Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38980 | ||
Entity Registrant Name | ASSETMARK FINANCIAL HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 30-0774039 | ||
Entity Address, Address Line One | 1655 Grant Street | ||
Entity Address, Address Line Two | 10th Floor | ||
Entity Address, City or Town | Concord | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94520 | ||
City Area Code | 925 | ||
Local Phone Number | 521-2200 | ||
Title of 12(b) Security | Common stock, par value $0.001 per share | ||
Trading Symbol | AMK | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 652.8 | ||
Entity Common Stock, Shares Outstanding | 74,376,670 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference : Certain information required in response to Item 5 of Part II of Form 10-K and Part III of Form 10-K is hereby incorporated by reference to portions of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held in 2024. The Proxy Statement will be filed by the Registrant with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year ended December 31, 2023. | ||
Entity Central Index Key | 0001591587 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | San Francisco, CA |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 217,680 | $ 123,274 |
Restricted cash | 15,000 | 13,000 |
Investments, at fair value | 18,003 | 13,714 |
Fees and other receivables, net | 21,345 | 20,082 |
Income tax receivable, net | 1,890 | 265 |
Prepaid expenses and other current assets | 17,193 | 16,870 |
Total current assets | 291,111 | 187,205 |
Property, plant and equipment, net | 8,765 | 8,495 |
Capitalized software, net | 108,955 | 89,959 |
Other intangible assets, net | 684,142 | 694,627 |
Operating lease right-of-use assets | 20,408 | 22,002 |
Goodwill | 487,909 | 487,225 |
Other assets | 19,273 | 13,417 |
Total assets | 1,620,563 | 1,502,930 |
Current liabilities: | ||
Accounts payable | 288 | 4,624 |
Accrued liabilities and other current liabilities | 75,554 | 69,196 |
Total current liabilities | 75,842 | 73,820 |
Long-term debt, net | 93,543 | 112,138 |
Other long-term liabilities | 18,429 | 15,185 |
Long-term portion of operating lease liabilities | 26,295 | 27,924 |
Deferred income tax liabilities, net | 139,072 | 147,497 |
Total long-term liabilities | 277,339 | 302,744 |
Total liabilities | 353,181 | 376,564 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity: | ||
Common stock, $0.001 par value (675,000,000 shares authorized and 74,372,889 and 73,847,596 shares issued and outstanding as of December 31, 2023 and 2022, respectively) | 74 | 74 |
Additional paid-in capital | 960,700 | 942,946 |
Retained earnings | 306,622 | 183,503 |
Accumulated other comprehensive loss | (14) | (157) |
Total stockholders’ equity | 1,267,382 | 1,126,366 |
Total liabilities and stockholders’ equity | $ 1,620,563 | $ 1,502,930 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 675,000,000 | 675,000,000 |
Common stock, shares issued (in shares) | 74,372,889 | 73,847,596 |
Common stock, shares outstanding (in shares) | 74,372,889 | 73,847,596 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenue | $ 708,499 | $ 611,695 | $ 530,299 |
Operating expenses: | |||
Asset-based expenses | 162,420 | 154,100 | 150,836 |
Spread-based expenses | 1,244 | 1,571 | 1,427 |
Employee compensation | 190,616 | 166,330 | 196,701 |
General and operating expenses | 98,302 | 90,122 | 72,941 |
Professional fees | 26,852 | 25,186 | 21,813 |
Depreciation and amortization | 35,544 | 31,149 | 37,929 |
Total operating expenses | 514,978 | 468,458 | 481,647 |
Interest expense | 9,108 | 6,520 | 3,559 |
Other (income) expense, net | 16,947 | (43) | 106 |
Income before income taxes | 167,466 | 136,760 | 44,987 |
Provision for income taxes | 44,347 | 33,499 | 19,316 |
Net income | 123,119 | 103,261 | 25,671 |
Change in fair value of convertible notes receivable, net | 143 | (157) | 0 |
Net comprehensive income | $ 123,262 | $ 103,104 | $ 25,671 |
Net income per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ 1.66 | $ 1.40 | $ 0.36 |
Diluted (in dollars per share) | $ 1.65 | $ 1.40 | $ 0.35 |
Weighted average number of common shares outstanding, basic (in shares) | 74,113,591 | 73,724,341 | 72,137,174 |
Weighted average number of common shares outstanding, diluted (in shares) | 74,438,332 | 73,872,828 | 72,399,213 |
Asset-based revenue | |||
Revenue: | |||
Total revenue | $ 553,483 | $ 534,182 | $ 512,188 |
Spread-based revenue | |||
Revenue: | |||
Total revenue | 120,262 | 56,798 | 8,568 |
Subscription-based revenue | |||
Revenue: | |||
Total revenue | 15,179 | 13,020 | 6,381 |
Other revenue | |||
Revenue: | |||
Total revenue | $ 19,575 | $ 7,695 | $ 3,162 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 72,459,255 | ||||
Beginning balance at Dec. 31, 2020 | $ 905,073 | $ 72 | $ 850,430 | $ 54,571 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 25,671 | 25,671 | |||
Share-based employee compensation | 53,637 | 53,637 | |||
Issuance of common stock - vesting of restricted stock units (in shares) | 106,110 | ||||
Issuance of common stock – vesting of restricted stock units | 0 | $ 1 | (1) | ||
Common stock issued in connection with business (in shares) | 994,028 | ||||
Common stock issued in connection with business combination | 24,910 | $ 1 | 24,909 | ||
Exercise of stock options (in shares) | 6,242 | ||||
Exercise of stock options | 95 | 95 | |||
Cancellation of unvested restricted stock awards (in shares) | (2,918) | ||||
Change in fair value of convertible notes receivable, net | 0 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 73,562,717 | ||||
Ending balance at Dec. 31, 2021 | 1,009,386 | $ 74 | 929,070 | 80,242 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 103,261 | 103,261 | |||
Share-based employee compensation | 13,876 | 13,876 | |||
Issuance of common stock - vesting of restricted stock units (in shares) | 284,168 | ||||
Issuance of common stock – vesting of restricted stock units | 0 | ||||
Exercise of stock options (in shares) | 711 | ||||
Exercise of stock options | 0 | ||||
Change in fair value of convertible notes receivable, net | (157) | (157) | |||
Ending balance (in shares) at Dec. 31, 2022 | 73,847,596 | ||||
Ending balance at Dec. 31, 2022 | 1,126,366 | $ 74 | 942,946 | 183,503 | (157) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 123,119 | 123,119 | |||
Share-based employee compensation | 16,388 | 16,388 | |||
Issuance of common stock - vesting of restricted stock units (in shares) | 383,592 | ||||
Issuance of common stock – vesting of restricted stock units | 0 | ||||
Exercise of stock options (in shares) | 116,746 | ||||
Exercise of stock options | 1,366 | 1,366 | |||
Change in fair value of convertible notes receivable, net | 143 | 143 | |||
Exercise of stock appreciation rights (in shares) | 24,955 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 74,372,889 | ||||
Ending balance at Dec. 31, 2023 | $ 1,267,382 | $ 74 | $ 960,700 | $ 306,622 | $ (14) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 123,119 | $ 103,261 | $ 25,671 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,544 | 31,149 | 37,929 |
Interest (income) expense, net | (341) | 541 | 700 |
Deferred income taxes | (9,132) | (6,673) | (1,562) |
Share-based compensation | 16,388 | 13,876 | 53,637 |
Debt acquisition cost write-down | 92 | 130 | 0 |
Changes in certain assets and liabilities: | |||
Fees and other receivables, net | (1,734) | (10,718) | 163 |
Receivables from related party | 480 | 568 | (91) |
Prepaid expenses and other current assets | 4,737 | 2,346 | 2,460 |
Income tax receivable and payable, net | (1,486) | 6,073 | 2,570 |
Accounts payable, accrued liabilities and other liabilities | 7,006 | (252) | 7,500 |
Net cash provided by operating activities | 174,673 | 140,301 | 128,977 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of Adhesion Wealth, net of cash received | (3,000) | (43,861) | 0 |
Purchase of Voyant, net of cash received | 0 | 0 | (124,161) |
Purchase of convertible notes | (5,434) | (10,300) | 0 |
Purchase of investments | (2,329) | (2,692) | (3,004) |
Sale of investments | 456 | 918 | 833 |
Purchase of property and equipment | (2,853) | (3,061) | (1,507) |
Purchase of computer software | (41,473) | (35,996) | (33,145) |
Net cash used in investing activities | (54,633) | (94,992) | (160,984) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt, net | 0 | 122,508 | 0 |
Payments on revolving credit facility | (50,000) | (115,000) | (35,000) |
Payments on term loan | (25,000) | (6,250) | 0 |
Proceeds from credit facility draw down | 50,000 | 0 | 75,000 |
Proceeds from exercise of stock options | 1,366 | 0 | 95 |
Net cash (used in) provided by financing activities | (23,634) | 1,258 | 40,095 |
Net change in cash, cash equivalents, and restricted cash | 96,406 | 46,567 | 8,088 |
Cash, cash equivalents, and restricted cash at beginning of period | 136,274 | 89,707 | 81,619 |
Cash, cash equivalents, and restricted cash at end of period | 232,680 | 136,274 | 89,707 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid, net | 54,520 | 33,637 | 19,796 |
Interest paid | 9,947 | 4,087 | 2,828 |
Non-cash operating, investing, and financing activities: | |||
Non-cash changes to right-of-use assets | 3,360 | 3,775 | 933 |
Non-cash changes to lease liabilities | 3,360 | 3,775 | 933 |
Non-cash change in fair value of convertible notes | 143 | (157) | 0 |
Common stock issued in acquisition of business | $ 0 | $ 0 | $ 24,910 |
Overview
Overview | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview | Overview Organization and Nature of Business These consolidated financial statements include AssetMark Financial Holdings, Inc (“AFHI”) and its subsidiaries, which include AssetMark, Inc., AssetMark Trust Company, AssetMark Brokerage, LLC, AssetMark Services, Inc. d/b/a AssetMark Retirement Services, Inc., Global Financial Private Capital, Inc., Voyant, Inc., Voyant UK Limited, Voyant Financial Technologies Inc., Voyant Australia Pty Ltd and Atria Investments, Inc. d/b/a Adhesion Wealth. The entities listed above are collectively referred to as the “Company”. AssetMark, Inc. (“AMI”) is a registered investment adviser that was incorporated under the laws of the State of California on May 13, 1999. AMI offers a broad array of wealth management solutions to individual investors through financial advisers by providing an open-architecture product platform along with tailored client advice, asset allocation options, practice management , support services and technology solutions to the financial adviser channel. AssetMark Trust Company (“ATC”) is a licensed trust company incorporated under the laws of the State of Arizona on August 24, 1994 and regulated by the Arizona Department of Insurance and Financial Institutions. ATC provides custodial recordkeeping services primarily to investor clients of registered investment advisers (including AMI) located throughout the United States. AssetMark Brokerage, LLC (“AMB”) is a limited-purpose broker-dealer located in Concord, California and was incorporated under the laws of the State of Delaware on September 25, 2013. AMB’s primary function is to distribute the proprietary mutual funds of AMI and to sponsor the FINRA licensing of those employees who provide distribution support through promotion of the AMI programs and strategies that employ the mutual funds. Voyant, Inc. (“Voyant”), is a SaaS-based financial planning, wellness and client digital engagement solutions company that was originally formed in Texas on December 29, 2005 and was converted to a Delaware corporation on November 21, 2008. Atria Investments, Inc. (“Adhesion Wealth”), doing business as Adhesion Wealth, is a registered investment adviser that was formed as a limited liability company under the laws of the State of North Carolina on March 29, 2007, and was converted to a corporation under the laws |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Risks and Uncertainties Estimates and assumptions about future events and their effects on the Company cannot be determined with certainty and therefore require the exercise of judgment. The Company is not aware of any specific events or circumstances that would require the Company to update its estimates, assumptions or judgments or revise the carrying value of its assets or liabilities. The Company will update the estimates and assumptions underlying the consolidated financial statements in future periods as events and circumstances develop. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). For the year ended December 31, 2022, the Company reclassified $6,611 in the accompanying consolidated statements of income and comprehensive income from spread-based expenses to offset spread-based revenue to account for interest credited to customer accounts on a net basis in order to correct an immaterial error. The adjustment had no effect on the current year or previous years’ reported net income, earnings per-share, balance sheet, stockholders’ equity, and cash flows. Management has deemed the error to be immaterial to the financial statements taken as a whole. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to intangible assets and goodwill, useful lives of intangible assets and property and equipment, internal use software, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Concentration of Credit Risk and Significant Clients and Suppliers The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company deposits its cash primarily with two financial institutions, and accordingly, such deposits regularly exceed federally insured limits. Foreign Currency Policy The Company’s functional currency is the US Dollar, and the related gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts are included in other (income) expense, net in the consolidated statements of income and comprehensive income. Geographic Sources of Revenue Revenues attributable to customers outside of the United States totaled $16,054, $14,484, and $6,926 in the years ended December 31, 2023, 2022, and 2021 respectively. No single customer accounted for more than 10% of the Company’s revenue in any of the periods presented. There were no customers that represented more than 10% of the Company’s accounts receivable balance as of December 31, 2023 and 2022, respectively. Cash, Cash Equivalents and Restricted Cash Certificates of deposit, money market funds and other time deposits with original maturities of three months or less are considered cash equivalents. Restricted cash consists of certificate of deposits the Company maintains in liquid capital in accordance with Arizona Revised Statutes requirements governing trust companies. See Note 18 for details regarding capital requirements. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: December 31, 2023 2022 2021 Cash and cash equivalents $ 217,680 $ 123,274 $ 76,707 Restricted cash 15,000 13,000 13,000 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 232,680 $ 136,274 $ 89,707 Investment Securities The Company’s investments primarily comprise of equity and debt security investments for the Company’s rabbi trust and investment securities funds. The Company may sell these securities at any time for use in its current operations or for other purposes. These funds invest in securities which are actively traded and fair values for these securities are based on quoted market prices. Unrealized holding gains and losses are reported as other (income) expense, net. Realized gains and losses from sales are determined on a specific-identification basis. Dividend and interest income are recognized when earned. Fees and Other Receivables Fee and other receivables represent service fees and advisory fees receivable, interest earned on cash assets custodied through ATC as well as miscellaneous custody fees in arrears. Fee and other receivables are recorded at the invoiced amount, net of allowances. These allowances are based on historical experience and evaluation of potential risk of loss associated with delinquent accounts. The allowance for doubtful accounts was $179 and $39 as of December 31, 2023 and 2022, respectively. Fair Value Measurements The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other accrued expenses, approximate their fair values due to their relatively short maturity. The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs that are directly or indirectly observable in the marketplace. • Level 3 – Unobservable inputs that are supported by little or no market activity. As of each reporting period, all assets recorded at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 9 for more information regarding fair value measurements. Business Combinations When the Company acquires a business, management allocates the purchase price to the net tangible and identifiable intangible assets acquired. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates are based on market and income approaches that include significant unobservable inputs. These estimates are inherently uncertain and unpredictable. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Goodwill, Acquired Intangible Assets and Impairment of Long-Lived Assets Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value. The Company has the option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If after assessing the totality of events or circumstances it is determined that it is more likely than not that the carrying value of the reporting unit may exceed its fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. No impairment charges related to goodwill were recorded during the years ended December 31, 2023, 2022 and 2021. Indefinite-lived intangible assets are tested for impairment annually and whenever events or changes in circumstances indicate the carrying value of indefinite-lived intangible assets may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, attrition of broker-dealers or enterprise customers, or changes in expected future cash flows. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company’s indefinite-lived intangible assets consist of broker-dealer relationships and enterprise distribution channel customer relationships. No impairment charges related to indefinite-lived intangible assets were recorded during the years ended December 31, 2023, 2022 and 2021. There were no changes in the indefinite useful life assigned to indefinite-lived intangible assets during the years ended December 31, 2023, 2022 and 2021. AssetMark’s broad array of wealth management solutions are sold to individual investors through financial advisers associated with broker-dealers. The Company has long-standing, established relationships with these broker-dealers that are expected to result in future revenue and profit. While the relationships with the broker-dealers are contractual, the agreements have no fixed expiration dates or renewal terms, and there have been no instances of terminated agreements by either side to-date. Based on the foregoing, the acquired relationships with broker-dealers are identified and valued as a discrete indefinite-lived intangible asset. Acquired indefinite-lived intangible assets also consists of enterprise distribution channel relationships with financial institutions that are expected to result in future revenue and profit. While these relationships are contractual, they have no fixed expiration date and are expected to be renewed indefinitely. No such contracts have been terminated by either side to date. No impairment charges related to indefinite-lived intangible assets were recorded during the years ended December 31, 2023, 2022 and 2021. Acquired definite-lived intangible assets consist of assets resulting from the Company’s acquisitions. Acquired definite-lived intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives on a straight-line basis. The carrying amounts of long-lived assets, including property and equipment, capitalized internal-use software, and acquired definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value exceeds its fair value. No impairment charges related to long-lived assets and acquired definite-lived intangible assets were recorded during the years ended December 31, 2023, 2022 and 2021. Property and Equipment Property and equipment consist primarily of hardware, furniture and equipment and leasehold improvements. Depreciation is calculated on a straight‑line basis over the estimated useful lives of the related asset, generally three The following table shows balances of major classes of depreciable assets as of the date shown: December 31, 2023 2022 Computer software and equipment $ 10,727 $ 9,760 Furniture and equipment 4,502 3,918 Leasehold improvements 8,951 7,649 Total property and equipment 24,180 21,327 Less: accumulated depreciation (15,415) (12,832) Property, plant and equipment, net $ 8,765 $ 8,495 Capitalized Internal-Use Software The Company capitalizes certain costs incurred during the application development stage in connection with software development for its platform and internal use. Costs related to the preliminary project activities and post-implementation activities are expensed as incurred. Capitalized costs are recorded as part of capitalized software, net on the Company’s consolidated balance sheets. Maintenance and training costs are expensed as incurred. Capitalized internal-use software costs are amortized on a straight-line basis over the software estimated useful life, which is generally five years to nine years. The Company records amortization related to capitalized internal-use software within depreciation and amortization expense in the consolidated statements of income and comprehensive income. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were impairments of $393, $303 and $426 of internally developed software during the years ended December 31, 2023, 2022 and 2021, respectively. Amortization expense for the years ended December 31, 2023, 2022 and 2021 was $22,476, $19,737 and $28,280, respectively. Accumulated amortization was $158,930 and $136,858 as of December 31, 2023 and 2022, respectively. Revenue Recognition The Company accounts for its revenue arrangements in accordance with FASB Topic 606 - Revenue from Contracts with Customers (“ASC 606”). The Company recognizes revenue from services related to asset-based revenue, spread-based revenue, subscription-based revenue and other revenue. • Asset-based revenue — The Company primarily derives revenue from fees assessed against customer’s assets under management or administration for services the Company provides to its customers. Such services include investment manager due diligence and research, portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back office and middle-office operations and custody services. Investment decisions for assets under management or administration are made by the Company’s customers. The fee arrangements are based on a percentage applied to the customers’ assets under management or administration. The performance obligation is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fees are generally calculated, billed and collected quarterly in advance on the preceding quarter-end customer asset values, and are recognized as revenue at the time the services are provided in the period. Fees related to assets under management or administration increase or decrease based on values of existing customer accounts. The values are affected by inflows or outflows of customer funds and market fluctuations. • Spread-based revenue — The Company’s spread-based revenue is derived from providing Complete Cash Solutions to banks and clients. Spread-based revenue consists of the interest rate return earned on cash custodied at ATC. ATC utilizes third-party banks that accept deposits of client cash to generate interest from deposits which earns spread income for the Company. A portion of the proceeds from those investments are credited to client accounts. ATC is paid interest-rate sensitive fees calculated by reference to such deposits. The Company recognizes interest paid to clients on a net basis as the payment to the end clients is consideration payable to the customer and reduces the transaction price accordingly. The performance obligation is satisfied over time because the banks and clients are receiving and consuming the benefits of the Complete Cash Solutions as they are provided by the cash sweep provider. • Subscription-based revenue — Subscription-based revenue represents revenue recognized from subscription fee arrangements in connection with financial planning and wealth management software solutions for use as a hosted application. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the solution is made available to the customer. • Other revenue — Other revenue consists primarily of interest earned on operating cash held by the Company. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in asset-based expenses on the consolidated statements of income and comprehensive income. Asset-Based Expenses Asset-based expenses are costs incurred by the Company directly related to the generation of asset-based revenue. Fees paid to third-party strategists, investment managers, proprietary fund sub-advisers and investment advisers are calculated based on a percentage of the customers’ assets under management or administration. As a practical expedient, these costs are paid monthly and quarterly in advance on the preceding quarter-end customer asset values, and expensed as incurred over the period of time that the services are expected to be provided to customers, since the amortization of costs are in one year or less. See Note 12 for a breakout of these costs. Spread-Based Expenses The Company recognizes spread-based expenses when costs are incurred. Spread-based expenses relate to expenses paid to ATC’s third-party administrator for administering the custodian’s Complete Cash Solutions program. Share-Based Compensation Share-based compensation related to stock options and stock appreciation rights issued to officers and directors is measured based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. The Company uses the Black-Scholes options pricing model to estimate the fair value of stock options and equity-settled stock appreciation rights. The risk-free interest rate is the U.S. Treasury Yield that corresponds with the expected term. Expected volatility is estimated based on the volatility of a group of comparable public companies. The expected term was estimated using the simplified method due to limited historical information. The Company does not expect to pay dividends on its common shares. The Company uses the Lattice-Based pricing model to estimate the fair value of cash-settled stock appreciation rights. The risk-free interest rate is the U.S. Treasury Yield that corresponds with the expected term. Expected volatility is estimated based on the volatility of a group of comparable public companies. The expected term was estimated using the simplified method due to limited historical information. The Company does not expect to pay dividends related to the cash-settled stock appreciation rights. The suboptimal exercise multiple is estimated using published academic studies. The Company classifies cash-settled stock appreciation rights as liabilities and is included in accrued liabilities and other current liabilities in the Company's consolidated balance sheets. Cash-settled stock appreciation rights are accounted for at fair value and remeasured at each reporting date with any increases, or decreases, in the fair value will increase, or decrease, the associated liabilities and result in adjustments to income for the associated valuation losses or gains. Share-based compensation related to restricted stock awards and restricted stock units are measured on the grant date fair value of the award based on intrinsic value and are recognized on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur. See Note 15 for additional information related to share-based compensation . Operating Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in prepaid expenses and other current assets, operating lease right-of-use (“ROU”) assets, accrued liabilities and other current liabilities, and long-term portion of operating lease liabilities on the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligations to make payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company uses an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected to use the practical expedient to exclude the non-lease component from the lease for all asset classes. The majority of the Company’s lease agreements are facility leases. See Note 11 for additional information related to leases. Income Taxes The Company uses the asset-and-liability method of accounting for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, existence of available offsetting deferred tax liabilities, expectations of future taxable income and ongoing tax planning strategies. The Company recognizes and measure tax benefits from uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of issues. The Company follows the policy of releasing residual tax effects from accumulated other comprehensive income based on a portfolio approach , whereby the Company releases the residual tax effects only after the entire accumulated other comprehensive income adjustment has been reversed (e.g., when all available-for-sale debt securities are sold). The Company did not make an election to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. Net Income per Share Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted net income per share is similar to the computation of basic net income per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. Recently Adopted Accounting Pronouncements In August 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The Company adopted the new guidance prospectively on January 1, 2023. The adoption of ASU 2021-08 did not have a material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements – Issued Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The amendments in this update expands the annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The guidance becomes effective for the Company's annual fiscal period in 2024 and interim fiscal periods in 2025. Early adoption of the standard is permitted. The Company is currently evaluating the effect that ASU 2023-07 will have on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The amendments in this update improve the effectiveness of income tax disclosures about income tax information through improvements primarily related to the rate reconciliation and income taxes paid information. The guidance becomes effective for the Company beginning January 1, 2025. Early adoption of the standard is permitted. The Company is currently evaluating the effect that ASU 2023-09 will have on its consolidated financial statements. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2023 2022 Prepaid expenses $ 10,906 $ 11,697 Operating lease right-of-use assets 4,795 4,387 Other 1,492 786 Total $ 17,193 $ 16,870 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Acquisition of Adhesion Wealth On December 14, 2022, the Company acquired all of the issued and outstanding equity interests of Adhesion Wealth. Adhesion Wealth is a leading provider of outsourced investment management solutions for RIAs. With Adhesion Wealth, advisers gain access to a scalable, multi-custodian platform upon which to grow successful practices. The Company acquired Adhesion Wealth to complement AssetMark’s curated suite of fully bundled capabilities and services designed specifically for RIAs and delivered through AssetMark Institutional, a fully-assembled holistic solution for RIAs that the Company launched in March of 2021. The Company funded the acquisition with cash on hand. The consideration transferred in the acquisition, net of cash received, was $46,861. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate Total tangible assets acquired $ 6,136 $ (14) $ 6,122 Total liabilities assumed (3,603) (670) (4,273) Identifiable intangible assets 8,300 — 8,300 Goodwill 39,029 684 39,713 Total net assets acquired $ 49,862 $ — $ 49,862 The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to lower future operating expenses and the knowledge and experience of the existing workforce. The goodwill is not deductible for income tax purposes. A summary of identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Trade name $ 1,500 10 years Customer relationships 3,200 7 years Technology 3,600 3 years Total intangible assets acquired $ 8,300 The results of Adhesion Wealth’s operations were included in the consolidated statements of income and comprehensive income beginning December 14, 2022 and were not considered material to the Company’s results of operations for the year ended December 31, 2022. Acquisition of Voyant On July 1, 2021, the Company acquired all of the issued and outstanding equity interests of Voyant through a merger of Voyant with and into a wholly owned subsidiary of AFHI. Voyant provides software as a service (“SaaS”) based financial planning and wealth management software solutions to advisers across financial institutions and small adviser firms in the United Kingdom, Canada, Australia, and the United States. The Company acquired Voyant to add complementary financial planning tools to its existing suite of offerings and to strengthen Voyant’s growth prospects by leveraging the Company’s U.S. relationships. The Company is continuing to integrate the technology and operations of Voyant into its wealth management channel. The Company funded the acquisition with a combination of cash on hand, borrowings under its 2020 Revolving Credit Facility, and equity . The equity consideration at issuance comprised of 994,028 shares, and was valued at approximately $24,910 using the Company’s closing share price prior to issuance. The consideration transferred in the acquisition, net of cash received, was $157,098. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash and cash equivalents $ 8,027 Intangible assets 46,600 Goodwill 109,349 Other assets 2,896 Total assets acquired 166,872 Deferred income tax liabilities (7,758) Other liabilities (2,016) Total liabilities assumed (9,774) Total net assets acquired $ 157,098 The goodwill arising from the acquisition represents the expected synergistic benefits of the transaction, primarily related to lower future operating expenses and the knowledge and experience of the existing workforce. The goodwill is not deductible for income tax purposes. A summary of identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Technology $ 16,000 9 Enterprise distribution channel customer relationships 17,500 Indefinite Non-enterprise distribution channel customer relationships 9,500 14 Trade name 3,200 11 Non-compete agreements 400 3 Total intangible assets acquired $ 46,600 The results of Voyant’s operations were included in the consolidated statements of income and comprehensive income beginning July 1, 2021 and were not considered material to the Company’s results of operations for the year ended December 31, 2021. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities | Variable Interest Entities A variable interest entity (“VIE”) is an entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the ability to control the entity’s activities. Under existing accounting guidance, a VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the economic performance of the VIE and holds a variable interest that could potentially be significant to the VIE. The Company evaluates whether an entity is a VIE upon creation and upon the occurrence of significant events, such as a change in an entity’s assets or activities. The determination of whether the Company is the primary beneficiary involves performing a qualitative analysis of the VIE. The analysis includes its design, capital structure, contractual terms, including the rights of each variable interest holder, the activities of the VIE that most significantly impact its economic performance, and whether the Company has the power to direct those activities and the Company’s obligation to absorb losses or right to receive benefits significant to the VIE. In 2015, the Company created a rabbi trust to support the Company’s Deferred Compensation Plan, under which certain employees may defer their compensation and the Company will contribute the amounts to the rabbi trust. The rabbi trust subsequently invests the deferred compensation into diversified securities, and upon distribution, settles the deferred obligation in cash, which settlement includes the deferred compensation principal and any investment appreciation. The Company selects the investment options available for participants and is the primary beneficiary of the assets upon insolvency. The Company determined that the rabbi trust is a VIE and it is therefore consolidated. The VIE had investments at fair value of $17,486 and $13,602 as of December 31, 2023 and 2022, respectively, and other long-term liabilities of $17,486 and $13,602 as of December 31, 2023 and 2022, respectively. The VIE had other (income) expense of $2,373, $(2,542) and $1,690 related to the rabbi trust’s unrealized gains (losses) for the years ended December 31, 2023, 2022 and 2021, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The Company’s goodwill balance was $487,909 and $487,225 as of December 31, 2023 and 2022, respectively. Other Intangible Assets Information regarding the Company’s intangible assets is as follows: December 31, 2023 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (17,305) 33,225 Technology 19,600 (5,694) 13,906 Customer relationships 36,450 (9,846) 26,604 Regulatory licenses 34,850 (12,488) 22,362 Non-compete agreements 400 (335) 65 Total $ 729,810 $ (45,668) $ 684,142 December 31, 2022 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (14,573) 35,957 Technology 19,600 (2,717) 16,883 Customer relationships 36,450 (6,948) 29,502 Regulatory licenses 34,850 (10,745) 24,105 Non-compete agreements 400 (200) 200 Total $ 729,810 $ (35,183) $ 694,627 The weighted average estimated remaining useful life was 10.7 years for definite-lived intangible assets as of December 31, 2023. Amortization expense for definite-lived intangible assets was $10,485, $8,766 and $7,243, for the years ended December 31, 2023, 2022 and 2021, respectively. Estimated amortization expense for definite‑lived intangible assets for future years is as follows: Year Ended December 31: Estimated 2024 $ 10,425 2025 10,308 2026 9,158 2027 9,158 2028 9,158 2029 and thereafter 47,955 Total $ 96,162 |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Current Liabilities | Accrued Liabilities and Other Current Liabilities The following table shows the breakdown of accrued liabilities and other current liabilities: December 31, 2023 2022 Accrued bonus $ 22,643 $ 19,813 Compensation and benefits payable 12,941 13,403 Asset-based payables 6,255 840 Reserve for uncertain tax positions 4,640 4,136 Current portion of operating lease liabilities 4,522 4,485 Current portion of long-term debt, net — 6,123 Other accrued expenses 24,553 20,396 Total $ 75,554 $ 69,196 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consisted of the following: December 31, 2023 2022 Deferred compensation plan liability $ 17,486 $ 13,602 Other 943 1,583 Total $ 18,429 $ 15,185 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value in the consolidated balance sheets as of December 31, 2023 and 2022, based on the three-tier fair value hierarchy: December 31, 2023 Fair Value Level I Level II Level III Assets: Equity security investments $ 517 $ 517 $ — $ — Assets to fund deferred compensation liability 17,486 17,486 — — Convertible notes receivable 17,078 — — 17,078 Total assets $ 35,081 $ 18,003 $ — $ 17,078 Liabilities: Deferred compensation liability $ 17,486 $ 17,486 $ — $ — Total liabilities $ 17,486 $ 17,486 $ — $ — December 31, 2022 Fair Value Level I Level II Level III Assets: Equity security investments $ 112 $ 112 $ — $ — Assets to fund deferred compensation liability 13,602 13,602 — — Convertible notes receivable 10,352 — — 10,352 Total assets $ 24,066 $ 13,714 $ — $ 10,352 Liabilities: Deferred compensation liability $ 13,602 $ 13,602 $ — $ — Total liabilities $ 13,602 $ 13,602 $ — $ — Fair Value of Equity Security Investments The fair values of the Company’s equity security investments assets consist of funds that invest in listed equity and debt securities which are actively traded and valued based on quoted market prices. Fair Value of Deferred Compensation Asset and Liability The fair value of the Company's deferred compensation asset is comprised of investments in funds which are actively traded and based on quoted market prices. The Company recognized unrealized gains (losses) of $2,373, $(2,542) and $1,690 related to this asset within other (income) expense, net within the consolidated statements of income and comprehensive income for the years ended December 31, 2023, 2022 and 2021, respectively. The deferred compensation liability is included in other long-term liabilities in the consolidated balance sheets and its fair market value is based on quoted market prices of the various investment funds in the Company’s rabbi trust that the participants have selected. The Company recognized other (income) expense, net of $(2,373), $2,542 and $(1,690) related to this liability within the consolidated statements of income and comprehensive income for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 5 for more details. Fair Value of Convertible Notes Receivable On June 20, 2023, the Company, as lender, entered into a loan and security agreement under which the Company agreed to purchase up to $15,000 in principal amount of convertible notes from the borrower. The notes are convertible, at the Company’s election, into shares of the borrower’s common stock at the end of 2029. The convertible notes are classified as available for sale, and included in other assets in the Company’s consolidated balance sheets. On August 9, 2022, the Company, as lender, entered into a loan and security agreement under which the Company agreed to purchase up to $25,000 in principal amount of convertible notes from the borrower. The notes are convertible, at the Company’s election, into shares of the borrower’s common stock at the end of 2025. The convertible notes are classified as available for sale, and included in other assets in the Company’s consolidated balance sheets, respectively. The fair value of the convertible notes receivables issued by the Company were estimated using a market yield method with significant inputs that are not observable in the market and thus represents a Level III fair value measurement. The significant inputs in the Company's Level III fair value measurement not supported by market activity included creditworthiness of the borrower, which management believes are appropriately discounted considering the uncertainties associated with these obligations, and are calculated in accordance with the terms of the respective agreement. The change in fair values of the convertible notes receivable, net, are recognized as other comprehensive income in the consolidated statements of income and comprehensive income. The Company recognized a change in fair value, net of tax, of $143 and $(157) for the years ended December 31, 2023 and 2022, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt On December 30, 2020, the Company entered into a Credit Agreement (the “2020 Credit Agreement”) with Bank of Montreal for a senior secured credit facility in an aggregate principal amount of $250,000, consisting of a revolving credit facility with commitments in an aggregate principal amount of $250,000 (the “2020 Revolving Credit Facility” and the loans thereunder, the “2020 Revolving Loans”), with an accordion option of up to $25,000. The total outstanding principal under the 2020 Credit Agreement was paid in full on January 12, 2022 . On January 12, 2022, the Company amended the 2020 Credit Agreement to, among other things, add a term loan facility (as amended and restated, the “2022 Credit Agreement”). Joint lead arrangers and joint bookrunners for the 2022 Credit Agreement are BMO Capital Markets Corp., JPMorgan Chase Bank, N.A., Truist Securities, Inc., U.S. Bank National Association and Wells Fargo Securities, LLC. The 2022 Credit Agreement provides for a senior secured credit facility in an aggregate principal amount of $500,000, consisting of a revolving credit facility with commitments in an aggregate principal amount of $375,000 (the “2022 Revolving Credit Facility”) and a term loan facility with commitments in an aggregate amount of $125,000 (the “2022 Term Loans”), with an accordion option to increase the revolving commitments by $100,000. On October 25, 2022, the Company entered into an amendment (the “ESG Amendment”) to the 2022 Credit Agreement, for the purpose of incorporating key performance indicators (“KPIs”) and environmental, social and governance pricing provisions into the 2022 Credit Agreement. The 2022 Term Loans bear interest at a rate per annum equal to, at the Company’s option, either (i) SOFR plus a margin based on the Company’s Total Leverage Ratio (as defined in the 2022 Credit Agreement) or (ii) the Base Rate (as defined in the 2022 Credit Agreement) plus a margin based on the Company’s Total Leverage Ratio. The margin ranges between 0.875% and 2.5% for base rate loans and between 1.875% and 3.5% for SOFR loans. The Company will pay a commitment fee based on the average daily unused portion of the commitments under the 2022 Revolving Credit Facility, a letter of credit fee equal to the margin then in effect with respect to the SOFR loans under the 2022 Revolving Credit Facility, a fronting fee and any customary documentary and processing charges for any letter of credit issued under the 2022 Credit Agreement. The 2022 Term Loans are subject to quarterly amortization payments and will mature on January 12, 2027. The ESG Amendment provides for up to (i) 0.05% positive or negative adjustments to the applicable margin and (ii) 0.01% positive or negative adjustments to the commitment fee, in each case, based on the Company’s performance against the KPIs, and includes customary affirmative covenants and representations and warranties with respect to the KPIs. In March 2023, the Company paid down a total of $25,000, with the excess repayment above the scheduled amortizing payment to be applied to future quarterly principal payments. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The following table illustrates information for the Company's operating leases for the years ended December 31, 2023, 2022, and 2021: December 31, 2023 2022 2021 Operating lease cost $ 6,030 $ 5,321 $ 5,170 Variable lease cost 933 651 773 Cash paid for amounts included in the measurement of the operating lease liabilities 6,434 5,713 5,407 Supplemental weighted-average information related to the Company's operating leases was as follows: December 31, 2023 2022 Weighted average remaining lease term (in years) 5.7 5.9 Weighted average discount rate 5.17 % 4.65 % Future minimum lease payments under non-cancellable leases, as of December 31, 2023, were as follows: 2024 $ 6,845 2025 6,944 2026 6,737 2027 6,582 2028 5,303 2029 and thereafter 4,385 Total future minimum lease payments 36,796 Less: imputed interest (5,979) Total operating lease liabilities $ 30,817 |
Asset-Based Expenses
Asset-Based Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Operating Costs and Expenses [Abstract] | |
Asset-Based Expenses | Asset-Based Expenses Asset-based expenses incurred by the Company relating to the generation of asset-based revenue were as follows: Year Ended December 31, 2023 2022 2021 Strategist and manager fees $ 140,814 $ 135,992 $ 128,490 Premier broker-dealer fees 9,585 6,300 9,461 Custody fees 6,416 6,676 6,712 Fund advisory fees 5,237 4,837 4,402 Other 368 295 1,771 Total $ 162,420 $ 154,100 $ 150,836 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax provision was as follows: Year Ended December 31, 2023 2022 2021 Current provision Federal $ 43,214 $ 31,348 $ 16,273 State 10,255 8,798 4,605 Foreign 10 26 — Total current provision 53,479 40,172 20,878 Deferred benefit Federal (8,863) (5,061) (578) State (269) (1,608) (984) Foreign — (4) — Total deferred benefit (9,132) (6,673) (1,562) Total income tax expense $ 44,347 $ 33,499 $ 19,316 The Company paid income taxes of $54,678, $34,059 and $19,796 for the years ended December 31, 2023, 2022 and 2021, respectively. The reconciliation of the federal statutory tax rate to the Company’s effective income tax rate was as follows: Year Ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate: 21.00 % 21.00 % 21.00 % Increase in rate resulting from: Non-deductible meals & entertainment 0.12 % 0.01 % 0.10 % Penalties 1.19 % — % — % Qualified transportation fringe benefits 0.03 % 0.03 % 0.09 % Equity compensation 0.23 % 0.27 % 19.22 % Executive compensation limitation 0.86 % 0.16 % 1.28 % State income tax, net of federal income tax effect 4.72 % 4.05 % 6.03 % Unrecognized tax benefits (0.11) % 0.05 % 1.70 % Research & development tax credit (0.87) % (1.39) % (5.21) % Return to provision (0.34) % 0.06 % (1.76) % Other, net (0.35) % 0.25 % 0.48 % Effective rate 26.48 % 24.49 % 42.93 % The components of the Company’s deferred income tax liability, net was as follows: December 31, 2023 2022 Assets: Accrued expenses $ 9,030 $ 7,633 Federal benefit of state tax expense 6,180 5,790 Federal and state net operating loss carryforwards 12,938 15,598 Tax credit carryforwards 3,270 2,885 Operating lease liabilities 8,118 8,549 Share-based compensation 5,597 5,359 Other 47 103 Total deferred income tax assets 45,180 45,917 Liabilities: Other intangible assets 169,372 170,407 Property and equipment, and capitalized software 6,137 14,307 Operating lease right-of-use assets 6,638 6,960 Other 2,105 1,740 Total deferred income tax liabilities 184,252 193,414 Net deferred income tax liability $ 139,072 $ 147,497 In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. The Company considers projected future taxable income and tax planning strategies in making this assessment. During 2023 and 2022, the Company evaluated the realizability of its net deferred tax assets based on available positive and negative