CNS AR24 Digital - Book - Page 50
Changes in Financial Condition, Liquidity and Capital Resources
We seek to maintain a balance sheet that supports our business strategies and provides the appropriate amount of
liquidity at all times.
Net Liquid Assets
Our current financial condition is highly liquid and is primarily comprised of cash and cash equivalents, U.S. Treasury
securities, liquid seed investments and other current assets. Liquid assets are reduced by current liabilities (together, net liquid
assets).
The table below summarizes net liquid assets:
December 31,
2024
(in thousands)
December 31,
2023
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 182,974 $ 187,442
U.S. Treasury securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
109,086
59,942
Liquid seed investments4net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68,858
71,375
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75,959
73,360
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(105,396)
(106,603)
Net liquid assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 331,481 $ 285,516
Cash and cash equivalents
Cash and cash equivalents are on deposit with major national financial institutions and include short-term, highly
liquid investments, which are readily convertible into cash.
U.S. Treasury securities
U.S. Treasury securities, recorded at fair value, are directly issued by the U.S. government and were classified as
trading investments.
Liquid seed investments4net
Liquid seed investments, recorded at fair value, are generally traded in active markets on major exchanges and can
typically be liquidated within a normal settlement cycle. Liquid seed investments are primarily securities held directly for the
purpose of establishing performance records and the Company's economic interest in certain consolidated funds which are
presented net of noncontrolling interests.
Other current assets
Other current assets primarily represent investment advisory and administration fees receivable. We perform a review
of our receivables on an ongoing basis to assess collectability and, based on our analysis at December 31, 2024, no allowance
for uncollectible accounts was required.
Current liabilities
Current liabilities included accrued compensation and benefits, distribution and service fees payable, operating lease
obligations due within 12-months, certain income taxes payable and certain other liabilities and accrued expenses.
Future liquidity needs
Our business may become capital intensive over time to support growth initiatives. Potential uses of capital range
from, among other things, seeding new strategies and investment vehicles, co-investing in private real estate vehicles, funding
the upfront costs associated with product offerings, and making various investments to grow our firm infrastructure as our
business scales. In order to provide us with the financial flexibility to pursue these opportunities, we have a $100.0 million
senior unsecured revolving credit facility maturing on January 20, 2026.
In early 2025, we launched our first ETFs and made seed investments of approximately $49.8 million to support this
initiative.
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