Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 15, 2020
Entity Registrant Name	Moelis & Co
Entity Central Index Key	0001596967
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Trading Symbol	MC
Entity File Number	001-36418
Entity Tax Identification Number	46-4500216
Entity Address, Address Line One	399 Park Avenue
Entity Address, Address Line Two	5th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	883-3800
Title of 12(b) Security	Class A Common Stock
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Class A Common Stock
Entity Common Stock, Shares Outstanding		55,460,834
Class B Common Stock
Entity Common Stock, Shares Outstanding		8,490,938

Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 85,513	$ 167,812
Restricted cash	636	760
Receivables:
Accounts receivable, net of allowance for credit losses of $4,511 and $4,088 as of September 30, 2020 and December 31, 2019, respectively	65,281	45,074
Accrued and other receivables	13,512	10,722
Total receivables	78,793	55,796
Deferred compensation	13,310	11,748
Investments	219,534	213,231
Right-of-use assets	179,452	190,763
Equipment and leasehold improvements, net	42,000	13,992
Deferred tax asset and income tax receivable	430,279	400,496
Prepaid expenses and other assets	16,404	17,101
Total assets	1,065,921	1,071,699
Liabilities and Equity
Compensation payable	116,905	163,131
Accounts payable, accrued expenses and other liabilities	10,123	16,107
Amount due pursuant to tax receivable agreement	323,312	297,986
Deferred revenue	7,494	3,023
Lease liabilities	193,444	197,625
Total liabilities	651,278	677,872
Commitments and Contingencies (See Note 11)
Treasury stock, at cost; 3,683,415 and 2,757,558 shares as of September 30, 2020 and December 31, 2019, respectively	(141,190)	(107,836)
Additional paid-in-capital	993,688	872,791
Retained earnings (accumulated deficit)	(384,731)	(324,192)
Accumulated other comprehensive income (loss)	(359)	1,432
Total Moelis & Company equity	468,085	442,827
Noncontrolling interests	(53,442)	(49,000)
Total equity	414,643	393,827
Total liabilities and equity	1,065,921	1,071,699
Class A Common Stock
Liabilities and Equity
Common stock, par value $0.01 per share	591	528
Total equity	591	528
Class B Common Stock
Liabilities and Equity
Common stock, par value $0.01 per share	86	104
Total equity	$ 86	$ 104

Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accounts receivable, allowance for credit losses	$ 4,511	$ 4,088
Treasury stock, shares	3,683,415	2,757,558
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	59,144,937	52,773,617
Common stock, shares outstanding	55,461,522	50,016,059
Treasury stock, shares	3,683,415	2,757,558
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	8,490,938	10,397,915
Common stock, shares outstanding	8,490,938	10,397,915

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues	$ 207,604	$ 231,700	$ 521,248	$ 523,006
Expenses
Compensation and benefits	127,148	141,697	371,884	316,343
Occupancy	7,660	4,802	22,564	14,386
Professional fees	4,952	4,401	14,383	14,922
Communication, technology and information services	8,162	7,844	24,117	23,683
Travel and related expenses	1,662	10,909	11,154	31,699
Depreciation and amortization	941	1,284	3,216	3,729
Other expenses	5,121	6,480	14,682	20,453
Total expenses	155,646	177,417	462,000	425,215
Operating income (loss)	51,958	54,283	59,248	97,791
Other income and (expenses)	(1,631)	14,301	(6,568)	21,413
Income (loss) before income taxes	50,327	68,584	52,680	119,204
Provision (benefit) for income taxes	8,534	13,886	(10,195)	10,662
Net income (loss)	41,793	54,698	62,875	108,542
Net income (loss) attributable to noncontrolling interests	8,842	14,083	10,526	24,898
Net income (loss) attributable to Moelis & Company	32,951	40,615	52,349	83,644
Class A Common Stock
Expenses
Net income (loss) attributable to Moelis & Company	$ 32,951	$ 40,615	$ 52,349	$ 83,644
Weighted-average shares of Class A common stock outstanding
Basic (in shares)	56,803,430	51,079,746	55,263,689	49,796,867
Diluted (in shares)	60,668,084	55,468,728	59,241,139	55,145,248
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic (in dollars per share)	$ 0.58	$ 0.80	$ 0.95	$ 1.68
Diluted (in dollars per share)	$ 0.54	$ 0.73	$ 0.88	$ 1.52

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 41,793	$ 54,698	$ 62,875	$ 108,542
Foreign currency translation adjustment, net of tax	(499)	(322)	(2,224)	161
Other comprehensive income (loss)	(499)	(322)	(2,224)	161
Comprehensive income (loss)	41,294	54,376	60,651	108,703
Less: Comprehensive income (loss) attributable to noncontrolling interests	8,752	14,016	10,093	24,938
Comprehensive income (loss) attributable to Moelis & Company	$ 32,542	$ 40,360	$ 50,558	$ 83,765

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net income (loss)	$ 62,875	$ 108,542
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Bad debt expense	2,808	2,254
Depreciation and amortization	3,216	3,729
Equity-based compensation	97,724	97,505
Deferred tax provision and income tax receivable	(7,111)	10,262
Gain on partial sale of equity method investment		(12,631)
Other	8,509	(4,228)
Changes in assets and liabilities:
Accounts receivable	(23,532)	(44,437)
Accrued and other receivables	(2,589)	(4,408)
Prepaid expenses and other assets	1,190	(2,985)
Deferred compensation	(1,585)	(89)
Compensation payable	(45,715)	(132,164)
Accounts payable, accrued expenses and other liabilities	1,245	(12,373)
Deferred revenue	4,464	(3,089)
Dividends received	1,942	2,848
Net cash provided by (used in) operating activities	103,441	8,736
Cash flows from investing activities
Purchase of investments	(259,965)	(121,590)
Proceeds from sales of investments	252,484	89,859
Notes issued to employees	(200)
Purchase of equipment and leasehold improvements	(31,209)	(5,532)
Proceeds from partial sale of equity method investment		28,264
Net cash provided by (used in) investing activities	(38,890)	(8,999)
Cash flows from financing activities
Dividends and distributions	(122,871)	(178,122)
Proceeds from exercise of stock options	11,923	7,866
Treasury stock purchases	(33,354)	(42,073)
Net cash provided by (used in) financing activities	(144,302)	(212,329)
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash	(2,672)	463
Net increase (decrease) in cash, cash equivalents, and restricted cash	(82,423)	(212,129)
Cash, cash equivalents, and restricted cash, beginning of period	168,572	261,771
Cash, cash equivalents, and restricted cash, end of period	86,149	49,642
Cash paid during the period for:
Income taxes	1,914	13,731
Other non-cash activity
Cumulative effect adjustment upon adoption of ASU 2016-13	364
Dividend equivalents issued	17,021	28,688
Class A Partnership Units or other equity converted into Class A Common Stock	5,968	712
Forfeiture of fully-vested Group LP units or other equity units	$ 96	$ 2,397

Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Balance at beginning of the period at Dec. 31, 2018	$ 371,753	$ 470	$ 105	$ (56,661)	$ 697,938	$ (237,782)	$ 291	$ (32,608)
Balance at beginning of the period (in shares) at Dec. 31, 2018		47,031,095	10,493,358	(1,426,115)
Changes in Equity
Net income (loss)	16,177					13,570		2,607
Equity-based compensation	38,886	$ 24			38,753			109
Equity-based compensation (in shares)		2,397,164
Other comprehensive income (loss)	540						421	119
Dividends declared and distributions	(114,391)				19,484	(103,436)		(30,439)
Treasury Stock Purchases	(26,970)			$ (26,970)
Treasury stock purchases (in shares)				(616,796)
Exercise of Stock options	492				492
Exercise of stock options (in shares)		29,439
Equity-based payments to non-employees	416				416
Other	240				(734)			974
Balance at end of the period at Mar. 31, 2019	287,143	$ 494	$ 105	$ (83,631)	756,349	(327,648)	712	(59,238)
Balance at end of the period (in shares) at Mar. 31, 2019		49,457,698	10,493,358	(2,042,911)
Balance at beginning of the period at Dec. 31, 2018	371,753	$ 470	$ 105	$ (56,661)	697,938	(237,782)	291	(32,608)
Balance at beginning of the period (in shares) at Dec. 31, 2018		47,031,095	10,493,358	(1,426,115)
Changes in Equity
Net income (loss)	108,542
Treasury Stock Purchases	$ (42,073)
Treasury stock purchases (in shares)	(1,046,490)
Balance at end of the period at Sep. 30, 2019	$ 364,580	$ 518	$ 104	$ (98,734)	827,758	(316,122)	412	(49,356)
Balance at end of the period (in shares) at Sep. 30, 2019		51,848,658	10,397,915	(2,472,605)
Balance at beginning of the period at Mar. 31, 2019	287,143	$ 494	$ 105	$ (83,631)	756,349	(327,648)	712	(59,238)
Balance at beginning of the period (in shares) at Mar. 31, 2019		49,457,698	10,493,358	(2,042,911)
Changes in Equity
Net income (loss)	37,667					29,459		8,208
Equity-based compensation	28,246	$ 18			28,187			41
Equity-based compensation (in shares)		1,787,993
Other comprehensive income (loss)	(57)						(45)	(12)
Dividends declared and distributions	(31,146)				4,514	(29,164)		(6,496)
Treasury Stock Purchases	(12,640)			$ (12,640)
Treasury stock purchases (in shares)				(355,039)
Exercise of Stock options	5,375	$ 3			5,372
Exercise of stock options (in shares)		321,662
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges	430	$ 1	$ (1)		(1,580)			2,010
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares)		61,936	(61,936)
Equity-based payments to non-employees	111				111
Other	(2,271)				(1,550)			(721)
Balance at end of the period at Jun. 30, 2019	312,858	$ 516	$ 104	$ (96,271)	791,403	(327,353)	667	(56,208)
Balance at end of the period (in shares) at Jun. 30, 2019		51,629,289	10,431,422	(2,397,950)
Changes in Equity
Net income (loss)	54,698					40,615		14,083
Equity-based compensation	30,373	$ 1			30,342			30
Equity-based compensation (in shares)		99,443
Other comprehensive income (loss)	(322)						(255)	(67)
Dividends declared and distributions	(32,585)				4,690	(29,384)		(7,891)
Treasury Stock Purchases	(2,463)			$ (2,463)
Treasury stock purchases (in shares)				(74,655)
Exercise of Stock options	2,003	$ 1			2,002
Exercise of stock options (in shares)		119,926
Equity-based payments to non-employees	102				102
Other	(84)				(781)			697
Other (in shares)			(33,507)
Balance at end of the period at Sep. 30, 2019	364,580	$ 518	$ 104	$ (98,734)	827,758	(316,122)	412	(49,356)
Balance at end of the period (in shares) at Sep. 30, 2019		51,848,658	10,397,915	(2,472,605)
Balance at beginning of the period at Dec. 31, 2019	393,827	$ 528	$ 104	$ (107,836)	872,791	(324,192)	1,432	(49,000)
Balance at beginning of the period (in shares) at Dec. 31, 2019		52,773,617	10,397,915	(2,757,558)
Cumulative effect adjustment upon adoption of ASU 2016-13 (ASU 2016-13) at Dec. 31, 2019	(364)					(364)
Balance at beginning of the period, as adjusted at Dec. 31, 2019	393,463	$ 528	$ 104	$ (107,836)	872,791	(324,556)	1,432	(49,000)
Changes in Equity
Net income (loss)	30,126					25,130		4,996
Equity-based compensation	38,255	$ 36			38,189			30
Equity-based compensation (in shares)		3,581,294
Other comprehensive income (loss)	(1,630)						(1,304)	(326)
Dividends declared and distributions	(88,689)				12,125	(79,391)		(21,423)
Treasury Stock Purchases	(31,636)			$ (31,636)
Treasury stock purchases (in shares)				(869,779)
Exercise of Stock options	11,819	$ 7			11,812
Exercise of stock options (in shares)		721,484
Equity-based payments to non-employees	158				158
Other	690				(1,981)			2,671
Balance at end of the period at Mar. 31, 2020	352,556	$ 571	$ 104	$ (139,472)	933,094	(378,817)	128	(63,052)
Balance at end of the period (in shares) at Mar. 31, 2020		57,076,395	10,397,915	(3,627,337)
Balance at beginning of the period at Dec. 31, 2019	393,827	$ 528	$ 104	$ (107,836)	872,791	(324,192)	1,432	(49,000)
Balance at beginning of the period (in shares) at Dec. 31, 2019		52,773,617	10,397,915	(2,757,558)
Cumulative effect adjustment upon adoption of ASU 2016-13 (ASU 2016-13) at Dec. 31, 2019	(364)					(364)
Balance at beginning of the period, as adjusted at Dec. 31, 2019	393,463	$ 528	$ 104	$ (107,836)	872,791	(324,556)	1,432	(49,000)
Changes in Equity
Net income (loss)	62,875
Treasury Stock Purchases	$ (33,354)
Treasury stock purchases (in shares)	(925,857)
Balance at end of the period at Sep. 30, 2020	$ 414,643	$ 591	$ 86	$ (141,190)	993,688	(384,731)	(359)	(53,442)
Balance at end of the period (in shares) at Sep. 30, 2020		59,144,937	8,490,938	(3,683,415)
Balance at beginning of the period at Mar. 31, 2020	352,556	$ 571	$ 104	$ (139,472)	933,094	(378,817)	128	(63,052)
Balance at beginning of the period (in shares) at Mar. 31, 2020		57,076,395	10,397,915	(3,627,337)
Changes in Equity
Net income (loss)	(9,044)					(5,732)		(3,312)
Equity-based compensation	29,379	$ 1			29,369			9
Equity-based compensation (in shares)		72,616
Other comprehensive income (loss)	(95)						(78)	(17)
Dividends declared and distributions	(17,081)				2,496	(16,588)		(2,989)
Treasury Stock Purchases	(766)			$ (766)
Treasury stock purchases (in shares)				(24,619)
Exercise of Stock options	104				104
Exercise of stock options (in shares)		6,500
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges	4,939	$ 17	$ (17)		(4,388)			9,327
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares)		1,742,406	(1,742,406)
Equity-based payments to non-employees	651				651
Balance at end of the period at Jun. 30, 2020	360,643	$ 589	$ 87	$ (140,238)	961,326	(401,137)	50	(60,034)
Balance at end of the period (in shares) at Jun. 30, 2020		58,897,917	8,655,509	(3,651,956)
Changes in Equity
Net income (loss)	41,793					32,951		8,842
Equity-based compensation	30,093	$ 1			30,092
Equity-based compensation (in shares)		82,449
Other comprehensive income (loss)	(499)						(409)	(90)
Dividends declared and distributions	(17,101)				2,400	(16,545)		(2,956)
Treasury Stock Purchases	(952)			$ (952)
Treasury stock purchases (in shares)				(31,459)
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges	243	$ 1	$ (1)		(553)			796
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares)		164,571	(164,571)
Equity-based payments to non-employees	423				423
Balance at end of the period at Sep. 30, 2020	$ 414,643	$ 591	$ 86	$ (141,190)	$ 993,688	$ (384,731)	$ (359)	$ (53,442)
Balance at end of the period (in shares) at Sep. 30, 2020		59,144,937	8,490,938	(3,683,415)

Condensed Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
Class A Common Stock
Dividends declared per share of Class A common stock	$ 0.255	$ 0.255	$ 1.26	$ 0.50	$ 0.50	$ 1.75

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

1. ORGANIZATION AND BASIS OF PRESENTATION

Moelis & Company and its consolidated subsidiaries (the “Company,” “we,” “our,” or “us”) is a leading global investment bank, incorporated in Delaware. Prior to the Company’s IPO, the business operated as a Delaware limited partnership that commenced operations during 2007. Following the IPO, the operations are owned by Moelis & Company Group LP (“Group LP”), a U.S. Delaware limited partnership, and Group LP is controlled by Moelis & Company. Moelis & Company’s shareholders are entitled to receive a portion of Group LP’s economics through their direct ownership interests in shares of Class A common stock of Moelis & Company. The noncontrolling interest owners of Group LP (not Moelis & Company) receive economics of the operations primarily through their ownership interests in Group LP partnership units.