evidence. During 2023 and 2022, the Company concluded that it is more likely than not that all of the benefits of the deferred tax assets will be realized, except for a portion of its state net operating loss carryforwards that would expire unused. As a result, the Company has established a valuation allowance of $87 as of December 31, 2023 and 2022. The Company's federal net operating loss carryforwards amounted to $8,282 and $13,380 as of December 31, 2023 and 2022, respectively. If unused, $4,733 of the Company’s federal net operating loss carryforwards will begin to expire in 2027. $3,549 of the Company’s net operating losses were generated after 2017 and will carryforward indefinitely. The Company's state net operating loss carryforwards amounted to $243,058 and $261,037, as of December 31, 2023 and 2022, respectively. It is expected that the utilization limitation of Internal Revenue Code Section 382 will cause $113,873 of the Company’s state net operating loss carryforwards to expire unused, and these amounts are not included in the Company’s gross deferred income tax asset. If unused, the Company’s state net operating loss carryforwards will begin to expire in 2027. The Company had state tax credit carryforwards of $3,270 and $2,762 as of December 31, 2023 and 2022, respectively, which do not expire and can be carried forward indefinitely. The reconciliation of the beginning and ending amounts of the Company’s unrecognized tax benefits is as follows: December 31, 2023 2022 Balance, beginning of year $ 5,655 $ 4,918 Increases related to prior year tax positions 723 313 Decreases related to prior year tax positions (224) — Decreases related to prior year tax positions due to closure of statute (771) (389) Increases related to current year tax positions 918 813 Balance, end of year $ 6,301 $ 5,655 The Company had unrecognized tax benefits of $6,301 and $5,655 as of December 31, 2023 and 2022, respectively, primarily related to research and development tax credits and states in which the Company had nexus but did not file tax returns. The total amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate was $5,443 and $4,979 as of December 31, 2023 and 2022, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company recorded an expense of $278, $145 and $296 for interest and penalties related to unrecognized tax benefits as part of income tax expense, respectively. Total accrued interest and penalties related to unrecognized tax benefits as of December 31, 2023 and 2022, were $1,124 and $845, respectively. The Company files |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholders’ Equity Each holder of Company common stock is entitled to one vote per share, to receive dividends and, upon liquidation or dissolution, to receive all assets available for distribution to such stockholder. The stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. As of December 31, 2023, the Company had authorized 675,000,000 shares of common stock and 75,000,000 shares of preferred stock, both with a par value of $0.001 per share, and, 74,372,889 shares of common stock and zero shares of preferred stock were issued and outstanding. |
Share-Based Employee Compensati
Share-Based Employee Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Employee Compensation | Share-Based Employee Compensation On July 3, 2019, the Company’s Board of Directors adopted, and the Company’s sole stockholder approved, the 2019 Equity Incentive Plan (the “2019 Equity Incentive Plan”), which became effective on July 17, 2019, the date of effectiveness of the Company’s initial public offering (the “IPO”) registration statement on Form S-1. As of December 31, 2023, 800,766 shares were available for issuance under the 2019 Equity Incentive Plan. Restricted Stock Awards Immediately following the pricing of the IPO, the Company issued an aggregate number of restricted stock awards (“RSAs”) equal to 6,309,049 shares of the Company’s common stock to the Company’s officers, certain sales employees and an independent director of the board. Subject to the recipient’s continued employment through the vesting date, 50% of these RSAs vested in three (3) equal installments on the third, fourth and fifth anniversaries of November 18, 2016, and 50% vested subject to the recipient’s continued employment through February 1, 2021 and the satisfaction of a performance-based vesting condition. The performance condition for these RSAs was deemed to have been satisfied in connection with the IPO. In the event that the vesting conditions were not satisfied for any portion of an award, the shares covered by such RSAs transferred automatically to the Company. On November 18, 2021, the last installment of outstanding RSAs vested. The following is a summary of the activity for RSAs: Number Weighted-average grant-date fair value Balance at December 31, 2020 4,198,133 $ 22.00 Vested (4,195,215) 22.00 Forfeited (2,918) 22.00 Balance at December 31, 2021 — Share-based compensation expense related to the RSAs was $0, $0 and $41,715 for the years ended December 31, 2023, 2022 and 2021, respectively. Stock Options In connection with the IPO, the Company issued options to certain officers to acquire an aggregate of 918,981 shares of the Company’s common stock outside of the 2019 Equity Incentive Plan, with an exercise price of $22 dollars per share. Each of these options vested and became exercisable in substantially equal installments on each of the first three anniversaries of July 18, 2019, subject to the recipient’s continued employment through the vesting date and have a ten-year contractual term. On July 18, 2022, the last installment of outstanding options vested. The following weighted-average assumptions and fair values were used to value options granted during the year ended December 31, 2019: 2019 Grant date fair value of options $ 7.73 Risk free rate 1.9 % Expected volatility 32.8 % Dividend yield — Expected term (in years) 6.0 The following is a summary of the activity for stock options: Number Weighted-average exercise price Aggregate intrinsic value Weighted-average Balance at December 31, 2020 900,271 $ 22.00 $ 1,981 8.5 Exercised (17,860) 22.00 67 Forfeited (10,206) 22.00 37 Balance at December 31, 2021 872,205 22.00 3,672 5.5 Exercised (17,010) 22.00 17 Expired (51,602) 22.00 29 Forfeited (20,699) 22.00 16 Balance at December 31, 2022 782,894 22.00 783 4.3 Exercised (373,918) 22.00 1,670 Balance at December 31, 2023 408,976 22.00 3,251 5.5 Options vested and exercisable at December 31, 2023 408,976 $ 22.00 $ 3,251 5.5 Share-based compensation expense related to the stock options was $0, $670 and $2,386 for the years ended December 31, 2023, 2022 and 2021, respectively. Restricted Stock Units Periodically, the Company issues restricted stock units (“RSUs”) to all officers, certain employees and independent directors of the board under the 2019 Equity Incentive Plan. Most of these RSUs are scheduled to vest in substantially equal installments on each of the first four anniversaries of their grant date. The following is a summary of the activity for unvested RSUs: Number Weighted-average grant-date fair value Balance at December 31, 2020 343,735 $ 27.63 Granted 819,011 25.35 Vested (106,110) 27.30 Forfeited (33,237) 26.65 Balance at December 31, 2021 1,023,399 25.87 Granted 525,195 21.29 Vested (284,168) 25.93 Forfeited (82,387) 25.41 Balance at December 31, 2022 1,182,039 23.85 Granted 635,955 29.91 Vested (383,592) 24.23 Forfeited (163,742) 26.97 Balance at December 31, 2023 1,270,660 $ 26.37 Share-based compensation expense related to the RSUs was $11,058, $8,129 and $6,104 for the years ended December 31, 2023, 2022 and 2021, respectively. There was $27,141 of total unrecognized compensation cost related to unvested RSUs granted under the 2019 Equity Incentive Plan as of December 31, 2023. These costs are expected to be recognized over a weighted average period of 2.7 years as of December 31, 2023. The total fair value of RSUs vested was $11,493 during the year ended December 31, 2023. Stock Appreciation Rights Equity-settled Stock Appreciation Rights Periodically, the Company issues equity-settled stock appreciation rights (“Equity-settled SARs”) to certain officers with respect to shares of the Company’s common stock under the 2019 Equity Incentive Plan. Each Equity-settled SAR has a strike price equal to the fair market value of the Company’s common stock on the date of grant and is scheduled to vest and become exercisable in substantially equal installments on each of the first four anniversaries of their grant date, subject to the recipient’s continued employment through the vesting date, and have a ten-year contractual term. Upon exercise, each of these Equity-settled SARs will be settled in shares of the Company’s common stock with a value equal to the excess, if any, of the fair market value of the Company’s common stock measured on the exercise date over the strike price. The following assumptions and fair values were used to value Equity-settled SARs granted during the periods indicated: 2023 2022 2021 Weighted-average grant date fair value of Equity-settled SARs $ 13.96 $ 8.67 $ 9.81 Risk free rate 3.79 % 3.05 % 0.63% - 1.04% Expected volatility 41 % 37 % 37% - 39% Dividend yield — — — Expected term (in years) 6.25 6.25 6.25 The following is a summary of the activity for Equity-settled SARs: Number Weighted-average exercise price Aggregate intrinsic value Weighted-average Balance at December 31, 2020 831,902 $ 28.42 $ 139 9.4 Granted 894,411 25.59 363 Forfeited (38,111) 27.12 10 Expired (4,688) 28.48 — Balance at December 31, 2021 1,683,514 $ 26.94 571 8.6 Granted 1,030,037 20.72 — Forfeited (85,551) 26.58 31 Expired (31,361) 27.88 — Balance at December 31, 2022 2,596,639 $ 24.48 2,324 8.3 Granted 109,889 30.30 — Forfeited (410,609) 23.84 1,935 Exercised (339,150) 25.97 661 Balance at December 31, 2023 1,956,769 $ 24.68 10,336 7.5 Equity-settled SARs vested and exercisable at December 31, 2023 912,542 $ 25.86 $ 3,729 7.1 Share-based compensation expense related to the Equity-settled SARs was $5,330, $5,077 and $3,432 for the years ended December 31, 2023, 2022 and 2021, respectively. There was $7,308 of total unrecognized compensation cost related to unvested Equity-settled SARs granted under the 2019 Equity Incentive Plan as of December 31, 2023. These costs are expected to be recognized over a weighted-average period of 2.1 years as of December 31, 2023. Cash-settled Stock Appreciation Rights The Company issued cash-settled stock appreciation rights (“Cash-settled SARs”) to certain officers with respect to shares of the Company’s common stock under the 2019 Equity Incentive Plan. Each Cash-settled SAR has a strike price equal to the fair market value of the Company’s common stock on the date of grant and is scheduled to vest and become exercisable in substantially equal installments on each of the first four anniversaries of their grant date, subject to the recipient’s continued employment through the vesting date, and has a ten-year contractual term. Upon exercise, each of these Cash-settled SARs will be settled in cash with a value equal to the excess, if any, of the fair market value of the Company’s common stock measured on the exercise date over the strike price. The following assumptions and fair value were used to value Cash -settled SARs granted during the year ended December 31, 2023: 2023 Weighted-average grant date fair value of Cash-settled SARs $ 15.01 Risk free rate 4.57 % Expected volatility 40 % Dividend yield — Expected term (in years) 9.7 Suboptimal exercise multiple 3.0 The following is a summary of the activity for Cash-settled SARs: Number Weighted-average exercise price Aggregate intrinsic value Weighted-average Balance at December 31, 2022 — $ — $ — Granted 338,907 30.30 — Forfeited (172,798) 30.30 — Balance at December 31, 2023 166,109 $ 30.30 — 9.4 Cash-settled SARs vested and exercisable at December 31, 2023 — $ — $ — 9.4 Share-based compensation expense related to the Cash-settled SARs was $353, $0 and $0 for the years ended December 31, 2023, 2022 and 2021, respectively. There was $2,141 of total unrecognized compensation cost related to unvested Cash-settled SARs granted under the 2019 Equity Incentive Plan as of December 31, 2023. These costs are expected to be recognized over a weighted-average period of 3.4 years as of December 31, 2023. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has a tax-qualified defined contribution plan (the “Benefit Plan”). All full-time and part-time employees are eligible to participate in the Benefit Plan upon hire. The Benefit Plan provides retirement benefits, including provisions for early retirement and disability benefits, as well as a tax-deferred savings feature. Participants must attain two years of service to reach full vesting on the Company matching contributions. The Company contributed $7,337, $6,779 and $6,043 to the Benefit Plan for the years ended December 31, 2023, 2022 and 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company faces the risk of litigation and regulatory investigations and actions in the ordinary course of operating the Company’s businesses, including the risk of class action lawsuits. The Company’s pending legal and regulatory actions include proceedings specific to the Company and others generally applicable to business practices in the industries in which the Company operates. The Company is also subject to litigation arising out of the Company’s general business activities such as the Company’s contractual and employment relationships. In addition, the Company is subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and other authorities. Plaintiffs in class action and other lawsuits against the Company may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. A substantial legal liability or a significant regulatory action against the Company could have an adverse effect on the Company’s business, financial condition and results of operations. Moreover, even if the Company ultimately prevails in the litigation, regulatory action or investigation, the Company could suffer significant reputational harm, which could have an adverse effect on the Company’s business, financial condition or results of operations. Because the Company operates in a highly regulated industry, the Company and its subsidiaries are regularly subject to examinations by the SEC and other relevant regulators. As disclosed since the fall of 2020, in July 2020, AMI received an examination report from the SEC’s Division of Examinations requesting that AMI and certain subsidiaries of AFHI take corrective actions. The Company’s subsidiaries also received related subpoenas from the SEC Division of Enforcement for production of documents and testimony. In September 2023, the Company reached a settlement with the SEC regarding the matter at issue without admitting or denying the SEC’s findings. The Company paid a civil penalty of $9,500 as well as disgorgement and prejudgment interest of $8,827, which will be distributed to impacted customers once the SEC approves the distribution plan. The Company also consented to, and intends to, comply with certain undertakings under the settlement. The settlement has been included within other (income) expense, net within the consolidated statements of income and comprehensive income for the year ended December 31, 2023. Other Contingencies In connection with the acquisition of Adhesion Wealth, the Company may incur contingent compensation obligations with respect to certain Adhesion Wealth employees based upon the achievement of certain milestones and their continued employment with the Company. The potential payouts are based on performance attributable to 2025 and 2026. The payouts were indeterminable at the balance sheet date and no amounts have been accrued or disclosed in the accompanying consolidated financial statements with respect to these contingencies. |
Net Capital and Minimum Capital
