provide a variety of general indemnifications. Such contracts include those with certain service providers, brokers and trading counterparties. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited, interim, consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”), and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s unaudited, interim, consolidated financial statements have been included and are of a normal and recurring nature. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations presented for the interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. For example, incentive income for the majority of the Company’s multi-strategy assets under management is recognized in the fourth quarter each year, based on full year investment performance. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the FASB issued and the Company adopted an accounting standards update ASU 2020-04, Reference Rate Reform (“ASU 2020-04 ”), related to contracts, hedging relationships and other transactions that reference LIBOR or other reference rates that are expected to be discontinued due to reference rate reform. ASU 2020-04 provides optional practical expedients and exceptions related to modifications of contracts, hedging relationships and other transactions affected by reference rate reform to ease the administrative burden in accounting for the future effects of the reform. There was no impact to the Company’s consolidated financial statements upon adoption of ASU 2020-04. The Company expects to apply the practical expedients, where appropriate, as relevant contract modifications are made during the reference rate reform transition period through December 31, 2022. No other changes to GAAP that went into effect in the nine months ended September 30, 2020, had a material effect on the Company’s consolidated financial statements. Future Adoption of Accounting Pronouncements No changes to GAAP that are not yet effective are expected to have a material effect on the Company’s consolidated financial statements. |
Fair Value Measurement, Policy | Fair Value Disclosures Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date (i.e., an exit price). Due to the inherent uncertainty of valuations of investments that are determined to be illiquid or do not have readily ascertainable fair values, the estimates of fair value may differ from the values ultimately realized, and those differences can be material. GAAP prioritizes the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is impacted by a number of factors, including the type of assets and liabilities and the specific characteristics of the assets and liabilities. Assets and liabilities with readily available, actively quoted prices or for which fair value can be measured from actively-quoted prices generally will have a higher degree of market price observability and lesser degree of judgment used in measuring fair value. Assets and liabilities measured at fair value are classified into one of the following categories: • Level I – Fair value is determined using quoted prices that are available in active markets for identical assets or liabilities. The types of assets and liabilities that would generally be included in this category are certain listed equities, U.S. government obligations and certain listed derivatives. • Level II – Fair value is determined using quotations received from dealers making a market for these assets or liabilities (“broker quotes”), valuations obtained from independent third-party pricing services, the use of models or other valuation methodologies based on pricing inputs that are either directly or indirectly market observable as of the measurement date. The types of assets and liabilities that would generally be included in this category are certain corporate bonds, certain credit default swap contracts, certain bank debt securities, certain commercial real estate debt, less liquid equity securities, forward contracts and certain over the-counter (“OTC”) derivatives. • Level III – Fair value is determined using pricing inputs that are unobservable in the market and includes situations where there is little, if any, market activity for the asset or liability. The fair value of assets and liabilities in this category may require significant judgment or estimation in determining fair value of the assets or liabilities. The fair value of these assets and liabilities may be estimated using a combination of observed transaction prices, independent pricing services, relevant broker quotes, models or other valuation methodologies based on pricing inputs that are neither directly or indirectly market observable. The types of assets and liabilities that would generally be included in this category include CLOs, real estate investments, equity and debt securities issued by private entities, limited partnerships, certain corporate bonds, certain credit default swap contracts, certain bank debt securities, certain commercial real estate debt, certain OTC derivatives, residential and commercial mortgage-backed securities, asset-backed securities, collateralized debt obligations and investments in affiliated credit funds. |
Overview (Tables)
Overview (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Shares and Operating Group Units | The following table presents the number of shares and units (excluding Preferred Units) of the Registrant and the Sculptor Operating Partnerships, respectively, that were outstanding as of September 30, 2020: As of September 30, 2020 Sculptor Capital Management, Inc. Class A Shares 22,557,205 Class B Shares 32,820,413 Sculptor Operating Partnerships Group A Units 16,019,506 Group A-1 Units 9,779,446 Group B Units 22,557,205 Group E Units 12,975,820 Group P Units 3,385,000 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Calculation of Noncontrolling Interests Attributable to Group A Units | The table below sets forth the calculation of noncontrolling interests related to the Group A Units for each Sculptor Operating Partnership (rounding differences may occur). The blended participation percentages presented below take into account ownership changes throughout the periods presented. In addition, the blended participation percentages in 2019 take into account the difference in methodology described above for the period prior to the Recapitalization Date compared to the period following the Recapitalization Date. For example, Sculptor Capital Advisors LP had net income in the period prior to the Recapitalization Date, and as a result, allocates a portion of its net income for the nine months ended September 30, 2019 to the Group A Units. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Sculptor Capital LP Net income (loss) $ 8,836 $ (23,983) $ (133,304) $ (74,801) Blended participation percentage 46 % 43 % 42 % 44 % Net Income (Loss) Attributable to Group A Units $ 4,049 $ (10,377) $ (55,356) $ (32,589) Sculptor Capital Advisors LP Net income (loss) $ 948 $ (10,838) $ (18,343) $ (2,864) Blended participation percentage 47 % 12 % 42 % n/m Net Income (Loss) Attributable to Group A Units $ 445 $ (1,248) $ (7,617) $ 5,447 Sculptor Capital Advisors II LP Net income (loss) $ 13,043 $ (4,562) $ 29,822 $ 12,041 Blended participation percentage 0 % 0 % 0 % 0 % Net Income (Loss) Attributable to Group A Units $ — $ — $ — $ — Total Sculptor Operating Group Net income (loss) $ 22,827 $ (39,383) $ (121,825) $ (65,624) Blended participation percentage 20 % 30 % 52 % 41 % Net Income (Loss) Attributable to Group A Units $ 4,494 $ (11,625) $ (62,973) $ (27,142) |
Components of Net Loss Attributable to Noncontrolling Interests | The following table presents the components of the net income (loss) attributable to noncontrolling interests: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Group A Units $ 4,494 $ (11,625) $ (62,973) $ (27,142) Other (101) 190 (579) 489 $ 4,393 $ (11,435) $ (63,552) $ (26,653) |