The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, governments and financial sponsors, a range of advisory services with expertise across all major industries in mergers and acquisitions, recapitalizations and restructurings and other corporate finance matters.

Basis of Presentation —The condensed consolidated financial statements of Moelis & Company include its partnership interests in Group LP, its equity interest in the sole general partner of Group LP, Moelis & Company Group GP LLC (“Group GP”), and its interests in its subsidiaries. Moelis & Company will operate and control all of the business and affairs of Group LP and its operating entity subsidiaries indirectly through its equity interest in Group GP. The Company operates through the following subsidiaries:

•

Moelis & Company LLC (“Moelis U.S.”), a Delaware limited liability company, a registered broker-dealer with the U.S. Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”).

•

Moelis & Company International Holdings LLC (“Moelis International”), a Delaware limited liability company, owns the following entities and investments, directly or indirectly:

•

Moelis & Company UK LLP (“Moelis UK”), a limited liability partnership registered under the laws of England and Wales. In addition to the United Kingdom, Moelis UK maintains operations through the following branches:

•

Moelis & Company UK LLP, French Branch (French branch)

•

Moelis & Company Europe Limited, Frankfurt am Main Branch (German branch)

•

Moelis & Company UK LLP, DIFC Branch (Dubai branch)

•

Moelis & Company Asia Limited (“Moelis Asia”), a limited company incorporated in Hong Kong licensed under the Hong Kong Securities and Futures Ordinance to provide financial advisory services. In addition to Hong Kong, Moelis Asia maintains operations in Beijing, China through a wholly-owned Chinese subsidiary, Moelis & Company Consulting (Beijing) Company Limited.

•

Moelis & Company Netherlands BV, a private limited company incorporated in Amsterdam, Netherlands.

•

Moelis & Company India Private Limited, a private limited company incorporated in Mumbai, India.

•

Moelis & Company Assessoria Financeira Ltda. (“Moelis Brazil”), a limited liability company incorporated in São Paulo, Brazil.

•

An equity method investment in Moelis Australia Limited (“Moelis Australia”), a public company listed on the Australian Securities Exchange

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting —The Company prepared the accompanying condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). As permitted by the interim reporting rules and regulations set forth by the SEC, the condensed consolidated financial statements presented exclude certain financial information and footnote disclosures normally included in audited financial statements prepared in accordance with U.S. GAAP. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to fairly present the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019.

Consolidation —The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company has ownership of the majority of voting interests. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of income or losses of the entity. All intercompany balances and transactions with the Company’s subsidiaries have been eliminated in consolidation.

Use of Estimates —The preparation of condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management 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 financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary.

In preparing the condensed consolidated financial statements, management makes estimates and assumptions regarding:

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the adequacy of the allowance for credit losses;

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the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal;

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the assessment of probable lease terms and the measurement of the present value of such obligations;

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the measurement and realization of deferred taxes;

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the measurement of amount due pursuant to tax receivable agreement; and

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other matters that affect the reported amounts and disclosures of contingencies in the financial statements.

Cash, Cash Equivalents and Restricted Cash —Cash and cash equivalents include all short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase.

The Company’s cash is maintained in U.S. and non-U.S. bank accounts, of which most bank account balances had little or no insurance coverage (most balances are held in U.S. and U.K. accounts which exceeded the U.S. Federal Deposit Insurance Corporation and U.K. Financial Services Compensation Scheme coverage limits). The Company’s cash equivalents are invested primarily in U.S. Treasury instruments and government securities money markets.

The Company’s restricted cash is comprised of collateral deposits primarily held by certain non-U.S. subsidiaries. These deposits are required for certain direct debit accounts and are also used to satisfy future medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of September 30, 2020 and 2019, is presented below.

	September 30,
	2020		2019
Cash	$	46,026	$	38,387
Cash equivalents		39,487		10,556
Restricted cash		636		699
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	86,149	$	49,642

Additionally, as of December 31, 2019, the Company held cash of $71,798 and cash equivalents of $96,014.

Receivables —The accompanying condensed consolidated statements of financial condition present accounts receivable balances net of allowance for credit losses based on the Company’s assessment of the collectability of customer accounts.

Included in the accounts receivable balances at September 30, 2020 and December 31, 2019 were $19,165 and $19,879 of long term receivables related to private funds advisory capital raising engagements, which are generally paid in installments over a period of three to four years. These long term receivables generated interest income of $182 and $241 for the three months ended September 30, 2020 and 2019, respectively, and $568 and $761 for the nine months ended September 30, 2020 and 2019, respectively.

The Company maintains an allowance for credit losses that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. For purposes of determining appropriate allowances, the Company stratifies its population of accounts receivable into two categories, one for short-term receivables and a second for private funds advisory receivables. Each population is separately evaluated using an aging method that results in a percentage reserve based on the age of the receivable, in addition to considerations of historical charge-offs and current economic conditions.

After concluding that a reserved accounts receivable is no longer collectible, the Company will charge-off the receivable. This has the effect of reducing both the gross receivable and the allowance for credit losses. If a reserved accounts receivable is subsequently collected, such recoveries reduce the gross receivable and the allowance for credit losses and is a reduction of bad debt expense, which is recorded within other expenses on the condensed consolidated statement of operations. The combination of recoveries and the provision for credit losses of a reported period comprise the Company’s bad debt expense.

On January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13— “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") using the modified retrospective method. Upon adoption, a cumulative adjustment was recorded which decreased retained earnings by $459. The tax effect of this adjustment increased retained earnings by $95, resulting in a net decrease of $364 as of January 1, 2020. ASU 2016-13 replaces the incurred loss impairment methodology for financial instruments with the current expected credit loss (CECL) model which requires estimates of future credit losses based on reasonable supporting information. The Company will recognize its expected credit losses for each reporting period going forward.

The following tables summarize credit loss allowance activity for the three and nine months ended September 30, 2020:

	Three Months Ended September 30, 2020
	Accounts Receivable
		Short-term Receivables				Private Funds Advisory Receivables				Total
Allowance for Credit Losses, beginning balance	$		4,507		$		200		$		4,707
Charge-offs			(1,428	)			-				(1,428	)
Recoveries			(1,235	)			-				(1,235	)
Reduction to allowance			(2,663	)			-				(2,663	)
Provision for credit losses			2,473				(6	)			2,467
Allowance for credit losses, ending balance	$		4,317		$		194		$		4,511

	Nine Months Ended September 30, 2020
	Accounts Receivable
		Short-term Receivables				Private Funds Advisory Receivables				Total
Allowance for Credit Losses, beginning balance	$		4,088		$		-		$		4,088
Adjustment for adoption of ASU 2016-13			260				199				459
Allowance for Credit Losses, adjusted beginning balance			4,348				199				4,547
Charge-offs			(2,844	)			-				(2,844	)
Recoveries			(2,471	)			(26	)			(2,497	)
Reduction to allowance			(5,315	)			(26	)			(5,341	)
Provision for credit losses			5,284				21				5,305
Allowance for credit losses, ending balance	$		4,317		$		194		$		4,511

Deferred Compensation —Deferred compensation costs represent arrangements with certain employees whereby cash payments are subject to a required period of service subsequent to payment by the Company. These amounts are charged to expenses over the period that the employee is required to provide services in order to vest in the payment.

Financial Instruments at Fair Value —Fair value is generally based on quoted prices, however if quoted market prices are not available, fair value is determined based on other relevant factors, including dealer price quotations, price activity for equivalent instruments and valuation pricing models. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of instrument, the characteristics specific to the instrument and the state of the marketplace (including the existence and transparency of transactions between market participants). Financial instruments with readily-available actively quoted prices or for which fair value can be measured from actively-quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest) based on inputs:

Level 1 —Quoted prices (unadjusted) are available in active markets for identical instruments that the Company has the ability to access as of the reporting date. The Company, to the extent that it holds such instruments, does not adjust the quoted price for these instruments, even in situations in which the Company holds a large position and a sale could reasonably affect the quoted price.

Level 2 —Pricing inputs are observable for the instruments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies.

Level 3 —Pricing inputs are unobservable for the instruments and include situations where there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management.

For level 3 investments in which pricing inputs are unobservable and limited market activity exists, management’s determination of fair value is based on the best information available, may incorporate management’s own assumptions and involves a significant degree of judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the instrument.

Equity Method Investments —The Company accounts for its equity method investments under the equity method of accounting as the Company does not control these entities but has the ability to exercise significant influence. The amounts recorded in investments on the condensed consolidated statements of financial condition reflect the Company’s share of contributions made to, distributions received from, and the equity earnings and losses of, the investments. The Company reflects its share of gains and losses of the investment in other income and expenses in the condensed consolidated statements of operations using the most recently available earnings data at the end of the period.

Leases — The Company maintains operating leases for corporate offices and an aircraft. The Company determines if a contract contains a lease at inception. Operating leases are recorded as right-of-use (“ROU”) assets and lease liabilities on the condensed consolidated statements of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the lease commencement date and are measured at the present value of anticipated lease payments over the lease term. The operating lease ROU assets are equal to the lease liabilities, adjusted for certain lease incentives, accrued rents, and prepaid rents. Typically, our borrowing rate is used to determine the present value of lease payments because the implicit rate is not readily determinable. Our lease terms may include options to extend or terminate the lease. These options are factored into our present value calculations when it is reasonably certain that such options will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term.

Adoption of ASU 2016-02

In February 2016, the FASB issued Accounting Standards Update 2016-02—Leases (“ASU 2016-02”) to improve transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet. Additionally, in July 2018, the FASB issued ASU 2018-11 which permits entities to apply the requirements of ASU 2016-02 as of the adoption date, as opposed to the earliest comparative period disclosed.

The Company adopted both standards as of January 1, 2019, and is applying the requirements of ASU 2016-02 as of the adoption date instead of the earliest comparative period disclosed. In addition, we elected to use certain practical expedients to assist in our transition and are not reassessing the identification and classification of leases upon adoption. Upon adoption, the Company recorded lease liabilities and corresponding ROU assets of $63,252. The ROU assets were adjusted for prepaid rent and accrued rent, which reduced our opening balances of prepaid expenses and other assets and other liabilities by $1,666 and $7,139, respectively. The adoption of ASU 2016-02 did not have a material impact to our condensed consolidated statements of operations.

Software— Costs related to implementation of cloud computing arrangements that qualify for capitalization are stated at cost less accumulated amortization within prepaid and other assets on the Company’s condensed consolidated statement of financial condition. Such capitalized costs are amortized using the straight-line method over the term of the cloud computing service contract or another rational basis, beginning when the cloud computing arrangement is substantially complete and ready for its intended use. All costs not directly related to the implementation of cloud computing arrangements, including overhead costs and costs of service agreements, will be expensed in the period they are incurred. The amortization expense of such capitalized costs will be presented under communication, technology and information services on the condensed consolidated statement of operations.

Effective January 1, 2020, the Company adopted ASU 2018-15, “Goodwill and Other —Internal Use Software” using a prospective approach (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in cloud computing arrangements with the requirements for capitalizing costs to develop or obtain internal-use software. See Note 4—Fixed and Intangible Assets below for further details on the Company’s capitalized cloud computing arrangements.

Equipment and Leasehold Improvements —Office equipment and furniture and fixtures are stated at cost less accumulated depreciation, which is determined using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years, respectively. Leasehold improvements are stated at cost less accumulated amortization, which is determined using the straight-line method over the lesser of the term of the lease or the estimated useful life of the asset.

Major renewals and improvements are capitalized and minor replacements, maintenance and repairs are charged to expenses as incurred. Assets that are in development and have not yet been placed in service are generally classified as “Construction in Progress” and are reclassified to the appropriate category when the associated assets are placed in service. Upon retirement or disposal of assets, the cost and related accumulated depreciation or amortization are removed from the condensed consolidated statements of financial condition and any gain or loss is reflected in the condensed consolidated statements of operations.

Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement —In conjunction with the IPO, the Company was treated for U.S. federal income tax purposes as having directly purchased Class A partnership units in Group LP from the existing unitholders. Additional Group LP Class A partnership units may be exchanged for shares of Class A common stock in the Company. The initial purchase and future exchanges are expected to result in an increase in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP. These increases in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP would not have been available but for the initial purchase and future exchanges. Such increases in tax basis are likely to increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of income tax the Company would otherwise be required to pay in the future. As a result, the Company records a deferred tax asset for such increase in tax basis.