Net Capital and Minimum Capital Requirements | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Net Capital and Minimum Capital Requirements | Net Capital and Minimum Capital Requirements ATC, regulated by the Arizona Department of Insurance and Financial Institutions (“AZDIFI”) is required by state regulation 6-856 to maintain $13,875 and $11,500 in liquid capital (as defined by the AZDIFI) based on asset levels as of December 31, 2023 and 2022, respectively. AMB, regulated by the SEC, is required to maintain $178 and $16 in net capital (as defined by the SEC) as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, these entities have met the capital requirements set forth by their respective regulatory authority. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsAs of December 31, 2023 and 2022, the Company had a receivable due from Huatai Securities Co., Ltd. (“HTSC”) of $250 and $0, respectively, which represents the cash paid by the Company on behalf of HTSC for certain professional services rendered to HTSC related to International Financial Reporting Standards audit fees required for HTSC’s consolidated audit. |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share Attributable to Common Stockholders | Net Income Per Share Attributable to Common Stockholders Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted net income per share, the basic weighted average number of shares of common stock outstanding is increased by the dilutive effect (if any) of stock options, restricted stock units and equity-settled SARs. The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders: Year Ended December 31, 2023 2022 2021 Net income attributable to common stockholders $ 123,119 $ 103,261 $ 25,671 Weighted average number of shares of common stock used in computing net income per share attributable to common stockholders, basic 74,113,591 73,724,341 72,137,174 Net income per share attributable to common stockholders, basic $ 1.66 $ 1.40 $ 0.36 Weighted average shares used in computing net income per share attributable to common stockholders, basic 74,113,591 73,724,341 72,137,174 Effect of dilutive shares: Stock options 86,155 — 9,913 Unvested RSUs 237,863 148,487 252,126 Equity-settled SARs 723 — — Diluted number of weighted-average shares outstanding 74,438,332 73,872,828 72,399,213 Net income per share attributable to common stockholders, diluted $ 1.65 $ 1.40 $ 0.35 The following securities were not included in the computation of diluted shares because such securities did not have a dilutive effect: As of December 31, 2023 2022 2021 Stock options — 782,894 — Equity-settled SARs 1,941,700 2,596,639 1,683,514 RSUs 61,680 599,398 207,232 Total 2,003,380 3,978,931 1,890,746 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events from the balance sheet date through the date of the accompanying independent auditors’ report, which is the date at which the consolidated financial statements were available to be issued. Based on the Company’s evaluation, no matters were identified subsequent to the balance sheet date. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ 123,119 | $ 103,261 | $ 25,671 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Michael Kim, Chief Executive Officer and President, terminated a Rule 10b5-1 plan on November 9, 2023. The plan was adopted on May 26, 2023 and took effect on August 25, 2023, providing for the sale of up to 91,542 shares of our common stock. Other than as disclosed above, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange act or any “non-Rule 10b5-1 trading arrangement,” as defined in Item 408(c) of Regulation S-K. | |
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Michael Kim [Member] | ||
Trading Arrangements, by Individual | ||
Adoption Date | May 26, 2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | November 9, 2023 | |
Arrangement Duration | 76 days | |
Aggregate Available | 91,542 | 91,542 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Risks And Uncertainties | Risks and Uncertainties Estimates and assumptions about future events and their effects on the Company cannot be determined with certainty and therefore require the exercise of judgment. The Company is not aware of any specific events or circumstances that would require the Company to update its estimates, assumptions or judgments or revise the carrying value of its assets or liabilities. The Company will update the estimates and assumptions underlying the consolidated financial statements in future periods as events and circumstances develop. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). For the year ended December 31, 2022, the Company reclassified $6,611 in the accompanying consolidated statements of income and comprehensive income from spread-based expenses to offset spread-based revenue to account for interest credited to customer accounts on a net basis in order to correct an immaterial error. The adjustment had no effect on the current year or previous years’ reported net income, earnings per-share, balance sheet, stockholders’ equity, and cash flows. Management has deemed the error to be immaterial to the financial statements taken as a whole. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Segment Information | Segment Information The Company operates as one operating segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to intangible assets and goodwill, useful lives of intangible assets and property and equipment, internal use software, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Concentration of Credit Risk and Significant Clients and Suppliers | Concentration of Credit Risk and Significant Clients and Suppliers The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company deposits its cash primarily with two financial institutions, and accordingly, such deposits regularly exceed federally insured limits. |
Foreign Currency Policy | Foreign Currency Policy The Company’s functional currency is the US Dollar, and the related gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts are included in other (income) expense, net in the consolidated statements of income and comprehensive income. |
Geographic Sources of Revenue | Geographic Sources of Revenue Revenues attributable to customers outside of the United States totaled $16,054, $14,484, and $6,926 in the years ended December 31, 2023, 2022, and 2021 respectively. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Certificates of deposit, money market funds and other time deposits with original maturities of three months or less are considered cash equivalents. Restricted cash consists of certificate of deposits the Company maintains in liquid capital in accordance with Arizona Revised Statutes |
Investment Securities | Investment Securities The Company’s investments primarily comprise of equity and debt security investments for the Company’s rabbi trust and investment securities funds. The Company may sell these securities at any time for use in its current operations or for other purposes. These funds invest in securities which are actively traded and fair values for these securities are based on quoted market prices. Unrealized holding gains and losses are reported as other (income) expense, net. Realized gains and losses from sales are determined on a specific-identification basis. Dividend and interest income are recognized when earned. |
Fees and Other Receivables | Fees and Other Receivables |
Fair Value Measurements | Fair Value Measurements The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other accrued expenses, approximate their fair values due to their relatively short maturity. The accounting guidance for fair value measurements establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs that are directly or indirectly observable in the marketplace. • Level 3 – Unobservable inputs that are supported by little or no market activity. As of each reporting period, all assets recorded at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 9 for more information regarding fair value measurements. |
Business Combinations | Business Combinations |
Goodwill, Acquired Intangible Assets and Impairment of Long-Lived Assets | Goodwill, Acquired Intangible Assets and Impairment of Long-Lived Assets Goodwill represents the excess purchase consideration of an acquired business over the fair value of the net tangible and identifiable intangible assets. Goodwill is evaluated for impairment annually on October 31, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate or a significant decrease in expected cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit’s fair value. The Company has the option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount and determine whether further action is needed. If after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. If after assessing the totality of events or circumstances it is determined that it is more likely than not that the carrying value of the reporting unit may exceed its fair value when considering qualitative factors, a quantitative goodwill impairment evaluation is performed. No impairment charges related to goodwill were recorded during the years ended December 31, 2023, 2022 and 2021. Indefinite-lived intangible assets are tested for impairment annually and whenever events or changes in circumstances indicate the carrying value of indefinite-lived intangible assets may not be recoverable. Triggering events that may indicate impairment include, but are not limited to, attrition of broker-dealers or enterprise customers, or changes in expected future cash flows. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. The Company’s indefinite-lived intangible assets consist of broker-dealer relationships and enterprise distribution channel customer relationships. No impairment charges related to indefinite-lived intangible assets were recorded during the years ended December 31, 2023, 2022 and 2021. There were no changes in the indefinite useful life assigned to indefinite-lived intangible assets during the years ended December 31, 2023, 2022 and 2021. AssetMark’s broad array of wealth management solutions are sold to individual investors through financial advisers associated with broker-dealers. The Company has long-standing, established relationships with these broker-dealers that are expected to result in future revenue and profit. While the relationships with the broker-dealers are contractual, the agreements have no fixed expiration dates or renewal terms, and there have been no instances of terminated agreements by either side to-date. Based on the foregoing, the acquired relationships with broker-dealers are identified and valued as a discrete indefinite-lived intangible asset. Acquired indefinite-lived intangible assets also consists of enterprise distribution channel relationships with financial institutions that are expected to result in future revenue and profit. While these relationships are contractual, they have no fixed expiration date and are expected to be renewed indefinitely. No such contracts have been terminated by either side to date. No impairment charges related to indefinite-lived intangible assets were recorded during the years ended December 31, 2023, 2022 and 2021. Acquired definite-lived intangible assets consist of assets resulting from the Company’s acquisitions. Acquired definite-lived intangible assets are recorded at fair value on the date of acquisition and amortized over their estimated useful lives on a straight-line basis. The carrying amounts of long-lived assets, including property and equipment, capitalized internal-use software, and acquired definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value exceeds its fair value. No impairment charges related to long-lived assets and acquired definite-lived intangible assets were recorded during the years ended December 31, 2023, 2022 and 2021. |
Property and Equipment | Property and Equipment three |
Capitalized Internal-Use Software | Capitalized Internal-Use Software The Company capitalizes certain costs incurred during the application development stage in connection with software development for its platform and internal use. Costs related to the preliminary project activities and post-implementation activities are expensed as incurred. Capitalized costs are recorded as part of capitalized software, net on the Company’s consolidated balance sheets. Maintenance and training costs are expensed as incurred. Capitalized internal-use software costs are amortized on a straight-line basis over the software estimated useful life, which is generally five years to nine years. The Company records amortization related to capitalized internal-use software within depreciation and amortization expense in the consolidated statements of income and comprehensive income. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances |
Revenue Recognition | Revenue Recognition The Company accounts for its revenue arrangements in accordance with FASB Topic 606 - Revenue from Contracts with Customers (“ASC 606”). The Company recognizes revenue from services related to asset-based revenue, spread-based revenue, subscription-based revenue and other revenue. • Asset-based revenue — The Company primarily derives revenue from fees assessed against customer’s assets under management or administration for services the Company provides to its customers. Such services include investment manager due diligence and research, portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back office and middle-office operations and custody services. Investment decisions for assets under management or administration are made by the Company’s customers. The fee arrangements are based on a percentage applied to the customers’ assets under management or administration. The performance obligation is satisfied over time because the customer is receiving and consuming the benefits as they are provided by the Company. Fees are generally calculated, billed and collected quarterly in advance on the preceding quarter-end customer asset values, and are recognized as revenue at the time the services are provided in the period. Fees related to assets under management or administration increase or decrease based on values of existing customer accounts. The values are affected by inflows or outflows of customer funds and market fluctuations. • Spread-based revenue — The Company’s spread-based revenue is derived from providing Complete Cash Solutions to banks and clients. Spread-based revenue consists of the interest rate return earned on cash custodied at ATC. ATC utilizes third-party banks that accept deposits of client cash to generate interest from deposits which earns spread income for the Company. A portion of the proceeds from those investments are credited to client accounts. ATC is paid interest-rate sensitive fees calculated by reference to such deposits. The Company recognizes interest paid to clients on a net basis as the payment to the end clients is consideration payable to the customer and reduces the transaction price accordingly. The performance obligation is satisfied over time because the banks and clients are receiving and consuming the benefits of the Complete Cash Solutions as they are provided by the cash sweep provider. • Subscription-based revenue — Subscription-based revenue represents revenue recognized from subscription fee arrangements in connection with financial planning and wealth management software solutions for use as a hosted application. Subscription fees from these applications are recognized over time on a ratable basis over the customer agreement term beginning on the date the solution is made available to the customer. • Other revenue — Other revenue consists primarily of interest earned on operating cash held by the Company. The Company has applied the practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period would have been one year or less. These costs are included in asset-based expenses on the consolidated statements of income and comprehensive income. |
Asset-Based Expenses | Asset-Based Expenses Asset-based expenses are costs incurred by the Company directly related to the generation of asset-based revenue. Fees paid to third-party strategists, investment managers, proprietary fund sub-advisers and investment advisers are calculated based on a percentage of the customers’ assets under management or administration. As a practical expedient, these costs are paid monthly and quarterly in advance on the preceding quarter-end customer asset values, and expensed as incurred over the period of time that the services are expected to be provided to customers, since the amortization of costs are in one year or less. See Note 12 for a breakout of these costs. |
Spread-Based Expenses | Spread-Based Expenses The Company recognizes spread-based expenses when costs are incurred. Spread-based expenses relate to expenses paid to ATC’s third-party administrator for administering the custodian’s Complete Cash Solutions program. |
