Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Financial Instruments Carried at Fair Value on Recurring Basis

The table below presents financial instruments carried at fair value on a recurring basis.


(in thousands)	Level 1	Level 2	Level 3	Total
June 30, 2026
Assets:
Money market funds (1)	$76,269	$—	$—	$76,269
Loans, net	—	—	388	388
Loans, held for sale	—	61,314	—	61,314
PPP loans (2)	—	117	—	117
MBS	—	31,587	—	31,587
Derivative instruments	—	3,096	—	3,096
Investment in unconsolidated joint ventures	—	—	5,294	5,294
Preferred equity investment (3)	—	—	62,586	62,586
Receivable from third party (2)	—	—	12,360	12,360
Total assets	$76,269	$96,114	$80,628	$253,011

Liabilities:
Derivative instruments	—	60	—	60
Contingent consideration	—	—	22,265	22,265
Total liabilities	$—	$60	$22,265	$22,325
December 31, 2025
Assets:
Money market funds (1)	$136,496	$—	$—	$136,496
Loans, net	—	—	737	737
Loans, held for sale	—	73,094	—	73,094
PPP loans (2)	—	208	—	208
MBS	—	34,501	—	34,501
Derivative instruments	—	6,740	—	6,740
Investment in unconsolidated joint ventures	—	—	5,737	5,737
Preferred equity investment (3)	—	—	79,887	79,887
Receivable from third party (2)	—	—	12,360	12,360
Total assets	$136,496	$114,543	$98,721	$349,760

Liabilities:
Derivative instruments	—	1,432	—	1,432
Contingent consideration	—	—	18,698	18,698
Total liabilities	$—	$1,432	$18,698	$20,130

(1) Money market funds are included in cash and cash equivalents on the consolidated balance sheets

(2) Asset is included in other assets on the consolidated balance sheets

(3) Preferred equity investment held through consolidated joint ventures is included in assets of consolidated VIEs on the consolidated balance sheets

Schedule of Unobservable Inputs Used to Value Level 3 Financial Instruments

The table below presents the valuation techniques and significant unobservable inputs used to value Level 3 financial

instruments, using third party information without adjustment.


(in thousands)	Fair Value	Predominant Valuation Technique (1)	Type	Range	Weighted Average
June 30, 2026
Assets:
Investment in unconsolidated joint ventures	$5,294	Income Approach	Discount rate	9.0%	9.0%
Preferred equity investment	62,586	Income Approach	Discount rate	12.0%	12.0%
Receivable from third party	12,360	Income Approach	Debt Yield \| Capitalization Rate	7.3% \| 6.0%	7.3% \| 6.0%
Total assets	$80,240
Liabilities:
Contingent consideration- Madison One (2)	$496	Monte Carlo Simulation Model	Net income volatility \| Risk- adjusted discount rate	64.0% \| 47.3%	64.0% \| 47.3%
Contingent consideration - UDF	21,769	Distributable Cash Flow Approach	Discount factor	18.0%	18.0%
Total liabilities	$22,265
December 31, 2025
Assets:
Investment in unconsolidated joint ventures	$5,737	Income Approach	Discount rate	9.0%	9.0%
Preferred equity investment	79,887	Income Approach	Discount rate	12.0%	12.0%
Receivable from third party	12,360	Income Approach	Debt Yield \| Capitalization Rate	7.3% \| 6.0%	7.3% \| 6.0%
Total assets	$97,984
Liabilities:
Contingent consideration- Madison One (2)	$526	Monte Carlo Simulation Model	Net income volatility \| Risk- adjusted discount rate	64.0% \| 50.8%	64.0% \| 50.8%
Contingent consideration - UDF	18,172	Distributable Cash Flow Approach	Discount factor	18%	18%
Total liabilities	$18,698

(1) Prices are weighted based on the UPB of the loans and securities included in the range for each class.

(2) Contingent Consideration- Madison One refers to the contingent consideration in connection with the acquisition of Madison One Capital, M1 CUSO and Madison One

Lender Services (“Madison One”) on June 5, 2024.

Schedule of Changes in Fair Value for Level 3 Liabilities

The table below presents a summary of changes in fair value for Level 3 assets and liabilities.