Components of Shareholders' Equity Attributable to Noncontrolling Interests | The following table presents the components of the shareholders’ equity attributable to noncontrolling interests: September 30, 2020 December 31, 2019 (dollars in thousands) Group A Units $ 391,959 $ 434,943 Other 8,701 5,836 $ 400,660 $ 440,779 |
Redeemable Noncontrolling Interests Roll Forward | The Preferred Units and fund investors’ interests in certain consolidated funds (which were deconsolidated in the third quarter of 2019) are redeemable outside of the Company’s control. These interests are classified within redeemable noncontrolling interests in the consolidated balance sheets. The following tables present the activity in redeemable noncontrolling interests: Three Months Ended September 30, 2020 2019 Preferred Units Funds Preferred Units Total (dollars in thousands) Beginning Balance $ 153,313 $ 97,229 $ 150,000 $ 247,229 Change in redemption value of Preferred Units 2,285 — — — Capital contributions — 102 — 102 Capital distributions — (54,532) — (54,532) Funds deconsolidation — (43,373) — (43,373) Comprehensive income — 574 — 574 Ending Balance $ 155,598 $ — $ 150,000 $ 150,000 Nine Months Ended September 30, 2020 2019 Preferred Units Funds Preferred Units Total (dollars in thousands) Beginning balance $ 150,000 $ 157,660 $ 420,000 $ 577,660 Fair value of Debt Securities exchanged for 2016 Preferred Units — — (167,799) (167,799) Fair value of 2019 Preferred Units exchanged for 2016 Preferred Units — — (137,759) (137,759) Issuance of 2019 Preferred Units, net of issuance costs — — 136,964 136,964 Change in redemption value of Preferred Units 5,598 — (101,406) (101,406) Capital contributions — 3,747 — 3,747 Capital distributions — (126,779) — (126,779) Funds deconsolidation — (43,373) — (43,373) Comprehensive income — 8,745 — 8,745 Ending Balance $ 155,598 $ — $ 150,000 $ 150,000 |
Investments and Fair Value Di_2
Investments and Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Investments Summary | The following table presents the components of the Company’s investments as reported in the consolidated balance sheets: September 30, 2020 December 31, 2019 (dollars in thousands) United States government obligations, at fair value $ 152,174 $ 146,565 CLOs, at fair value 188,640 182,870 Other investments, equity method 95,281 81,991 Total Investments $ 436,095 $ 411,426 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the Company’s investments measured at fair value on a recurring basis within the fair value hierarchy as of September 30, 2020: As of September 30, 2020 Level I Level II Level III Total (dollars in thousands) Assets, at Fair Value Included within cash and cash equivalents: United States government obligations $ 83,899 $ — $ — $ 83,899 Included within investments: United States government obligations $ 152,174 $ — $ — $ 152,174 CLOs (1) $ — $ — $ 188,640 $ 188,640 _______________ (1) As of September 30, 2020, investments in CLOs had contractual principal amounts of $178.9 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments. The following table summarizes the Company’s investments measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2019: As of December 31, 2019 Level I Level II Level III Total (dollars in thousands) Assets, at Fair Value Included within cash and cash equivalents: United States government obligations $ 97,034 $ — $ — $ 97,034 Included within investments: United States government obligations $ 146,565 $ — $ — $ 146,565 CLOs (1) $ — $ — $ 182,870 $ 182,870 _______________ (1) As of December 31, 2019, investments in CLOs had contractual principal amounts of $170.0 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in the Company’s Level III assets and liabilities for the three months ended September 30, 2020: June 30, 2020 Transfers Transfers Investment Investment Gains / Losses September 30, 2020 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 178,842 $ — $ — $ 778 $ (103) $ 9,123 $ 188,640 The following table summarizes the changes in the Company’s Level III assets and liabilities for the three months ended September 30, 2019: June 30, 2019 Transfers Transfers Investment Investment Gains / Losses September 30, 2019 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 181,547 $ — $ — $ 1,709 $ (28) $ (6,489) $ 176,739 Investments of consolidated funds: Bank debt $ 36,130 $ 5,326 $ (17,427) $ 9,231 $ (33,283) $ 23 $ — The following table summarizes the changes in the Company’s Level III assets and liabilities for the nine months ended September 30, 2020: December 31, 2019 Transfers In Transfers Out Investment Purchases / Issuances Investment Sales / Settlements Gains / Losses September 30, 2020 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 182,870 $ — $ — $ 5,185 $ (288) $ 873 $ 188,640 The following table summarizes the changes in the Company’s Level III assets and liabilities for the nine months ended September 30, 2019: December 31, 2018 Transfers In Transfers Out Investment Purchases / Issuances Investment Sales / Settlements Gains / Losses September 30, 2019 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 181,868 $ — $ — $ 28,420 $ (27,778) $ (5,771) $ 176,739 Investments of consolidated funds: Bank debt $ 75,613 $ 7,982 $ (40,272) $ 29,601 $ (73,772) $ 848 $ — Corporate bonds $ — $ — $ — $ 987 $ (981) $ (6) $ — Transfers out of Level III presented in the tables above resulted from the fair values of certain securities becoming market observable, with fair value determined using independent pricing services. Transfers into Level III presented in the tables |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | The table below summarizes the net change in unrealized gains and losses on the Company’s Level III investments held as of the reporting date: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Assets, at Fair Value Included within investments: CLOs $ 3,185 $ (463) $ 873 $ (5,612) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | The table below presents the net assets of VIEs in which the Company has variable interests along with the maximum risk of loss as a result of the Company’s involvement with VIEs: September 30, 2020 December 31, 2019 (dollars in thousands) Net assets of unconsolidated VIEs in which the Company has a variable interest $ 9,531,763 $ 8,805,128 Maximum risk of loss as a result of the Company’s involvement with VIEs: Unearned revenues 72,421 63,337 Income and fees receivable 11,023 21,841 Investments 208,691 200,215 Maximum Exposure to Loss $ 292,135 $ 285,393 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Cost | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Lease Cost Operating lease cost $ 5,152 $ 5,135 $ 15,440 $ 15,430 Short-term lease cost 13 13 38 45 Finance lease cost - amortization of leased assets 199 137 529 411 Finance lease cost - imputed interest on lease liabilities 19 22 57 71 Less: Sublease income (391) (380) (1,145) (1,145) Net Lease Cost $ 4,992 $ 4,927 $ 14,919 $ 14,812 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Supplemental Lease Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 5,634 $ 8,731 $ 16,837 $ 20,109 Operating cash flows for finance leases $ 1 $ 22 $ 6 $ 71 Finance cash flows for finance leases $ 256 $ 154 $ 907 $ 611 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — $ 6 $ 126,007 Finance leases $ — $ — $ 745 $ 1,702 September 30, 2020 December 31, 2019 Lease Term and Discount Rate Weighted average remaining lease term Operating leases 8.7 years 9.3 years Finance leases 1.9 years 2.1 years Weighted average discount rate Operating leases 7.9 % 7.9 % Finance leases 7.2 % 7.9 % |
Maturity of Lease Liabilities | Operating Finance (dollars in thousands) Maturity of Lease Liabilities October 1, 2020 to December 31, 2020 $ 5,635 $ — 2021 21,028 867 2022 19,831 248 2023 19,125 — 2024 15,353 — Thereafter 82,234 — Total Lease Payments 163,206 1,115 Imputed interest (45,115) (49) Total Lease Liabilities $ 118,091 $ 1,066 |