The Company has entered into a tax receivable agreement with its eligible Managing Directors that will provide for the payment by the Company to its eligible Managing Directors of 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax or franchise tax that the Company actually realizes as a result of (a) the increases in tax basis attributable to exchanges by its eligible Managing Directors and (b) tax benefits related to imputed interest deemed to be paid by the Company as a result of this tax receivable agreement. The Company expects to benefit from the remaining 15% of cash savings, if any, in income tax that it realizes and record any such estimated tax benefits as an increase to additional paid-in-capital. For purposes of the tax receivable agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Group LP as a result of the exchanges and had it not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation of the IPO and will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the tax receivable agreement for an amount based on an agreed value of payments remaining to be made under the agreement. The Company has recorded the estimated tax benefits related to the increase in tax basis and imputed interest as a result of the initial purchase and subsequent exchanges described above as a deferred tax asset in the condensed consolidated statements of financial condition. The amount due to its eligible Managing Directors related to the tax receivable agreement as a result of the initial purchase and subsequent exchanges described above is recorded as amount due pursuant to tax receivable agreement in the condensed consolidated statements of financial condition. The amounts recorded for the deferred tax asset and the liability for our obligations under the tax receivable agreement are estimates. Any adjustments to our estimates subsequent to their initial establishment will be included in net income (loss). Future exchanges of Class A partnership units in Group LP for Class A common shares in the Company will be accounted for in a similar manner.

Revenue and Expense Recognition—We earn substantially all of our revenues from advisory engagements and, in many cases, we are not paid until the completion of an underlying transaction. The Company recognizes revenues from providing advisory services when or as our obligations are fulfilled and collection is reasonably assured. The vast majority of our advisory revenues, which include reimbursements for certain out-of-pocket expenses, are recognized over time; however, a small number of transactions may be recognized at a point in time. We provide our advisory service on an ongoing basis which, for example, may include evaluating and selecting one of multiple strategies. During such engagements, our clients are continuously benefitting from our counsel and the over time recognition matches the transfer of such benefits. However, the recognition of transaction fees is constrained until substantially all services have been provided, specified conditions have been met and it is probable that a significant reversal of revenue will not occur in a future period. Upfront fees and retainers specified in our engagement letters that meet the over time criteria will be recognized on a systematic basis over the estimated period where the related services are performed. Revenues may be recognized at a point in time if the engagement represents a singular objective that does not transfer any notable value until formally completed, such as when issuing a fairness opinion. In these instances, the point in time recognition appropriately matches the transfer and consumption of our services.

Incremental costs of obtaining a contract are expensed as incurred since such costs are generally not recoverable and the typical duration of our advisory contracts is less than one year. Costs to fulfill contracts consist of out-of-pocket expenses that are part of performing our advisory services and are typically expensed as incurred, except where the transfer and consumption of our services occurs at a point in time. For engagements recognized at a point in time, out-of-pocket expenses are capitalized and subsequently expensed in the condensed consolidated statement of operations upon completion of the engagement. The Company records deferred revenues when it receives fees from clients that have not yet been earned (e.g. an upfront fee) or when the Company has an unconditional right to consideration before all performance obligations are complete (e.g. upon satisfying conditions to earn an announcement fee, but before the transaction is consummated).

Complications that may terminate or delay a transaction include failure to agree upon final terms with the counterparty, failure to obtain required regulatory consents, failure to obtain board or stockholder approvals, failure to secure financing, adverse market conditions or unexpected operating or financial problems related to either party to the transaction. In these circumstances, we often do not receive advisory fees that would have been received if the transaction had been completed, despite the fact that we may have devoted considerable time and resources to the transaction. Barriers to the completion of a restructuring transaction may include a lack of anticipated bidders for the assets of our client, the inability of our client to restructure its operations, or indebtedness due to a failure to reach agreement with its creditors. In these circumstances, our fees are generally limited to monthly retainer fees and reimbursement of certain out-of-pocket expenses.

We do not allocate our revenue by the type of advice we provide because of the complexity of the transactions on which we may earn revenue and our holistic approach to client service. For example, a restructuring engagement may evolve to require a sale of all or a portion of the client, M&A assignments can develop from relationships established on prior restructuring engagements, and capital markets expertise can be instrumental on both M&A and restructuring assignments.

Equity-based Compensation — The Company recognizes the cost of services received in exchange for equity instrument awards. The cost is based on its grant-date fair value based on quoted market prices at the time of grant amortized over the service period required by the award’s vesting terms. The Company records as treasury stock shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the vesting of restricted stock units (“RSUs”). The Company records dividends in kind, net of forfeitures, on outstanding RSUs as a reduction of retained earnings with a corresponding increase in additional paid-in capital, resulting in no net change to equity. Dividends in kind on RSUs are subject to the same vesting conditions as the underlying RSUs on which they were accrued. Dividends in kind will be forfeited if the underlying award does not vest.

The Company has a retirement plan whereby a retiring employee generally will not forfeit certain qualifying incentive RSUs granted during employment if at retirement the employee meets certain requirements. For qualifying awards issued prior to December 1, 2016, the employee must (i) be at least 54 years old and (ii) have provided at least 8 consecutive years of service to the Company. For qualifying awards issued on or after December 1, 2016, (i) the employee must be at least 56 years old, (ii) the employee must have provided at least 5 consecutive years of service to the Company and (iii) the total of (i) and (ii) must be equal to at least 65 years. Any such RSUs will continue to vest on their applicable vesting schedule, subject to noncompetition and other terms. Over time a greater number of employees may become retirement eligible and the related requisite service period over which we will expense these awards will be shorter than the stated vesting period. Any unvested RSUs are eligible to receive dividends in kind; however, the right to dividends in kind will be forfeited if the underlying award does not vest.

Effective January 1, 2019, the Company adopted ASU 2018-07, “Compensation—Stock Compensation” (“ASU 2018-07”) using the modified retrospective method. The adoption of this new standard generally requires the accounting for equity-based payments to nonemployees to be consistent with the accounting for employees. As a result, the Company will recognize the cost of services received from a nonemployee in exchange for an equity instrument based on the award’s grant-date fair value. Unsettled equity-based payments to nonemployees have been remeasured at fair value as of the adoption date. No adjustment to the opening balance of retained earnings was required.

Income Taxes — The Company accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”), which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax bases of its assets and liabilities by applying the enacted tax rates in effect for the year in which the differences are expected to reverse. Such net tax effects on temporary differences are reflected on the Company’s condensed consolidated statements of financial condition as deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized.

ASC 740-10 prescribes a two-step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. For the three and nine months ended September 30, 2020 and 2019, no unrecognized tax benefit was recorded. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax-related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense. For the three and nine months ended September 30, 2020 and 2019, no such amounts were recorded.

The Company recognizes excess tax benefits and deficiencies as income tax benefits or expenses in the condensed consolidated statement of operations. These are reflected in accounts payable, accrued expenses and other liabilities within the condensed consolidated statement of cash flows.

Foreign Currency Translation — Assets and liabilities held in non-U.S. dollar denominated currencies are translated into U.S. dollars at exchange rates in effect at the end of the reporting period. Revenues and expenses are translated at average exchange rates during the reporting period. A charge or credit is recorded to other comprehensive income to reflect the translation of these amounts to the extent the non-U.S. currency is designated the functional currency of the subsidiary. Non-functional currency related transaction gains and losses are immediately recorded in the condensed consolidated statements of operations.

Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2020

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

3. RECENT ACCOUNTING PRONOUNCEMENTS

In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform” (“ASU 2020-04”). ASU 2020-04 provides optional guidance for entities that are impacted by interest rate reform. Specifically, ASU 2020-04 allows for contracts under the scope of Topic 310—Receivables to be accounted for prospectively with the updated interest rate, among other specifications for debt, derivative instruments, and other contracts. ASU 2020-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application is permitted. Upon initial evaluation, we do not anticipate any material changes to our condensed consolidated financial statements.

Fixed and Intangible Assets

9 Months Ended

Sep. 30, 2020

Property Plant And Equipment [Abstract]

Fixed and Intangible Assets

4. FIXED AND INTANGIBLE ASSETS

Equipment and leasehold improvements, net consists of the following:

	September 30,			December 31,
	2020			2019
Office equipment	$	13,033		$	13,593
Furniture and fixtures		5,045			5,054
Leasehold improvements		15,189			15,294
Construction in progress		32,105			2,108
Total		65,372			36,049
Less accumulated depreciation and amortization		(23,372	)		(22,057	)
Equipment and leasehold improvements, net	$	42,000		$	13,992

Depreciation and amortization expenses for fixed assets totaled $941 and $1,284 for the three months ended September 30, 2020 and 2019, respectively, and $3,216 and $3,729 for the nine months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020, there were $2,130 of costs capitalized within prepaid expenses and other assets on our condensed consolidated statement of financial position related to the implementation of cloud computing arrangements. The amortization expense of the capitalized costs was $113 and $127 for the three and nine months ended September 30, 2020, respectively, and was recorded within communication, technology and information services on the condensed consolidated statement of operations.

Investments

9 Months Ended

Sep. 30, 2020

Investments All Other Investments [Abstract]

Investments

5. INVESTMENTS

Fair value investments are contained within the balance of investments on the Company’s condensed consolidated statements of financial condition. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest) based on inputs:

Level 1—Quoted prices (unadjusted) are available in active markets for identical instruments that the Company has the ability to access as of the reporting date. The Company, to the extent that it holds such instruments, does not adjust the quoted price for these instruments, even in situations in which the Company holds a large position and a sale could reasonably affect the quoted price.

Level 2—Pricing inputs are observable for the instruments, either directly or indirectly, as of the reporting date, but are not the same as those used in level 1. Fair value is determined through the use of models or other valuation methodologies.

Level 3—Pricing inputs are unobservable for the instruments and include situations in which there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management.

The estimated fair values of government securities money markets, U.S. Treasury instruments, and government debt securities are based on quoted prices for recent trading activity in identical or similar instruments. The Company generally invests in U.S. Treasury instruments with maturities of less than twelve months. The Company considers these securities to be risk free and does not reserve for expected credit losses on these treasury investments. See Note 2 for further information on the Company’s fair value hierarchy.

The Company’s methodology for reclassifications impacting the fair value hierarchy is that transfers in/out of the respective category are reported at fair value as of the beginning of the period in which the reclassification occurred.

At the end of the reporting period, the Company reviews U.S. treasury instruments held to determine whether the securities are of the most recent issuance of that security with the same maturity (referred to as “on-the-run”, which is the most liquid version of the maturity band). If a U.S. treasury instrument held at the end of the reporting period was from the most recent issuance of all securities with the same term, it is classified as level 1; otherwise it is referred to as “off-the-run” and is classified as level 2.

The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of September 30, 2020:

	Total		Level 1			Level 2			Level 3
Financial assets:
Included in cash and cash equivalents
U.S. treasury instruments	$	15,000	$	—		$		15,000	$	—
Government securities money market		24,487		—				24,487		—
Investments
U.S. treasury instruments		180,828			—			180,828		—
Common stock		1,117			1,117		—				—
Total financial assets	$	221,432	$		1,117	$		220,315	$		—

For the three and nine months ended September 30, 2020, unrealized losses of $60 and $227 were recognized in other income and expenses on the condensed consolidated statement of operations related to common stock held at the reporting date. The cost basis of the financial assets recorded at fair value included in investments on the condensed consolidated statement of financial condition was $182,452 as of September 30, 2020.

The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2019:

	Total		Level 1			Level 2			Level 3
Financial assets:
Included in cash and cash equivalents
U.S. treasury instruments	$	62,949	$		—	$		62,949	$	—
Government securities money market		33,065		—				33,065		—
Investments
U.S. treasury instruments		173,960		—				173,960		—
Common stock		327			327		—				—
Total financial assets	$	270,301	$		327	$		269,974	$		—

For the three and nine months ended September 30, 2019, unrealized gains of $33 and $32 were recognized in other income and expenses on the condensed consolidated statement of operations related to common stock held at the reporting date. The cost basis of the financial assets recorded at fair value included in investments on the condensed consolidated statement of financial condition was $173,806 as of December 31, 2019.

Equity-method investments are contained within the balance of investments on the Company’s condensed consolidated statements of financial condition. On April 1, 2010, the Company entered into a 50-50 joint venture in Moelis Australia Holdings PTY Limited, investing a combination of cash and certain net assets in exchange for its interests. On April 10, 2017, Moelis Australia Holdings PTY Limited consummated their initial public offering and became listed on the Australian Securities Exchange as Moelis Australia Limited (ASX: MOE). As a result of the offering, the Company’s ownership interest in Moelis Australia was diluted and continues to be accounted for under the equity method of accounting. Please see Note 4 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional information.

On February 19, 2020 and February 20, 2019, Moelis Australia declared dividends, of which the Company received $1,942 and $2,848 on March 4, 2020 and March 6, 2019, respectively. The Company accounted for the dividends as a return on investment and reduced the carrying value of the investment in Moelis Australia by $1,942 and $2,848, respectively.

On September 2, 2019 and November 4, 2019, the Company sold 12.5 million and 8.0 million shares of Moelis Australia common stock, respectively. These transactions resulted in gains of $12,631 and $8,083, respectively, recorded in other income and expenses on the condensed consolidated statements of operations. As a result, the Company’s ownership interest in Moelis Australia was reduced.

The balances of the Company’s equity method investment as of September 30, 2020 and December 31, 2019 were $37,589 and $38,944, respectively, and are included within investments on the condensed consolidated statements of financial condition. The Company’s share of earnings on this investment is recorded in other income and expenses on the condensed consolidated statements of operations.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Net Income (Loss) Per Share Attributable to Class A Common Shareholders

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Income (Loss) Per Share Attributable to Class A Common Shareholders

6. NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO CLASS A COMMON SHAREHOLDERS

The calculations of basic and diluted net income (loss) per share attributable to holders of shares of Class A common stock for the three and nine months ended September 30, 2020 and 2019 are presented below.