Share-Based Compensation | Share-Based Compensation Share-based compensation related to stock options and stock appreciation rights issued to officers and directors is measured based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. The Company uses the Black-Scholes options pricing model to estimate the fair value of stock options and equity-settled stock appreciation rights. The risk-free interest rate is the U.S. Treasury Yield that corresponds with the expected term. Expected volatility is estimated based on the volatility of a group of comparable public companies. The expected term was estimated using the simplified method due to limited historical information. The Company does not expect to pay dividends on its common shares. The Company uses the Lattice-Based pricing model to estimate the fair value of cash-settled stock appreciation rights. The risk-free interest rate is the U.S. Treasury Yield that corresponds with the expected term. Expected volatility is estimated based on the volatility of a group of comparable public companies. The expected term was estimated using the simplified method due to limited historical information. The Company does not expect to pay dividends related to the cash-settled stock appreciation rights. The suboptimal exercise multiple is estimated using published academic studies. The Company classifies cash-settled stock appreciation rights as liabilities and is included in accrued liabilities and other current liabilities in the Company's consolidated balance sheets. Cash-settled stock appreciation rights are accounted for at fair value and remeasured at each reporting date with any increases, or decreases, in the fair value will increase, or decrease, the associated liabilities and result in adjustments to income for the associated valuation losses or gains. Share-based compensation related to restricted stock awards and restricted stock units are measured on the grant date fair value of the award based on intrinsic value and are recognized on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur. See Note 15 for additional information related to share-based compensation . |
Operating Leases | Operating Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in prepaid expenses and other current assets, operating lease right-of-use (“ROU”) assets, accrued liabilities and other current liabilities, and long-term portion of operating lease liabilities on the Company’s consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligations to make payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company uses an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected to use the practical expedient to exclude the non-lease component from the lease for all asset classes. The majority of the Company’s lease agreements are facility leases. |
Income Taxes | Income Taxes The Company uses the asset-and-liability method of accounting for income taxes. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In assessing the need for a valuation allowance, the Company has considered its historical levels of income, existence of available offsetting deferred tax liabilities, expectations of future taxable income and ongoing tax planning strategies. The Company recognizes and measure tax benefits from uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained in an audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Significant judgment is required to evaluate uncertain tax positions. Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of issues. The Company follows the policy of releasing residual tax effects from accumulated other comprehensive income based on a portfolio approach |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted net income per share is similar to the computation of basic net income per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements – Issued Not Yet Adopted | Recently Adopted Accounting Pronouncements In August 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The Company adopted the new guidance prospectively on January 1, 2023. The adoption of ASU 2021-08 did not have a material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements – Issued Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. The amendments in this update expands the annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The guidance becomes effective for the Company's annual fiscal period in 2024 and interim fiscal periods in 2025. Early adoption of the standard is permitted. The Company is currently evaluating the effect that ASU 2023-07 will have on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. The amendments in this update improve the effectiveness of income tax disclosures about income tax information through improvements primarily related to the rate reconciliation and income taxes paid information. The guidance becomes effective for the Company beginning January 1, 2025. Early adoption of the standard is permitted. The Company is currently evaluating the effect that ASU 2023-09 will have on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: December 31, 2023 2022 2021 Cash and cash equivalents $ 217,680 $ 123,274 $ 76,707 Restricted cash 15,000 13,000 13,000 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 232,680 $ 136,274 $ 89,707 |
Schedule of Major Classes of Depreciable Assets | The following table shows balances of major classes of depreciable assets as of the date shown: December 31, 2023 2022 Computer software and equipment $ 10,727 $ 9,760 Furniture and equipment 4,502 3,918 Leasehold improvements 8,951 7,649 Total property and equipment 24,180 21,327 Less: accumulated depreciation (15,415) (12,832) Property, plant and equipment, net $ 8,765 $ 8,495 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 31, 2023 2022 Prepaid expenses $ 10,906 $ 11,697 Operating lease right-of-use assets 4,795 4,387 Other 1,492 786 Total $ 17,193 $ 16,870 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Summary of Recognized Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate Total tangible assets acquired $ 6,136 $ (14) $ 6,122 Total liabilities assumed (3,603) (670) (4,273) Identifiable intangible assets 8,300 — 8,300 Goodwill 39,029 684 39,713 Total net assets acquired $ 49,862 $ — $ 49,862 The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash and cash equivalents $ 8,027 Intangible assets 46,600 Goodwill 109,349 Other assets 2,896 Total assets acquired 166,872 Deferred income tax liabilities (7,758) Other liabilities (2,016) Total liabilities assumed (9,774) Total net assets acquired $ 157,098 |
Summary of Intangible Assets Acquired | A summary of identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Trade name $ 1,500 10 years Customer relationships 3,200 7 years Technology 3,600 3 years Total intangible assets acquired $ 8,300 A summary of identifiable intangible assets acquired and estimated useful lives is as follows: Estimated Useful Life in Years Technology $ 16,000 9 Enterprise distribution channel customer relationships 17,500 Indefinite Non-enterprise distribution channel customer relationships 9,500 14 Trade name 3,200 11 Non-compete agreements 400 3 Total intangible assets acquired $ 46,600 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Information regarding the Company’s intangible assets is as follows: December 31, 2023 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (17,305) 33,225 Technology 19,600 (5,694) 13,906 Customer relationships 36,450 (9,846) 26,604 Regulatory licenses 34,850 (12,488) 22,362 Non-compete agreements 400 (335) 65 Total $ 729,810 $ (45,668) $ 684,142 December 31, 2022 Gross carrying Accumulated Net carrying Indefinite-lived intangible assets: Broker-dealer relationships $ 570,480 $ — $ 570,480 Enterprise distribution channel customer relationships 17,500 — 17,500 Definite-lived intangible assets: Trade names 50,530 (14,573) 35,957 Technology 19,600 (2,717) 16,883 Customer relationships 36,450 (6,948) 29,502 Regulatory licenses 34,850 (10,745) 24,105 Non-compete agreements 400 (200) 200 Total $ 729,810 $ (35,183) $ 694,627 |
Summary of Estimated Amortization Expense for Definite-Lived Intangible Assets | Estimated amortization expense for definite‑lived intangible assets for future years is as follows: Year Ended December 31: Estimated 2024 $ 10,425 2025 10,308 2026 9,158 2027 9,158 2028 9,158 2029 and thereafter 47,955 Total $ 96,162 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | The following table shows the breakdown of accrued liabilities and other current liabilities: December 31, 2023 2022 Accrued bonus $ 22,643 $ 19,813 Compensation and benefits payable 12,941 13,403 Asset-based payables 6,255 840 Reserve for uncertain tax positions 4,640 4,136 Current portion of operating lease liabilities 4,522 4,485 Current portion of long-term debt, net — 6,123 Other accrued expenses 24,553 20,396 Total $ 75,554 $ 69,196 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following: December 31, 2023 2022 Deferred compensation plan liability $ 17,486 $ 13,602 Other 943 1,583 Total $ 18,429 $ 15,185 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value in the consolidated balance sheets as of December 31, 2023 and 2022, based on the three-tier fair value hierarchy: December 31, 2023 Fair Value Level I Level II Level III Assets: Equity security investments $ 517 $ 517 $ — $ — Assets to fund deferred compensation liability 17,486 17,486 — — Convertible notes receivable 17,078 — — 17,078 Total assets $ 35,081 $ 18,003 $ — $ 17,078 Liabilities: Deferred compensation liability $ 17,486 $ 17,486 $ — $ — Total liabilities $ 17,486 $ 17,486 $ — $ — December 31, 2022 Fair Value Level I Level II Level III Assets: Equity security investments $ 112 $ 112 $ — $ — Assets to fund deferred compensation liability 13,602 13,602 — — Convertible notes receivable 10,352 — — 10,352 Total assets $ 24,066 $ 13,714 $ — $ 10,352 Liabilities: Deferred compensation liability $ 13,602 $ 13,602 $ — $ — Total liabilities $ 13,602 $ 13,602 $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | The following table illustrates information for the Company's operating leases for the years ended December 31, 2023, 2022, and 2021: December 31, 2023 2022 2021 Operating lease cost $ 6,030 $ 5,321 $ 5,170 Variable lease cost 933 651 773 Cash paid for amounts included in the measurement of the operating lease liabilities 6,434 5,713 5,407 Supplemental weighted-average information related to the Company's operating leases was as follows: December 31, 2023 2022 Weighted average remaining lease term (in years) 5.7 5.9 Weighted average discount rate 5.17 % 4.65 % |
Schedule of Future Minimum Lease Payments Under Non-cancellable Leases | Future minimum lease payments under non-cancellable leases, as of December 31, 2023, were as follows: 2024 $ 6,845 2025 6,944 2026 6,737 2027 6,582 2028 5,303 2029 and thereafter 4,385 Total future minimum lease payments 36,796 Less: imputed interest (5,979) Total operating lease liabilities $ 30,817 |
Asset-Based Expenses (Tables)
Asset-Based Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Costs and Expenses [Abstract] | |
Schedule of Asset-Based Expenses | Asset-based expenses incurred by the Company relating to the generation of asset-based revenue were as follows: Year Ended December 31, 2023 2022 2021 Strategist and manager fees $ 140,814 $ 135,992 $ 128,490 Premier broker-dealer fees 9,585 6,300 9,461 Custody fees 6,416 6,676 6,712 Fund advisory fees 5,237 4,837 4,402 Other 368 295 1,771 Total $ 162,420 $ 154,100 $ 150,836 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision (Benefit) | The Company’s income tax provision was as follows: Year Ended December 31, 2023 2022 2021 Current provision Federal $ 43,214 $ 31,348 $ 16,273 State 10,255 8,798 4,605 Foreign 10 26 — Total current provision 53,479 40,172 20,878 Deferred benefit Federal (8,863) (5,061) (578) State (269) (1,608) (984) Foreign — (4) — Total deferred benefit (9,132) (6,673) (1,562) Total income tax expense $ 44,347 $ 33,499 $ 19,316 |
Schedule of Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate | The reconciliation of the federal statutory tax rate to the Company’s effective income tax rate was as follows: Year Ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate: 21.00 % 21.00 % 21.00 % Increase in rate resulting from: Non-deductible meals & entertainment 0.12 % 0.01 % 0.10 % Penalties 1.19 % — % — % Qualified transportation fringe benefits 0.03 % 0.03 % 0.09 % Equity compensation 0.23 % 0.27 % 19.22 % Executive compensation limitation 0.86 % 0.16 % 1.28 % State income tax, net of federal income tax effect 4.72 % 4.05 % 6.03 % Unrecognized tax benefits (0.11) % 0.05 % 1.70 % Research & development tax credit (0.87) % (1.39) % (5.21) % Return to provision (0.34) % 0.06 % (1.76) % Other, net (0.35) % 0.25 % 0.48 % Effective rate 26.48 % 24.49 % 42.93 % |
Summary of Components of Net Deferred Income Tax Liability | The components of the Company’s deferred income tax liability, net was as follows: December 31, 2023 2022 Assets: Accrued expenses $ 9,030 $ 7,633 Federal benefit of state tax expense 6,180 5,790 Federal and state net operating loss carryforwards 12,938 15,598 Tax credit carryforwards 3,270 2,885 Operating lease liabilities 8,118 8,549 Share-based compensation 5,597 5,359 Other 47 103 Total deferred income tax assets 45,180 45,917 Liabilities: Other intangible assets 169,372 170,407 Property and equipment, and capitalized software 6,137 14,307 Operating lease right-of-use assets 6,638 6,960 Other 2,105 1,740 Total deferred income tax liabilities 184,252 193,414 Net deferred income tax liability $ 139,072 $ 147,497 |
Schedule of Reconciliation of Unrecognized Tax Benefits | The reconciliation of the beginning and ending amounts of the Company’s unrecognized tax benefits is as follows: December 31, 2023 2022 Balance, beginning of year $ 5,655 $ 4,918 Increases related to prior year tax positions 723 313 Decreases related to prior year tax positions (224) — Decreases related to prior year tax positions due to closure of statute (771) (389) Increases related to current year tax positions 918 813 Balance, end of year $ 6,301 $ 5,655 |
Share-Based Employee Compensa_2
Share-Based Employee Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of RSA Activity | The following is a summary of the activity for RSAs: Number Weighted-average grant-date fair value Balance at December 31, 2020 4,198,133 $ 22.00 Vested (4,195,215) 22.00 Forfeited (2,918) 22.00 Balance at December 31, 2021 — |
Schedule of Stock Options Valuation Assumptions | The following weighted-average assumptions and fair values were used to value options granted during the year ended December 31, 2019: 2019 Grant date fair value of options $ 7.73 Risk free rate 1.9 % Expected volatility 32.8 % Dividend yield — Expected term (in years) 6.0 |
Schedule of Stock Option Activity | The following is a summary of the activity for stock options: Number Weighted-average exercise price Aggregate intrinsic value Weighted-average Balance at December 31, 2020 900,271 $ 22.00 $ 1,981 8.5 Exercised (17,860) 22.00 67 Forfeited (10,206) 22.00 37 Balance at December 31, 2021 872,205 22.00 3,672 5.5 Exercised (17,010) 22.00 17 Expired (51,602) 22.00 29 Forfeited (20,699) 22.00 16 Balance at December 31, 2022 782,894 22.00 783 4.3 Exercised (373,918) 22.00 1,670 Balance at December 31, 2023 408,976 22.00 3,251 5.5 Options vested and exercisable at December 31, 2023 408,976 $ 22.00 $ 3,251 5.5 |
Schedule of RSU Activity | The following is a summary of the activity for unvested RSUs: Number Weighted-average grant-date fair value Balance at December 31, 2020 343,735 $ 27.63 Granted 819,011 25.35 Vested (106,110) 27.30 Forfeited (33,237) 26.65 Balance at December 31, 2021 1,023,399 25.87 Granted 525,195 21.29 Vested (284,168) 25.93 Forfeited (82,387) 25.41 Balance at December 31, 2022 1,182,039 23.85 Granted 635,955 29.91 Vested (383,592) 24.23 Forfeited (163,742) 26.97 Balance at December 31, 2023 1,270,660 $ 26.37 |
Schedule of SARs Valuation Assumptions | The following assumptions and fair values were used to value Equity-settled SARs granted during the periods indicated: 2023 2022 2021 Weighted-average grant date fair value of Equity-settled SARs $ 13.96 $ 8.67 $ 9.81 Risk free rate 3.79 % 3.05 % 0.63% - 1.04% Expected volatility 41 % 37 % 37% - 39% Dividend yield — — — Expected term (in years) 6.25 6.25 6.25 The following assumptions and fair value were used to value Cash -settled SARs granted during the year ended December 31, 2023: 2023 Weighted-average grant date fair value of Cash-settled SARs $ 15.01 Risk free rate 4.57 % Expected volatility 40 % Dividend yield — Expected term (in years) 9.7 Suboptimal exercise multiple 3.0 |
Schedule of SAR Activity | The following is a summary of the activity for Equity-settled SARs: Number Weighted-average exercise price Aggregate intrinsic value Weighted-average Balance at December 31, 2020 831,902 $ 28.42 $ 139 9.4 Granted 894,411 25.59 363 Forfeited (38,111) 27.12 10 Expired (4,688) 28.48 — Balance at December 31, 2021 1,683,514 $ 26.94 571 8.6 Granted 1,030,037 20.72 — Forfeited (85,551) 26.58 31 Expired (31,361) 27.88 — Balance at December 31, 2022 2,596,639 $ 24.48 2,324 8.3 Granted 109,889 30.30 — Forfeited (410,609) 23.84 1,935 Exercised (339,150) 25.97 661 Balance at December 31, 2023 1,956,769 $ 24.68 10,336 7.5 Equity-settled SARs vested and exercisable at December 31, 2023 912,542 $ 25.86 $ 3,729 7.1 The following is a summary of the activity for Cash-settled SARs: Number Weighted-average exercise price Aggregate intrinsic value Weighted-average Balance at December 31, 2022 — $ — $ — Granted 338,907 30.30 — Forfeited (172,798) 30.30 — Balance at December 31, 2023 166,109 $ 30.30 — 9.4 Cash-settled SARs vested and exercisable at December 31, 2023 — $ — $ — 9.4 |
Net Income Per Share Attribut_2
Net Income Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income Per (Loss) Share | The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders: Year Ended December 31, 2023 2022 2021 Net income attributable to common stockholders $ 123,119 $ 103,261 $ 25,671 Weighted average number of shares of common stock used in computing net income per share attributable to common stockholders, basic 74,113,591 73,724,341 72,137,174 Net income per share attributable to common stockholders, basic $ 1.66 $ 1.40 $ 0.36 Weighted average shares used in computing net income per share attributable to common stockholders, basic 74,113,591 73,724,341 72,137,174 Effect of dilutive shares: Stock options 86,155 — 9,913 Unvested RSUs 237,863 148,487 252,126 Equity-settled SARs 723 — — Diluted number of weighted-average shares outstanding 74,438,332 73,872,828 72,399,213 Net income per share attributable to common stockholders, diluted $ 1.65 $ 1.40 $ 0.35 |
Schedule of Anti-dilutive Securities Were Not Included in Computation of Diluted Shares Outstanding | The following securities were not included in the computation of diluted shares because such securities did not have a dilutive effect: As of December 31, 2023 2022 2021 Stock options — 782,894 — Equity-settled SARs 1,941,700 2,596,639 1,683,514 RSUs 61,680 599,398 207,232 Total 2,003,380 3,978,931 1,890,746 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summaryof Significant Accounting Policies [Line Items] | |||
Reclassification of spread based expenses | $ (6,611,000) | ||
Number of operating segment | segment | 1 | ||
Allowance for doubtful accounts | $ 179,000 | 39,000 | |
Impairment charges related to goodwill | 0 | 0 | $ 0 |
Impairment charges related to indefinite-lived intangible assets | 0 | 0 | 0 |
Impairment charges related to long-lived assets and acquired definite-lived intangible assets | 0 | 0 | 0 |
Depreciation expense | 2,583,000 | 2,646,000 | 2,406,000 |
Impairments of internally developed software | 393,000 | 303,000 | 426,000 |
Amortization expense of capitalized internal-use software | 22,476,000 | 19,737,000 | 28,280,000 |
Accumulated amortization of capitalized internal-use software | $ 158,930,000 | 136,858,000 | |
Minimum | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 3 years | ||
Amortization of capitalized internal-use software, estimated useful life | 5 years | ||
Maximum | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives | 10 years | ||
Amortization of capitalized internal-use software, estimated useful life | 9 years | ||
Outside United States | |||
Summaryof Significant Accounting Policies [Line Items] | |||
Revenues | $ 16,054,000 | $ 14,484,000 | $ 6,926,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 217,680 | $ 123,274 | $ 76,707 | |
Restricted cash | 15,000 | 13,000 | 13,000 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 232,680 | $ 136,274 | $ 89,707 | $ 81,619 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Major Classes of Depreciable Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 24,180 | $ 21,327 |
Less: accumulated depreciation | (15,415) | (12,832) |
Property, plant and equipment, net | 8,765 | 8,495 |
Computer software and equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 10,727 | 9,760 |
Furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 4,502 | 3,918 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 8,951 | $ 7,649 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 10,906 | $ 11,697 |
Operating lease right-of-use assets | 4,795 | 4,387 |
Other | 1,492 | 786 |
Total | $ 17,193 | $ 16,870 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Dec. 14, 2022 | Jul. 01, 2021 |
2020 Revolving Credit Facility | ||
Business Acquisition [Line Items] | ||
Final purchase price, net of working capital adjustments | $ 157,098 | |
Common stock issued in connection with business (in shares) | 994,028 | |
Amount of equity consideration | $ 24,910 | |
Adhesion Wealth | ||
Business Acquisition [Line Items] | ||
Final purchase price, net of working capital adjustments | $ 46,861 |
Business Combinations - Fair Va
Business Combinations - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 01, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 487,909 | $ 487,225 | |
Voyant | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 8,027 | ||
Identifiable intangible assets | 46,600 | ||
Goodwill | 109,349 | ||
Other assets | 2,896 | ||
Total assets acquired | 166,872 | ||
Deferred income tax liabilities | (7,758) | ||
Other liabilities | (2,016) | ||
Total liabilities assumed | (9,774) | ||
Total net assets acquired | $ 157,098 |
Business Combinations - Summary
Business Combinations - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed, Measurement Adjustments (Detail) - USD ($) $ in Thousands | 13 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 14, 2022 | Jul. 01, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 487,909 | $ 487,225 | ||
Adhesion Wealth | ||||
Business Acquisition [Line Items] | ||||
Total tangible assets acquired | 6,122 | $ 6,136 | ||
Total tangible assets, adjustment | (14) | |||
Total liabilities assumed | (4,273) | (3,603) | ||
Total liabilities assumed, adjustment | (670) | |||
Identifiable intangible assets | 8,300 | 8,300 | ||
Total intangible assets, adjustment | 0 | |||
Goodwill | 39,713 | 39,029 | ||
Goodwill, adjustment | 684 | |||
Total net assets acquired | 49,862 | $ 49,862 | ||
Total net assets acquired, adjustment | $ 0 | |||
Voyant | ||||
Business Acquisition [Line Items] | ||||
Total liabilities assumed | $ (9,774) | |||
Identifiable intangible assets | 46,600 | |||
Goodwill | 109,349 | |||
Total net assets acquired | $ 157,098 |
Business Combinations - Summa_2
Business Combinations - Summary of Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 14, 2022 | Jul. 01, 2022 |
Adhesion Wealth | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 8,300 | |
Adhesion Wealth | Trade names | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 1,500 | |
Estimated Useful Life in Years | 10 years | |
Adhesion Wealth | Customer relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 3,200 | |
Estimated Useful Life in Years | 7 years | |
Adhesion Wealth | Technology | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 3,600 | |
Estimated Useful Life in Years | 3 years | |
Voyant | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 46,600 | |
Voyant | Trade names | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 3,200 | |
Estimated Useful Life in Years | 11 years | |
Voyant | Technology | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 16,000 | |
Estimated Useful Life in Years | 9 years | |
Voyant | Enterprise distribution channel customer relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 17,500 | |
Voyant | Non-enterprise distribution channel customer relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 9,500 | |
Estimated Useful Life in Years | 14 years | |
Voyant | Non-compete agreements | ||
Business Acquisition [Line Items] | ||
Total intangible assets acquired | $ 400 | |
Estimated Useful Life in Years | 3 years |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - Deferred Compensation Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
VIE, fair value of investments | $ 17,486 | $ 13,602 | |
VIE, other long term liabilities | 17,486 | 13,602 | |
VIE, other (income) expense related to unrealized gains (losses) | $ 2,373 | $ (2,542) | $ 1,690 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill | $ 487,909 | $ 487,225 | |
Amortization of Intangible Assets | $ 10,485 | $ 8,766 | $ 7,243 |
Trade names | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 10 years 8 months 12 days | ||
Technology | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 10 years 8 months 12 days | ||
Customer relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 10 years 8 months 12 days | ||
Regulatory licenses | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 10 years 8 months 12 days | ||
Non-compete agreements | |||
Goodwill And Intangible Assets [Line Items] | |||
Weighted average estimated remaining useful life | 10 years 8 months 12 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Accumulated amortization | $ (45,668) | $ (35,183) |
Total | 96,162 | |
Intangible assets, Gross carrying amount | 729,810 | 729,810 |
Intangible assets, Net carrying amount | 684,142 | 694,627 |
Trade names | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 50,530 | 50,530 |
Definite-lived intangible assets, Accumulated amortization | (17,305) | (14,573) |
Total | 33,225 | 35,957 |
Technology | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 19,600 | 19,600 |
Definite-lived intangible assets, Accumulated amortization | (5,694) | (2,717) |
Total | 13,906 | 16,883 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 36,450 | 36,450 |
Definite-lived intangible assets, Accumulated amortization | (9,846) | (6,948) |
Total | 26,604 | 29,502 |
Regulatory licenses | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 34,850 | 34,850 |
Definite-lived intangible assets, Accumulated amortization | (12,488) | (10,745) |
Total | 22,362 | 24,105 |
Non-compete agreements | ||
Intangible Assets [Line Items] | ||
Definite-lived intangible assets, Gross carrying amount | 400 | 400 |
Definite-lived intangible assets, Accumulated amortization | (335) | (200) |
Total | 65 | 200 |
Broker-dealer relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | 570,480 | 570,480 |
Enterprise distribution channel customer relationships | ||
Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Net carrying amount | $ 17,500 | $ 17,500 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense for Definite-Lived Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 10,425 |
2025 | 10,308 |
2026 | 9,158 |
2027 | 9,158 |
2028 | 9,158 |
2029 and thereafter | 47,955 |
Total | $ 96,162 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued bonus | $ 22,643 | $ 19,813 |
Compensation and benefits payable | 12,941 | 13,403 |
Asset-based payables | 6,255 | 840 |
Reserve for uncertain tax positions | 4,640 | 4,136 |
Current portion of operating lease liabilities | 4,522 | 4,485 |
Current portion of long-term debt, net | 0 | 6,123 |
Other accrued expenses | 24,553 | 20,396 |
Total | $ 75,554 | $ 69,196 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Deferred compensation plan liability | $ 17,486 | $ 13,602 |
Other | 943 | 1,583 |
Total | $ 18,429 | $ 15,185 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Total assets | $ 35,081 | $ 24,066 |
Liabilities: | ||
Total liabilities | 17,486 | 13,602 |
Equity security investments | ||
Assets: | ||
Total assets | 517 | 112 |
Assets to fund deferred compensation liability | ||
Assets: | ||
Total assets | 17,486 | 13,602 |
Convertible notes receivable | ||
Assets: | ||
Total assets | 17,078 | 10,352 |
Deferred compensation liability | ||
Liabilities: | ||
Total liabilities | 17,486 | 13,602 |
Level I | ||
Assets: | ||
Total assets | 18,003 | 13,714 |
Liabilities: | ||
Total liabilities | 17,486 | 13,602 |
Level I | Equity security investments | ||
Assets: | ||
Total assets | 517 | 112 |
Level I | Assets to fund deferred compensation liability | ||
Assets: | ||
Total assets | 17,486 | 13,602 |
Level I | Convertible notes receivable | ||
Assets: | ||
Total assets | 0 | 0 |
Level I | Deferred compensation liability | ||
Liabilities: | ||
Total liabilities | 17,486 | 13,602 |
Level II | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level II | Equity security investments | ||
Assets: | ||
Total assets | 0 | 0 |
Level II | Assets to fund deferred compensation liability | ||
Assets: | ||
Total assets | 0 | 0 |
Level II | Convertible notes receivable | ||
Assets: | ||
Total assets | 0 | 0 |
Level II | Deferred compensation liability | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Level III | ||
Assets: | ||
Total assets | 17,078 | 10,352 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level III | Equity security investments | ||
Assets: | ||
Total assets | 0 | 0 |
Level III | Assets to fund deferred compensation liability | ||
Assets: | ||
Total assets | 0 | 0 |
Level III | Convertible notes receivable | ||
Assets: | ||
Total assets | 17,078 | 10,352 |
Level III | Deferred compensation liability | ||
Liabilities: | ||
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 20, 2023 | Aug. 09, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Change in fair value of convertible notes receivable, net | $ 143 | $ (157) | $ 0 | ||
Loan and Security Agreement | Convertible notes receivable | Maximum | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Principal amount of convertible notes | $ 15,000 | $ 25,000 | |||
Other (Income) Expense, Net | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Unrealized gains (loss) on deferred compensation asset | 2,373 | (2,542) | 1,690 | ||
Deferred compensation liability | $ (2,373) | $ 2,542 | $ (1,690) |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Jan. 12, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Repayments on long term debt | $ 25,000 | |||
2020 Credit Agreement | Bank of Montreal | Senior Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 250,000 | |||
2020 Credit Agreement | Bank of Montreal | 2020 Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 250,000 | |||
2020 Credit Agreement | Bank of Montreal | 2020 Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Accordion option | $ 25,000 | |||
2022 Credit Agreement | 2022 Term Loans | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 125,000 | |||
Margin adjustment based on performance | 0.05% | |||
Commitment fee percentage, adjustment based on performance | 0.01% | |||
2022 Credit Agreement | Minimum | 2022 Term Loans | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 0.875% | |||
2022 Credit Agreement | Minimum | 2022 Term Loans | SOFR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 1.875% | |||
2022 Credit Agreement | Maximum | 2022 Term Loans | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 2.50% | |||
2022 Credit Agreement | Maximum | 2022 Term Loans | SOFR | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 3.50% | |||
2022 Credit Agreement | Senior Secured Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 500,000 | |||
2022 Credit Agreement | 2022 Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 375,000 | |||
Accordion option | $ 100,000 |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 6,030 | $ 5,321 | $ 5,170 |
Variable lease cost | 933 | 651 | 773 |
Cash paid for amounts included in the measurement of the operating lease liabilities | $ 6,434 | $ 5,713 | $ 5,407 |
Weighted-average lease term | 5 years 8 months 12 days | 5 years 10 months 24 days | |
Weighted-average discount rate | 5.17% | 4.65% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-cancellable Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 6,845 |
2025 | 6,944 |
2026 | 6,737 |
2027 | 6,582 |
2028 | 5,303 |
2029 and thereafter | 4,385 |
Total future minimum lease payments | 36,796 |
Less: imputed interest | (5,979) |
Total operating lease liabilities | $ 30,817 |
Asset-Based Expenses - Schedule
Asset-Based Expenses - Schedule of Asset-Based Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Costs and Expenses [Abstract] | |||
Strategist and manager fees | $ 140,814 | $ 135,992 | $ 128,490 |
Premier broker-dealer fees | 9,585 | 6,300 | 9,461 |
Custody fees | 6,416 | 6,676 | 6,712 |
Fund advisory fees | 5,237 | 4,837 | 4,402 |
Other | 368 | 295 | 1,771 |
Total | $ 162,420 | $ 154,100 | $ 150,836 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision | |||
Federal | $ 43,214 | $ 31,348 | $ 16,273 |
State | 10,255 | 8,798 | 4,605 |
Foreign | 10 | 26 | 0 |
Total current provision | 53,479 | 40,172 | 20,878 |
Deferred benefit | |||
Federal | (8,863) | (5,061) | (578) |
State | (269) | (1,608) | (984) |
Foreign | 0 | (4) | 0 |
Total deferred benefit | (9,132) | (6,673) | (1,562) |
Total income tax expense | $ 44,347 | $ 33,499 | $ 19,316 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes Disclosure [Line Items] | |||
Income taxes paid | $ 54,678 | $ 34,059 | $ 19,796 |
Valuation allowance for operating loss carryforwards | 87 | 87 | |
Operating loss carryforwards | 8,282 | 13,380 | |
Unrecognized tax benefits | 6,301 | 5,655 | 4,918 |
Unrecognized tax benefits, if recognized, impact in effective tax rate | 5,443 | 4,979 | |