Sublease Rent Payments Receivable | Operating Leases (dollars in thousands) Sublease Rent Payments Receivable October 1, 2020 to December 31, 2020 $ 384 2021 1,537 2022 1,537 2023 1,204 2024 — Thereafter — Total Sublease Rent Payments Receivable $ 4,662 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Instruments [Abstract] | |
Schedule of Maturities of Long-term Debt | Debt Securities 2018 Term Loan CLO Investments Loans Total (dollars in thousands) Maturity of Debt Obligations October 1, 2020 to December 31, 2020 $ — $ — $ — $ — 2021 — — 6,576 6,576 2022 40,000 — 484 40,484 2023 40,000 8,500 — 48,500 2024 40,000 — 19,120 59,120 Thereafter 80,000 — 39,035 119,035 Total Payments 200,000 8,500 65,215 273,715 Unamortized discounts & deferred financing costs (14,480) (130) (310) (14,920) Total Debt Obligations $ 185,520 $ 8,370 $ 64,905 $ 258,795 |
CLO Investments Loans Table | Carrying amounts presented in the table below are net of discounts, if any, and unamortized deferred financing costs. The interest rates on the CLO Investments Loans are variable based on LIBOR or EURIBOR (subject to a floor of zero percent). The maturity date for each CLO Investments Loan is the earlier of the final maturity date presented in the table below or the date at which the Company no longer holds a risk retention investment in the respective CLO. Initial Borrowing Date Contractual Rate Final Maturity Date Carrying Value September 30, 2020 December 31, 2019 (dollars in thousands) June 7, 2017 LIBOR plus 1.48% November 16, 2029 $ 17,195 $ 17,245 August 2, 2017 LIBOR plus 1.41% January 21, 2030 21,582 21,679 September 14, 2017 EURIBOR plus 2.21% September 14, 2024 19,067 18,237 August 1, 2019 EURIBOR plus 1.15% June 29, 2021 6,576 3,464 February 27, 2020 EURIBOR plus 0.80% January 11, 2022 485 — $ 64,905 $ 60,625 |
Securities Sold under Agreeme_2
Securities Sold under Agreements to Repurchase (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of Repurchase Agreements Offsetting Disclosures | The table below presents securities sold under agreements to repurchase that are offset, if any, as well as securities transferred to counterparties related to such transactions (capped so that the net amount presented will not be reduced below zero). No other material financial instruments were subject to master netting agreements or other similar agreements: Securities Sold under Agreements to Repurchase Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities in the Consolidated Balance Sheet Securities Transferred Net Amount (dollars in thousands) As of September 30, 2020 $ 101,892 $ — $ 101,892 $ 101,843 $ 49 As of December 31, 2019 $ 97,508 $ — $ 97,508 $ 97,508 $ — |
Schedule of Remaining Contractual Maturity of Repurchase Agreements | The securities sold under agreements to repurchase have a set scheduled maturity date that corresponds to the maturities of the securities sold under such transaction. The table below presents the remaining final contractual maturity of the securities sold under agreement to repurchase by class of collateral pledged: Investments in CLOs Securities Sold under Agreements to Repurchase Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total (dollars in thousands) As of September 30, 2020 $ — $ — $ — $ 101,892 $ 101,892 As of December 31, 2019 $ — $ — $ — $ 97,508 $ 97,508 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | The following table presents the components of other assets, net as reported in the consolidated balance sheets: September 30, 2020 December 31, 2019 (dollars in thousands) Fixed Assets: Leasehold improvements $ 52,798 $ 52,798 Computer hardware and software 49,484 47,361 Furniture, fixtures and equipment 8,411 8,411 Accumulated depreciation and amortization (79,108) (73,730) Fixed assets, net 31,585 34,840 Goodwill 22,691 22,691 Prepaid expenses 14,497 18,507 Other 6,230 6,570 Total Other Assets, Net $ 75,003 $ 82,608 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Liabilities | The following table presents the components of other liabilities as reported in the consolidated balance sheets: September 30, 2020 December 31, 2019 (dollars in thousands) Legal provisions {1) $ 138,040 $ 19,100 Accrued expenses 12,637 19,275 Uncertain tax positions 8,250 8,250 Unearned management fee 6,410 311 Unused trade commissions 3,863 5,192 Other 7,165 7,089 Total Other Liabilities $ 176,365 $ 59,217 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Management Fees and Incentive Income Recognized | The following table presents management fees and incentive income recognized as revenues for the three months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Management Fees Incentive Income Management Fees Incentive Income (dollars in thousands) Multi-strategy funds $ 33,239 $ 22,013 $ 34,201 $ 13,732 Credit Opportunistic credit funds 12,512 16,585 11,217 2,664 Institutional Credit Strategies 13,302 — 14,713 — Real estate funds 9,000 2,927 2,613 14,027 Other — — 212 — Total $ 68,053 $ 41,525 $ 62,956 $ 30,423 The following table presents management fees and incentive income recognized as revenues for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Management Fees Incentive Income Management Fees Incentive Income (dollars in thousands) Multi-strategy funds $ 94,826 $ 58,377 $ 102,801 $ 59,516 Credit Opportunistic credit funds 33,308 24,005 32,356 35,653 Institutional Credit Strategies 36,653 — 42,284 — Real estate funds 30,594 6,703 9,862 23,209 Other 8 — 676 — Total $ 195,389 $ 89,085 $ 187,979 $ 118,378 |
Unearned Incentive Income Roll Forward | A liability for unearned incentive income is generally recognized when the Company receives incentive income distributions from its funds, primarily its real estate funds, whereby the distributions received have not yet met the recognition threshold of being probable that a significant reversal of cumulative revenue will not occur. The following table presents the activity in the Company’s unearned incentive income for the nine months ended September 30, 2020 and 2019: Nine Months Ended September 30, 2020 2019 (dollars in thousands) Beginning of Period $ 60,798 $ 61,397 Amounts collected during the period 8,887 20,168 Amounts recognized during the period (2,793) (18,174) End of Period $ 66,892 $ 63,391 |
Income and Fees Receivable | The following table presents the composition of the Company’s income and fees receivable as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (dollars in thousands) Management fees $ 23,767 $ 25,726 Incentive income 13,941 189,669 Income and Fees Receivable $ 37,708 $ 215,395 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Statutory U.S. federal income tax rate 21.00 % 21.00 % 21.00 % 21.00 % Income passed through to noncontrolling interests -0.39 % 0.44 % -1.38 % 4.18 % Nondeductible transaction costs — % — % — % -4.66 % Tax effects of income recorded to equity in connection with the Recapitalization — % — % — % 3.46 % Foreign income taxes 4.57 % -2.93 % -2.03 % -7.38 % RSU excess income tax benefit or expense 2.29 % -0.29 % -0.44 % -3.72 % State and local income taxes 5.44 % 1.62 % 3.47 % -13.44 % Nondeductible amortization of Partner Equity Units 5.66 % -10.19 % -4.36 % -22.99 % Nondeductible interest expense 0.85 % -5.72 % -0.74 % -4.57 % Other, net -0.42 % -0.07 % -0.72 % 2.36 % Effective Income Tax Rate 39.00 % 3.86 % 14.80 % -25.76 % |
General, Administrative and O_2
General, Administrative and Other (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Components of General, Administrative and Other Expenses | The following table presents the components of general, administrative and other expenses as reported in the consolidated statements of comprehensive income (loss): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Occupancy and equipment $ 7,549 $ 7,555 $ 22,685 $ 22,663 Information processing and communications 5,223 5,074 15,881 15,924 Recurring placement and related service fees 4,057 3,527 14,229 10,372 Professional services 3,836 8,111 18,781 29,801 Insurance 2,118 2,176 6,374 6,500 Business development 237 1,032 1,600 2,989 Foreign exchange (gains) losses (84) 173 (394) (181) Other expenses 1,489 1,524 5,690 7,319 24,425 29,172 84,846 95,387 Legal provisions 2,040 19,100 118,940 19,100 Total General, Administrative and Other $ 26,465 $ 48,272 $ 203,786 $ 114,487 |
