v3.26.1
Fair Value Measurements
 12 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

6. Fair Value Measurements

Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

GAAP provides a framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

▪
Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
▪
Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
▪
Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

All financial assets or liabilities that are measured at fair value on a recurring and non-recurring basis have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.

The valuation techniques applied to investments held by the Company and by the Consolidated Fund (as defined below) vary depending on the nature of the investment. The financial assets and liabilities of the Consolidated Funds are presented in Note 7 - Variable Interest Entities.

Equity and equity-related securities

Securities traded on a national securities exchange are stated at the close price on the valuation date. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level 1.

Equity investments that do not have readily-available market prices utilize valuation models or recent transactions to determine fair value and are classified as Level 3. As of June 30, 2026, the Company had equity investments in three special purpose vehicles that were valued using a discounted cash flows model with discount rates ranging from 10.0% - 11.4% (weighted average 11.2%) and an equity investment in one private company that was valued using a recent transaction. As of June 30, 2025, the Company had equity investments in three special purpose vehicles that were valued using a discounted cash flows model with discount rates ranging from 9.8% - 11.3% (weighted average 10.4%).

Debt securities

Bank loans, corporate debt and other debt obligations traded on a national exchange are valued based on quoted market prices and classified as Level 2. Debt investments that are not actively traded are generally based on discounted cash flows and classified as Level 3. See Note 7 - Variable Interest Entities.

Investments in private funds

The Company values investments in private funds using NAV as reported by each fund’s investment manager. The private funds calculate NAV in a manner consistent with the measurement principles of FASB ASC Topic 946, Financial Services – Investment Companies, as of the valuation date. Investments valued using NAV as a practical expedient are not categorized within the fair value hierarchy.

As of June 30, 2026 and June 30, 2025, investments in private funds include investments in Monomoy UpREIT, Monomoy REIT and MP II, each of which are managed by wholly-owned subsidiaries of the Company, in addition to private funds managed by third-party investment managers. During the three months ended December 31, 2024, $4.0 million of our investment in Monomoy UpREIT was transferred to Monomoy REIT via an in-kind contribution which represents a non-cash transaction. The private funds generally allow redemptions annually with 60-90 days’ notice. There is no set duration for the private funds.

Contingent consideration

In conjunction with the acquisition of the Monomoy UpREIT investment and property management agreements in May 2022, the Company entered into a contingent consideration agreement that required the Company to pay up to $2.0 million to ICAM if certain fee revenue thresholds were achieved during fiscal years ending June 30, 2023 and 2024. As of June 30, 2023, the Company determined that the fee revenue threshold for the year ending June 30, 2023 was achieved and the amount payable to ICAM was approximately $1.0 million, which was paid in July 2023. As of June 30, 2024, it was determined that the full target revenue threshold for the year ended June 30, 2024 was not met in full and the contingent consideration was updated to $0.4 million, which was paid in July 2024.

See Note 13 - Long-Term Debt for additional discussion related to the fair value of our notes payable and other long-term debt. The carrying value of all other financial assets and liabilities approximate their fair values.

Investments at Fair Value, held by the Company

As of June 30, 2026 and 2025 the Company's cost of investments was $53.6 million and $54.2 million.

The assets and liabilities measured at fair value on a recurring basis which are held by the Company are summarized in the tables below:

 

 

Fair Value as of June 30, 2026

 

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

7,395

 

 

$

-

 

 

$

1,797

 

 

$

9,192

 

 

Total assets within the fair value hierarchy

 

$

7,395

 

 

$

-

 

 

$

1,797

 

 

$

9,192

 

 

Investments valued at net asset value

 

 

 

 

 

 

 

 

 

 

$

23,420

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

$

32,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value as of June 30, 2025

 

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

15,427

 

 

$

-

 

 

$

13,374

 

 

$

28,801

 

 

Total assets within the fair value hierarchy

 

$

15,427

 

 

$

-

 

 

$

13,374

 

 

$

28,801

 

 

Investments valued at net asset value

 

 

 

 

 

 

 

 

 

 

$

31,813

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

$

60,614

 

 

There were no transfers between levels of the fair value hierarchy during the years ended June 30, 2026 and 2025.

The following is a reconciliation of changes in Level 3 assets:

 

 

For the twelve months ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Beginning balance

 

$

13,374

 

 

$

5,265

 

Purchases

 

 

1,000

 

 

 

3,300

 

Payments

 

 

-

 

 

 

146

 

Change in fair value

 

 

(12,577

)

 

 

4,663

 

Ending balance

 

$

1,797

 

 

$

13,374

 

Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date

 

$

(12,577

)

 

$

4,663

 

 

The following is a reconciliation of changes in Level 3 liabilities:

 

 

For the twelve months ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Beginning balance

 

$

-

 

 

$

428

 

Payments

 

 

-

 

 

 

(422

)

Change in fair value

 

 

-

 

 

 

(6

)

Ending balance

 

$

-

 

 

$

-

 

The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments.