0001524223-21-000042 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2021	Nov. 09, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-35355
Entity Registrant Name	MANNING & NAPIER, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-2609100
Entity Address, Address Line One	290 Woodcliff Drive
Entity Address, City or Town	Fairport,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14450
City Area Code	585
Local Phone Number	325-6880
Title of 12(b) Security	Class A common stock, $0.01 par value per share
Trading Symbol	MN
Security Exchange Name	NYSE
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001524223
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,465,554

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 64,567	$ 57,635
Accounts receivable	11,101	11,915
Investment securities	25,091	23,497
Prepaid expenses and other assets	14,686	15,711
Total current assets	115,445	108,758
Property and equipment, net	2,475	3,075
Operating lease right-of-use assets	15,017	16,405
Net deferred tax assets, non-current	20,231	19,645
Goodwill	4,829	4,829
Other long-term assets	3,154	3,373
Total assets	161,151	156,085
Liabilities
Accounts payable	2,221	1,787
Accrued expenses and other liabilities	29,157	36,439
Deferred revenue	13,152	11,476
Total current liabilities	44,530	49,702
Operating lease liabilities, non-current	14,931	16,646
Amounts payable under tax receivable agreement, non-current	15,598	13,759
Other long-term liabilities	182	221
Total liabilities	75,241	80,328
Commitments and contingencies (Note 9)
Shareholders’ equity
Class A common stock, $0.01 par value; 300,000,000 shares authorized; 19,214,559 and 18,465,554 shares issued and outstanding at September 30, 2021, 16,989,943 shares issued and outstanding at December 31, 2020	192	170
Treasury stock, at cost, 749,005 and zero shares at September 30, 2021 and December 31, 2020, respectively	(5,666)	0
Additional paid-in capital	104,954	111,848
Retained deficit	(12,082)	(28,826)
Accumulated other comprehensive loss	(315)	(235)
Total shareholders’ equity	87,083	82,957
Noncontrolling interests	(1,173)	(7,200)
Total shareholders’ equity and noncontrolling interests	85,910	75,757
Total liabilities, shareholders’ equity and noncontrolling interests	$ 161,151	$ 156,085

Consolidated Statements of Financial Condition (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	300,000,000	300,000,000
Common stock, shares issued (shares)	19,214,559	16,989,943
Common stock, shares outstanding (shares)	18,465,554	16,989,943
Treasury stock, shares	749,005	0

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Revenues	$ 37,537	$ 32,067	$ 107,765	$ 93,522
Expenses
Compensation and related costs	18,749	18,605	55,970	55,247
Distribution, servicing and custody expenses	2,512	2,596	7,367	7,834
Other operating costs	6,970	6,611	21,143	21,197
Total operating expenses	28,231	27,812	84,480	84,278
Operating income	9,306	4,255	23,285	9,244
Non-operating income (loss)
Interest expense	(1)	0	(4)	(5)
Interest and dividend income	(13)	115	218	835
Change in liability under tax receivable agreement	0	24	(228)	(1,912)
Net gains (losses) on investments	(59)	411	655	(5)
Total non-operating income (loss)	(73)	550	641	(1,087)
Income before provision for (benefit from) income taxes	9,233	4,805	23,926	8,157
Provision for (benefit from) income taxes	2,523	1,738	4,511	(28)
Net income attributable to controlling and noncontrolling interests	6,710	3,067	19,415	8,185
Less: net income attributable to noncontrolling interests	207	560	1,747	3,274
Net income attributable to Manning & Napier, Inc.	$ 6,503	$ 2,507	$ 17,668	$ 4,911
Net income per share available to Class A common stock
Basic (in dollars per share)	$ 0.35	$ 0.15	$ 1.01	$ 0.30
Diluted (in dollars per share)	$ 0.29	$ 0.13	$ 0.85	$ 0.15
Weighted average shares of Class A common stock outstanding
Basic (in shares)	18,481,147	16,176,280	17,493,299	16,041,128
Diluted (in shares)	22,226,455	18,928,954	20,843,170	48,339,759
Wealth Management
Revenues
Revenues	$ 16,366	$ 13,743	$ 47,825	$ 41,335
Institutional and Intermediary
Revenues
Revenues	16,209	13,534	45,678	38,255
Distribution and shareholder servicing
Revenues
Revenues	2,278	2,424	6,667	7,117
Custodial services
Revenues
Revenues	1,759	1,577	5,125	4,639
Other revenue
Revenues
Revenues	$ 925	$ 789	$ 2,470	$ 2,176

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income attributable to controlling and noncontrolling interests	$ 6,710	$ 3,067	$ 19,415	$ 8,185
Net unrealized holding gains (losses) on investment securities, net of tax	(34)	6	(87)	(243)
Reclassification adjustment for net realized gains on investment securities included in net income	(75)	0	(1)	(174)
Comprehensive income	6,601	3,073	19,327	7,768
Less: Comprehensive income attributable to noncontrolling interests	130	639	1,739	2,992
Comprehensive income attributable to Manning & Napier, Inc.	$ 6,471	$ 2,434	$ 17,588	$ 4,776

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- 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

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Class A common stock	Common Stock	Common Stock Class A common stock	Treasury Stock	Additional Paid in Capital	Retained Deficit	Accumulated Other Comprehensive Income (Loss)	Non Controlling Interests
Beginning balance, Shares at Dec. 31, 2019				15,956,526	0
Beginning balance at Dec. 31, 2019	$ 149,621			$ 160	$ 0	$ 198,516	$ (38,478)	$ (50)	$ (10,527)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,185						4,911		3,274
Distributions to noncontrolling interests	(177)								(177)
Net changes in unrealized investment securities gains or losses	(243)							(135)	(108)
Common stock issued under equity compensation plan, net of forfeitures (in shares)				534,306
Common stock issued under equity compensation plan, net of forfeitures	0			$ 5		(5)
Shares withheld to satisfy tax withholding requirements related to equity awards	(1,022)					(565)			(457)
Equity-based compensation	2,945					1,630			1,315
Dividends declared on Class A common stock	(333)						(333)
Impact of changes in ownership of Manning & Napier Group, LLC	(90,784)					(90,341)			(443)
Deferred tax impacts from transactions with shareholders	3,606					3,606
Ending balance, Shares at Sep. 30, 2020				16,490,832	0
Ending balance at Sep. 30, 2020	71,798			$ 165	$ 0	112,841	(33,900)	(185)	(7,123)
Beginning balance, Shares at Jun. 30, 2020				16,275,359	0
Beginning balance at Jun. 30, 2020	69,092			$ 163	$ 0	112,300	(36,407)	(112)	(6,852)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,067						2,507		560
Distributions to noncontrolling interests	(177)								(177)
Net changes in unrealized investment securities gains or losses	6							(73)	79
Common stock issued under equity compensation plan, net of forfeitures (in shares)				215,473
Common stock issued under equity compensation plan, net of forfeitures	0			$ 2		(2)
Shares withheld to satisfy tax withholding requirements related to equity awards	(1,020)					(565)			(455)
Equity-based compensation	830					1,108			(278)
Ending balance, Shares at Sep. 30, 2020				16,490,832	0
Ending balance at Sep. 30, 2020	71,798			$ 165	$ 0	112,841	(33,900)	(185)	(7,123)
Beginning balance, Shares at Dec. 31, 2020				16,989,943	0
Beginning balance at Dec. 31, 2020	75,757			$ 170	$ 0	111,848	(28,826)	(235)	(7,200)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,415						17,668		1,747
Distributions to noncontrolling interests	(652)								(652)
Net changes in unrealized investment securities gains or losses	(87)							(80)	(7)
Common stock issued under equity compensation plan, net of forfeitures (in shares)				631,647
Common stock issued under equity compensation plan, net of forfeitures	0			$ 6		(6)
Shares withheld to satisfy tax withholding requirements related to equity awards	(5,198)					(4,779)			(419)
Equity-based compensation	2,742					2,521			221
Dividends declared on Class A common stock	(924)						(924)
Purchases of treasury stock (in shares)				(749,005)	749,005
Purchases of treasury stock	(5,666)	$ (5,700)			$ (5,666)
Cost of issuing common stock	(97)					(97)
Impact of changes in ownership of Manning & Napier Group, LLC, (Shares)				1,592,969
Impact of changes in ownership of Manning & Napier Group, LLC	0			$ 16		(5,153)			5,137
Deferred tax impacts from transactions with shareholders	620					620
Ending balance, Shares at Sep. 30, 2021				18,465,554	749,005
Ending balance at Sep. 30, 2021	85,910			$ 192	$ (5,666)	104,954	(12,082)	(315)	(1,173)
Beginning balance, Shares at Jun. 30, 2021				18,493,570	713,665
Beginning balance at Jun. 30, 2021	80,011			$ 192	$ (5,337)	104,402	(17,661)	(284)	(1,301)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,710						6,503		207
Distributions to noncontrolling interests	(81)								(81)
Net changes in unrealized investment securities gains or losses	(34)							(31)	(3)
Common stock issued under equity compensation plan, net of forfeitures (in shares)				7,324
Common stock issued under equity compensation plan, net of forfeitures	0		$ 0			0
Shares withheld to satisfy tax withholding requirements related to equity awards	(42)					35			(77)
Equity-based compensation	640					558			82
Dividends declared on Class A common stock	(924)						(924)
Purchases of treasury stock (in shares)				(35,340)	35,340
Purchases of treasury stock	(329)				$ (329)
Cost of issuing common stock	(41)					(41)
Ending balance, Shares at Sep. 30, 2021				18,465,554	749,005
Ending balance at Sep. 30, 2021	$ 85,910			$ 192	$ (5,666)	$ 104,954	$ (12,082)	$ (315)	$ (1,173)