Earnings (Loss) Per Class A S_2
Earnings (Loss) Per Class A Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Class A Share | The following tables present the computation of basic and diluted earnings (loss) per Class A Share: Three Months Ended September 30, 2020 Net Income Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Earnings Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ 8,017 22,729,285 $ 0.35 Effect of dilutive securities: Group A Units 4,264 16,019,506 — Group E Units — 10,988,269 — RSUs — — 4,110,587 Diluted $ 12,281 49,737,060 $ 0.25 Three Months Ended September 30, 2019 Net Loss Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Loss Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ (25,140) 20,907,021 $ (1.20) Effect of dilutive securities: Group A Units — — 16,019,506 Group E Units — — 13,476,211 RSUs — — 4,903,263 Diluted $ (25,140) 20,907,021 $ (1.20) Nine Months Ended September 30, 2020 Net Loss Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Loss Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ (45,489) 22,542,047 $ (2.02) Effect of dilutive securities: Group A Units (59,134) 16,017,916 — Group E Units — — 13,386,679 RSUs — — 4,186,109 Diluted $ (104,623) 38,559,963 $ (2.71) Nine Months Ended September 30, 2019 Net Income Attributable to Class A Shareholders Weighted- Average Class A Shares Outstanding Earnings Per Class A Share Number of Antidilutive Units Excluded from Diluted Calculation (dollars in thousands, except per share amounts) Basic $ 3,318 20,703,211 $ 0.16 Effect of dilutive securities: Group A Units — — 17,344,925 Group E Units — 6,908,523 — RSUs — 554,244 — Diluted $ 3,318 28,165,978 $ 0.12 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Management Fees and Incentive Income Earned from Related Parties | The following table presents management fees and incentive income charged on investments held by the Company’s executive managing directors, employees and certain other related parties: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (dollars in thousands) Fees charged on investments held by related parties: Management fees $ 982 $ 1,613 $ 2,881 $ 6,009 Incentive income $ 257 $ 2,646 $ 688 $ 7,414 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Estimated Future Maximum Payments Under Tax Receivable Agreement | The table below presents management’s estimate as of September 30, 2020, of the maximum amounts that would be payable under the tax receivable agreement assuming that the Company will have sufficient taxable income each year to fully realize the expected tax savings. In light of the numerous factors affecting the Company’s obligation to make such payments, the timing and amounts of any such actual payments may differ materially from those presented in the table. The impact of any net operating losses is included in the “Thereafter” amount in the table below. Potential Payments Under Tax Receivable Agreement (dollars in thousands) October 1, 2020 to December 31, 2020 $ 11,805 2021 9,935 2022 29,559 2023 46,089 2024 43,002 Thereafter 47,071 Total Payments $ 187,461 |
Overview - Schedule of Shares a
Overview - Schedule of Shares and Operating Group Units (Detail) - shares | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Class A Shares | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 22,557,205 | 22,311,432 | 21,284,945 | 20,749,306 | 20,631,750 | 19,905,126 |
Class B Shares | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 32,820,413 | 32,820,414 | 29,208,952 | 29,208,952 | 29,208,952 | 29,458,948 |
Group A Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 16,019,506 | |||||
Group A-1 Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 9,779,446 | |||||
Group B Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 22,557,205 | |||||
Group E Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 12,975,820 | |||||
Group P Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 3,385,000 |
Overview - Additional Informati
Overview - Additional Information (Detail) $ in Thousands | Feb. 07, 2019shares | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Ratio of Group A Units Recapitalized as Group A Units | 0.65 | ||||
Ratio of Group A Units Recapitalized as Group A-1 Units | 0.35 | ||||
Number of Group A Units forfeited in connection with Recapitalization | shares | 749,813 | ||||
Unearned management fee | $ 66,892 | $ 60,798 | $ 63,391 | $ 61,397 | |
Disaggregation of Revenue [Line Items] | |||||
Unearned management fee | 66,892 | $ 60,798 | $ 63,391 | $ 61,397 | |
Institutional Credit Strategies | Management fees | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Unearned management fee | 8,300 | ||||
Disaggregation of Revenue [Line Items] | |||||
Unearned management fee | $ 8,300 |
Recapitalization - Additional D
Recapitalization - Additional Details (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 07, 2019 | Sep. 30, 2020 |
Recapitalization [Abstract] | ||
Amount of 2016 Preferred Units Restructured as Debt Securities | $ 200 | |
Amount of 2016 Preferred Units restructured as 2019 Preferred Units | $ 200 | |
Percent of Group A Units reallocated in connection with Recapitalization | 35.00% | |
Number of Group A Units forfeited in connection with Recapitalization | 749,813 | |
Number of days after the last day of the first quarter of achievement of the Distribution Holiday Economic Income target | 45 days | |
Distribution Holiday Economic Income target | $ 600 | |
Maximum distribution adjusted for Group P Units and credited on certain RSUs during Distribution Holiday | $ 4 |
Noncontrolling Interests - Calc
Noncontrolling Interests - Calculation of Noncontrolling Interests Attributable to Group A Units (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) | $ 10,302 | $ (25,140) | $ (39,891) | $ (41,046) |
Net Income (Loss) Attributable to Noncontrolling Interests | 4,393 | (11,435) | (63,552) | (26,653) |
Sculptor Capital LP | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) | 8,836 | (23,983) | (133,304) | (74,801) |
Sculptor Advisors LP | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) | 948 | (10,838) | (18,343) | (2,864) |
Sculptor Advisors II LP | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) | 13,043 | (4,562) | 29,822 | 12,041 |
Sculptor Operating Group | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) | 22,827 | (39,383) | (121,825) | (65,624) |
Group A Units | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interests | $ 4,494 | $ (11,625) | $ (62,973) | $ (27,142) |
Group A Units | Sculptor Capital LP | ||||
Noncontrolling Interest [Line Items] | ||||
Blended Participation Percentage | 46.00% | 43.00% | 42.00% | 44.00% |
Net Income (Loss) Attributable to Noncontrolling Interests | $ 4,049 | $ (10,377) | $ (55,356) | $ (32,589) |
Group A Units | Sculptor Advisors LP | ||||
Noncontrolling Interest [Line Items] | ||||
Blended Participation Percentage | 47.00% | 12.00% | 42.00% | |
Net Income (Loss) Attributable to Noncontrolling Interests | $ 445 | $ (1,248) | $ (7,617) | $ 5,447 |
Group A Units | Sculptor Advisors II LP | ||||
Noncontrolling Interest [Line Items] | ||||
Blended Participation Percentage | 0.00% | 0.00% | 0.00% | 0.00% |
Net Income (Loss) Attributable to Noncontrolling Interests | $ 0 | $ 0 | $ 0 | $ 0 |
Group A Units | Sculptor Operating Group | ||||
Noncontrolling Interest [Line Items] | ||||
Blended Participation Percentage | 20.00% | 30.00% | 52.00% | 41.00% |
Net Income (Loss) Attributable to Noncontrolling Interests | $ 4,494 | $ (11,625) | $ (62,973) | $ (27,142) |
Noncontrolling Interests - Comp
Noncontrolling Interests - Components of Net Loss Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Noncontrolling Interest [Line Items] | ||||