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2020			2019			2020			2019
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	$	32,951		$	40,615		$	52,349		$	83,644
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Net income (loss) attributable to holders of shares of Class A common stock—diluted	$	32,951		$	40,615		$	52,349		$	83,644
Denominator:
Weighted average shares of Class A common stock outstanding—basic		56,803,430			51,079,746			55,263,689			49,796,867
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Weighted average number of incremental shares issuable from unvested restricted stock, RSUs and stock options, as calculated using the treasury stock method		3,864,654	(b)		4,388,982	(b)		3,977,450	(b)		5,348,381	(b)
Weighted average shares of Class A common stock outstanding—diluted		60,668,084			55,468,728			59,241,139			55,145,248
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic	$	0.58		$	0.80		$	0.95		$	1.68
Diluted	$	0.54		$	0.73		$	0.88		$	1.52

We have not included the impact of Class B common stock because these shares are entitled to an insignificant amount of economic participation.

(a)

Class A partnership units may be exchanged for Moelis & Company Class A common stock on a one-for-one basis, subject to applicable lock-up, vesting and transfer restrictions. If all Class A partnership units were to be exchanged for Class A common stock, fully diluted Class A common stock outstanding would be 71,774,582 and 68,459,164 for the three months ended September 30, 2020 and 2019, respectively, and 71,151,424 and 68,163,860 for the nine months ended September 30, 2020 and 2019, respectively. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) available to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests in consolidated entities associated with the Group LP Class A partnership units (including any tax impact). For the three and nine months ended September 30, 2020 and 2019, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive.

(b)

Certain shares of Moelis & Company’s Class A common stock assumed to be issued pursuant to certain RSUs as calculated using the treasury stock method were antidilutive and therefore have been excluded from the calculation of diluted net income (loss) per share attributable to Moelis & Company for certain periods. During the three months ended September 30, 2020 and 2019, there were 1,847 and 51,426 RSUs, respectively, that would have been included in the treasury stock method calculation if the effect were dilutive and 227,126 and 1,465,962 units for the nine months ended September 30, 2020 and 2019, respectively.

Equity-Based Compensation

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity-Based Compensation

7. EQUITY-BASED COMPENSATION

Partnership Units

Prior to the Company’s restructuring and IPO, the business operated as a partnership and its ownership structure was comprised of common partners (principally outside investors) holding units. The common partners contributed capital to the partnership and were not subject to vesting. Units granted to Managing Directors upon joining the Company and as part of annual incentive compensation generally vested based on service over five to eight years. Certain non-Managing Director employees were granted units as part of their incentive arrangements and these units generally vested based on service ratably over four years. In connection with the Company’s restructuring and IPO, substantially all of the Managing Director partner equity subject to vesting was accelerated. Units granted to non-Managing Director employees were not accelerated in connection with the Company’s restructuring and IPO and continue to vest based on the original terms of the grant.

In connection with the reorganization and IPO, Group LP issued Class A partnership units to Moelis & Company and to certain existing unit holders. Following the reorganization, a Class A partnership unit (not held by Moelis & Company or its subsidiaries) is exchangeable into one share of Moelis & Company Class A common stock and represents the Company’s noncontrolling interests. As of September 30, 2020, partners held 11,051,045 Class A partnership units.

The Company recognized compensation expenses of $0 and $30 for the three months ended September 30, 2020 and 2019, respectively, and $39 and $180 for the nine months ended September 30, 2020 and 2019.

2014 Omnibus Incentive Plan

In connection with the IPO, the Company adopted the Moelis & Company 2014 Omnibus Incentive Plan (the “Plan”) to provide additional incentives to selected officers, employees, Managing Directors, non-employee directors, independent contractors, partners, senior advisors and consultants. The Plan provides for the issuance of incentive stock options (“ISOs”), nonqualified stock options, stock appreciation rights (“SARs”), restricted stock, RSUs, stock bonuses, other stock-based awards and cash awards.

Share Repurchase Plan

In the first quarter of 2015, the Board of Directors authorized the repurchase of up to $25 million of shares of Class A common stock of the Company and/or Class A partnership units of Group LP with no expiration date. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will be opportunistic and measured in nature and will depend on a variety of factors, including price and market conditions. In February 2019, the Board of Directors authorized the repurchase of up to $100 million of shares of Class A common stock and/or Class A partnership units of Group LP with no expiration date. This new authorization replaced the former repurchase program and the remaining authorization under the program was eliminated. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will be opportunistic and measured in nature and will depend on a variety of factors, including price and market conditions. The remaining balance of shares authorized for repurchase under the program was $80.9 million as of September 30, 2020.

Restricted Stock and Restricted Stock Units (RSUs)

Pursuant to the Plan and in connection with the Company’s annual compensation process and ongoing hiring process, the Company issues RSUs which generally vest over a service life of four to five years. For the three months ended September 30, 2020 and 2019, the Company recognized expense of $30,090 and $30,343, respectively, and $97,685 and $96,719 for the nine months ended September 30, 2020 and 2019, respectively, in relation to these RSUs.

The following table summarizes activity related to restricted stock and RSUs for the nine months ended September 30, 2020 and 2019.

	Restricted Stock & RSUs
	2020					2019
				Weighted					Weighted
				Average					Average
	Number of			Grant Date		Number of			Grant Date
	Shares			Fair Value		Shares			Fair Value
Unvested Balance at January 1,		8,414,130		$	42.19		8,761,224		$	37.59
Granted		3,913,960			37.58		4,060,788			45.16
Forfeited		(117,850	)		40.00		(153,487	)		45.05
Vested		(3,201,045	)		38.76		(4,172,237	)		34.75
Unvested Balance at September 30,		9,009,195		$	41.35		8,496,288		$	42.17

As of September 30, 2020, the total compensation expense related to unvested restricted stock and RSUs not yet recognized was $146,520. The weighted-average period over which this compensation expense is expected to be recognized at September 30, 2020 is 1.6 years.

Stock Options

Pursuant to the Plan, the Company issued 3,501,881 stock options in 2014 which vest over a five-year period. The Company estimated the fair value of stock option awards at grant using the Black-Scholes valuation model with the following assumptions:

	Assumptions
Expected life (in years)		6
Weighted-average risk free interest rate		1.91	%
Expected volatility		35	%
Dividend yield		2.72	%
Weighted-average fair value at grant date	$	6.70

The Company paid special dividends of $9.05, in aggregate, through September 30, 2020. As required under Section 5 of the Company’s 2014 Omnibus Incentive Plan, the Compensation Committee of the Company’s Board of Directors equitably reduced the exercise price of the Company’s outstanding options to purchase common stock by $9.05 from $25.00 per share to $15.95 per share.

The following table summarizes activity related to stock options for the nine months ended September 30, 2020 and 2019.

	Stock Options Outstanding
	2020					2019
				Weighted					Weighted
				Average					Average
	Number			Exercise Price		Number			Exercise Price
	Outstanding			Per Share		Outstanding			Per Share
Outstanding at January 1,		728,534		$	15.95		2,017,067		$	15.95
Exercises		(728,534	)		15.95		(471,027	)		15.95
Forfeitures or expirations		—			—		(3,000	)		15.95
Outstanding at September 30,		—		$	—		1,543,040		$	15.95

For the three months ended September 30, 2020 and 2019, the Company recognized expenses of $0 and $0, respectively, and $0 and $606 for the nine months ended September 30, 2020 and 2019, respectively, related to stock options.

Stockholders Equity

9 Months Ended

Sep. 30, 2020

Stockholders Equity Note [Abstract]

Stockholders Equity

8. STOCKHOLDERS EQUITY

Class A Common Stock

In April 2014, the Company issued 15,263,653 shares of Class A common stock in connection with the IPO and reorganization. Since its IPO, the Company has conducted several offerings of Class A common stock in order to facilitate organized liquidity and increase the public float of its Class A common stock. The details of these offerings are displayed below. The Company did not retain any proceeds from the sale of its Class A common stock.

	Total Shares		Total Increase in
Date of Offering	Offered		Shares Outstanding
November, 2014		6,325,000		4,511,058
January, 2017		5,750,000		5,356,876
July, 2017		6,000,000		5,680,903
March, 2018		5,000,000		4,689,295
August, 2018		5,000,000		4,685,217
Total		28,075,000		24,923,349

As of September 30, 2020, there were 59,144,937 shares of Class A common stock issued, 3,683,415 shares of treasury stock, and 55,461,522 shares outstanding, and as of December 31, 2019, there were 52,773,617 shares of Class A common stock issued, 2,757,558 shares of treasury stock, and 50,016,059 shares outstanding. The changes in Class A common stock are due primarily to the IPO, offering transactions described above, exchanges of class A partnership units, the exercise of stock options and vesting of restricted stock units in connection with the Company’s annual compensation process and ongoing hiring process.

Class B Common Stock

In conjunction with Moelis & Company’s IPO of its Class A common stock, the Company issued 36,158,698 shares of Class B common stock. Moelis & Company Partner Holdings LP (“Partner Holdings”) holds all shares of Class B common stock, enabling it initially to exercise majority voting control over the Company. The economic rights of Class B common stock are based on the ratio of the Class B subscription price to the initial public offering price of shares of Class A common stock (.00055 to 1). Shares of Class B common stock are generally not transferrable and, if transferred other than in the limited circumstances set forth in Moelis & Company’s Amended and Restated Certificate of Incorporation, such shares shall automatically convert into a number of shares of Class A common stock, or dollar equivalent. Each share of Class B common stock may also be converted to a number of Class A shares at the option of the holder. Holders of shares of Class B common stock are entitled to receive dividends of the same type as any dividends payable on outstanding shares of Class A common stock at a ratio of .00055 to 1.

	Class B Stock
	Purchased /			Purchase Cost
Date of Offering	Surrendered			(in thousands)
November, 2014		4,507,453	$		28
January, 2017		5,356,876			101
July, 2017		5,680,903			128
March, 2018		4,689,295			135
August, 2018		4,685,217			158
Total		24,919,744	$		550

As of September 30, 2020, and December 31, 2019, 8,490,938 and 10,397,915 shares of Class B common stock were issued and outstanding, respectively, due primarily to the IPO, offering transactions, and Class B conversions described above.

Treasury Stock

During the nine months ended September 30, 2020 and 2019, the Company repurchased 925,857 and 1,046,490 shares, respectively, pursuant to the Company’s share repurchase program and shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the delivery of equity-based compensation awards. The result of the repurchases was an increase of $33,354 and $42,073, respectively, in the treasury stock balance on the Company’s condensed consolidated statements of changes in equity as of September 30, 2020 and 2019.

Noncontrolling Interests

A Group LP Class A partnership unit (not held by Moelis & Company or its subsidiaries) is exchangeable into one share of Moelis & Company Class A common stock and represents the Company’s noncontrolling interests (non-redeemable). As of September 30, 2020 and December 31, 2019, partners held 11,051,045 and 12,958,022 Group LP partnership units, respectively, representing a 17% and 21% noncontrolling interest in Moelis & Company, respectively.

Controlling Interests

Moelis & Company operates and controls all of the business and affairs of Group LP and its operating entity subsidiaries indirectly through its equity interest in Group GP, and thus the 55,461,522 shares of Class A common stock outstanding at September 30, 2020 (50,016,059 as of December 31, 2019), represents the controlling interest.

Related-Party Transactions

9 Months Ended

Sep. 30, 2020

Related-Party Transactions

9. RELATED-PARTY TRANSACTIONS

Aircraft Lease— On August 30, 2014, a related party, Moelis & Company Manager LLC ("Manager"), acquired an aircraft with funds received solely from its managing member (Mr. Moelis). The aircraft was used and operated by the Company pursuant to a dry lease with Manager. The terms of the dry lease were comparable to the market rates of leasing from an independent third party. Pursuant to this dry lease arrangement, the lessee is obligated to bear its share of the costs of operating the aircraft. In addition, Mr. Moelis was the other lessee of the aircraft and shared the operating and related costs of the plane in proportion to his respective use pursuant to a cost sharing and operating agreement. On July 12, 2019, the Company terminated its aircraft dry lease with Manager, the lessor, and Mr. Moelis, the other lessee (the “Old Lease”) and the related cost sharing agreement with Mr. Moelis, which were set to expire by their terms on December 31, 2019, and entered into a new dry lease with Manager, the lessor, and Mr. Moelis, the other lessee (the “New Lease”) and cost sharing agreement with Mr. Moelis, which terminate on December 31, 2022. The terms of the New Lease and new cost sharing agreement are substantially similar to the Old Lease and related cost sharing agreement.

For the three months ended September 30, 2020 and 2019, the Company incurred $324 and $413 in aircraft lease costs to be paid to Manager, respectively, and $972 and $1,349 for the nine months ended September 30, 2020 and 2019, respectively.

Promissory Notes —As of September 30, 2020, there were $389 of unsecured promissory notes from employees held by the Company (December 31, 2019: $189). Any outstanding balances are reflected in accrued and other receivables on the condensed consolidated statements of financial condition. The notes bear fixed interest rates ranging from 3.00% to 4.00%. During the nine months ended September 30, 2020 and 2019, the Company received $0 of principal repayments and recognized interest income of $9 and $6, on such notes, respectively, which is included in other income and expenses on the condensed consolidated statements of operations.

Services Agreement —In connection with the Company’s IPO, the Company entered into a services agreement with a related party, Moelis Asset Management LP, whereby the Company provides certain administrative services to Moelis Asset Management LP for a fee. This fee totaled $65 and $60 for the three months ended September 30, 2020 and 2019 and $239 and $188 for the nine months ended September 30, 2020 and 2019, respectively. The amount of the fee is based upon the estimated usage and related expense of all shared services between the Company and Moelis Asset Management LP during the relevant period, and will be assessed periodically by management as per the terms of the agreement. As of September 30, 2020 and December 31, 2019, the Company had no balances due from Moelis Asset Management LP.

Moelis Australia —As of September 30, 2020 and December 31, 2019, the Company had $30 and $0 due from Moelis Australia which is reflected in accrued and other receivables on the condensed consolidated statements of financial condition. These balances consist of amounts due to or from Moelis Australia for advisory services performed as well as billable expenses incurred by the Company on behalf of Moelis Australia during the period. The relationship between the Company and Moelis Australia is governed by a services agreement.