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Class A common stock
Dividends declared on Class A common stock (in dollars per share)	$ 0.05	$ 0.05	$ 0.02

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income attributable to controlling and noncontrolling interests	$ 19,415	$ 8,185
Adjustment to reconcile net income to net cash provided by operating activities:
Equity-based compensation	2,742	2,945
Depreciation and amortization	1,472	1,147
Change in amounts payable under tax receivable agreement	228	1,912
Impairment of long-lived assets	0	663
Gain on sale of intangible assets	0	(21)
Net losses (gains) on investment securities	(655)	5
Deferred income taxes	1,644	(789)
(Increase) decrease in operating assets and increase (decrease) in operating liabilities:
Accounts receivable	979	(683)
Prepaid expenses and other assets	386	(3,429)
Other long-term assets	1,894	2,450
Accounts payable	434	1,112
Accrued expenses and other liabilities	(6,667)	(165)
Deferred revenue	1,676	699
Other long-term liabilities	(2,374)	(2,832)
Net cash provided by operating activities	21,175	11,199
Cash flows from investing activities:
Purchase of property and equipment	(222)	(204)
Sale of investments	6,190	71,310
Purchase of investments	(10,565)	(23,250)
Sale of intangible assets	0	21
Proceeds from maturity of investments	3,350	18,720
Net cash (used in) provided by investing activities	(1,246)	66,597
Cash flows from financing activities:
Distributions to noncontrolling interests	(652)	(177)
Dividends paid on Class A common stock	(924)	(645)
Payment of shares withheld to satisfy withholding requirements	(5,644)	(1,022)
Purchases of treasury stock	(5,666)	0
Payment of capital lease obligations	(54)	(81)
Payment of issuing common stock costs	(56)	0
Purchase of Class A units of Manning & Napier Group, LLC	0	(90,784)
Net cash used in financing activities	(12,997)	(92,709)
Net increase (decrease) in cash and cash equivalents	6,932	(14,913)
Cash and cash equivalents:
Beginning of period	57,635	67,088
End of period	$ 64,567	$ 52,175

Organization and Nature of the Business	9 Months Ended
Organization and Nature of the Business	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of the Business	Organization and Nature of the Business Manning & Napier, Inc. ("Manning & Napier" or the "Company") is an independent investment management firm that provides our clients with a broad range of financial solutions and investment strategies. Founded in 1970 and headquartered in Fairport, NY, the Company serves a diversified client base of high-net-worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans, endowments and foundations. The Company's investment strategies offer equity, fixed income and a range of blended asset portfolios, including life cycle funds. The Company was incorporated in 2011 as a Delaware corporation, and is the sole managing member of Manning & Napier Group, LLC and its subsidiaries (“Manning & Napier Group”), a holding company for the investment management businesses conducted by its operating subsidiaries. The Company completed the exchange of 1,562,959 Class A units held by M&N Group Holdings, LLC ("M&N Group Holdings") and 30,010 Class A units held by Manning & Napier Capital Company, LLC ("MNCC"), the entirety of its ownership in Manning & Napier Group, on June 30, 2021 through the issuance of 1,592,969 shares of unregistered Class A Common Stock of the Company. As a result, Manning & Napier acquired an equivalent number of Class A units of Manning & Napier Group and its ownership of Manning & Napier Group increased from approximately 89.0% to 97.7% (Refer to Note 4 for further discussion). The diagram below depicts the Company's organizational structure as of September 30, 2021. (1)The consolidated operating subsidiaries of Manning & Napier Group include Manning & Napier Advisors, LLC ("MNA"), Manning & Napier Investor Services, Inc., Exeter Trust Company and Rainier Investment Management, LLC ("Rainier").

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Critical Accounting Policies The Company's critical accounting policies and estimates are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020. The Company believes that the disclosures herein are adequate so that the information presented is not misleading; however, these financial statements should be read in conjunction with the financial statements and the notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. The financial data for the interim periods may not necessarily be indicative of results for future interim periods or for the full year. Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting and include all adjustments, consisting only of normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim period. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ from these estimates or assumptions. Principles of Consolidation The Company consolidates all majority-owned subsidiaries. As of September 30, 2021, Manning & Napier holds an economic interest of approximately 97.7% in Manning & Napier Group and, as managing member, controls all of the business and affairs of Manning & Napier Group. As a result, the Company consolidates the financial results of Manning & Napier Group and records a noncontrolling interest on its consolidated statements of financial condition with respect to the remaining economic interest in Manning & Napier Group held by M&N Group Holdings. All material intercompany transactions have been eliminated in consolidation. In accordance with Accounting Standards Update ("ASU") 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis, the determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design, a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance, and whether a company is obligated to absorb losses or receive benefits that could potentially be significant to the entity. The standard also requires ongoing assessments of whether a company is the primary beneficiary of a variable interest entity (“VIE”). When utilizing the voting interest entity ("VOE") model, controlling financial interest is generally defined as majority ownership of voting interests. The Company provides seed capital to its investment teams to develop new strategies and services for its clients. The original seed investment may be held in a separately managed account, comprised solely of the Company's investments or within a mutual fund, where the Company's investments may represent all or only a portion of the total equity investment in the mutual fund. Pursuant to U.S. GAAP, the Company evaluates its investments in mutual funds on a regular basis and consolidates such mutual funds for which it holds a controlling financial interest. When no longer deemed to hold a controlling financial interest, the Company would deconsolidate the fund and classify the remaining investment as either an equity method investment, equity investments, at fair value, or as trading securities, as applicable. As of September 30, 2021 and December 31, 2020, the Company did not have investments classified as an equity method investment. The Company serves as the investment adviser for Manning & Napier Fund, Inc. series of mutual funds (the “Fund”), Exeter Trust Company Collective Investment Trusts (“CIT”) and Rainier Multiple Investment Trust. The Fund, CIT and Rainier Multiple Investment Trust are legal entities, the business and affairs of which are managed by their respective boards of directors. As a result, each of these entities is a VOE. The Company holds, in limited cases, direct investments in a mutual fund (which are made on the same terms as are available to other investors) and consolidates each of these entities where it has a controlling financial interest or a majority voting interest. The Company's investments in the Fund amounted to approximately $2.0 million as of September 30, 2021 and $1.0 million as of December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company did not have a controlling financial interest in any mutual fund. Revenue Investment Management: Investment management fees are computed as a percentage of assets under management ("AUM"). The Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Separately managed accounts are paid in advance, typically for a semi-annual or quarterly period, or in arrears, typically for a monthly or quarterly period. When investment management fees are paid in advance, the Company defers the revenue as a contract liability and recognizes it over the applicable period. When investment management fees are paid in arrears, the Company estimates revenue and records a contract asset (accrued accounts receivable) based on AUM as of the most recent month end date. Mutual funds and collective investment trust investment management revenue is calculated and earned daily based on AUM. Revenue is presented net of cash rebates and fees waived pursuant to contractual expense limitations of the funds. The Company also has agreements with third parties who provide recordkeeping and administrative services for employee benefit plans participating in the collective investment trusts. The Company is acting as an agent on behalf of the employee benefit plan sponsors, therefore, investment management revenue is recorded net of fees paid to third party service providers. Distribution and shareholder servicing: The Company receives distribution and servicing fees for providing services to its affiliated mutual funds. Revenue is computed and earned daily based on a percentage of AUM. The performance obligation is a series of services that form part of a single performance obligation satisfied over time. The Company has agreements with third parties who provide distribution and administrative services for its mutual funds. The agreements are evaluated to determine whether revenue should be reported gross or net of payments to third-party service providers. The Company controls the services provided and acts as a principal in the relationship. Therefore, distribution and shareholder servicing revenue is recorded gross of fees paid to third parties. Custodial services: Custodial service fees are calculated as a percentage of the client’s market value with additional fees charged for certain transactions. For the safeguarding and administrative services that are subject to a percentage of market value fee, the Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Revenue for transactions assigned a stand-alone selling price is recognized in the period in which the transaction is executed. Custodial service fees are billed monthly in arrears. The Company has agreements with third parties who provide safeguarding, recordkeeping and administrative services for their clients. The Company controls the services provided and acts as a principal in the relationship. Therefore, custodial service revenue is recorded gross of fees paid to third parties. Cash and Cash Equivalents The Company generally considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are primarily held in operating accounts at major financial institutions and also in money market securities. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. The fair value of cash equivalents has been classified as Level 1 in accordance with the fair value hierarchy. Investment Securities Investment securities are classified as either equity investments, trading, equity method investments or available-for-sale and are carried at fair value. Fair value is determined based on quoted market prices in active markets for identical or similar instruments. Investment securities classified as equity investments, at fair value consist of equity securities and investments in mutual funds for which the Company provides advisory services. Realized and unrealized gains and losses on equity investments, at fair value or trading securities, as applicable, are recorded in net gains (losses) on investments in the consolidated statements of operations. Investment securities classified as available-for-sale consist of U.S. Treasury notes and corporate bonds. Unrealized gains and losses on available-for-sale securities are excluded from earnings and are reported, net of deferred income tax, as a separate component of accumulated other comprehensive income in shareholders’ equity until realized. The Company periodically reviews each individual security position that has an unrealized loss, or impairment, to determine if that impairment is other-than-temporary. If impairment is determined to be other-than-temporary, the carrying value of the security will be written down to fair value and the loss will be recognized in earnings. Realized gains and losses on sales of available-for-sale securities are computed on a specific identification basis and are recorded in net gains (losses) on investments in the consolidated statements of operations. Property, Equipment, Software and Depreciation Property and equipment is presented net of accumulated depreciation of approximately $12.0 million and $12.6 million as of September 30, 2021 and December 31, 2020, respectively. Capitalized implementation costs for hosting arrangements are included within prepaid expenses and other assets on the Company's statements of financial condition and totaled approximately $6.7 million and $5.3 million, net of accumulated amortization, as of September 30, 2021 and December 31, 2020, respectively. Goodwill and Intangible Assets Goodwill represents the excess cost over the fair value of the identifiable net assets of acquired companies. Identifiable intangible assets generally represent the cost of client relationships and investment management agreements acquired as well as trademarks. Goodwill and indefinite-lived assets are tested for impairment annually or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Intangible assets subject to amortization are tested for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets require significant management estimate and judgment, including the valuation and expected life determination in connection with the initial purchase price allocation and the ongoing evaluation for impairment. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses and other liabilities and operating lease liabilities, non-current on its consolidated statements of financial condition. Finance leases are included in other long-term assets, accrued expenses and other liabilities, and other long-term liabilities on its consolidated statements of financial condition. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate, for each identified lease, is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. The operating lease ROU asset is reduced for any lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are combined for all classes of underlying assets. Treasury Stock On February 3, 2021, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $10.0 million of Manning & Napier Inc. Class A common shares through December 31, 2021. As of September 30, 2021, the Company had purchased 749,005 shares of Class A common stock for an aggregate price of approximately $5.7 million. Treasury stock is accounted for under the cost method and is included as a deduction from equity in the Shareholders' Equity section of the consolidated statements of financial condition. Upon any subsequent retirement or resale, the treasury stock account is reduced by the cost of such stock. Operating Segments The Company operates in one segment, the investment management industry. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects of the income tax accounting guidance, including interim-period accounting for enacted changes in the tax law. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The adoption of this ASU as of January 1, 2021 did not have a material impact on the Company's consolidated financial statements.

Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Disaggregated Revenue

The following table represents the Company’s wealth management and institutional and intermediary investment management revenue by investment portfolio during the three and nine months ended September 30, 2021 and 2020:


	Three months ended September 30, 2021						Three months ended September 30, 2020
	Wealth Management		Institutional and Intermediary		Total		Wealth Management		Institutional and Intermediary		Total
	(in thousands)
Blended Asset	$	14,865	$	8,689	23,554		$	12,117	$	8,261	$	20,378
Equity	1,394		7,071		8,465		1,450		4,892		6,342
Fixed Income	107		449		556		176		381		557
Total	16,366		$	16,209	$	32,575	$	13,743	$	13,534	$	27,277

	Nine months ended September 30, 2021						Nine months ended September 30, 2020
	Wealth Management		Institutional and Intermediary		Total		Wealth Management		Institutional and Intermediary		Total
	(in thousands)
Blended Asset	$	42,714	$	25,103	$	67,817	$	36,044	$	24,096	$	60,140
Equity	4,786		19,310		24,096		4,800		13,141		17,941
Fixed Income	325		1,265		1,590		491		1,018		1,509
Total	$	47,825	$	45,678	$	93,503	$	41,335	$	38,255	$	79,590

Accounts Receivable

Accounts receivable as of September 30, 2021 and December 31, 2020 consisted of the following:


	September 30, 2021		December 31, 2020
	(in thousands)
Accounts receivable - third parties	$	6,212	$	7,315
Accounts receivable - affiliated mutual funds and collective investment trusts	4,889		4,600
Total accounts receivable	$	11,101	$	11,915

Accounts receivable represents the Company's unconditional rights to consideration arising from its performance under separately managed account, mutual fund and collective investment trust, distribution and shareholder servicing, and custodial service contracts. Accounts receivable balances do not include an allowance for doubtful accounts nor has any significant bad debt expense attributable to accounts receivable been recorded during the three and nine months ended September 30, 2021 or 2020.