Net Loss Attributable to Noncontrolling Interests | $ 4,393 | $ (11,435) | $ (63,552) | $ (26,653) |
Group A Units | ||||
Noncontrolling Interest [Line Items] | ||||
Net Loss Attributable to Noncontrolling Interests | 4,494 | (11,625) | (62,973) | (27,142) |
Other | ||||
Noncontrolling Interest [Line Items] | ||||
Net Loss Attributable to Noncontrolling Interests | $ (101) | $ 190 | $ (579) | $ 489 |
Noncontrolling Interests - Co_2
Noncontrolling Interests - Components of Shareholders' Equity Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | ||||
Shareholders’ equity attributable to noncontrolling interests | $ 400,660 | $ 440,779 | ||
Capital distributions | $ (54,532) | $ (126,779) | ||
Group A Units | ||||
Noncontrolling Interest [Line Items] | ||||
Shareholders’ equity attributable to noncontrolling interests | 391,959 | 434,943 | ||
Other | ||||
Noncontrolling Interest [Line Items] | ||||
Shareholders’ equity attributable to noncontrolling interests | $ 8,701 | $ 5,836 |
Noncontrolling Interests - Rede
Noncontrolling Interests - Redeemable Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Redeemable Noncontrolling Interest [Roll Forward] | ||||
Redeemable Noncontrolling Interests | $ 247,229 | $ 150,000 | $ 577,660 | |
Fair value of Debt Securities exchanged for 2016 Preferred Units | (167,799) | |||
Fair value of 2019 Preferred Units exchanged for 2016 Preferred Units | (137,759) | |||
Issuance of 2019 Preferred Units, net of issuance costs | 136,964 | |||
Change in redemption value of Preferred Units | 0 | (101,406) | ||
Capital contributions | 102 | 3,747 | ||
Capital distributions | (54,532) | (126,779) | ||
Funds deconsolidation | (43,373) | (43,373) | ||
Comprehensive income | $ 0 | 574 | 0 | 8,745 |
Redeemable Noncontrolling Interests | 155,598 | 150,000 | 155,598 | 150,000 |
Preferred Units | ||||
Increase (Decrease) in Redeemable Noncontrolling Interest [Roll Forward] | ||||
Redeemable Noncontrolling Interests | 153,313 | 150,000 | 150,000 | 420,000 |
Fair value of Debt Securities exchanged for 2016 Preferred Units | 0 | (167,799) | ||
Fair value of 2019 Preferred Units exchanged for 2016 Preferred Units | 0 | (137,759) | ||
Issuance of 2019 Preferred Units, net of issuance costs | 0 | 136,964 | ||
Change in redemption value of Preferred Units | 2,285 | 0 | 5,598 | (101,406) |
Capital contributions | 0 | 0 | 0 | 0 |
Capital distributions | 0 | 0 | 0 | 0 |
Funds deconsolidation | 0 | 0 | 0 | 0 |
Comprehensive income | 0 | 0 | 0 | 0 |
Redeemable Noncontrolling Interests | $ 155,598 | 150,000 | $ 155,598 | 150,000 |
Consolidated Funds | ||||
Increase (Decrease) in Redeemable Noncontrolling Interest [Roll Forward] | ||||
Redeemable Noncontrolling Interests | 97,229 | 157,660 | ||
Fair value of Debt Securities exchanged for 2016 Preferred Units | 0 | |||
Fair value of 2019 Preferred Units exchanged for 2016 Preferred Units | 0 | |||
Issuance of 2019 Preferred Units, net of issuance costs | 0 | |||
Change in redemption value of Preferred Units | 0 | 0 | ||
Capital contributions | 102 | 3,747 | ||
Capital distributions | (54,532) | (126,779) | ||
Funds deconsolidation | (43,373) | (43,373) | ||
Comprehensive income | 574 | 8,745 | ||
Redeemable Noncontrolling Interests | $ 0 | $ 0 |
Investments and Fair Value Di_3
Investments and Fair Value Disclosures - Schedule of Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
United States government obligations, at fair value | $ 152,174 | $ 146,565 |
CLOs, at fair value | 188,640 | 182,870 |
Other investments, equity method | 95,281 | 81,991 |
Total Investments | $ 436,095 | $ 411,426 |
Investments and Fair Value Di_4
Investments and Fair Value Disclosures - Schedule of Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | ||
Included Within Investments | ||||
United States government obligations | $ 152,174 | $ 146,565 | ||
CLOs, at fair value | 188,640 | 182,870 | ||
Fair Value, Measurements, Recurring | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 97,034 | |||
Included Within Investments | ||||
United States government obligations | 152,174 | 146,565 | ||
CLOs, at fair value | 188,640 | [1] | 182,870 | [2] |
Fair Value, Measurements, Recurring | Management company related | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 83,899 | |||
Fair Value, Measurements, Recurring | Level I | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 97,034 | |||
Included Within Investments | ||||
United States government obligations | 152,174 | 146,565 | ||
CLOs, at fair value | 0 | [1] | 0 | [2] |
Fair Value, Measurements, Recurring | Level I | Management company related | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 83,899 | |||
Fair Value, Measurements, Recurring | Level II | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 0 | |||
Included Within Investments | ||||
United States government obligations | 0 | 0 | ||
CLOs, at fair value | 0 | [1] | 0 | [2] |
Fair Value, Measurements, Recurring | Level II | Management company related | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 0 | |||
Fair Value, Measurements, Recurring | Level III | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 0 | |||
Included Within Investments | ||||
United States government obligations | 0 | 0 | ||
CLOs, at fair value | 188,640 | [1] | 182,870 | [2] |
Fair Value, Measurements, Recurring | Level III | Management company related | ||||
Included Within Cash And Cash Equivalents | ||||
United States government obligations | 0 | |||
CLOs | ||||
Included Within Investments | ||||
Contractual principal on investments in CLOs | $ 178,900 | $ 170,000 | ||
[1] | As of September 30, 2020, investments in CLOs had contractual principal amounts of $178.9 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments | |||
[2] | As of December 31, 2019, investments in CLOs had contractual principal amounts of $170.0 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments |
Investments and Fair Value Di_5
Investments and Fair Value Disclosures - Schedule of Changes in Company's Level III Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Management company related | CLOs | ||||
Fair Value, Investments Measured On Recurring Basis [Line Items] | ||||
Beginning Balance | $ 178,842 | $ 181,547 | $ 182,870 | $ 181,868 |
Transfers In | 0 | 0 | 0 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Investment Purchases / Issuances | 778 | 1,709 | 5,185 | 28,420 |
Investment Sales / Settlements | (103) | (28) | (288) | (27,778) |
Gains / Losses | 9,123 | (6,489) | 873 | (5,771) |
Ending Balance | $ 188,640 | 176,739 | $ 188,640 | 176,739 |
Consolidated Funds | Bank Debt | ||||
Fair Value, Investments Measured On Recurring Basis [Line Items] | ||||
Beginning Balance | 36,130 | 75,613 | ||
Transfers In | 5,326 | 7,982 | ||
Transfers Out | (17,427) | (40,272) | ||
Investment Purchases / Issuances | 9,231 | 29,601 | ||
Investment Sales / Settlements | (33,283) | (73,772) | ||
Gains / Losses | 23 | 848 | ||
Ending Balance | 0 | 0 | ||
Consolidated Funds | Corporate bonds | ||||
Fair Value, Investments Measured On Recurring Basis [Line Items] | ||||
Beginning Balance | 0 | |||
Transfers In | 0 | |||
Transfers Out | 0 | |||
Investment Purchases / Issuances | 987 | |||
Investment Sales / Settlements | (981) | |||
Gains / Losses | (6) | |||
Ending Balance | $ 0 | $ 0 |
Investments and Fair Value Di_6
Investments and Fair Value Disclosures - Schedule of Net Unrealized Gains (Losses) on Company's Level III Assets and Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Management company related | CLOs | ||||
Fair Value, Investments Measured On Recurring Basis [Line Items] | ||||
Unrealized gains (losses) on Level III assets and liabilities held as of the balance sheet date | $ 3,185 | $ (463) | $ 873 | $ (5,612) |
Investments and Fair Value Di_7
Investments and Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Loans sold to CLOs | $ 0 | ||
Risk retention percentage | 5.00% | ||