Revenues —From time to time, the Company enters into advisory transactions with Moelis Asset Management LP and its affiliates. The Company earned revenues associated with such transactions of $0 for each of the three months ended September 30, 2020 and 2019, and $0 and $210 for the nine months ended September 30, 2020 and 2019, respectively.

Regulatory Requirements

9 Months Ended

Sep. 30, 2020

Regulatory Capital Requirements [Abstract]

Regulatory Requirements

10. REGULATORY REQUIREMENTS

Under the SEC Uniform Net Capital Rule (SEC Rule 15c3-1) Alternative Standard under Section (a)(1)(ii), the minimum net capital requirement is $250. At September 30, 2020, Moelis U.S. had net capital of $173,163, which was $172,913 in excess of its required net capital. At December 31, 2019, Moelis U.S. had net capital of $160,401 which was $160,151 in excess of its required net capital.

Moelis U.S. does not carry customer accounts and does not otherwise hold funds or securities for, or owe money or securities to, customers and accordingly is exempt under Section (k)(2)(ii) of SEC Rule 15c3-3.

At September 30, 2020, the aggregate regulatory net capital of Moelis UK was $8,280 which exceeded the minimum requirement by $8,221. At December 31, 2019, the aggregate regulatory net capital of Moelis UK was $11,978, which exceeded the minimum requirement by $11,922.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. COMMITMENTS AND CONTINGENCIES

Bank Line of Credit — In April 2020, the Company renewed its $65,000 revolving credit facility which extended the maturity date to June 30, 2021. Unless the lender issues a notice of termination at least 60 days prior to such maturity date, this facility will automatically extend to June 30, 2022.

Borrowings on the facility bear interest at the greater of a fixed rate of 3.50% per annum or at the borrower’s option of (i) LIBOR plus 1% or (ii) Prime minus 1.50%. As of September 30, 2020 and December 31, 2019, the Company had no borrowings under the credit facility.

As of September 30, 2020, the Company’s available credit under this facility was $60,507 as a result of the issuance of an aggregate amount of $4,493 of various standby letters of credit, which were required in connection with certain office lease and other agreements. The Company incurs a 1% per annum fee on the outstanding balance of issued letters of credit.

Leases —The Company maintains operating leases for corporate offices and an aircraft with various expiration dates, some of which extend through 2036. Some leases include options to terminate or to extend the lease terms. The Company records lease liabilities measured at the present value of anticipated lease payments over the lease term, including options to extend or terminate the lease when it is reasonably certain such options will be exercised. The implicit discount rates used to determine the present value of the Company’s leases are not readily determinable, thus the Company uses its secured borrowing rate, which was determined with reference to our available credit line. See below for additional information about the Company’s leases.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in thousands)	2020			2019			2020			2019
Supplemental Income Statement Information:

Operating lease cost	$	6,697		$	3,970		$	19,713		$	12,270

Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of lease liabilities:
Net operating cash outflows for operating leases	$	5,996		$	4,818		$	13,840		$	14,655

Right-of-use assets obtained in exchange for lease obligations (e.g. new leases and amendments commenced during the period):	$	1,589		$	6,445		$	4,643		$	7,617

Other Information
Weighted-average remaining lease term - operating leases		13.72	years		4.95	years		13.72	years		4.95	years
Weighted-average discount rate - operating leases		3.53	%		4.00	%		3.53	%		4.00	%

The future sublease income and maturities of our operating lease liabilities as of September 30, 2020, are as follows:

Fiscal year ended	Sublease Income			Operating Leases
Remainder of 2020	$	(215	)	$	2,986
2021		(860	)		19,482
2022		(860	)		23,715
2023		(860	)		20,484
2024		(860	)		18,785
Thereafter		(430	)		192,488
Total Payments	$	(4,085	)	$	277,940

Less: Tenant improvement allowances					(21,343	)
Less: Present value adjustment					(63,153	)
Total				$	193,444

Contractual Arrangements —In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and which provide indemnification for specified losses, including certain indemnification of certain officers, directors and employees.

Legal —In the ordinary course of business, from time to time the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including contractual and employment matters. In addition, government agencies and self-regulatory organizations conduct periodic examinations and initiate administrative proceedings regarding the Company’s business, including, among other matters, compliance, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees. In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be. Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company.

Employee Benefit Plans

9 Months Ended

Sep. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

12. EMPLOYEE BENEFIT PLANS

The Company covers substantially all U.S. salaried employees with a defined contribution 401(k) plan. Each salaried employee of the Company who has attained the age of 21 is eligible to participate in the 401(k) plan on their first day of employment. Any employer contributions to the 401(k) plan are entirely at the discretion of the Company. The Company accrued expenses relating to employer matching contributions to the 401(k) plan for the three months ended September 30, 2020 and 2019, in the amounts of $713 and $686, respectively, and $2,119 and $2,054 for the nine months ended September 30, 2020 and 2019, respectively.

Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

13. INCOME TAXES

The Company’s operations are comprised of entities that are organized as limited liability companies and limited partnerships. For U.S. federal income tax purposes, taxes related to income earned by these entities represent obligations of their interest holders, except for the New York City unincorporated business tax (“UBT”) and certain other foreign, state, and local taxes. The Company is subject to U.S. corporate federal, state, and local income tax on its allocable share of results of operations from Group LP.

The Company’s provision for income taxes and effective tax rate were $8,534 and 17% and $13,886 and 20%, for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, the Company’s provision for income taxes were a benefit of $10,195 and expense of $10,662, respectively, compared with pre-tax operating income of $52,680 and $119,204, respectively. The Company’s provision for income taxes included tax benefits recognized in connection with the delivery of equity-based compensation of $7,353 and $13,948 for the nine months ended September 30, 2020 and 2019, respectively. In addition, the Company’s provision for the three and nine months ended September 30, 2020 included benefits of $2,555 and $16,328, respectively, pursuant to certain tax provisions provided under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) enacted in the United States on March 27, 2020. The CARES Act permits the Company to carry back net operating losses to offset taxable income generated in the five preceding years, some of which were taxed at a federal income tax rate higher than the current enacted rate. The Company has recorded an income tax receivable of $37,811 within deferred tax asset and income tax receivable on the condensed consolidated statement of financial condition related to the operating losses. As some of the calculated tax benefits relate to deductions subject to the Company’s Tax Receivable Agreement, the Company’s liability pursuant to the Tax Receivable Agreement was also re-measured and the estimated impact was recorded within other income and expenses on the condensed consolidated statement of operations.

Revenues and Business Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Revenues and Business Information

14. REVENUES AND BUSINESS INFORMATION

The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, governments, sovereign wealth funds, and financial sponsors, a range of advisory services with expertise across all major industries in mergers and acquisitions, recapitalizations and restructurings, capital markets and other corporate finance matters.

Since the financial markets are global in nature, the Company generally manages its business based on the operating results of the enterprise taken as whole, not by geographic region. The following table disaggregates the revenues and assets based on the location of the office that generates the revenues or holds the assets, and therefore may not be reflective of the geography in which our clients are located.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues:
United States	$	177,774	$	191,795	$	445,341	$	446,721
Europe		22,513		31,729		53,893		54,450
Rest of World		7,317		8,176		22,014		21,835
Total	$	207,604	$	231,700	$	521,248	$	523,006

	September 30,		December 31,
	2020		2019
Assets:
United States	$	960,327	$	934,654
Europe		40,579		67,247
Rest of World		65,015		69,798
Total	$	1,065,921	$	1,071,699

As of September 30, 2020, and December 31, 2019, the Company had deferred revenues of $7,494 and $3,023, respectively. These amounts primarily consist of upfront fees and retainers for our services. During the nine months ended September 30, 2020, $2,354 of revenues were recognized from the opening balance of deferred revenues.

Due to the factors that may delay or terminate a transaction (see Note 2), the Company does not estimate constrained transaction fees for revenue recognition. Quantitative disclosures of constrained variable consideration are not provided for remaining, wholly unsatisfied, performance obligations. These remaining performance obligations related to retainers, upfront fees and announcement fees are typically associated with contracts that have durations of one year or less.

Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

15. SUBSEQUENT EVENTS

The Board of Directors of Moelis & Company has declared a dividend of $0.3825 per share to be paid on November 30, 2020 to shareholders of record as of November 6, 2020.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting —The Company prepared the accompanying condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). As permitted by the interim reporting rules and regulations set forth by the SEC, the condensed consolidated financial statements presented exclude certain financial information and footnote disclosures normally included in audited financial statements prepared in accordance with U.S. GAAP. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to fairly present the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019.

Consolidation

Consolidation —The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company has ownership of the majority of voting interests. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of income or losses of the entity. All intercompany balances and transactions with the Company’s subsidiaries have been eliminated in consolidation.

Use of Estimates

Use of Estimates —The preparation of condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management 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 financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary.

In preparing the condensed consolidated financial statements, management makes estimates and assumptions regarding:

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the adequacy of the allowance for credit losses;

•

the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal;

•

the assessment of probable lease terms and the measurement of the present value of such obligations;

•

the measurement and realization of deferred taxes;

•

the measurement of amount due pursuant to tax receivable agreement; and

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other matters that affect the reported amounts and disclosures of contingencies in the financial statements.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash —Cash and cash equivalents include all short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase.

The Company’s cash is maintained in U.S. and non-U.S. bank accounts, of which most bank account balances had little or no insurance coverage (most balances are held in U.S. and U.K. accounts which exceeded the U.S. Federal Deposit Insurance Corporation and U.K. Financial Services Compensation Scheme coverage limits). The Company’s cash equivalents are invested primarily in U.S. Treasury instruments and government securities money markets.

The Company’s restricted cash is comprised of collateral deposits primarily held by certain non-U.S. subsidiaries. These deposits are required for certain direct debit accounts and are also used to satisfy future medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of September 30, 2020 and 2019, is presented below.

	September 30,
	2020		2019
Cash	$	46,026	$	38,387
Cash equivalents		39,487		10,556
Restricted cash		636		699
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	86,149	$	49,642

Additionally, as of December 31, 2019, the Company held cash of $71,798 and cash equivalents of $96,014.

Receivables

Receivables —The accompanying condensed consolidated statements of financial condition present accounts receivable balances net of allowance for credit losses based on the Company’s assessment of the collectability of customer accounts.

Included in the accounts receivable balances at September 30, 2020 and December 31, 2019 were $19,165 and $19,879 of long term receivables related to private funds advisory capital raising engagements, which are generally paid in installments over a period of three to four years. These long term receivables generated interest income of $182 and $241 for the three months ended September 30, 2020 and 2019, respectively, and $568 and $761 for the nine months ended September 30, 2020 and 2019, respectively.

The Company maintains an allowance for credit losses that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. For purposes of determining appropriate allowances, the Company stratifies its population of accounts receivable into two categories, one for short-term receivables and a second for private funds advisory receivables. Each population is separately evaluated using an aging method that results in a percentage reserve based on the age of the receivable, in addition to considerations of historical charge-offs and current economic conditions.

After concluding that a reserved accounts receivable is no longer collectible, the Company will charge-off the receivable. This has the effect of reducing both the gross receivable and the allowance for credit losses. If a reserved accounts receivable is subsequently collected, such recoveries reduce the gross receivable and the allowance for credit losses and is a reduction of bad debt expense, which is recorded within other expenses on the condensed consolidated statement of operations. The combination of recoveries and the provision for credit losses of a reported period comprise the Company’s bad debt expense.

On January 1, 2020, the Company adopted Accounting Standards Update No. 2016-13— “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") using the modified retrospective method. Upon adoption, a cumulative adjustment was recorded which decreased retained earnings by $459. The tax effect of this adjustment increased retained earnings by $95, resulting in a net decrease of $364 as of January 1, 2020. ASU 2016-13 replaces the incurred loss impairment methodology for financial instruments with the current expected credit loss (CECL) model which requires estimates of future credit losses based on reasonable supporting information. The Company will recognize its expected credit losses for each reporting period going forward.

The following tables summarize credit loss allowance activity for the three and nine months ended September 30, 2020:

	Three Months Ended September 30, 2020
	Accounts Receivable
		Short-term Receivables				Private Funds Advisory Receivables				Total
Allowance for Credit Losses, beginning balance	$		4,507		$		200		$		4,707
Charge-offs			(1,428	)			-				(1,428	)
Recoveries			(1,235	)			-				(1,235	)
Reduction to allowance			(2,663	)			-				(2,663	)
Provision for credit losses			2,473				(6	)			2,467
Allowance for credit losses, ending balance	$		4,317		$		194		$		4,511

	Nine Months Ended September 30, 2020
	Accounts Receivable
		Short-term Receivables				Private Funds Advisory Receivables				Total
Allowance for Credit Losses, beginning balance	$		4,088		$		-		$		4,088
Adjustment for adoption of ASU 2016-13			260				199				459
Allowance for Credit Losses, adjusted beginning balance			4,348				199				4,547
Charge-offs			(2,844	)			-				(2,844	)
Recoveries			(2,471	)			(26	)			(2,497	)
Reduction to allowance			(5,315	)			(26	)			(5,341	)
Provision for credit losses			5,284				21				5,305
Allowance for credit losses, ending balance	$		4,317		$		194		$		4,511

Deferred Compensation

Deferred Compensation —Deferred compensation costs represent arrangements with certain employees whereby cash payments are subject to a required period of service subsequent to payment by the Company. These amounts are charged to expenses over the period that the employee is required to provide services in order to vest in the payment.

Financial Instruments at Fair Value

Financial Instruments at Fair Value —Fair value is generally based on quoted prices, however if quoted market prices are not available, fair value is determined based on other relevant factors, including dealer price quotations, price activity for equivalent instruments and valuation pricing models. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of instrument, the characteristics specific to the instrument and the state of the marketplace (including the existence and transparency of transactions between market participants). Financial instruments with readily-available actively quoted prices or for which fair value can be measured from actively-quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest) based on inputs:

Level 1 —Quoted prices (unadjusted) are available in active markets for identical instruments that the Company has the ability to access as of the reporting date. The Company, to the extent that it holds such instruments, does not adjust the quoted price for these instruments, even in situations in which the Company holds a large position and a sale could reasonably affect the quoted price.

Level 2 —Pricing inputs are observable for the instruments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies.

Level 3 —Pricing inputs are unobservable for the instruments and include situations where there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management.