Advisory and Distribution Agreements

The Company earns investment advisory fees, distribution fees and administrative service fees under agreements with affiliated mutual funds and collective investment trusts. Fees earned for advisory and distribution services provided were approximately $11.1 million and $31.6 million for the three and nine months ended September 30, 2021, respectively, and approximately $9.3 million and $26.7 million for the three and nine months ended September 30, 2020, respectively, which represents greater than 25% of revenue in each period. The following provides amounts due from affiliated mutual funds and collective investment trusts reported within accounts receivable in the consolidated statements of financial condition as of September 30, 2021 and December 31, 2020:


	September 30, 2021		December 31, 2020
	(in thousands)
Affiliated mutual funds	$	3,492	$	3,275
Affiliated collective investment trusts	1,397		1,325
Accounts receivable - affiliated mutual funds and collective investment trusts	$	4,889	$	4,600

Contract assets and liabilities

Accrued accounts receivable: Accrued accounts receivable represents the Company's contract asset for revenue that has been recognized in advance of billing separately managed account contracts. Consideration for the period billed in arrears is dependent on the client’s AUM on a future billing date and therefore conditional as of the reporting period end. During the nine months ended September 30, 2021, revenue was increased by less than $0.1 million for changes in transaction price. Accrued accounts receivable of approximately $0.3 million is reported within prepaid expenses and other assets in the consolidated statements of financial condition for both September 30, 2021 and December 31, 2020.

Deferred revenue: Deferred revenue is recorded when consideration is received or unconditionally due in advance of providing services to the Company's customer. Revenue recognized during the nine months ended September 30, 2021 that was included in deferred revenue at the beginning of the period was approximately $11.3 million.

Costs to obtain a contract: Under compensation plans in effect for periods prior to January 1, 2020, certain incremental first year commissions directly associated with new customer contracts were capitalized and amortized on a straight-line basis over an estimated customer contract period of 3 to 7 years. The total net asset as of September 30, 2021 and December 31, 2020 was approximately $0.5 million and $0.7 million, respectively. The related amortization expense, which is included in compensation and related costs, totaled approximately $0.1 million and $0.2 million for the three and nine months ended September 30, 2021 and $0.1 million and $0.2 million for the three and nine months ended September 30, 2020. An impairment loss is recorded for contract acquisition costs related to client contracts that cancel during the period. These impairment losses totaled less than $0.1 million for both the three and nine months ended September 30, 2021 and September 30, 2020.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Noncontrolling Interests

9 Months Ended

Sep. 30, 2021

Noncontrolling Interest [Abstract]

Noncontrolling Interests

Manning & Napier holds an economic interest of approximately 97.7% in Manning & Napier Group, and as managing member controls all of the business and affairs of Manning & Napier Group. As a result, the Company consolidates the financial results of Manning & Napier Group and records a noncontrolling interest on its consolidated statements of financial condition with respect to the remaining approximately 2.3% economic interest in Manning & Napier Group held by M&N Group Holdings. Net income attributable to noncontrolling interests on the statements of operations represents the portion of earnings attributable to the economic interest in Manning & Napier Group held by the noncontrolling interests.

The following table provides a reconciliation from “Income before provision for (benefit from) income taxes” to “Net income attributable to Manning & Napier, Inc.”:


	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
	(in thousands)
Income before provision for (benefit from) income taxes	$	9,233		$	4,805		$	23,926		$	8,157
Less: income (loss) before provision for (benefit from) income taxes of Manning & Napier, Inc. (1)	(24)			14			(234)			(1,950)
Income before provision for income taxes, as adjusted	9,257			4,791			24,160			10,107
Controlling interest percentage (2)	97.7		%	88.2		%	92.7		%	64.0		%
Net income attributable to controlling interest	9,042			4,225			22,388			6,471
Plus: income (loss) before provision for (benefit from) income taxes of Manning & Napier, Inc. (1)	(24)			14			(234)			(1,950)
Income (loss) before provision for (benefit from) income taxes attributable to Manning & Napier, Inc.	9,018			4,239			22,154			4,521
Less: provision for (benefit from) income taxes of Manning & Napier, Inc.(3)	2,515			1,732			4,486			(390)
Net income attributable to Manning & Napier, Inc.	$	6,503		$	2,507		$	17,668		$	4,911

________________________

(1)Manning & Napier, Inc. incurs certain income or expenses that are only attributable to it and are therefore excluded from the net income attributable to noncontrolling interests.

(2)Income before provision for (benefit from) income taxes is allocated to the controlling interest based on the percentage of units of Manning & Napier Group held by Manning & Napier, Inc. The amount represents the Company's weighted ownership of Manning & Napier Group's income for the respective periods.

(3)The consolidated provision for (benefit from) income taxes is equal to the sum of (i) the provision for (benefit from) income taxes for entities other than Manning & Napier, Inc. and (ii) the provision for (benefit from) income taxes of Manning & Napier, Inc. which includes all U.S. federal and state income taxes. The consolidated provision for (benefit from) income taxes was a provision of $2.5 million and $1.7 million for the three months ended September 30, 2021 and 2020, respectively, and a provision of $4.5 million and benefit of less than $0.1 million for the nine months ended September 30, 2021 and 2020, respectively.

As of September 30, 2021, a total of 428,812 units of Manning & Napier Group were held by the noncontrolling interests. Pursuant to the terms of the exchange agreement entered into at the time of the Company's initial public offering ("Exchange Agreement"), such units may be tendered for exchange or redemption. For any units exchanged, the Company may (i) pay an amount of cash equal to the number of tendered units multiplied by the value of one share of the Company's Class A common stock less a market discount and expected expenses, or, at the Company's election, (ii) issue shares of the Company's Class A common stock on a one-for-one basis, subject to customary adjustments. As the Company receives units of Manning & Napier Group that are exchanged, the Company's ownership of Manning & Napier Group will increase.

On March 15, 2021, the Company received notice that 1,592,969 of Class A units of Manning & Napier Group were tendered for redemption or exchange. The independent directors, on behalf of the Company, decided that such exchange would be settled in 1,592,969 shares of unregistered Class A common stock of the Company. The Company completed the exchange on June 30, 2021 and as a result, Manning & Napier acquired an equivalent number of Class A units of Manning & Napier Group and its ownership of Manning & Napier Group increased from 89.0% to 97.7%.

During the nine months ended September 30, 2021, Class A common stock was issued under the Company's 2011 Equity Compensation Plan (the "Equity Plan") for which Manning & Napier, Inc. acquired an equivalent number of Class A units of Manning & Napier Group.

The following is the impact to the Company's equity ownership interest in Manning & Napier Group for the nine months ended September 30, 2021:


	Manning & Napier Group Class A Units Held
	Manning & Napier	Noncontrolling Interests	Total	Manning & Napier Ownership %









As of December 31, 2020	15,783,638	2,021,781	17,805,419	88.6%
Class A Units issued	624,323	—	624,323	0.4%
Class A Units exchanged	1,592,969	(1,592,969)	—	8.7%
As of September 30, 2021	18,000,930	428,812	18,429,742	97.7%

Manning & Napier Inc., as managing member, controls all of the business and affairs of Manning & Napier Group. Since the Company continues to have a controlling interest in Manning & Napier Group, the aforementioned changes in ownership of Manning & Napier Group were accounted for as equity transactions under ASC Topic 810, Consolidation. Additional paid-in capital and noncontrolling interests in the consolidated statements of financial position are adjusted to reallocate the Company's historical equity to reflect the change in ownership of Manning & Napier Group.

As a result of the completion of the exchange on June 30, 2021 and Manning & Napier Group's election under Section 754 of the Internal Revenue Code ("IRC"), the Company expects to benefit from future depreciation and amortization deductions resulting from increases in the tax basis of tangible and intangible assets of Manning & Napier Group. Those deductions allocated to the Company will be taken into account in reporting the Company's taxable income resulting in the recognition of a deferred tax asset.

Manning & Napier and the holders of Manning & Napier Group are party to a tax receivable agreement ("TRA"), pursuant to which Manning & Napier is required to pay to such holders 85% of the applicable cash savings, if any, in U.S. federal, state, local and foreign income tax that Manning & Napier actually realizes, or is deemed to realize in certain circumstances, as a result of (i) certain tax attributes of their units sold to Manning & Napier or exchanged (for shares of Class A common stock) and that are created as a result of the sales or exchanges and payments under the TRA and (ii) tax benefits related to imputed interest.

Accordingly, as a result of the completion of the exchange on June 30, 2021, deferred tax assets, amounts payable under the tax receivable agreement and additional paid-in capital increased by approximately $1.9 million, $1.6 million and $0.3 million respectively, within the Company’s consolidated statements of financial condition. In addition, the Company recognized a deferred tax asset of approximately $0.3 million, resulting from an increased share of Manning & Napier Group's existing deferred tax assets.