Fair value of investments in retained interests | $ 86.7 | $ 88.2 | |
Cash flows from retained interests | $ 2.3 | $ 3 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities Related to VIEs that are Not Consolidated (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Maximum risk of loss as a result of the Company’s involvement with VIEs: | ||
Income and fees receivable | $ 37,708 | $ 215,395 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Net assets of unconsolidated VIEs in which the Company has a variable interest | 9,531,763 | 8,805,128 |
Maximum risk of loss as a result of the Company’s involvement with VIEs: | ||
Unearned revenues | 72,421 | 63,337 |
Income and fees receivable | 11,023 | 21,841 |
Investments | 208,691 | 200,215 |
Maximum Exposure to Loss | $ 292,135 | $ 285,393 |
Leases - Lease Cost (Detail)
Leases - Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 5,152 | $ 5,135 | $ 15,440 | $ 15,430 |
Short-term lease cost | 13 | 13 | 38 | 45 |
Finance lease cost - amortization of leased assets | 199 | 137 | 529 | 411 |
Finance lease cost - imputed interest on lease liabilities | 19 | 22 | 57 | 71 |
Less: Sublease income | (391) | (380) | (1,145) | (1,145) |
Net Lease Cost | $ 4,992 | $ 4,927 | $ 14,919 | $ 14,812 |
Leases - Supplemental Lease Cas
Leases - Supplemental Lease Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating cash flows for operating leases | $ 5,634 | $ 8,731 | $ 16,837 | $ 20,109 |
Operating cash flows for finance leases | 1 | 22 | 6 | 71 |
Finance cash flows for finance leases | 256 | 154 | 907 | 611 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 0 | 0 | 6 | 126,007 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 0 | $ 0 | $ 745 | $ 1,702 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Detail) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 8 months 12 days | 9 years 3 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 10 months 24 days | 2 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 7.90% | 7.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 7.20% | 7.90% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 5,635 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 21,028 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 19,831 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 19,125 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 15,353 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 82,234 | |
Lessee, Operating Lease, Liability, Payments, Due | 163,206 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (45,115) | |
Operating lease liabilities | 118,091 | $ 128,043 |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 0 | |
Finance Lease, Liability, Payments, Due Year Two | 867 | |
Finance Lease, Liability, Payments, Due Year Three | 248 | |
Finance Lease, Liability, Payments, Due Year Four | 0 | |
Finance Lease, Liability, Payments, Due Year Five | 0 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Finance Lease, Liability, Payment, Due | 1,115 | |
Imputed interest | (49) | |
Finance Lease, Liability | $ 1,066 |
Leases Sublease Rent Payments R
Leases Sublease Rent Payments Receivable (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Remainder of Fiscal Year | $ 384 |
Lessor, Operating Lease, Payments to be Received, Two Years | 1,537 |
Lessor, Operating Lease, Payments to be Received, Three Years | 1,537 |
Lessor, Operating Lease, Payments to be Received, Four Years | 1,204 |
Lessor, Operating Lease, Payments to be Received, Five Years | 0 |
Lessor, Operating Lease, Payments to be Received, Thereafter | 0 |
Lessor, Operating Lease, Payments to be Received | $ 4,662 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Lease collateral | $ 6.2 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt Principal Payments (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 6,576 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 40,484 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 48,500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 59,120 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 119,035 | |
Borrowings outstanding | 273,715 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (14,920) | |
Debt obligations | 258,795 | $ 286,728 |
Debt Securities | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 40,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 40,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 40,000 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 80,000 | |
Borrowings outstanding | 200,000 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (14,480) | |
Debt obligations | 185,520 | |
2018 Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 8,500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 0 | |
Borrowings outstanding | 8,500 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (130) | |
Debt obligations | 8,370 | |
CLO Investments Loans | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 6,576 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 484 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 19,120 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 39,035 | |
Borrowings outstanding | 65,215 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (310) | |
Debt obligations | $ 64,905 | $ 60,625 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of CLO Investments Loans (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Borrowings outstanding | $ 258,795 | $ 286,728 |
CLO Investments Loans | ||
Debt Instrument [Line Items] | ||
Borrowings outstanding | $ 64,905 | 60,625 |
CLO Investments Loans | June 07, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity date | Nov. 16, 2029 | |
Borrowings outstanding | $ 17,195 | 17,245 |
CLO Investments Loans | June 07, 2017 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.48% | |
CLO Investments Loans | August 02, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 21, 2030 | |
Borrowings outstanding | $ 21,582 | 21,679 |
CLO Investments Loans | August 02, 2017 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.41% | |
CLO Investments Loans | September 14, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 14, 2024 | |
Borrowings outstanding | $ 19,067 | 18,237 |
CLO Investments Loans | September 14, 2017 | EURIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.21% | |
CLO Investments Loans | August 1, 2019 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 29, 2021 | |
Borrowings outstanding | $ 6,576 | 3,464 |
CLO Investments Loans | August 1, 2019 | EURIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.15% | |
CLO Investments Loans | February 27, 2020 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 11, 2022 | |
Borrowings outstanding | $ 485 | $ 0 |
CLO Investments Loans | February 27, 2020 | EURIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.80% |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Repayment of debt obligations | $ 36,668 | $ 187,790 | |
Warrants, Term | 10 years | ||
Warrants, Exercise price | $ 11.93 | ||
Warrants, period of transfer restrictions from Closing Date | 18 months | ||
Class A Shares | |||
Debt Instrument [Line Items] | |||
Warrants, Number of shares issuable | 4.3 | ||
2018 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 250,000 | ||
Repayment of debt obligations | 36,500 | ||
CLO Investments Loans | |||
Debt Instrument [Line Items] | |||
Collateral on CLO Investments Loans | 64,500 | $ 65,900 | |
2020 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 320,000 | ||
Amount of unit repurchases allowed to be included in the Minimum Prepayment/Buyback Amount | 50,000 | ||
Minimum Prepayment/Buyback Amount required by May 15, 2021 | 100,000 | ||
Minimum Term Loan Prepayment Amount required by March 31, 2022 | $ 100,000 | ||
Net Leverage Ratio limit to prevent a Leverage Based Step-Up Event | 3 | ||
Amount required to be repaid to meet Fall-Away Trigger | $ 175,000 | ||
Percent of original principal amount amortized in quarterly installments | 0.75% | ||