For level 3 investments in which pricing inputs are unobservable and limited market activity exists, management’s determination of fair value is based on the best information available, may incorporate management’s own assumptions and involves a significant degree of judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the instrument.

Equity Method Investments

Equity Method Investments —The Company accounts for its equity method investments under the equity method of accounting as the Company does not control these entities but has the ability to exercise significant influence. The amounts recorded in investments on the condensed consolidated statements of financial condition reflect the Company’s share of contributions made to, distributions received from, and the equity earnings and losses of, the investments. The Company reflects its share of gains and losses of the investment in other income and expenses in the condensed consolidated statements of operations using the most recently available earnings data at the end of the period.

Leases

Leases — The Company maintains operating leases for corporate offices and an aircraft. The Company determines if a contract contains a lease at inception. Operating leases are recorded as right-of-use (“ROU”) assets and lease liabilities on the condensed consolidated statements of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the lease commencement date and are measured at the present value of anticipated lease payments over the lease term. The operating lease ROU assets are equal to the lease liabilities, adjusted for certain lease incentives, accrued rents, and prepaid rents. Typically, our borrowing rate is used to determine the present value of lease payments because the implicit rate is not readily determinable. Our lease terms may include options to extend or terminate the lease. These options are factored into our present value calculations when it is reasonably certain that such options will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term.

Adoption of ASU 2016-02

In February 2016, the FASB issued Accounting Standards Update 2016-02—Leases (“ASU 2016-02”) to improve transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet. Additionally, in July 2018, the FASB issued ASU 2018-11 which permits entities to apply the requirements of ASU 2016-02 as of the adoption date, as opposed to the earliest comparative period disclosed.

The Company adopted both standards as of January 1, 2019, and is applying the requirements of ASU 2016-02 as of the adoption date instead of the earliest comparative period disclosed. In addition, we elected to use certain practical expedients to assist in our transition and are not reassessing the identification and classification of leases upon adoption. Upon adoption, the Company recorded lease liabilities and corresponding ROU assets of $63,252. The ROU assets were adjusted for prepaid rent and accrued rent, which reduced our opening balances of prepaid expenses and other assets and other liabilities by $1,666 and $7,139, respectively. The adoption of ASU 2016-02 did not have a material impact to our condensed consolidated statements of operations.

Software

Software— Costs related to implementation of cloud computing arrangements that qualify for capitalization are stated at cost less accumulated amortization within prepaid and other assets on the Company’s condensed consolidated statement of financial condition. Such capitalized costs are amortized using the straight-line method over the term of the cloud computing service contract or another rational basis, beginning when the cloud computing arrangement is substantially complete and ready for its intended use. All costs not directly related to the implementation of cloud computing arrangements, including overhead costs and costs of service agreements, will be expensed in the period they are incurred. The amortization expense of such capitalized costs will be presented under communication, technology and information services on the condensed consolidated statement of operations.

Effective January 1, 2020, the Company adopted ASU 2018-15, “Goodwill and Other —Internal Use Software” using a prospective approach (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in cloud computing arrangements with the requirements for capitalizing costs to develop or obtain internal-use software. See Note 4—Fixed and Intangible Assets below for further details on the Company’s capitalized cloud computing arrangements.

Equipment and Leasehold Improvements

Equipment and Leasehold Improvements —Office equipment and furniture and fixtures are stated at cost less accumulated depreciation, which is determined using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years, respectively. Leasehold improvements are stated at cost less accumulated amortization, which is determined using the straight-line method over the lesser of the term of the lease or the estimated useful life of the asset.

Major renewals and improvements are capitalized and minor replacements, maintenance and repairs are charged to expenses as incurred. Assets that are in development and have not yet been placed in service are generally classified as “Construction in Progress” and are reclassified to the appropriate category when the associated assets are placed in service. Upon retirement or disposal of assets, the cost and related accumulated depreciation or amortization are removed from the condensed consolidated statements of financial condition and any gain or loss is reflected in the condensed consolidated statements of operations.

Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement

Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement —In conjunction with the IPO, the Company was treated for U.S. federal income tax purposes as having directly purchased Class A partnership units in Group LP from the existing unitholders. Additional Group LP Class A partnership units may be exchanged for shares of Class A common stock in the Company. The initial purchase and future exchanges are expected to result in an increase in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP. These increases in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP would not have been available but for the initial purchase and future exchanges. Such increases in tax basis are likely to increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of income tax the Company would otherwise be required to pay in the future. As a result, the Company records a deferred tax asset for such increase in tax basis.

The Company has entered into a tax receivable agreement with its eligible Managing Directors that will provide for the payment by the Company to its eligible Managing Directors of 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax or franchise tax that the Company actually realizes as a result of (a) the increases in tax basis attributable to exchanges by its eligible Managing Directors and (b) tax benefits related to imputed interest deemed to be paid by the Company as a result of this tax receivable agreement. The Company expects to benefit from the remaining 15% of cash savings, if any, in income tax that it realizes and record any such estimated tax benefits as an increase to additional paid-in-capital. For purposes of the tax receivable agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Group LP as a result of the exchanges and had it not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation of the IPO and will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the tax receivable agreement for an amount based on an agreed value of payments remaining to be made under the agreement. The Company has recorded the estimated tax benefits related to the increase in tax basis and imputed interest as a result of the initial purchase and subsequent exchanges described above as a deferred tax asset in the condensed consolidated statements of financial condition. The amount due to its eligible Managing Directors related to the tax receivable agreement as a result of the initial purchase and subsequent exchanges described above is recorded as amount due pursuant to tax receivable agreement in the condensed consolidated statements of financial condition. The amounts recorded for the deferred tax asset and the liability for our obligations under the tax receivable agreement are estimates. Any adjustments to our estimates subsequent to their initial establishment will be included in net income (loss). Future exchanges of Class A partnership units in Group LP for Class A common shares in the Company will be accounted for in a similar manner.

Revenue and Expense Recognition

Revenue and Expense Recognition—We earn substantially all of our revenues from advisory engagements and, in many cases, we are not paid until the completion of an underlying transaction. The Company recognizes revenues from providing advisory services when or as our obligations are fulfilled and collection is reasonably assured. The vast majority of our advisory revenues, which include reimbursements for certain out-of-pocket expenses, are recognized over time; however, a small number of transactions may be recognized at a point in time. We provide our advisory service on an ongoing basis which, for example, may include evaluating and selecting one of multiple strategies. During such engagements, our clients are continuously benefitting from our counsel and the over time recognition matches the transfer of such benefits. However, the recognition of transaction fees is constrained until substantially all services have been provided, specified conditions have been met and it is probable that a significant reversal of revenue will not occur in a future period. Upfront fees and retainers specified in our engagement letters that meet the over time criteria will be recognized on a systematic basis over the estimated period where the related services are performed. Revenues may be recognized at a point in time if the engagement represents a singular objective that does not transfer any notable value until formally completed, such as when issuing a fairness opinion. In these instances, the point in time recognition appropriately matches the transfer and consumption of our services.

Incremental costs of obtaining a contract are expensed as incurred since such costs are generally not recoverable and the typical duration of our advisory contracts is less than one year. Costs to fulfill contracts consist of out-of-pocket expenses that are part of performing our advisory services and are typically expensed as incurred, except where the transfer and consumption of our services occurs at a point in time. For engagements recognized at a point in time, out-of-pocket expenses are capitalized and subsequently expensed in the condensed consolidated statement of operations upon completion of the engagement. The Company records deferred revenues when it receives fees from clients that have not yet been earned (e.g. an upfront fee) or when the Company has an unconditional right to consideration before all performance obligations are complete (e.g. upon satisfying conditions to earn an announcement fee, but before the transaction is consummated).

Complications that may terminate or delay a transaction include failure to agree upon final terms with the counterparty, failure to obtain required regulatory consents, failure to obtain board or stockholder approvals, failure to secure financing, adverse market conditions or unexpected operating or financial problems related to either party to the transaction. In these circumstances, we often do not receive advisory fees that would have been received if the transaction had been completed, despite the fact that we may have devoted considerable time and resources to the transaction. Barriers to the completion of a restructuring transaction may include a lack of anticipated bidders for the assets of our client, the inability of our client to restructure its operations, or indebtedness due to a failure to reach agreement with its creditors. In these circumstances, our fees are generally limited to monthly retainer fees and reimbursement of certain out-of-pocket expenses.

We do not allocate our revenue by the type of advice we provide because of the complexity of the transactions on which we may earn revenue and our holistic approach to client service. For example, a restructuring engagement may evolve to require a sale of all or a portion of the client, M&A assignments can develop from relationships established on prior restructuring engagements, and capital markets expertise can be instrumental on both M&A and restructuring assignments.

Equity-based Compensation

Equity-based Compensation — The Company recognizes the cost of services received in exchange for equity instrument awards. The cost is based on its grant-date fair value based on quoted market prices at the time of grant amortized over the service period required by the award’s vesting terms. The Company records as treasury stock shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the vesting of restricted stock units (“RSUs”). The Company records dividends in kind, net of forfeitures, on outstanding RSUs as a reduction of retained earnings with a corresponding increase in additional paid-in capital, resulting in no net change to equity. Dividends in kind on RSUs are subject to the same vesting conditions as the underlying RSUs on which they were accrued. Dividends in kind will be forfeited if the underlying award does not vest.

The Company has a retirement plan whereby a retiring employee generally will not forfeit certain qualifying incentive RSUs granted during employment if at retirement the employee meets certain requirements. For qualifying awards issued prior to December 1, 2016, the employee must (i) be at least 54 years old and (ii) have provided at least 8 consecutive years of service to the Company. For qualifying awards issued on or after December 1, 2016, (i) the employee must be at least 56 years old, (ii) the employee must have provided at least 5 consecutive years of service to the Company and (iii) the total of (i) and (ii) must be equal to at least 65 years. Any such RSUs will continue to vest on their applicable vesting schedule, subject to noncompetition and other terms. Over time a greater number of employees may become retirement eligible and the related requisite service period over which we will expense these awards will be shorter than the stated vesting period. Any unvested RSUs are eligible to receive dividends in kind; however, the right to dividends in kind will be forfeited if the underlying award does not vest.

Effective January 1, 2019, the Company adopted ASU 2018-07, “Compensation—Stock Compensation” (“ASU 2018-07”) using the modified retrospective method. The adoption of this new standard generally requires the accounting for equity-based payments to nonemployees to be consistent with the accounting for employees. As a result, the Company will recognize the cost of services received from a nonemployee in exchange for an equity instrument based on the award’s grant-date fair value. Unsettled equity-based payments to nonemployees have been remeasured at fair value as of the adoption date. No adjustment to the opening balance of retained earnings was required.

Income Taxes

Income Taxes — The Company accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”), which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax bases of its assets and liabilities by applying the enacted tax rates in effect for the year in which the differences are expected to reverse. Such net tax effects on temporary differences are reflected on the Company’s condensed consolidated statements of financial condition as deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized.

ASC 740-10 prescribes a two-step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. For the three and nine months ended September 30, 2020 and 2019, no unrecognized tax benefit was recorded. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax-related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense. For the three and nine months ended September 30, 2020 and 2019, no such amounts were recorded.

The Company recognizes excess tax benefits and deficiencies as income tax benefits or expenses in the condensed consolidated statement of operations. These are reflected in accounts payable, accrued expenses and other liabilities within the condensed consolidated statement of cash flows.

Foreign Currency Translation

Foreign Currency Translation — Assets and liabilities held in non-U.S. dollar denominated currencies are translated into U.S. dollars at exchange rates in effect at the end of the reporting period. Revenues and expenses are translated at average exchange rates during the reporting period. A charge or credit is recorded to other comprehensive income to reflect the translation of these amounts to the extent the non-U.S. currency is designated the functional currency of the subsidiary. Non-functional currency related transaction gains and losses are immediately recorded in the condensed consolidated statements of operations.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Cash, Cash Equivalents and Restricted Cash

A reconciliation of the Company’s cash, cash equivalents and restricted cash as of September 30, 2020 and 2019, is presented below.

	September 30,
	2020		2019
Cash	$	46,026	$	38,387
Cash equivalents		39,487		10,556
Restricted cash		636		699
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	86,149	$	49,642

Summary of Credit Loss Allowance Activity

The following tables summarize credit loss allowance activity for the three and nine months ended September 30, 2020:

	Three Months Ended September 30, 2020
	Accounts Receivable
		Short-term Receivables				Private Funds Advisory Receivables				Total
Allowance for Credit Losses, beginning balance	$		4,507		$		200		$		4,707
Charge-offs			(1,428	)			-				(1,428	)
Recoveries			(1,235	)			-				(1,235	)
Reduction to allowance			(2,663	)			-				(2,663	)
Provision for credit losses			2,473				(6	)			2,467
Allowance for credit losses, ending balance	$		4,317		$		194		$		4,511

	Nine Months Ended September 30, 2020
	Accounts Receivable
		Short-term Receivables				Private Funds Advisory Receivables				Total
Allowance for Credit Losses, beginning balance	$		4,088		$		-		$		4,088
Adjustment for adoption of ASU 2016-13			260				199				459
Allowance for Credit Losses, adjusted beginning balance			4,348				199				4,547
Charge-offs			(2,844	)			-				(2,844	)
Recoveries			(2,471	)			(26	)			(2,497	)
Reduction to allowance			(5,315	)			(26	)			(5,341	)
Provision for credit losses			5,284				21				5,305
Allowance for credit losses, ending balance	$		4,317		$		194		$		4,511

Fixed and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Property Plant And Equipment [Abstract]

Schedule of Equipment and Leasehold Improvements, Net

Equipment and leasehold improvements, net consists of the following:

	September 30,			December 31,
	2020			2019
Office equipment	$	13,033		$	13,593
Furniture and fixtures		5,045			5,054
Leasehold improvements		15,189			15,294
Construction in progress		32,105			2,108
Total		65,372			36,049
Less accumulated depreciation and amortization		(23,372	)		(22,057	)
Equipment and leasehold improvements, net	$	42,000		$	13,992

Investments (Tables)

9 Months Ended

Sep. 30, 2020

Investments All Other Investments [Abstract]

Summary of the Levels of the Fair Value Hierarchy into Which the Company's Financial Assets Fall

The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of September 30, 2020:

	Total		Level 1			Level 2			Level 3
Financial assets:
Included in cash and cash equivalents
U.S. treasury instruments	$	15,000	$	—		$		15,000	$	—
Government securities money market		24,487		—				24,487		—
Investments
U.S. treasury instruments		180,828			—			180,828		—
Common stock		1,117			1,117		—				—
Total financial assets	$	221,432	$		1,117	$		220,315	$		—

The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2019:

	Total		Level 1			Level 2			Level 3
Financial assets:
Included in cash and cash equivalents
U.S. treasury instruments	$	62,949	$		—	$		62,949	$	—
Government securities money market		33,065		—				33,065		—
Investments
U.S. treasury instruments		173,960		—				173,960		—
Common stock		327			327		—				—
Total financial assets	$	270,301	$		327	$		269,974	$		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Net Income (Loss) Per Share Attributable to Class A Common Shareholders (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Calculations of Basic and Diluted Net Income (Loss) Per Share

The calculations of basic and diluted net income (loss) per share attributable to holders of shares of Class A common stock for the three and nine months ended September 30, 2020 and 2019 are presented below.