Interest and Penalties related to unrecognized tax benefits | 278 | 145 | $ 296 |
Accrued Interest and penalties related to unrecognized tax benefits | 1,124 | 845 | |
Federal | |||
Income Taxes Disclosure [Line Items] | |||
Operating loss carryforwards | 3,549 | ||
Operating loss carryforwards to expire unused | 4,733 | ||
State | |||
Income Taxes Disclosure [Line Items] | |||
Operating loss carryforwards | 243,058 | 261,037 | |
Operating loss carryforwards to expire unused | 113,873 | ||
Tax credit carryforwards | $ 3,270 | $ 2,762 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate: | 21% | 21% | 21% |
Increase in rate resulting from: | |||
Non-deductible meals & entertainment | 0.12% | 0.01% | 0.10% |
Penalties | 0.0119 | 0 | 0 |
Qualified transportation fringe benefits | 0.03% | 0.03% | 0.09% |
Equity compensation | 0.23% | 0.27% | 19.22% |
Executive compensation limitation | 0.86% | 0.16% | 1.28% |
State income tax, net of federal income tax effect | 4.72% | 4.05% | 6.03% |
Unrecognized tax benefits | (0.11%) | 0.05% | 1.70% |
Research & development tax credit | (0.87%) | (1.39%) | (5.21%) |
Return to provision | (0.34%) | 0.06% | (1.76%) |
Other, net | (0.35%) | 0.25% | 0.48% |
Effective rate | 26.48% | 24.49% | 42.93% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Net Deferred Income Tax Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Accrued expenses | $ 9,030 | $ 7,633 |
Federal benefit of state tax expense | 6,180 | 5,790 |
Federal and state net operating loss carryforwards | 12,938 | 15,598 |
Tax credit carryforwards | 3,270 | 2,885 |
Operating lease liabilities | 8,118 | 8,549 |
Share-based compensation | 5,597 | 5,359 |
Other | 47 | 103 |
Total deferred income tax assets | 45,180 | 45,917 |
Liabilities: | ||
Other intangible assets | 169,372 | 170,407 |
Property and equipment, and capitalized software | 6,137 | 14,307 |
Operating lease right-of-use assets | 6,638 | 6,960 |
Other | 2,105 | 1,740 |
Total deferred income tax liabilities | 184,252 | 193,414 |
Net deferred income tax liability | $ 139,072 | $ 147,497 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Positions [Roll Forward] | ||
Balance, beginning of year | $ 5,655 | $ 4,918 |
Increases related to prior year tax positions | 723 | 313 |
Decreases related to prior year tax positions | (224) | 0 |
Decreases related to prior year tax positions due to closure of statute | (771) | (389) |
Increases related to current year tax positions | 918 | 813 |
Balance, end of year | $ 6,301 | $ 5,655 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) votePerShare $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Equity [Abstract] | ||
Common stock, number of votes per share | votePerShare | 1 | |
Common stock redemption or sinking fund provision | $ | $ 0 | |
Common stock, shares authorized (in shares) | 675,000,000 | 675,000,000 |
Preferred stock shares authorized (in shares) | 75,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock par or stated value per share (in dollars per share) | $ / shares | $ 0.001 | |
Common stock, shares issued (in shares) | 74,372,889 | 73,847,596 |
Common stock, shares outstanding (in shares) | 74,372,889 | 73,847,596 |
Preferred stock shares issued (in shares) | 0 | |
Preferred stock shares outstanding (in shares) | 0 |
Share-Based Employee Compensa_3
Share-Based Employee Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jul. 22, 2019 installment shares | Dec. 31, 2023 USD ($) anniversary $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of anniversaries (in years) | anniversary | 3 | |||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exchange of shares with stockholders on liquidation (in shares) | shares | 6,309,049 | |||
Vesting percentage (as a percent) | 50% | |||
Number of equal vesting installments | installment | 3 | |||
Vesting upon satisfaction of condition (as a percent) | 50% | |||
Share-based compensation expense | $ 0 | $ 0 | $ 41,715 | |
RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 11,058 | 8,129 | 6,104 | |
Number of award anniversaries | anniversary | 4 | |||
Unrecognized compensation cost | $ 27,141 | |||
Expected to be recognized period | 2 years 8 months 12 days | |||
Fair value of RSUs vested | $ 11,493 | |||
Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | 0 | 670 | 2,386 | |
Equity-settled SARs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 5,330 | $ 5,077 | $ 3,432 | |
Number of shares, Granted (in shares) | shares | 109,889 | 1,030,037 | 894,411 | |
Exercise price (in dollars per share) | $ / shares | $ 30.30 | $ 20.72 | $ 25.59 | |
Unrecognized compensation cost | $ 7,308 | |||
Expected to be recognized period | 2 years 1 month 6 days | |||
Stock Appreciation Rights, Equity Settled | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of award anniversaries | anniversary | 4 | |||
Stock Appreciation Rights, Cash Settled | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 353 | $ 0 | $ 0 | |
Number of award anniversaries | anniversary | 4 | |||
Number of shares, Granted (in shares) | shares | 338,907 | |||
Exercise price (in dollars per share) | $ / shares | $ 30.30 | |||
Contractual term | 10 years | |||
Unrecognized compensation cost | $ 2,141 | |||
Expected to be recognized period | 3 years 4 months 24 days | |||
2019 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for issuance under the plan (in shares) | shares | 800,766 | |||
2019 Equity Incentive Plan | Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, Granted (in shares) | shares | 918,981 | |||
Exercise price (in dollars per share) | $ / shares | $ 22 | |||
Contractual term | 10 years | |||
2019 Equity Incentive Plan | Stock Appreciation Rights, Equity Settled | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Contractual term | 10 years |
Share-Based Employee Compensa_4
Share-Based Employee Compensation - Schedule of RSA Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2021 $ / shares shares | |
Number of RSAs | |
Number of units, Beginning Balance (in shares) | 4,198,133 |
Number of units, Vested (in shares) | (4,195,215) |
Number of units, Forfeited (in shares) | (2,918) |
Number of units, Ending Balance (in shares) | 0 |
Weighted-average grant-date fair value | |
Weighted average grant date fair value, Balance (in dollars per share) | $ / shares | $ 22 |
Weighted average grant date fair value, Vested (in dollars per share) | $ / shares | 22 |
Weighted average grant date fair value, Forfeited (in dollars per share) | $ / shares | $ 22 |
Share-Based Employee Compensa_5
Share-Based Employee Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock Option | 12 Months Ended |
Dec. 31, 2019 $ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant date fair value of options (in dollars per share) | $ 7.73 |
Risk free rate | 1.90% |
Expected volatility | 32.80% |
Dividend yield | 0% |
Expected term (in years) | 6 years |
Share-Based Employee Compensa_6
Share-Based Employee Compensation - Schedule of Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of options | ||||
Number of options, Balance (in shares) | 782,894 | 872,205 | 900,271 | |
Number of options, Exercised (in shares) | (373,918) | (17,010) | (17,860) | |
Number of options, Expired (in shares) | (51,602) | |||
Number of options, Forfeited (in shares) | (20,699) | (10,206) | ||
Number of options, Balance (in shares) | 408,976 | 782,894 | 872,205 | 900,271 |
Number of options, Vested and Exercised (in shares) | 408,976 | |||
Weighted-average exercise price | ||||
Weighted average exercise price, Balance (in dollars per share) | $ 22 | $ 22 | $ 22 | |
Weighted average exercise price, Exercised (in dollars per share) | 22 | 22 | 22 | |
Weighted average exercise price, Forfeited (in dollars per share) | 22 | 22 | ||
Weighted average exercise price, Expired (in dollars per share) | 22 | |||
Weighted average exercise price, Balance (in dollars per share) | 22 | $ 22 | $ 22 | $ 22 |
Weighted average exercise price, Vested and Exercised (in dollars per share) | $ 22 | |||
Aggregate intrinsic value | ||||
Aggregate intrinsic value, Balance | $ 783 | $ 3,672 | $ 1,981 | |
Aggregate intrinsic value, Exercised | 1,670 | 17 | 67 | |
Aggregate intrinsic value, Forfeited | 16 | 37 | ||
Aggregate intrinsic value, Expired | 29 | |||
Aggregate intrinsic value, Balance | 3,251 | $ 783 | $ 3,672 | $ 1,981 |
Aggregate intrinsic value, Vested and Exercised | $ 3,251 | |||
Weighted average remaining contractual term, Balance | 5 years 6 months | 4 years 3 months 18 days | 5 years 6 months | 8 years 6 months |
Weighted average remaining contractual term, Vested and Exercised | 5 years 6 months |
Share-Based Employee Compensa_7
Share-Based Employee Compensation - Schedule of RSU Activity (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of RSUs | |||
Number of units, Beginning Balance (in shares) | 1,182,039 | 1,023,399 | 343,735 |
Number of units, Granted (in shares) | 635,955 | 525,195 | 819,011 |
Number of units, Vested (in shares) | (383,592) | (284,168) | (106,110) |
Number of units, Forfeited (in shares) | (163,742) | (82,387) | (33,237) |
Number of units, Ending Balance (in shares) | 1,270,660 | 1,182,039 | 1,023,399 |
Weighted-average grant-date fair value | |||
Weighted average grant date fair value, Balance (in dollars per share) | $ 23.85 | $ 25.87 | $ 27.63 |
Weighted average grant date fair value, Granted (in dollars per share) | 29.91 | 21.29 | 25.35 |
Weighted average grant date fair value, Vested (in dollars per share) | 24.23 | 25.93 | 27.30 |
Weighted average grant date fair value, Forfeited (in dollars per share) | 26.97 | 25.41 | 26.65 |
Weighted average grant date fair value, Balance (in dollars per share) | $ 26.37 | $ 23.85 | $ 25.87 |
Share-Based Employee Compensa_8
Share-Based Employee Compensation - Schedule of SARs Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity-settled SARs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value of Cash-settled SARs (in dollar per share) | $ 13.96 | $ 8.67 | $ 9.81 |
Risk free rate | 3.79% | 3.05% | |
Expected volatility | 41% | 37% | |
Dividend yield | 0% | 0% | 0% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Stock Appreciation Rights, Cash Settled | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value of Cash-settled SARs (in dollar per share) | $ 15.01 | ||
Risk free rate | 4.57% | ||
Expected volatility | 40% | ||
Dividend yield | 0% | ||
Expected term (in years) | 9 years 8 months 12 days | ||
Suboptimal exercise multiple | 3 | ||
Minimum | Equity-settled SARs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk free rate | 0.63% | ||
Expected volatility | 37% | ||
Maximum | Equity-settled SARs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk free rate | 1.04% | ||
Expected volatility | 39% |
Share-Based Employee Compensa_9
Share-Based Employee Compensation - Schedule of SAR Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity-settled SARs | ||||
Number of Equity-settled SARs | ||||
Number of options, Balance (in shares) | 2,596,639 | 1,683,514 | 831,902 | |
Number of options, Granted (in shares) | 109,889 | 1,030,037 | 894,411 | |
Number of options, forfeited (in shares) | (410,609) | (85,551) | (38,111) | |
Number of options, Expired (in shares) | (31,361) | (4,688) | ||
Number of options, Exercised (in shares) | (339,150) | |||
Number of options, Balance (in shares) | 1,956,769 | 2,596,639 | 1,683,514 | 831,902 |
Number of options, Vested and Exercised (in shares) | 912,542 | |||
Weighted-average exercise price | ||||
Weighted average exercise price, Balance (in dollars per share) | $ 24.48 | $ 26.94 | $ 28.42 | |
Weighted average exercise price, Granted (in dollars per share) | 30.30 | 20.72 | 25.59 | |
Weighted average exercise price, Forfeited (in dollars per share) | 23.84 | 26.58 | 27.12 | |
Weighted average exercise price, Expired (in dollars per share) | 27.88 | 28.48 | ||
Weighted average exercise price, Exercised (in dollars per share) | 25.97 | |||
Weighted average exercise price, Balance (in dollars per share) | 24.68 | $ 24.48 | $ 26.94 | $ 28.42 |
Weighted average exercise price (in dollars per share) | $ 25.86 | |||
Aggregate intrinsic value | ||||
Aggregate intrinsic value, Balance | $ 2,324 | $ 571 | $ 139 | |
Aggregate intrinsic value, Granted | 0 | 0 | 363 | |
Aggregate intrinsic value, Forfeited | 1,935 | 31 | 10 | |
Aggregate intrinsic value, Expired | 0 | 0 | ||
Aggregate intrinsic value, Exercised | 661 | |||
Aggregate intrinsic value, Balance | 10,336 | $ 2,324 | $ 571 | $ 139 |
Aggregate intrinsic value, Vested and Exercised | $ 3,729 | |||
Weighted average remaining contractual term, Balance | 7 years 6 months | 8 years 3 months 18 days | 8 years 7 months 6 days | 9 years 4 months 24 days |
Weighted average remaining contractual term, Vested and Exercised | 7 years 1 month 6 days | |||
Stock Appreciation Rights, Cash Settled | ||||
Number of Equity-settled SARs | ||||
Number of options, Balance (in shares) | 0 | |||
Number of options, Granted (in shares) | 338,907 | |||
Number of options, forfeited (in shares) | (172,798) | |||
Number of options, Balance (in shares) | 166,109 | 0 | ||
Number of options, Vested and Exercised (in shares) | 0 | |||
Weighted-average exercise price | ||||
Weighted average exercise price, Balance (in dollars per share) | $ 0 | |||
Weighted average exercise price, Granted (in dollars per share) | 30.30 | |||
Weighted average exercise price, Forfeited (in dollars per share) | 30.30 | |||
Weighted average exercise price, Balance (in dollars per share) | 30.30 | $ 0 | ||
Weighted average exercise price (in dollars per share) | $ 0 | |||
Aggregate intrinsic value | ||||
Aggregate intrinsic value, Balance | $ 0 | |||
Aggregate intrinsic value, Balance | $ 0 | |||
Aggregate intrinsic value, Vested and Exercised | $ 0 | |||
Weighted average remaining contractual term, Balance | 9 years 4 months 24 days | |||
Weighted average remaining contractual term, Vested and Exercised | 9 years 4 months 24 days |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, employers matching contribution, period of service | 2 years | ||
Defined contribution plan, cost | $ 7,337 | $ 6,779 | $ 6,043 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended |
Sep. 30, 2023 USD ($) | |
Civil Penalty | |
Other Commitments [Line Items] | |
Amount awarded to other party in litigation settlement | $ 9,500 |
Disgorgement And Prejudgment Interest | |
Other Commitments [Line Items] | |
Amount awarded to other party in litigation settlement | $ 8,827 |
Net Capital and Minimum Capit_2
Net Capital and Minimum Capital Requirements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
AssetMark Trust Company | ||
Net Capital And Minimum Capital Requirements [Line Items] | ||
Liquid capital | $ 13,875 | $ 11,500 |
AssetMark Brokerage, LLC | ||
Net Capital And Minimum Capital Requirements [Line Items] | ||
Net capital | $ 178 | $ 16 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Fees and other receivables, net | $ 21,345 | $ 20,082 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Fees and other receivables, net | $ 250 | $ 0 |
Net Income Per Share Attribut_3
Net Income Per Share Attributable to Common Stockholders - Schedule of Reconciliation of Numerators and Denominators Used in Computing Basic and Diluted Net Income Per (Loss) Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Net income attributable to common stockholders | $ 123,119 | $ 103,261 | $ 25,671 |
Weighted average number of common shares outstanding, basic (in shares) | 74,113,591 | 73,724,341 | 72,137,174 |
Net income per share attributable to common stockholders, basic (in dollars per share) | $ 1.66 | $ 1.40 | $ 0.36 |
Effect of dilutive shares: | |||
Weighted average number of common shares outstanding, diluted (in shares) | 74,438,332 | 73,872,828 | 72,399,213 |
Net income per share attributable to common stockholders, diluted (in dollars per share) | $ 1.65 | $ 1.40 | $ 0.35 |
Stock options | |||
Effect of dilutive shares: | |||
Dilutive effect (in shares) | 86,155 | 0 | 9,913 |
RSUs | |||
Effect of dilutive shares: | |||
Dilutive effect (in shares) | 237,863 | 148,487 | 252,126 |
Equity-settled SARs | |||
Effect of dilutive shares: | |||
Dilutive effect (in shares) | 723 | 0 | 0 |
Net Income Per Share Attribut_4
Net Income Per Share Attributable to Common Stockholders - Schedule of Anti-dilutive Securities Were Not Included in Computation of Diluted Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities, shares (in shares) | 2,003,380 | 3,978,931 | 1,890,746 |
Stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities, shares (in shares) | 0 | 782,894 | 0 |
Equity-settled SARs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities, shares (in shares) | 1,941,700 | 2,596,639 | 1,683,514 |
RSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities, shares (in shares) | 61,680 | 599,398 | 207,232 |