Number of days after end of fiscal year that payment is due for Adjusted Distributable Earnings cash sweep | 95 | ||
Percentage of Adjusted Distributable earnings to be applied to 2020 Term Loan until $100 million is repaid | 100.00% | ||
Aggregate amount of repayments subject to 100% Cash Sweep | $ 100,000 | ||
Percentage of Adjusted Distributable earnings to be applied to 2020 Term Loan if $100 - $150 million has been repaid | 25.00% | ||
Aggregate amount of repayments subject to 25% Cash Sweep | $ 150,000 | ||
Percentage of Adjusted Distributable earnings to be applied to 2020 Term Loan prepayment if over $150 million has been repaid | 0.00% | ||
Number of days after fiscal year end for which contractually committed prepayments can offset cash sweep amount | 90 | ||
Minimum free cash balance for Adjusted Distributable Earnings prepayments | $ 75,000 | ||
Call Premium due in addition to make-whole premium on prepayment occurring prior to second anniversary of Closing Date | 3.00% | ||
Call Premium on prepayment occurring on or after second anniversary, but prior to third anniversary of Closing Date | 3.00% | ||
Call Premium on prepayment occurring on or after third anniversary, but prior to fourth anniversary of Closing Date | 2.00% | ||
Call Premium on prepayment occurring on or after fourth anniversary of Closing Date | 0.00% | ||
Prepayments prior to March 31, 2022 for which Call Premium shall not apply | $ 175,000 | ||
Aggregate principal for which Call Premium shall not apply | 100,000 | ||
Minimum amount of fee-paying assets under management covenant | $ 20,000,000 | ||
Net Leverage Ratio required during Financial Covenant Period | 4.50 | ||
Amount of 2020 Term Loan repayments required until $100mm minimum liquidity requirement is reduced to $50mm | $ 100,000 | ||
Minimum liquidity requirement until $100mm of 2020 Term Loan has been repaid | 100,000 | ||
Minimum liquidity requirement once $100mm of 2020 Term Loan has been repaid | 50,000 | ||
Debt Securities | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 200,000 | ||
Percent discount on repayment within nine months of repayment of 2019 Preferred Units | 5.00% | ||
2018 Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | ||
2020 Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | ||
Undrawn commitment fee | 0.50% | ||
LIBOR | 2020 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Floor on Variable Rate | 0.75% | ||
LIBOR | 2020 Term Loan | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 6.25% | ||
LIBOR | 2020 Term Loan | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 8.25% | ||
Base Rate | 2020 Term Loan | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Floor on Variable Rate | 1.75% | ||
Base Rate | 2020 Term Loan | Minimum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | ||
Base Rate | 2020 Term Loan | Maximum | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 7.25% |
Securities Sold under Agreeme_3
Securities Sold under Agreements to Repurchase - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 101,892 | $ 97,508 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities in the Consolidated Balance Sheet | 101,892 | 97,508 |
Securities Transferred | 101,843 | 97,508 |
Net Amount | $ 49 | $ 0 |
Securities Sold under Agreeme_4
Securities Sold under Agreements to Repurchase - Remaining Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | $ 101,892 | $ 97,508 |
CLOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 101,892 | 97,508 |
CLOs | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 0 | 0 |
CLOs | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 0 | 0 |
CLOs | 30-90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 0 | 0 |
CLOs | Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | $ 101,892 | $ 97,508 |
Securities Sold under Agreeme_5
Securities Sold under Agreements to Repurchase - Additional Details (Details) - Repurchase agreements credit facility - EUR (€) € in Millions | Oct. 12, 2020 | Sep. 30, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements credit facility borrowing capacity | € 100 | |
Repurchase agreements credit facility undrawn balance | € 12.3 | |
Subsequent Event | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements credit facility borrowing capacity | € 200 |
Preferred Units - Additional In
Preferred Units - Additional Information (Detail) - USD ($) $ in Millions | Feb. 07, 2019 | Sep. 30, 2020 |
Noncontrolling Interest [Line Items] | ||
Amount of 2016 Preferred Units restructured as 2019 Preferred Units | $ 200 | |
Amount of 2016 Preferred Units Restructured as Debt Securities | $ 200 | |
2019 Preferred Units | ||
Noncontrolling Interest [Line Items] | ||
Discount on early redemption of 2019 Preferred Units through March 31, 2021 | 25.00% |
Other Assets, Net - Components
Other Assets, Net - Components of Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fixed Assets: | ||
Leasehold improvements | $ 52,798 | $ 52,798 |
Computer hardware and software | 49,484 | 47,361 |
Furniture, fixtures and equipment | 8,411 | 8,411 |
Accumulated depreciation and amortization | (79,108) | (73,730) |
Fixed assets, net | 31,585 | 34,840 |
Goodwill | 22,691 | 22,691 |
Prepaid expenses | 14,497 | 18,507 |
Other | 6,230 | 6,570 |
Total Other Assets, Net | $ 75,003 | $ 82,608 |
Other Liabilities - Components
Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |||
Estimated Litigation Liability | [1] | $ 138,040 | $ 19,100 |
Accrued expenses | 12,637 | 19,275 | |
Uncertain tax positions | 8,250 | 8,250 | |
Unearned management fee | 6,410 | 311 | |
Unused trade commissions | 3,863 | 5,192 | |
Other | 7,165 | 7,089 | |
Total Other Liabilities | $ 176,365 | $ 59,217 | |
[1] | See Note 18 for additional details. |
Revenues - Management Fees and
Revenues - Management Fees and Incentive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | $ 41,525 | $ 30,423 | $ 89,085 | $ 118,378 |
Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 68,053 | 62,956 | 195,389 | 187,979 |
Multi-strategy funds | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 22,013 | 13,732 | 58,377 | 59,516 |
Multi-strategy funds | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 33,239 | 34,201 | 94,826 | 102,801 |
Opportunistic credit funds | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 16,585 | 2,664 | 24,005 | 35,653 |
Opportunistic credit funds | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 12,512 | 11,217 | 33,308 | 32,356 |
Institutional Credit Strategies | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 0 | 0 | 0 | 0 |
Institutional Credit Strategies | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 13,302 | 14,713 | 36,653 | 42,284 |
Real estate funds | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 2,927 | 14,027 | 6,703 | 23,209 |
Real estate funds | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 9,000 | 2,613 | 30,594 | 9,862 |
Other | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 0 | 0 | 0 | 0 |
Other | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | $ 0 | $ 212 | $ 8 | $ 676 |
Revenues - Unearned Incentive I
Revenues - Unearned Incentive Income Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Beginning of Year | $ 60,798 | $ 61,397 |
Amounts collected during the period | 8,887 | 20,168 |
Amounts recognized during the period | (2,793) | (18,174) |
End of Period | $ 66,892 | $ 63,391 |
Revenues - Income and Fees Rece
Revenues - Income and Fees Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Income and Fees Receivable [Line Items] | ||
Income and fees receivable | $ 37,708 | $ 215,395 |
Management fees | ||
Income and Fees Receivable [Line Items] | ||
Income and fees receivable | 23,767 | 25,726 |
Incentive income | ||
Income and Fees Receivable [Line Items] | ||
Income and fees receivable | $ 13,941 | $ 189,669 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory U.S. Federal Income Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Income passed through to noncontrolling interests | (0.39%) | 0.44% | (1.38%) | 4.18% |