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2020			2019			2020			2019
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	$	32,951		$	40,615		$	52,349		$	83,644
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Net income (loss) attributable to holders of shares of Class A common stock—diluted	$	32,951		$	40,615		$	52,349		$	83,644
Denominator:
Weighted average shares of Class A common stock outstanding—basic		56,803,430			51,079,746			55,263,689			49,796,867
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Weighted average number of incremental shares issuable from unvested restricted stock, RSUs and stock options, as calculated using the treasury stock method		3,864,654	(b)		4,388,982	(b)		3,977,450	(b)		5,348,381	(b)
Weighted average shares of Class A common stock outstanding—diluted		60,668,084			55,468,728			59,241,139			55,145,248
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic	$	0.58		$	0.80		$	0.95		$	1.68
Diluted	$	0.54		$	0.73		$	0.88		$	1.52

We have not included the impact of Class B common stock because these shares are entitled to an insignificant amount of economic participation.

(a)

Class A partnership units may be exchanged for Moelis & Company Class A common stock on a one-for-one basis, subject to applicable lock-up, vesting and transfer restrictions. If all Class A partnership units were to be exchanged for Class A common stock, fully diluted Class A common stock outstanding would be 71,774,582 and 68,459,164 for the three months ended September 30, 2020 and 2019, respectively, and 71,151,424 and 68,163,860 for the nine months ended September 30, 2020 and 2019, respectively. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) available to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests in consolidated entities associated with the Group LP Class A partnership units (including any tax impact). For the three and nine months ended September 30, 2020 and 2019, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive.

(b)

Certain shares of Moelis & Company’s Class A common stock assumed to be issued pursuant to certain RSUs as calculated using the treasury stock method were antidilutive and therefore have been excluded from the calculation of diluted net income (loss) per share attributable to Moelis & Company for certain periods. During the three months ended September 30, 2020 and 2019, there were 1,847 and 51,426 RSUs, respectively, that would have been included in the treasury stock method calculation if the effect were dilutive and 227,126 and 1,465,962 units for the nine months ended September 30, 2020 and 2019, respectively.

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Activity Related to Restricted Stock and RSUs

The following table summarizes activity related to restricted stock and RSUs for the nine months ended September 30, 2020 and 2019.

	Restricted Stock & RSUs
	2020					2019
				Weighted					Weighted
				Average					Average
	Number of			Grant Date		Number of			Grant Date
	Shares			Fair Value		Shares			Fair Value
Unvested Balance at January 1,		8,414,130		$	42.19		8,761,224		$	37.59
Granted		3,913,960			37.58		4,060,788			45.16
Forfeited		(117,850	)		40.00		(153,487	)		45.05
Vested		(3,201,045	)		38.76		(4,172,237	)		34.75
Unvested Balance at September 30,		9,009,195		$	41.35		8,496,288		$	42.17

Schedule of Assumptions Used to Estimate the Fair Value of Stock Option Using the Black-Scholes Valuation model

The Company estimated the fair value of stock option awards at grant using the Black-Scholes valuation model with the following assumptions:

	Assumptions
Expected life (in years)		6
Weighted-average risk free interest rate		1.91	%
Expected volatility		35	%
Dividend yield		2.72	%
Weighted-average fair value at grant date	$	6.70

Summary of Activity Related to Stock Options

The following table summarizes activity related to stock options for the nine months ended September 30, 2020 and 2019.

	Stock Options Outstanding
	2020					2019
				Weighted					Weighted
				Average					Average
	Number			Exercise Price		Number			Exercise Price
	Outstanding			Per Share		Outstanding			Per Share
Outstanding at January 1,		728,534		$	15.95		2,017,067		$	15.95
Exercises		(728,534	)		15.95		(471,027	)		15.95
Forfeitures or expirations		—			—		(3,000	)		15.95
Outstanding at September 30,		—		$	—		1,543,040		$	15.95

Stockholders Equity (Tables)

9 Months Ended

Sep. 30, 2020

Class A Common Stock

Schedule of Shares Offered and Increase in Shares Outstanding in Follow-on Offerings

	Total Shares		Total Increase in
Date of Offering	Offered		Shares Outstanding
November, 2014		6,325,000		4,511,058
January, 2017		5,750,000		5,356,876
July, 2017		6,000,000		5,680,903
March, 2018		5,000,000		4,689,295
August, 2018		5,000,000		4,685,217
Total		28,075,000		24,923,349

Class B Common Stock

Schedule of Shares Offered and Increase in Shares Outstanding in Follow-on Offerings

	Class B Stock
	Purchased /			Purchase Cost
Date of Offering	Surrendered			(in thousands)
November, 2014		4,507,453	$		28
January, 2017		5,356,876			101
July, 2017		5,680,903			128
March, 2018		4,689,295			135
August, 2018		4,685,217			158
Total		24,919,744	$		550

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Schedule of Additional Leases Information

See below for additional information about the Company’s leases.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in thousands)	2020			2019			2020			2019
Supplemental Income Statement Information:

Operating lease cost	$	6,697		$	3,970		$	19,713		$	12,270

Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of lease liabilities:
Net operating cash outflows for operating leases	$	5,996		$	4,818		$	13,840		$	14,655

Right-of-use assets obtained in exchange for lease obligations (e.g. new leases and amendments commenced during the period):	$	1,589		$	6,445		$	4,643		$	7,617

Other Information
Weighted-average remaining lease term - operating leases		13.72	years		4.95	years		13.72	years		4.95	years
Weighted-average discount rate - operating leases		3.53	%		4.00	%		3.53	%		4.00	%

Schedule of Future Sublease Income and Maturities of Our Operating Lease Liabilities

The future sublease income and maturities of our operating lease liabilities as of September 30, 2020, are as follows:

Fiscal year ended	Sublease Income			Operating Leases
Remainder of 2020	$	(215	)	$	2,986
2021		(860	)		19,482
2022		(860	)		23,715
2023		(860	)		20,484
2024		(860	)		18,785
Thereafter		(430	)		192,488
Total Payments	$	(4,085	)	$	277,940

Less: Tenant improvement allowances					(21,343	)
Less: Present value adjustment					(63,153	)
Total				$	193,444

Revenues and Business Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of Geographical Distribution of Revenues and Assets

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues:
United States	$	177,774	$	191,795	$	445,341	$	446,721
Europe		22,513		31,729		53,893		54,450
Rest of World		7,317		8,176		22,014		21,835
Total	$	207,604	$	231,700	$	521,248	$	523,006

	September 30,		December 31,
	2020		2019
Assets:
United States	$	960,327	$	934,654
Europe		40,579		67,247
Rest of World		65,015		69,798
Total	$	1,065,921	$	1,071,699

Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Cash and Cash Equivalents
Cash	$ 46,026	$ 71,798	$ 38,387
Cash equivalents	39,487	96,014	10,556
Restricted cash	636	760	699
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 86,149	$ 168,572	$ 49,642	$ 261,771

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 01, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Jan. 01, 2019
Accounting Policies [Line Items]
Cash		$ 46,026	$ 38,387	$ 46,026	$ 38,387	$ 71,798
Cash equivalents		39,487	10,556	39,487	10,556	96,014
Account receivables		19,165		19,165		19,879
Interest Income		182	241	568	761
Assets and Liabilities, Lessee
Operating Lease, Liability		193,444		193,444		197,625
Operating lease, right-of-use asset		179,452		$ 179,452		$ 190,763
Percentage of tax benefits payable to partners under tax receivable agreement				85.00%
Remaining percentage of cash savings realized by the Company (as a percent)				15.00%
Income Taxes
Unrecognized tax benefits		$ 0	$ 0	$ 0	$ 0
Issued Prior to December 1, 2016
Revenue and Expense Recognition and Equity-Based Compensation
Minimum age of retiring employees required so that certain qualifying awards granted during employment will not be forfeited				54 years
Consecutive years of service of retiring employees required so that certain qualifying awards granted during employment will not be forfeited				8 years
Issued on or After December 1, 2016
Revenue and Expense Recognition and Equity-Based Compensation
Minimum age of retiring employees required so that certain qualifying awards granted during employment will not be forfeited				56 years
Consecutive years of service of retiring employees required so that certain qualifying awards granted during employment will not be forfeited				5 years
Minimum total age and consecutive years of service of retiring employees required so that certain qualifying awards granted during employment will not be forfeited				65 years
ASU 2016-13
Accounting Policies [Line Items]
Cumulative effect on retained earnings, before tax	$ (459)
Cumulative effect on retained earnings, tax	95
Cumulative effect on retained earnings, net	$ (364)
ASU 2016-02
Assets and Liabilities, Lessee
Operating Lease, Liability							$ 63,252
Operating lease, right-of-use asset							63,252
ASU 2016-02 \| Adjustment For Prepaid Rent
Assets and Liabilities, Lessee
Operating lease, right-of-use asset							1,666
ASU 2016-02 \| Adjustment For Accrued Rent
Assets and Liabilities, Lessee
Operating lease, right-of-use asset							$ 7,139
Minimum
Accounting Policies [Line Items]
Installment Period				3 years
Minimum \| Office Equipment and Furniture and Fixtures
Assets and Liabilities, Lessee
Useful lives				3 years
Maximum
Accounting Policies [Line Items]
Installment Period				4 years
Maximum \| Office Equipment and Furniture and Fixtures
Assets and Liabilities, Lessee
Useful lives				7 years

Summary of Significant Accounting Policies - Summary of Credit Loss Allowance Activity (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance	$ 4,707	$ 4,088
Allowance for Credit Losses, adjusted beginning balance		4,547
Charge-offs	(1,428)	(2,844)
Recoveries	(1,235)	(2,497)
Reduction to allowance	(2,663)	(5,341)
Provision for credit losses	2,467	5,305
Allowance for credit losses, ending balance	4,511	4,511
Previously Reported
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance		4,088
ASU 2016-13
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance		459
Short-term Receivables
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance	4,507
Allowance for Credit Losses, adjusted beginning balance		4,348
Charge-offs	(1,428)	(2,844)
Recoveries	(1,235)	(2,471)
Reduction to allowance	(2,663)	(5,315)
Provision for credit losses	2,473	5,284
Allowance for credit losses, ending balance	4,317	4,317
Short-term Receivables \| Previously Reported
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance		4,088
Short-term Receivables \| ASU 2016-13
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance		260
Private Funds Advisory Receivables
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance	200
Allowance for Credit Losses, adjusted beginning balance		199
Recoveries		(26)
Reduction to allowance		(26)
Provision for credit losses	(6)	21
Allowance for credit losses, ending balance	$ 194	194
Private Funds Advisory Receivables \| ASU 2016-13
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for Credit Losses, beginning balance		$ 199

Fixed and Intangible Assets - Schedule of Equipment and Leasehold Improvements, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Equipment and Leasehold Improvements, Net
Total	$ 65,372	$ 36,049
Less accumulated depreciation and amortization	(23,372)	(22,057)
Equipment and leasehold improvements, net	42,000	13,992
Office Equipment
Equipment and Leasehold Improvements, Net
Total	13,033	13,593
Furniture and Fixtures
Equipment and Leasehold Improvements, Net
Total	5,045	5,054
Leasehold Improvements
Equipment and Leasehold Improvements, Net
Total	15,189	15,294
Construction in progress
Equipment and Leasehold Improvements, Net
Total	$ 32,105	$ 2,108

Fixed and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Equipment and Leasehold Improvements, Net
Depreciation and amortization expenses	$ 941	$ 1,284	$ 3,216	$ 3,729
Prepaid Expenses and Other Assets
Equipment and Leasehold Improvements, Net
Costs capitalized	2,130		2,130
Communication, Technology and Information Services
Equipment and Leasehold Improvements, Net
Amortization expense of capitalized costs	$ 113		$ 127

Investments - Summary of the Levels of the Fair Value Hierarchy into Which the Company's Financial Assets Fall (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair value measurements
Total financial assets	$ 221,432	$ 270,301
U.S. Treasury Instruments
Fair value measurements
Cash and cash equivalents	15,000	62,949
Investments in securities	180,828	173,960
Level 1
Fair value measurements
Total financial assets	1,117	327
Level 2
Fair value measurements
Total financial assets	220,315	269,974
Level 2 \| U.S. Treasury Instruments
Fair value measurements
Cash and cash equivalents	15,000	62,949
Investments in securities	180,828	173,960
Government Securities Money Market
Fair value measurements
Cash and cash equivalents	24,487	33,065
Government Securities Money Market \| Level 2
Fair value measurements
Cash and cash equivalents	24,487	33,065
Common Stock
Fair value measurements
Investments in securities	1,117	327
Common Stock \| Level 1
Fair value measurements
Investments in securities	$ 1,117	$ 327

Investments - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions							3 Months Ended		9 Months Ended
	Mar. 04, 2020	Feb. 19, 2020	Nov. 04, 2019	Sep. 02, 2019	Mar. 06, 2019	Feb. 20, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Apr. 01, 2010
Schedule of Investments
Investments at fair value, cost basis							$ 182,452		$ 182,452		$ 173,806
Dividends received									1,942	$ 2,848
Equity method investments							37,589		37,589		$ 38,944
Corporate Joint Venture
Schedule of Investments
Ownership percentage												50.00%
Dividends received	$ 1,942	$ 1,942			$ 2,848	$ 2,848
Common Stock shares sold			8.0	12.5
Gain from sale of equity method investment			$ 8,083	$ 12,631
Common Stock
Schedule of Investments
Unrealized gain (loss) on equity securities							$ (60)	$ 33	$ (227)	$ 32

