v3.26.1
Equity Method Investments and Other
 3 Months Ended
Mar. 31, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments and Other Equity Method Investments and Other
The following table sets forth the carrying value and ownership percentage of the Company’s equity method investments as of March 31, 2026 and 2025:
($ in thousands)March 31, 2026December 31, 2025
Carrying ValueOwnership %Carrying ValueOwnership %
Arena Special Opportunities Fund, LP units$24,011 13.4 %$26,936 14.0 %
JVM Funds LLC units14,155 10.1 %14,911 10.1 %
Hudson Ventures Fund 2 LP units5,397 2.5 %5,503 2.5 %
RISCOM4,026 20.0 %3,307 20.0 %
Brewer Lane Ventures Fund II LP units2,522 2.3 %2,251 2.4 %
Dowling Capital Partners LP units292 5.0 %590 5.0 %
Arena SOP LP units— 11.3 %— 11.2 %
$50,403 $53,498 
The following table sets forth the components of net investment income (loss) from equity method investments for the three months ended March 31, 2026 and 2025:
Three months ended March 31,
($ in thousands)20262025
RISCOM$719 $(128)
Dowling Capital Partners LP units175 13 
Hudson Ventures Fund II LP units(106)(25)
Brewer Lane Ventures Fund II LP(12)170 
JVM Funds LLC(431)(211)
Arena SOP LP units— (1,256)
Arena Special Opportunities Fund, LP units(1,642)(551)
$(1,297)$(1,988)
The following table sets forth the unfunded commitment of equity method investments as of March 31, 2026 and December 31, 2025:
($ in thousands)March 31, 2026December 31, 2025
Brewer Lane Ventures Fund II LP units$2,650 $3,237 
Dowling Capital Partners LP units386 386 
Hudson Ventures Fund 2 LP units166 166 
$3,202 $3,789 
The difference between the cost of an investment and its proportionate share of the underlying equity in net assets is allocated to the various assets and liabilities of the equity method investment. The Company amortizes the difference in net assets over the same useful life of a similar asset as the underlying equity method investment. For investment in RISCOM, a similar asset would be agent relationships. The Company amortizes this difference over a 15-year useful life.
The following table sets forth the Company’s recorded investment in RISCOM compared to its share of underlying equity as of March 31, 2026 and December 31, 2025:
($ in thousands)March 31, 2026December 31, 2025
Investment in RISCOM:
Underlying equity$3,073 $2,292 
Difference953 1,015 
Recorded investment balance$4,026 $3,307 
The following table sets forth the Company’s recorded investment in JVM Funds LLC compared to its share of underlying equity as of March 31, 2026 and December 31, 2025:
($ in thousands)March 31, 2026December 31, 2025
Investment in JVM Funds LLC:
Underlying equity$13,739 $14,457 
Difference416 454 
Recorded investment balance$14,155 $14,911 
Investment in Indirect Loans and Loan Collateral
As of March 31, 2026 and December 31, 2025, the Company held indirect investments in collateralized loans and loan collateral through SMA1 and SMA2.
The carrying value of the SMA1 and SMA2 as of March 31, 2026 and December 31, 2025 were as follows:
($ in thousands)March 31, 2026December 31, 2025
SMA1$13,823 $15,418 
SMA27,875 8,449 
Investment in indirect loans and loan collateral$21,698 $23,867