Nondeductible transaction costs | 0.00% | 0.00% | 0.00% | (4.66%) |
Tax effects of income recorded to equity in connection with the Recapitalization | 0.00% | 0.00% | 0.00% | 3.46% |
Foreign income taxes | 4.57% | (2.93%) | (2.03%) | (7.38%) |
RSU excess income tax benefit or expense | 2.29% | (0.29%) | (0.44%) | (3.72%) |
State and local income taxes | 5.44% | 1.62% | 3.47% | (13.44%) |
Nondeductible amortization of Partner Equity Units | 5.66% | (10.19%) | (4.36%) | (22.99%) |
Nondeductible interest expense | 0.85% | (5.72%) | (0.74%) | (4.57%) |
Other, net | (0.42%) | (0.07%) | (0.72%) | 2.36% |
Effective Income Tax Rate | 39.00% | 3.86% | 14.80% | (25.76%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards | ||
Unrecognized Tax Benefits | $ 8.3 | $ 8.3 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4.8 |
General, Administrative and O_3
General, Administrative and Other - Components of General, Administrative and Other Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Occupancy and equipment | $ 7,549 | $ 7,555 | $ 22,685 | $ 22,663 |
Information processing and communications | 5,223 | 5,074 | 15,881 | 15,924 |
Recurring placement and related service fees | 4,057 | 3,527 | 14,229 | 10,372 |
Professional services | 3,836 | 8,111 | 18,781 | 29,801 |
Insurance | 2,118 | 2,176 | 6,374 | 6,500 |
Business development | 237 | 1,032 | 1,600 | 2,989 |
Foreign exchange (gains) losses | (84) | 173 | (394) | (181) |
Other expenses | 1,489 | 1,524 | 5,690 | 7,319 |
General, Administrative and Other Expenses before Legal Provisions | 24,425 | 29,172 | 84,846 | 95,387 |
Legal provisions | 2,040 | 19,100 | 118,940 | 19,100 |
Total General, Administrative and Other | $ 26,465 | $ 48,272 | $ 203,786 | $ 114,487 |
Earnings (Loss) Per Class A S_3
Earnings (Loss) Per Class A Share - Computation of Basic and Diluted Earnings (Loss) Per Class A Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders | $ 8,017 | $ (25,140) | $ (45,489) | $ 3,318 |
Net Income (Loss) Attributable to Class A Shareholders, Diluted | $ 12,281 | $ (25,140) | $ (104,623) | $ 3,318 |
Weighted-Average Class A Shares Outstanding, Basic (in shares) | 22,729,285 | 20,907,021 | 22,542,047 | 20,703,211 |
Weighted-Average Class A Shares Outstanding, Diluted (in shares) | 49,737,060 | 20,907,021 | 38,559,963 | 28,165,978 |
Earnings (Loss) Per Class A Share, Basic (in dollars per share) | $ 0.35 | $ (1.20) | $ (2.02) | $ 0.16 |
Earnings (Loss) Per Class A Share, Diluted (in dollars per share) | $ 0.25 | $ (1.20) | $ (2.71) | $ 0.12 |
Group A Units | ||||
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders, Effect of dilutive securities | $ 4,264 | $ 0 | $ (59,134) | $ 0 |
Weighted-Average Class A Shares Outstanding, Effect of dilutive securities (in shares) | 16,019,506 | 0 | 16,017,916 | 0 |
Number of Antidilutive Units Excluded from Diluted Calculation (in shares) | 0 | 16,019,506 | 0 | 17,344,925 |
Group E Units | ||||
Earnings Per Share [Line Items] | ||||
Weighted-Average Class A Shares Outstanding, Effect of dilutive securities (in shares) | 10,988,269 | 0 | 0 | 6,908,523 |
Number of Antidilutive Units Excluded from Diluted Calculation (in shares) | 0 | 13,476,211 | 13,386,679 | |
RSUs | ||||
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders, Effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted-Average Class A Shares Outstanding, Effect of dilutive securities (in shares) | 0 | 0 | 0 | 554,244 |
Number of Antidilutive Units Excluded from Diluted Calculation (in shares) | 4,110,587 | 4,903,263 | 4,186,109 | 0 |
Earnings (Loss) Per Class A S_4
Earnings (Loss) Per Class A Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
RSUs | ||||
Earnings Per Share [Line Items] | ||||
Vested RSUs included in weighted-average Class A Shares outstanding | 297,927 | 196,216 | 473,070 | 181,793 |
Related Party Transactions - Ma
Related Party Transactions - Management Fees and Incentive Income Earned from Related Parties and Waived Fees (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Management fees | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | $ 68,053 | $ 62,956 | $ 195,389 | $ 187,979 |
Incentive Income | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | 41,525 | 30,423 | 89,085 | 118,378 |
Fees charged on investments held by related parties: | Management fees | Executive Managing Directors, Employees and Other Related Parties | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | 982 | 1,613 | 2,881 | 6,009 |
Fees charged on investments held by related parties: | Incentive Income | Executive Managing Directors, Employees and Other Related Parties | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | $ 257 | $ 2,646 | $ 688 | $ 7,414 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | ||||||
General, administrative and other | $ 26,465 | $ 48,272 | $ 203,786 | $ 114,487 | ||
Executive Managing Directors, Employees and Other Related Parties | Amount of Related Party Assets Under Management | ||||||
Related Party Transaction [Line Items] | ||||||
Assets under management | $ 957,100 | $ 1,000,000 | $ 957,100 | $ 1,000,000 | ||
Executive Managing Directors, Employees and Other Related Parties | Percent of Related Party Assets Under Management Not Charged Fees | ||||||
Related Party Transaction [Line Items] | ||||||
Percent of assets under management not charged management and incentive fees | 48.00% | 32.00% | 48.00% | 32.00% | ||
Executive Managing Directors, Employees and Other Related Parties | Payments Under Tax Receivable Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Payments under Tax Receivable Agreement | $ 18,200 | |||||
Mr. Och | Reimbursement of Personal Recapitalization Expenses Incurred | ||||||
Related Party Transaction [Line Items] | ||||||
General, administrative and other | $ 4,500 | $ 5,000 |
Commitments and Contingencies -
Commitments and Contingencies - Estimated Potential Payments Under Tax Receivable Agreement (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Tax Receivable Agreement [Abstract] | |
Tax Receivable Agreement Future Maximum Payments Due Remainder Of The Year | $ 11,805 |
Tax Receivable Agreement Future Maximum Payments, Due Year Two | 9,935 |
Tax Receivable Agreement Future Maximum Payments, Due Year Three | 29,559 |
Tax Receivable Agreement Future Maximum Payments, Due Year Four | 46,089 |
Tax Receivable Agreement Future Maximum Payments, Due Year Five | 43,002 |
Tax Receivable Agreement Future Maximum Payments, Due After Year Five | 47,071 |
Estimated future payments under tax receivable agreement | $ 187,461 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 04, 2020 | Apr. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Percentage of tax savings to be paid under tax receivable agreement | 75.00% | 75.00% | 85.00% | |||||
Reduction in tax receivable agreement liability due to amendment | $ 67,200 | |||||||
Decrease in deferred income tax asset due to tax receivable agreement amendment | 16,300 | |||||||
Increase in paid-in capital as a result of tax receivable agreement amendment | $ 51,000 | $ 0 | $ 50,318 | |||||
Percentage of tax savings to be paid under tax receivable agreement to remaining EMDs and Ziffs | 69.00% | 69.00% | ||||||
Estimated future payments under tax receivable agreement | $ 187,461 | $ 187,461 | ||||||
Unfunded capital commitments of the Company to funds managed | 83,500 | 83,500 | ||||||
Unfunded capital commitments by EMDs | 57,700 | 57,700 | ||||||
Capital commitments by EMDs | 14,500 | 14,500 | ||||||
Loss Contingencies [Line Items] | ||||||||
Legal provisions | 2,040 | $ 19,100 | 118,940 | $ 19,100 | ||||
Estimated Litigation Liability | [1] | $ 138,040 | $ 138,040 | $ 19,100 | ||||
Africo Litigation | Subsequent Event | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payments for Legal Settlements | $ 138,000 | |||||||
Payments for Legal Settlements | $ 138,000 | |||||||
[1] | See Note 18 for additional details. |