v3.26.1
Fair Value
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value
9. Fair Value
Recurring Fair Values
Financial assets and financial liabilities carried at fair value on a recurring basis include financial instruments for which the fair value option was elected. Fair value is categorized into a three tier hierarchy that is prioritized based upon the level of transparency in inputs used in the valuation techniques, as follows.
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in non-active markets, or valuation techniques utilizing inputs that are derived principally from or corroborated by observable data directly or indirectly for substantially the full term of the financial instrument.
Level 3—At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate.
Where the inputs used to measure the fair value of a financial instrument falls into different levels of the fair value hierarchy, the financial instrument is categorized within the hierarchy based on the lowest level of input that is significant to its fair value measurement.
Due to the inherently judgmental nature of Level 3 fair value, changes in assumptions or inputs applied as of reporting date could result in a higher or lower fair value, and realized value may differ from the estimated unrealized fair value.
Fair Value Measurement Hierarchy
(In thousands)Level 1Level 2Level 3Total
June 30, 2026
Assets
Investments (Note 3)
Other equity investments—Marketable equity securities$444 $— $— $444 
CLO subordinated notes— — 28,563 28,563 
Equity investments of consolidated funds135,790 121,239 257,029 
Fair Value Option:
Equity method investment— — 144,336 144,336 
Liabilities
Other liabilities
InfraBridge contingent consideration
— — 1,300 1,300 
Securities of consolidated fund sold short
91,838 — — 91,838 
December 31, 2025
Assets
Investments (Note 3)
Other equity investments—Marketable equity securities$401 $— $— $401 
CLO subordinated notes— — 30,490 30,490 
Equity investments of consolidated funds115,102 — 121,239 236,341 
Fair Value Option:
Equity method investment— — 144,037 144,037 
Liabilities
Other liabilities
InfraBridge contingent consideration
— — 2,500 2,500 
DBRG stock warrants (1)
— — 400 400 
Securities of consolidated fund sold short
74,287 — — 74,287 
__________
(1)    Represent liability-classified warrants that were out-of-the-money and expired in July 2026. Fair value of zero at June 30, 2026.
Equity Investments of Consolidated Funds
Equity investments of consolidated funds include marketable equity securities held by our liquid strategy funds and a venture investment held by a single asset fund. The marketable equity securities comprise publicly listed stocks in U.S. and Europe, primarily in the digital infrastructure, real estate, technology, media and telecommunications sectors, valued based upon listed prices in active markets, classified as Level 1. The venture investment, classified as level 3, was valued at June 30, 2026 and December 31, 2025 using a recent transacted price.
Fair Value Option
Equity Method Investments
The Company has elected to account for a co-investment in a portfolio company as an equity method investment under the fair value option. Fair value was determined using a discounted cash flow model based upon the portfolio company's projected earnings, discounting unlevered cash flows at a weighted average cost of capital of 7.4% at June 30, 2026 and 8.2% at December 31, 2025. The fair value is classified as Level 3 of the fair value hierarchy and changes in fair value are recorded in principal investment income.
Contingent Consideration—InfraBridge
In connection with the Company's acquisition of InfraBridge in February 2023, contingent consideration may become payable by the Company if prescribed fundraising targets are met for follow-on InfraBridge flagship funds and co-investments. The contingent consideration was measured at June 30, 2026 and December 31, 2025 by applying a probability-weighted approach to the likelihood of meeting various fundraising targets and discounting the estimated future contingent consideration payment at 6.8% and 6.6%, respectively, to derive a present value amount, classified as Level 3 of the fair value hierarchy.
Changes in Level 3 Fair Value
The following table presents changes in recurring Level 3 fair value assets held for investment. Realized and unrealized gains (losses) are included in other gain (loss).
Level 3 AssetsLevel 3 Liabilities
Fair Value Option - Equity Method InvestmentsEquity Investments of Consolidated Funds
Contingent Consideration—InfraBridge
(In thousands)
Fair value at December 31, 2024$137,154 $63,154 $(6,100)
Contributions— 17,333 — 
Unrealized gain (loss) in earnings, net3,491 127 3,800 
Fair value at June 30, 2025$140,645 $80,614 $(2,300)
Net unrealized gain (loss) in earnings on instruments held at June 30, 2025$3,491 $127 $3,800 
Fair value at December 31, 2025$144,037 $121,239 $(2,500)
Unrealized gain (loss) in earnings, net299 — 1,200 
Fair value at June 30, 2026$144,336 $121,239 $(1,300)
Net unrealized gain (loss) in earnings on instruments held at June 30, 2026$299 $— $1,200 
Nonrecurring Fair Values
The Company measures fair value of certain assets on a nonrecurring basis: (i) on the acquisition date for business combinations; (ii) when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable or based upon availability of observable prices for equity investments under the measurement alternative; and (iii) upon deconsolidation of a subsidiary for any retained interest. Adjustments to fair value generally result from application of the lower of amortized cost or fair value for assets held for disposition or otherwise, an adjustment of asset values due to impairment or observable price changes.
There were no assets or liabilities measured at fair value on a nonrecurring basis at June 30, 2026. An equity investment accounted for under the measurement alternative was carried at its estimated fair value of $3.7 million at December 31, 2025 based upon a recent transaction price.
Fair Value of Financial Instruments Reported at Cost
The Company's debt obligation in the form of secured fund fee revenue notes had fair values of approximately $300.0 million at June 30, 2026 and $294.8 million at December 31, 2025, estimated based upon indicative quotes.
The carrying values of cash and cash equivalents, accounts receivable, due from and to affiliates, interest payable and accounts payable generally approximate fair value due to their short term nature, and credit risk, if any, is negligible.