At September 30, 2021 and December 31, 2020, the Company had recorded a liability of $18.8 million and $19.0 million, respectively, representing the estimated payments due to the selling unit holders under the TRA entered into between Manning & Napier and the other holders of Class A Units of Manning & Napier Group. Of these amounts, approximately $3.2 million and $5.2 million were included in accrued expenses and other liabilities at September 30, 2021 and December 31, 2020, respectively. The Company made payments of approximately $2.1 million during the nine months ended September 30, 2021 and made no payments pursuant to the TRA during the nine months ended September 30, 2020.

Obligations pursuant to the TRA are obligations of Manning & Napier. They do not impact the noncontrolling interests. These obligations are not income tax obligations. Furthermore, the TRA has no impact on the allocation of the provision for income taxes to the Company’s net income.

Investment Securities

9 Months Ended

Sep. 30, 2021

Investments [Abstract]

Investment Securities

The following represents the Company’s investment securities holdings as of September 30, 2021 and December 31, 2020:


	September 30, 2021
	Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale securities
U.S. Treasury notes	$	10,100	$	—	$	(159)	$	9,941
Fixed income securities	7,408		—		(109)		7,299

							17,240
Equity investments, at fair value
Equity securities							5,831
Mutual funds							2,020
							7,851
Total investment securities							$	25,091


	December 31, 2020
	Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(in thousands)
Available-for-sale securities
U.S. Treasury notes	$	10,587	$	—	$	(89)	$	10,498
Fixed income securities	6,497		—		(94)		6,403

							16,901
Equity investments, at fair value
Equity securities							5,592
Mutual funds							1,004
							6,596
Total investment securities							$	23,497

Investment securities are classified as either equity investments or available-for-sale and are carried at fair value. Fair value is determined based on quoted market prices in active markets for identical or similar instruments.

Investment securities classified as equity investments, at fair value consist of equity securities and investments in mutual funds for which the Company provides advisory services. At September 30, 2021 and December 31, 2020, equity investments, at fair value consist of investments held by the Company to provide initial cash seeding for product development purposes and investments in mutual funds to hedge economic exposure to market movements on its deferred compensation plan. The Company recognized approximately $0.1 million of net unrealized gains and $0.1 million of net unrealized losses related to investments classified as equity investments, at fair value during the nine months ended September 30, 2021 and 2020, respectively.

Investment securities classified as available-for-sale consist of U.S. Treasury notes and corporate bonds to optimize cash management opportunities and for compliance with certain regulatory requirements. As of September 30, 2021 and December 31, 2020, approximately $0.6 million of these securities was considered restricted. The Company periodically reviews each individual security position that has an unrealized loss, or impairment, to determine if that impairment is other-than-temporary. No other-than-temporary impairment charges have been recognized by the Company during the nine months ended September 30, 2021 and 2020.

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value MeasurementsFair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A fair value hierarchy is applied that gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

The following three-tier fair value hierarchy prioritizes the inputs used in measuring fair value:

•Level 1—observable inputs such as quoted prices in active markets for identical securities;

•Level 2—other significant observable inputs (including but not limited to quoted prices for similar securities, interest rates, prepayment rates, credit risk, etc.); and

•Level 3—significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments).

The following table summarizes the hierarchy of inputs used to derive the fair value of the Company’s assets as of September 30, 2021 and December 31, 2020:


	September 30, 2021
	Level 1		Level 2		Level 3		Totals
	(in thousands)
Equity securities	$	5,831	$	—	$	—	$	5,831
Fixed income securities	—		7,299		—		7,299
Mutual funds	2,020		—		—		2,020

U.S. Treasury notes	—		9,941		—		9,941

Total assets at fair value	$	7,851	$	17,240	$	—	$	25,091


	December 31, 2020
	Level 1		Level 2		Level 3		Totals
	(in thousands)
Equity securities	$	5,592	$	—	$	—	$	5,592
Fixed income securities	—		6,403		—		6,403
Mutual funds	1,004		—		—		1,004
U.S. Treasury notes	—		10,498		—		10,498

Total assets at fair value	$	6,596	$	16,901	$	—	$	23,497

Valuations of investments in fixed income securities and U.S. Treasury notes can generally be obtained through independent pricing services. For most bond types, the pricing service utilizes matrix pricing, which considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type and current day trade information, as well as dealer supplied prices. These valuations are categorized as Level 2 in the hierarchy.

The Company’s policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between valuation levels during the nine months ended September 30, 2021.

- 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

Accrued Expenses and Other Liabilities

9 Months Ended

Sep. 30, 2021

Accounts Payable and Accrued Liabilities [Abstract]

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities as of September 30, 2021 and December 31, 2020 consisted of the following:


	September 30, 2021		December 31, 2020
	(in thousands)
Accrued bonus and sales commissions	$	16,554	$	19,999
Accrued payroll and benefits	3,248		4,629
Accrued sub-transfer agent fees	469		437

Amounts payable under tax receivable agreement	3,159		5,220
Short-term operating lease liabilities	2,661		2,854
Other accruals and liabilities	3,066		3,300
Total accrued expenses and other liabilities	$	29,157	$	36,439

Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

The Company has operating and finance leases for office space and certain equipment. For these leases, the office space or equipment is an explicitly identified asset within the contract. The Company has determined that it has obtained substantially all of the economic benefits from the use of the underlying asset and directs how and for what purpose the asset is used during the term of the contract.

Certain of the Company's operating leases have been subleased for which the Company will receive cash totaling approximately $3.7 million over the remaining term of such leases. The lease terms for the four subleased operating leases end ranging from 2025 to 2028.

The components of lease expense for the three and nine months ended September 30, 2021 and 2020 were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
	(in thousands)
Finance lease expense
Amortization of right-of-use assets	$	14	$	9	$	50	$	57
Interest on lease liabilities	1		1		4		5
Operating lease expense	768		931		2,413		3,151
Short-term lease expense	—		—		—		3
Variable lease expense	38		31		177		178
Sublease income	(179)		(136)		(523)		(463)
Total lease expense	$	642	$	836	$	2,121	$	2,931

Supplemental cash flow information related to leases for the three and nine months ended September 30, 2021 and 2020 were as follows:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1	$	2	$	4	$	6
Finance cash flows from finance leases	$	17	$	24	$	49	76
Operating cash flows from operating leases	$	1,200	$	941	$	3,090	2,601

Right-of-use assets obtained in exchange for new lease obligations:
Finance leases	$	—	$	—	$	—	—
Operating leases	$	441	$	678	$	479	$	814

Supplemental balance sheet information related to leases as of September 30, 2021 was as follows:


(in thousands, except lease term and discount rate)	September 30, 2021
Finance Leases
Finance lease right-of-use assets (1)	$	99

Accrued expenses and other liabilities	$	59
Other long-term liabilities	47
Total finance lease liabilities	$	106

Operating Leases
Operating lease right-of-use assets	$	15,017

Accrued expenses and other liabilities	$	2,661
Operating lease liabilities, non-current	14,931
Total operating lease liabilities	$	17,592

Weighted average remaining lease term
Finance leases	1.88 years
Operating leases	5.94 years
Weighted average discount rate
Finance leases	4.35		%
Operating leases	5.11		%

_______________________

(1)Amounts included in other long-term assets within the consolidated statements of financial condition.