Net Income (Loss) Per Share Attributable to Class A Common Shareholders - Schedule of Calculations of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	$ 32,951	$ 40,615	$ 52,349	$ 83,644
Class A Common Stock
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	32,951	40,615	52,349	83,644
Add (deduct) dilutive effect of:
Net income (loss) attributable to holders of shares of Class A common stock—diluted	$ 32,951	$ 40,615	$ 52,349	$ 83,644
Denominator:
Weighted average shares of Class A common stock outstanding—basic	56,803,430	51,079,746	55,263,689	49,796,867
Add (deduct) dilutive effect of:
Weighted average number of incremental shares issuable from unvested restricted stock, RSUs and stock options, as calculated using the treasury stock method	3,864,654	4,388,982	3,977,450	5,348,381
Weighted average shares of Class A common stock outstanding—diluted	60,668,084	55,468,728	59,241,139	55,145,248
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic (in dollars per share)	$ 0.58	$ 0.80	$ 0.95	$ 1.68
Diluted (in dollars per share)	$ 0.54	$ 0.73	$ 0.88	$ 1.52

Net Income (Loss) Per Share Attributable to Class A Common Shareholders - Schedule of Calculations of Basic and Diluted Net Income (Loss) Per Share (Parenthetical) (Details) - Class A Common Stock - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share Basic [Line Items]
Number of shares of common stock to be issued upon exchange of a partnership unit	1		1
Fully diluted shares of common stock outstanding if all Class A partnership units were to be exchanged for common stock immediately following the reorganization	71,774,582	68,459,164	71,151,424	68,163,860
Restricted Stock and RSUs
Earnings Per Share Basic [Line Items]
Number of antidilutive securities excluded from calculation of diluted income (loss) per share	1,847	51,426	227,126	1,465,962

Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended	78 Months Ended
	Apr. 30, 2014	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2014	Sep. 30, 2020	Dec. 31, 2019	Feb. 28, 2019	Dec. 31, 2018	Mar. 31, 2015	Nov. 09, 2014
Equity-Based Compensation
Compensation expenses		$ 30,090	$ 30,343	$ 97,685	$ 96,719
Class A Common Stock
Equity-Based Compensation
Number of shares of common stock to be issued upon exchange of a partnership unit		1		1			1
Partnership Units
Equity-Based Compensation
Compensation expenses		$ 0	30	$ 39	180
Partnership and Employees
Equity-Based Compensation
Units held by partners and employees		11,051,045		11,051,045			11,051,045
Share Repurchase Plan \| Class A Common Stock
Equity-Based Compensation
Share value authorized for repurchase									$ 100,000		$ 25,000
Value of remaining shares authorized for repurchase		$ 80,900		$ 80,900			$ 80,900
RSUs \| Minimum
Equity-Based Compensation
Vesting period				4 years
RSUs \| Maximum
Equity-Based Compensation
Vesting period				5 years
Restricted Stock and RSUs
Equity-Based Compensation
Total compensation expense not yet recognized		146,520		$ 146,520			$ 146,520
Weighted average period to recognize compensation expense				1 year 7 months 6 days
Stock Options
Equity-Based Compensation
Vesting period						5 years
Compensation expenses		$ 0	$ 0	$ 0	$ 606
Grants (in shares)	3,501,881
Special dividends paid (in dollars per share)							$ 9.05
Reduction to exercise price of options outstanding due to special dividend paid (in dollars per share)							9.05
Exercise price (in dollars per share)		$ 15.95	$ 15.95	$ 15.95	$ 15.95		$ 15.95	$ 15.95		$ 15.95		$ 25.00
Managing Directors \| Partnership Units \| Minimum
Equity-Based Compensation
Vesting period				5 years
Managing Directors \| Partnership Units \| Maximum
Equity-Based Compensation
Vesting period				8 years
Non-Managing Director Employees \| Partnership Units
Equity-Based Compensation
Vesting period				4 years

Equity-Based Compensation - Summary of Activity Related to Restricted Stock and RSUs (Details) - Restricted Stock and RSUs - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Number of Shares
Unvested Balance at the beginning of the period	8,414,130	8,761,224
Granted	3,913,960	4,060,788
Forfeited	(117,850)	(153,487)
Vested	(3,201,045)	(4,172,237)
Unvested Balance at the end of the period	9,009,195	8,496,288
Weighted Average Grant Date Fair Value
Unvested Balance at the beginning of the period	$ 42.19	$ 37.59
Granted	37.58	45.16
Forfeited	40.00	45.05
Vested	38.76	34.75
Unvested Balance at the end of the period	$ 41.35	$ 42.17

Equity-Based Compensation - Schedule of Assumptions Used to Estimate the Fair Value of Stock Option Using Black-Scholes Valuation Model (Details)	9 Months Ended
	Sep. 30, 2020 $ / shares
Assumptions Used to Estimate Fair Value
Expected life (in years)	6 years
Weighted-average risk free interest rate	1.91%
Expected volatility	35.00%
Dividend yield	2.72%
Weighted-average fair value at grant date	$ 6.70

Equity-Based Compensation - Summary of Activity Related to Stock Options (Details) - Stock Options - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Number Outstanding
Outstanding at January 1,	728,534	2,017,067
Exercises	(728,534)	(471,027)
Forfeitures or expirations		(3,000)
Outstanding at September 30,		1,543,040
Weighted-Average Exercise Price Per Share
Outstanding at January 1,	$ 15.95	$ 15.95
Exercises	15.95	15.95
Forfeitures or expirations		15.95
Outstanding at September 30,	$ 15.95	$ 15.95

Stockholders Equity - Additional Information (Details) $ in Thousands	1 Months Ended						3 Months Ended						9 Months Ended		60 Months Ended
	Aug. 31, 2018 shares	Mar. 31, 2018 shares	Jul. 31, 2017 shares	Jan. 31, 2017 shares	Nov. 30, 2014 shares	Apr. 30, 2014 shares	Sep. 30, 2020 USD ($) shares	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Sep. 30, 2020 USD ($) shares	Sep. 30, 2019 USD ($) shares	Sep. 30, 2019 shares	Dec. 31, 2019 shares
Class Of Stock [Line Items]
Treasury stock, shares							3,683,415						3,683,415			2,757,558
Treasury stock shares acquired (in shares)													925,857	1,046,490
Treasury stock shares acquired \| $							$ 952	$ 766	$ 31,636	$ 2,463	$ 12,640	$ 26,970	$ 33,354	$ 42,073
Number of units held by noncontrolling interest holders							11,051,045						11,051,045			12,958,022
Group LP
Class Of Stock [Line Items]
Noncontrolling interests (as a percent)							17.00%						17.00%			21.00%
Class A Common Stock
Class Of Stock [Line Items]
Aggregate stock issuance (in shares)						15,263,653
Common stock, shares issued							59,144,937						59,144,937			52,773,617
Treasury stock, shares							3,683,415						3,683,415			2,757,558
Common stock, shares outstanding							55,461,522						55,461,522			50,016,059
Increase in shares outstanding	4,685,217	4,689,295	5,680,903	5,356,876	4,511,058										24,923,349
Number of shares of common stock to be issued upon exchange of a partnership unit							1						1
Class A Common Stock \| Group LP
Class Of Stock [Line Items]
Common stock, shares outstanding							55,461,522						55,461,522			50,016,059
Class B Common Stock
Class Of Stock [Line Items]
Common stock, shares issued							8,490,938						8,490,938			10,397,915
Common stock, shares outstanding							8,490,938						8,490,938			10,397,915
Increase in shares outstanding						36,158,698
Ratio of subscription price to the initial public offering price of shares of common stock					0.00055
Dividends payable ratio to outstanding shares of publicly traded common stock					0.00055

Stockholders Equity - Schedule of Shares Offered and Increase in Shares Outstanding in Follow-on Offerings (Details) - USD ($) $ in Thousands	1 Months Ended						60 Months Ended
	Aug. 31, 2018	Mar. 31, 2018	Jul. 31, 2017	Jan. 31, 2017	Nov. 30, 2014	Apr. 30, 2014	Sep. 30, 2019
Class A Common Stock
Class Of Stock [Line Items]
Total Shares Offered	5,000,000	5,000,000	6,000,000	5,750,000	6,325,000		28,075,000
Total Increase in Shares Outstanding	4,685,217	4,689,295	5,680,903	5,356,876	4,511,058		24,923,349
Class B Common Stock
Class Of Stock [Line Items]
Total Increase in Shares Outstanding						36,158,698
Stock Purchased/Surrendered	4,685,217	4,689,295	5,680,903	5,356,876	4,507,453		24,919,744
Purchase Cost	$ 158	$ 135	$ 128	$ 101	$ 28		$ 550

Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Manager \| Aircraft Lease Entered into During August 2014
Related-party transactions
Expenses	$ 324	$ 413	$ 972	$ 1,349
Employees
Related-party transactions
Unsecured promissory notes from employees	389		389		$ 189
Employees \| Unsecured Promissory Notes
Related-party transactions
Principal repayments			0	0
Interest income recognized			$ 9	6
Employees \| Minimum \| Unsecured Promissory Notes
Related-party transactions
Interest rates (as a percent)			3.00%
Employees \| Maximum \| Unsecured Promissory Notes
Related-party transactions
Interest rates (as a percent)			4.00%
Moelis Asset Management LP
Related-party transactions
Fee for services	65	60	$ 239	188
Due from related party	0		0		0
Revenue from related parties	0	$ 0	0	$ 210
Corporate Joint Venture
Related-party transactions
Due to related party	$ 30		$ 30		$ 0

Regulatory Requirements - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Regulatory Requirements
Minimum net capital requirement	$ 250
Moelis US
Regulatory Requirements
Net capital	173,163	$ 160,401
Net capital in excess of required net capital	172,913	160,151
Moelis UK
Regulatory Requirements
Net capital	8,280	11,978
Net capital in excess of required net capital	$ 8,221	$ 11,922

Commitments and Contingencies - Additional Information (Details) - USD ($)		9 Months Ended
	Apr. 20, 2020	Sep. 30, 2020	Dec. 31, 2019
Bank line of credit
Available credit under the facility		$ 60,507,000
Revolving Credit Facility
Bank line of credit
Fixed rate of interest (as a percent)		3.50%
Borrowings under the credit facility		$ 0	$ 0
Standby Letters of Credit
Bank line of credit
Letters of credit outstanding		$ 4,493,000
Fee on the outstanding balances (as a percent)		1.00%
LIBOR \| Revolving Credit Facility
Bank line of credit
Interest rate margin (as a percent)		1.00%
Reference rate (as a percent)		LIBOR
Prime \| Revolving Credit Facility
Bank line of credit
Interest rate margin (as a percent)		(1.50%)
Reference rate (as a percent)		Prime
Secured Bank Line of Credit
Bank line of credit
Commitment amount	$ 65,000,000
Minimum Days To Issues Termination Notice	60 days

Commitments and Contingencies - Schedule of Additional Leases Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Supplemental Income Statement Information:
Operating lease cost	$ 6,697	$ 3,970	$ 19,713	$ 12,270
Cash paid for amounts included in the measurement of lease liabilities:
Net operating cash outflows for operating leases	5,996	4,818	13,840	14,655
Right-of-use assets obtained in exchange for lease obligations (e.g. new leases and amendments commenced during the period):	$ 1,589	$ 6,445	$ 4,643	$ 7,617
Other Information
Weighted-average remaining lease term - operating leases	13 years 8 months 19 days	4 years 11 months 12 days	13 years 8 months 19 days	4 years 11 months 12 days
Weighted-average discount rate - operating leases	3.53%	4.00%	3.53%	4.00%

Commitments and Contingencies - Schedule of Future Minimum Rental Payments Required Under Operating Leases in Place (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Sublease Income
Remainder of 2020	$ (215)
2021	(860)
2022	(860)
2023	(860)
2024	(860)
Thereafter	(430)
Total Payments	(4,085)
Operating Leases
Remainder of 2020	2,986
2021	19,482
2022	23,715
2023	20,484
2024	18,785
Thereafter	192,488
Total Payments	277,940
Less: Tenant improvement allowances	(21,343)
Less: Present value adjustment	(63,153)
Operating Lease, Liability	$ 193,444	$ 197,625

Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Retirement Benefits [Abstract]
Minimum age required to be eligible to participate in the 401(k) plan			21 years
Expenses accrued relating to employer matching contributions	$ 713	$ 686	$ 2,119	$ 2,054

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Taxes [Line Items]
Provision (benefit) for income taxes	$ 8,534	$ 13,886	$ (10,195)	$ 10,662
Effective tax rate (as a percent)	17.00%	20.00%
Income (loss) before income taxes	$ 50,327	$ 68,584	52,680	119,204
Excess tax benefits			7,353	$ 13,948
Tax benefit from CARES Act	2,555		16,328
Deferred Tax Asset and Income Tax Receivable
Income Taxes [Line Items]
Income tax receivable	$ 37,811		$ 37,811

Revenues and Business Information - Schedule of Geographical Distribution of Revenues and Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	$ 207,604	$ 231,700	$ 521,248	$ 523,006
Total assets	1,065,921		1,065,921		$ 1,071,699
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	177,774	191,795	445,341	446,721
Total assets	960,327		960,327		934,654
Europe
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	22,513	31,729	53,893	54,450
Total assets	40,579		40,579		67,247
Rest of World
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	7,317	$ 8,176	22,014	$ 21,835
Total assets	$ 65,015		$ 65,015		$ 69,798

Revenues and Business Information - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Segment Reporting [Abstract]
Deferred revenue	$ 7,494	$ 3,023
Revenues recognized from opening balance of deferred revenues	$ 2,354

Subsequent Events - Additional Information (Details) - Subsequent Event	Oct. 29, 2020 $ / shares
Subsequent Event [Line Items]
Dividends declared per share	$ 0.3825
Dividend payable date	Nov. 30, 2020
Dividend payable record date	Nov. 06, 2020