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2026	2025	2026	2025
Assets:
Loans, net
Beginning balance	$462	$2,018	$737	$3,533
Purchases or Originations	—	—	122	—
Sales / Principal payments	(8)	(155)	(476)	(989)
Unrealized gains (losses), net	(66)	(600)	5	(1,281)
Ending balance	$388	$1,263	$388	$1,263
Loans, held for sale
Beginning balance	—	2,760	—	2,750
Unrealized gains (losses), net	—	—	—	10
Transfer to (from) Level 3	—	(2,760)	—	(2,760)
Ending balance	$—	$—	$—	$—
Investment in unconsolidated joint ventures
Beginning balance	5,517	6,371	5,737	6,577
Unrealized gains (losses), net	(223)	(208)	(443)	(414)
Ending balance	$5,294	$6,163	$5,294	$6,163
Preferred equity investment (1)
Beginning balance	72,651	92,810	79,887	92,810
Unrealized gains (losses), net	(10,065)	(4,227)	(17,301)	(4,227)
Ending balance	$62,586	$88,583	$62,586	$88,583
Receivable from third party
Beginning balance	12,360	—	12,360	—
Ending balance	$12,360	$—	$12,360	$—
Total assets
Beginning balance	90,990	103,959	98,721	105,670
Purchases or Originations	—	—	122	—
Sales / Principal payments	(8)	(155)	(476)	(989)
Unrealized gains (losses), net	(10,354)	(5,035)	(17,739)	(5,912)
Transfer to (from) Level 3	—	(2,760)	—	(2,760)
Ending balance	$80,628	$96,009	$80,628	$96,009
Liabilities:
Contingent consideration
Beginning balance	20,441	15,982	18,698	573
Unrealized (gains) losses, net	1,824	1,207	3,567	1,207
Mergers and acquisitions (2)	—	—	—	15,409
Ending balance	$22,265	$17,189	$22,265	$17,189

(1)Preferred equity investment held through consolidated joint ventures is included in assets of consolidated VIE's on the consolidated balance sheets.

(2)Includes assets acquired and liabilities assumed as a result of the UDF IV Merger in 2025. Refer to Note 5 for further details on assets acquired and liabilities assumed in

connection with the UDF IV Merger.

Schedule of Changes in Fair Value for Level 3 Assets

The table below presents a summary of changes in fair value for Level 3 assets and liabilities.


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2026	2025	2026	2025
Assets:
Loans, net
Beginning balance	$462	$2,018	$737	$3,533
Purchases or Originations	—	—	122	—
Sales / Principal payments	(8)	(155)	(476)	(989)
Unrealized gains (losses), net	(66)	(600)	5	(1,281)
Ending balance	$388	$1,263	$388	$1,263
Loans, held for sale
Beginning balance	—	2,760	—	2,750
Unrealized gains (losses), net	—	—	—	10
Transfer to (from) Level 3	—	(2,760)	—	(2,760)
Ending balance	$—	$—	$—	$—
Investment in unconsolidated joint ventures
Beginning balance	5,517	6,371	5,737	6,577
Unrealized gains (losses), net	(223)	(208)	(443)	(414)
Ending balance	$5,294	$6,163	$5,294	$6,163
Preferred equity investment (1)
Beginning balance	72,651	92,810	79,887	92,810
Unrealized gains (losses), net	(10,065)	(4,227)	(17,301)	(4,227)
Ending balance	$62,586	$88,583	$62,586	$88,583
Receivable from third party
Beginning balance	12,360	—	12,360	—
Ending balance	$12,360	$—	$12,360	$—
Total assets
Beginning balance	90,990	103,959	98,721	105,670
Purchases or Originations	—	—	122	—
Sales / Principal payments	(8)	(155)	(476)	(989)
Unrealized gains (losses), net	(10,354)	(5,035)	(17,739)	(5,912)
Transfer to (from) Level 3	—	(2,760)	—	(2,760)
Ending balance	$80,628	$96,009	$80,628	$96,009
Liabilities:
Contingent consideration
Beginning balance	20,441	15,982	18,698	573
Unrealized (gains) losses, net	1,824	1,207	3,567	1,207
Mergers and acquisitions (2)	—	—	—	15,409
Ending balance	$22,265	$17,189	$22,265	$17,189

(1)Preferred equity investment held through consolidated joint ventures is included in assets of consolidated VIE's on the consolidated balance sheets.

(2)Includes assets acquired and liabilities assumed as a result of the UDF IV Merger in 2025. Refer to Note 5 for further details on assets acquired and liabilities assumed in

connection with the UDF IV Merger.

Schedule of Fair Value of Financial Instruments that are Not Carried at Fair Value

The table below presents the carrying value and estimated fair value of financial instruments that are not carried at fair

value and are classified as Level 3.


	June 30, 2026		December 31, 2025
(in thousands)	Carrying Value	Estimated Fair Value	Carrying Value	Estimated Fair Value
Assets:
Loans, net	$4,317,017	$4,094,850	$5,193,640	$5,022,286
Loans, held for sale	216,900	216,900	637,833	637,833
Servicing rights	117,463	133,632	126,279	143,179
Total assets	$4,651,380	$4,445,382	$5,957,752	$5,803,298
Liabilities:
Secured borrowings	1,876,713	1,876,713	2,788,926	2,788,926
Securitized debt obligations of consolidated VIEs, net	638,942	617,476	1,174,785	1,150,551
Senior secured notes, net	723,915	713,646	722,729	711,705
Guaranteed loan financing	950,103	1,008,226	524,091	550,556
Corporate debt, net	470,372	437,260	652,487	617,477
Total liabilities	$4,660,045	$4,653,321	$5,863,018	$5,819,215

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details