Maturities of lease liabilities were as follows:


Twelve month period ending September 30,	Finance Leases		Operating Leases
	(in thousands)
2022	$	62	$	3,483
2023	41		3,525
2024	7		3,484
2025	—		3,196
2026	—		3,119
Thereafter	—		3,572
Total lease payments	110		20,379
Less imputed interest	(4)		(2,787)
Total lease liabilities	$	106	$	17,592

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe Company may from time to time enter into agreements that contain certain representations and warranties and which provide general indemnifications. The Company may also serve as a guarantor of such obligations. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company expects any risk of liability associated with such guarantees to be remote. Regulation As an investment adviser to a variety of investment products, the Company and its affiliated broker-dealer are subject to routine reviews and inspections by the SEC and the Financial Industry Regulatory Authority, Inc. From time to time the Company may also be subject to claims, or be involved in various legal proceedings, arising in the ordinary course of its business and other contingencies. The Company does not believe that the outcome of any of these reviews, inspections or other legal proceedings will have a material impact on its consolidated financial statements; however, litigation is subject to many uncertainties, and the outcome of individual litigated matters is difficult to predict. The Company will establish accruals for matters that are probable, can be reasonably estimated, and may take into account any related insurance recoveries to the extent of such recoveries. As of September 30, 2021 and December 31, 2020, the Company has not accrued for any such claims, legal proceedings, or other contingencies.

Earnings per Common Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings per Common Share

Basic earnings per share (“basic EPS”) is computed using the two-class method to determine net income available to Class A common stock. The two-class method includes an earnings allocation formula that determines earnings per share for each participating security according to dividends declared and undistributed earnings for the period. The Company's restricted Class A common shares granted under the Equity Plan have non-forfeitable dividend rights during their vesting period and are therefore considered participating securities under the two-class method. Under the two-class method, the Company's net income available to Class A common stock is reduced by the amount allocated to the unvested restricted Class A common stock. Basic EPS is calculated by dividing net income available to Class A common stock by the weighted average number of common shares outstanding during the period.

Diluted earnings per share (“diluted EPS”) is computed under the more dilutive of either the treasury method or the two-class method. For the diluted calculation, the weighted average number of common shares outstanding during the period is increased by the assumed conversion into Class A common stock of unvested restricted stock units, unvested restricted stock awards, and outstanding stock options (collectively, "outstanding equity awards"), as well as the exchangeable Class A units of Manning & Napier Group, to the extent that such conversion would dilute earnings per share.

Net income attributable to noncontrolling interests on the statements of operations represents the portion of earnings attributable to the economic interest of Manning & Napier Group held by the noncontrolling interests (Note 4). For periods in which the outstanding Class A Units of Manning & Napier Group are dilutive to the Company's earnings per share, the calculation of diluted earnings per share also takes into account the incremental net income that would be available to Class A common stock upon the conversion of Class A Units into Class A common stock.

The following is a reconciliation of the income and share data used in the basic and diluted EPS computations for the three and nine months ended September 30, 2021 and 2020 under the two-class method:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
	(in thousands, except share data)
Numerator:
Net income attributable to controlling and noncontrolling interests	$	6,710	$	3,067	$	19,415	$	8,185
Less: net income attributable to noncontrolling interests	207		560		1,747		3,274
Net income attributable to Manning & Napier, Inc.	$	6,503	$	2,507	$	17,668	$	4,911
Less: allocation to participating securities	—		20		45		52
Net income available to Class A common stock for basic EPS	$	6,503	$	2,487	$	17,623	$	4,859
Plus: reallocation of net income attributable to participating securities	—		3		8		4
Plus: incremental net income as a result of conversion of Class A Units of Manning & Napier Group to Class A common stock	(60)		—		—		2,279
Net income available to Class A common stock for diluted EPS	$	6,443	$	2,490	$	17,631	$	7,142

Denominator:
Weighted average shares of Class A common stock outstanding - basic	18,481,147		16,176,280		17,493,299		16,041,128
Dilutive effect of outstanding equity awards	3,316,496		2,752,674		3,349,871		1,584,781
Dilutive effect of exchangeable Class A Units	428,812		—		—		30,713,850
Weighted average shares of Class A common stock outstanding - diluted	22,226,455		18,928,954		20,843,170		48,339,759
Net income available to Class A common stock per share - basic	$	0.35	$	0.15	$	1.01	$	0.30
Net income available to Class A common stock per share - diluted	$	0.29	$	0.13	$	0.85	$	0.15

Performance-based stock options are excluded from the calculation of diluted EPS for periods in which the associated market condition has not yet been achieved. As such, for the three and nine months ended September 30, 2021, no unvested performance-based stock options were excluded, and for the three and nine months ended September 30, 2020, 2,022,000 unvested performance-based stock options were excluded from the calculation of diluted EPS.

For each of the three and nine months ended September 30, 2021, no unvested equity awards were excluded from the calculation of diluted EPS. For the three and nine months ended September 30, 2020, 64,530 and 164,696, respectively, unvested equity awards were excluded from the calculation of diluted EPS because the effect would have been anti-dilutive.

At September 30, 2021, there were 428,812 Class A Units of Manning & Napier Group outstanding, which, subject to certain restrictions, may be exchangeable for up to an equivalent number of shares of the Company's Class A common stock. These units were not included in the calculation of diluted earnings per common share for the nine months ended September 30, 2021 because the effect would have been anti-dilutive.

Equity Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Equity Based Compensation

Equity-Based Compensation The Equity Plan was adopted by the Company's board of directors and approved by shareholders prior to the consummation of the Company's 2011 initial public offering. Under the Equity Plan, a total of 13,142,813 equity interests are authorized for issuance, and may be issued in the form of Class A common stock, restricted stock units, stock options, units of Manning & Napier Group, or certain classes of membership interests in the Company which may convert into units of Manning & Napier Group. At September 30, 2021, a total of 2,154,456 equity interests were available for issuance pursuant to the Equity Plan.

The following table summarizes activity related to awards of restricted stock and restricted stock units (collectively, "stock awards") under the Equity Plan for the nine months ended September 30, 2021:


	Stock Awards	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2021	3,044,981	$	2.03
Granted	1,152,369	$	6.04
Vested	(201,778)	$	9.70
Forfeited	(182,405)	$	2.16
Outstanding at September 30, 2021	3,813,167	$	2.83

The weighted average fair value of stock awards granted during the nine months ended September 30, 2021 was $6.04, based on the closing sale price of the Company's Class A common stock as reported on the New York Stock Exchange on the date of grant, and, if not entitled to dividends or dividend equivalents during the vesting period, reduced by the present value of such amounts expected to be paid on the underlying shares during the requisite service period.

For the three and nine months ended September 30, 2021, the Company recorded approximately $0.6 million and $2.6 million, respectively, of compensation expense related to stock awards under the Equity Plan. For the three and nine months ended September 30, 2020, the Company recorded approximately $0.7 million and $2.5 million, respectively, of compensation expense related to stock awards under the Equity Plan. The aggregate intrinsic value of stock awards that vested during each of the nine months ended September 30, 2021 and 2020 was approximately $1.5 million and $0.9 million, respectively. As of September 30, 2021, there was unrecognized compensation expense of approximately $8.2 million related to stock awards, which the Company expects to recognize over a weighted average period of approximately 3.9 years.

A summary of activity under the Equity Plan related to stock option awards during the nine months ended September 30, 2021 is presented below:


	Stock Option Awards	Weighted Average Exercise Price		Weighted Average Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2021	2,250,000	$	2.01
Granted	—	$	—
Exercised	(1,750,000)	$	2.01
Forfeited	—	$	—
Outstanding at September 30, 2021	500,000	$	2.01	3.8	$	3,560
Exercisable at September 30, 2021	333,332	$	2.01	3.6	$	2,373

For the three and nine months ended September 30, 2021, the Company recorded approximately less than $0.1 million and $0.2 million, respectively, of compensation expense related to stock options under the Equity Plan. For the three and nine months ended September 30, 2020, the Company recorded approximately $0.1 million and $0.4 million, respectively, of compensation expense related to stock options under the Equity Plan. As of September 30, 2021, there was unrecognized compensation expense of less than $0.1 million related to stock options, which the Company expects to recognize over a weighted average period of approximately 0.4 years.

In connection with the vesting of restricted stock units and exercise of stock options during the nine months ended September 30, 2021, the Company withheld a total of 710,019 shares of Class A common stock to satisfy approximately $5.2 million of employee income tax withholding requirements. These net share settlements had the effect of shares repurchased and retired by the Company, as they reduced the total number of Class A common shares outstanding.

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income TaxesThe Company is comprised of entities that have elected to be treated as either a limited liability company ("LLC") or a “C-Corporation". As such, the entities functioning as LLCs are not liable for or able to benefit from U.S. federal and most state income taxes on their earnings, and earnings (losses) will be included in the personal income tax returns of each entity’s unit holders. The entities functioning as C-Corporations are liable for or able to benefit from U.S. federal and state and local income taxes on their earnings and losses, respectively.

In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and at each interim period thereafter.

The Company’s income tax provision (benefit) and effective tax rate were as follows:


	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
	(in thousands)
Income before provision for (benefit from) income taxes	$	9,233		$	4,805		$	23,926		$	8,157
Effective tax rate	27.3		%	36.2		%	18.9		%	(0.3)		%
Provision for (benefit from) income taxes	2,523			1,738			4,511			(28)
Provision for (benefit from) income taxes at statutory rate	1,939			1,009			5,024			1,713
Difference between tax at effective vs. statutory rate	$	584		$	729		$	(513)		$	(1,741)

The provision for (benefit from) income taxes includes a benefit attributable to the fact that the Company’s operations include a series of flow-through entities which are generally not subject to federal and most state income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate level taxes. The Company recognized a reduced benefit from flow-through entities during the nine months ended September 30, 2021 compared to September 30, 2020 due to a higher portion of Manning & Napier Group's earnings subject to taxation at the C-Corporation level attributed to Manning & Napier Inc.'s increased ownership of Manning & Napier Group as of September 30, 2021 compared to September 30, 2020.

In addition, the effective rate during the nine months ended September 30, 2021 is lower than the statutory rate of 21% due to the incremental tax benefits realized from the exercise of stock option awards during the first and second quarters of 2021, partially offset by the impacts from permanent differences between book and tax income, including but not limited to Section 162(m) of the IRC which limits the annual amount of deductible compensation.

During the three months ended September 30, 2021, the Company reached a settlement with a certain state related to the Company's 2016, 2017 and 2018 corporate income tax returns. As a result, the Company recognized approximately $0.3 million within its provision for income taxes during the three months ended September 30, 2021.

For the nine months ended September 30, 2020, the income tax benefit also includes the impact from the enactment of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") on March 27, 2020 which includes, among other things, the ability to carryback net operating losses from 2018, 2019 and 2020 when the federal tax rate was 34% compared to the current statutory rate of 21%. As a result, the Company recognized an income tax benefit related to the favorable rate applied to its net operating losses.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Transactions with noncontrolling members From time to time, the Company may be asked to provide certain services, including accounting, legal and other administrative functions for the noncontrolling members of Manning & Napier Group. While immaterial, the Company has not received any reimbursement for such services. The Company manages the personal funds of certain of the Company's executive officers and directors and/or their affiliated entities. Pursuant to the respective investment management agreements, in some instances the Company may waive or reduce its regular advisory fees for these accounts. The aggregate value of the fees earned was less than $0.1 million for each of the nine months ended September 30, 2021 and 2020. No fees were waived for the nine months ended September 30, 2021 and the aggregate value of the fees waived was less than $0.1 million for the nine months ended September 30, 2020. Affiliated fund transactions The Company earns investment advisory fees, distribution fees and administrative service fees under agreements with affiliated mutual funds and collective investment trusts. Fees earned for advisory and distribution services provided were approximately $11.1 million and $31.6 million for the three and nine months ended September 30, 2021, respectively, and $9.3 million and $26.7 million for the three and nine months ended September 30, 2020, respectively. Fees earned for administrative services provided were approximately $0.3 million and $0.8 million for the three and nine months ended September 30, 2021, respectively, and $0.4 million and $1.2 million for the three and nine months ended September 30, 2020, respectively. See Note 3 for disclosure of amounts due from affiliated mutual funds and collective investment trusts. The Company incurs certain expenses on behalf of the collective investment trusts and has contractually agreed to limit its fees and reimburse expenses to limit operating expenses incurred by certain affiliated fund series. The aggregate value of fees waived and expenses reimbursed to, or incurred for, affiliated mutual funds and collective investment trusts were approximately $0.5 million and $1.6 million for the three and nine months ended September 30, 2021, and $1.3 million and $3.7 million for the three and nine months ended September 30, 2020.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Dividend on Class A common stock On October 22, 2021, the Company's Board of Directors declared a $0.05 per share dividend to the holders of Class A common stock. The dividend is payable on or about November 22, 2021 to shareholders of record as of November 8, 2021.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting and include all adjustments, consisting only of normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim period. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ from these estimates or assumptions.
Principles of Consolidation	Principles of Consolidation The Company consolidates all majority-owned subsidiaries. As of September 30, 2021, Manning & Napier holds an economic interest of approximately 97.7% in Manning & Napier Group and, as managing member, controls all of the business and affairs of Manning & Napier Group. As a result, the Company consolidates the financial results of Manning & Napier Group and records a noncontrolling interest on its consolidated statements of financial condition with respect to the remaining economic interest in Manning & Napier Group held by M&N Group Holdings. All material intercompany transactions have been eliminated in consolidation. In accordance with Accounting Standards Update ("ASU") 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis, the determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design, a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance, and whether a company is obligated to absorb losses or receive benefits that could potentially be significant to the entity. The standard also requires ongoing assessments of whether a company is the primary beneficiary of a variable interest entity (“VIE”). When utilizing the voting interest entity ("VOE") model, controlling financial interest is generally defined as majority ownership of voting interests. The Company provides seed capital to its investment teams to develop new strategies and services for its clients. The original seed investment may be held in a separately managed account, comprised solely of the Company's investments or within a mutual fund, where the Company's investments may represent all or only a portion of the total equity investment in the mutual fund. Pursuant to U.S. GAAP, the Company evaluates its investments in mutual funds on a regular basis and consolidates such mutual funds for which it holds a controlling financial interest. When no longer deemed to hold a controlling financial interest, the Company would deconsolidate the fund and classify the remaining investment as either an equity method investment, equity investments, at fair value, or as trading securities, as applicable. As of September 30, 2021 and December 31, 2020, the Company did not have investments classified as an equity method investment. The Company serves as the investment adviser for Manning & Napier Fund, Inc. series of mutual funds (the “Fund”), Exeter Trust Company Collective Investment Trusts (“CIT”) and Rainier Multiple Investment Trust. The Fund, CIT and Rainier Multiple Investment Trust are legal entities, the business and affairs of which are managed by their respective boards of directors. As a result, each of these entities is a VOE. The Company holds, in limited cases, direct investments in a mutual fund (which are made on the same terms as are available to other investors) and consolidates each of these entities where it has a controlling financial interest or a majority voting interest. The Company's investments in the Fund amounted to approximately $2.0 million as of September 30, 2021 and $1.0 million as of December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company did not have a controlling financial interest in any mutual fund.
Revenue	Revenue Investment Management: Investment management fees are computed as a percentage of assets under management ("AUM"). The Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Separately managed accounts are paid in advance, typically for a semi-annual or quarterly period, or in arrears, typically for a monthly or quarterly period. When investment management fees are paid in advance, the Company defers the revenue as a contract liability and recognizes it over the applicable period. When investment management fees are paid in arrears, the Company estimates revenue and records a contract asset (accrued accounts receivable) based on AUM as of the most recent month end date. Mutual funds and collective investment trust investment management revenue is calculated and earned daily based on AUM. Revenue is presented net of cash rebates and fees waived pursuant to contractual expense limitations of the funds. The Company also has agreements with third parties who provide recordkeeping and administrative services for employee benefit plans participating in the collective investment trusts. The Company is acting as an agent on behalf of the employee benefit plan sponsors, therefore, investment management revenue is recorded net of fees paid to third party service providers. Distribution and shareholder servicing: The Company receives distribution and servicing fees for providing services to its affiliated mutual funds. Revenue is computed and earned daily based on a percentage of AUM. The performance obligation is a series of services that form part of a single performance obligation satisfied over time. The Company has agreements with third parties who provide distribution and administrative services for its mutual funds. The agreements are evaluated to determine whether revenue should be reported gross or net of payments to third-party service providers. The Company controls the services provided and acts as a principal in the relationship. Therefore, distribution and shareholder servicing revenue is recorded gross of fees paid to third parties. Custodial services: Custodial service fees are calculated as a percentage of the client’s market value with additional fees charged for certain transactions. For the safeguarding and administrative services that are subject to a percentage of market value fee, the Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Revenue for transactions assigned a stand-alone selling price is recognized in the period in which the transaction is executed. Custodial service fees are billed monthly in arrears. The Company has agreements with third parties who provide safeguarding, recordkeeping and administrative services for their clients. The Company controls the services provided and acts as a principal in the relationship. Therefore, custodial service revenue is recorded gross of fees paid to third parties.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company generally considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are primarily held in operating accounts at major financial institutions and also in money market securities. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. The fair value of cash equivalents has been classified as Level 1 in accordance with the fair value hierarchy.
Investment Securities	Investment Securities Investment securities are classified as either equity investments, trading, equity method investments or available-for-sale and are carried at fair value. Fair value is determined based on quoted market prices in active markets for identical or similar instruments. Investment securities classified as equity investments, at fair value consist of equity securities and investments in mutual funds for which the Company provides advisory services. Realized and unrealized gains and losses on equity investments, at fair value or trading securities, as applicable, are recorded in net gains (losses) on investments in the consolidated statements of operations. Investment securities classified as available-for-sale consist of U.S. Treasury notes and corporate bonds. Unrealized gains and losses on available-for-sale securities are excluded from earnings and are reported, net of deferred income tax, as a separate component of accumulated other comprehensive income in shareholders’ equity until realized. The Company periodically reviews each individual security position that has an unrealized loss, or impairment, to determine if that impairment is other-than-temporary. If impairment is determined to be other-than-temporary, the carrying value of the security will be written down to fair value and the loss will be recognized in earnings. Realized gains and losses on sales of available-for-sale securities are computed on a specific identification basis and are recorded in net gains (losses) on investments in the consolidated statements of operations.
Property and Equipment	Property, Equipment, Software and Depreciation Property and equipment is presented net of accumulated depreciation of approximately $12.0 million and $12.6 million as of September 30, 2021 and December 31, 2020, respectively. Capitalized implementation costs for hosting arrangements are included within prepaid expenses and other assets on the Company's statements of financial condition and totaled approximately $6.7 million and $5.3 million, net of accumulated amortization, as of September 30, 2021 and December 31, 2020, respectively.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill represents the excess cost over the fair value of the identifiable net assets of acquired companies. Identifiable intangible assets generally represent the cost of client relationships and investment management agreements acquired as well as trademarks. Goodwill and indefinite-lived assets are tested for impairment annually or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Intangible assets subject to amortization are tested for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets require significant management estimate and judgment, including the valuation and expected life determination in connection with the initial purchase price allocation and the ongoing evaluation for impairment.
Leases	Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses and other liabilities and operating lease liabilities, non-current on its consolidated statements of financial condition. Finance leases are included in other long-term assets, accrued expenses and other liabilities, and other long-term liabilities on its consolidated statements of financial condition. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate, for each identified lease, is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. The operating lease ROU asset is reduced for any lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are combined for all classes of underlying assets.
Treasury Stock	Treasury Stock On February 3, 2021, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to $10.0 million of Manning & Napier Inc. Class A common shares through December 31, 2021. As of September 30, 2021, the Company had purchased 749,005 shares of Class A common stock for an aggregate price of approximately $5.7 million. Treasury stock is accounted for under the cost method and is included as a deduction from equity in the Shareholders' Equity section of the consolidated statements of financial condition. Upon any subsequent retirement or resale, the treasury stock account is reduced by the cost of such stock.
Operating Segments	Operating SegmentsThe Company operates in one segment, the investment management industry.
Recently Adopted Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects of the income tax accounting guidance, including interim-period accounting for enacted changes in the tax law. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. The adoption of this ASU as of January 1, 2021 did not have a material impact on the Company's consolidated financial statements.

Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue


	Three months ended September 30, 2021						Three months ended September 30, 2020
	Wealth Management		Institutional and Intermediary		Total		Wealth Management		Institutional and Intermediary		Total
	(in thousands)
Blended Asset	$	14,865	$	8,689	23,554		$	12,117	$	8,261	$	20,378
Equity	1,394		7,071		8,465		1,450		4,892		6,342
Fixed Income	107		449		556		176		381		557
Total	16,366		$	16,209	$	32,575	$	13,743	$	13,534	$	27,277

	Nine months ended September 30, 2021						Nine months ended September 30, 2020
	Wealth Management		Institutional and Intermediary		Total		Wealth Management		Institutional and Intermediary		Total
	(in thousands)
Blended Asset	$	42,714	$	25,103	$	67,817	$	36,044	$	24,096	$	60,140
Equity	4,786		19,310		24,096		4,800		13,141		17,941
Fixed Income	325		1,265		1,590		491		1,018		1,509
Total	$	47,825	$	45,678	$	93,503	$	41,335	$	38,255	$	79,590

Schedule of Accounts Receivable

Accounts receivable as of September 30, 2021 and December 31, 2020 consisted of the following:


	September 30, 2021		December 31, 2020
	(in thousands)
Accounts receivable - third parties	$	6,212	$	7,315
Accounts receivable - affiliated mutual funds and collective investment trusts	4,889		4,600
Total accounts receivable	$	11,101	$	11,915

The following provides amounts due from affiliated mutual funds and collective investment trusts reported within accounts receivable in the consolidated statements of financial condition as of September 30, 2021 and December 31, 2020:


	September 30, 2021		December 31, 2020
	(in thousands)
Affiliated mutual funds	$	3,492	$	3,275
Affiliated collective investment trusts	1,397		1,325
Accounts receivable - affiliated mutual funds and collective investment trusts	$	4,889	$	4,600

Noncontrolling Interests (Tables)

9 Months Ended

Sep. 30, 2021

Noncontrolling Interest [Abstract]

Reconciliation from Income Before Provision for Income Taxes to Net Income Attributable to Manning & Napier, Inc.

The following table provides a reconciliation from “Income before provision for (benefit from) income taxes” to “Net income attributable to Manning & Napier, Inc.”:


	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
	(in thousands)
Income before provision for (benefit from) income taxes	$	9,233		$	4,805		$	23,926		$	8,157
Less: income (loss) before provision for (benefit from) income taxes of Manning & Napier, Inc. (1)	(24)			14			(234)			(1,950)
Income before provision for income taxes, as adjusted	9,257			4,791			24,160			10,107
Controlling interest percentage (2)	97.7		%	88.2		%	92.7		%	64.0		%
Net income attributable to controlling interest	9,042			4,225			22,388			6,471
Plus: income (loss) before provision for (benefit from) income taxes of Manning & Napier, Inc. (1)	(24)			14			(234)			(1,950)
Income (loss) before provision for (benefit from) income taxes attributable to Manning & Napier, Inc.	9,018			4,239			22,154			4,521
Less: provision for (benefit from) income taxes of Manning & Napier, Inc.(3)	2,515			1,732			4,486			(390)
Net income attributable to Manning & Napier, Inc.	$	6,503		$	2,507		$	17,668		$	4,911

________________________

(1)Manning & Napier, Inc. incurs certain income or expenses that are only attributable to it and are therefore excluded from the net income attributable to noncontrolling interests.

Impact to the Company's ownership interest in Manning & Napier Group

The following is the impact to the Company's equity ownership interest in Manning & Napier Group for the nine months ended September 30, 2021:

Manning & Napier Group Class A Units Held

Manning & Napier