v3.26.3
Fair Value Measurements
 3 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

GAAP provides a framework for measuring fair value on either a recurring or non-recurring 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 Funds varied depending on the nature of the investment. The financial assets and liabilities of the Consolidated Funds are presented in Note 6 - 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. The securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level 2.

Equity investments that do not have readily-available market prices utilize valuation models to determine fair value and are classified as Level 3.

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 6 - 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 September 30, 2026 and June 30, 2026, 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. The private funds generally allow redemptions annually with 60-90 days’ notice. There is no set duration for the private funds.

Investments at Fair Value, held by the Company

The assets and liabilities measured at fair value on a recurring and non-recurring basis are summarized in the tables below:

 

 

Fair Value as of September 30, 2026

 

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments

 

$

6,579

 

 

$

32

 

 

$

1,959

 

 

$

8,570

 

 

Debt securities

 

 

-

 

 

 

84

 

 

 

2,887

 

 

 

2,971

 

 

Total assets within the fair value hierarchy

 

$

6,579

 

 

$

116

 

 

$

4,846

 

 

$

11,541

 

 

Investments valued at net asset value

 

 

 

 

 

 

 

 

 

 

$

23,676

 

 

Total assets

 

 

 

 

 

 

 

 

 

 

$

35,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

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

 

 

For the three months ended September 30,

 

(in thousands)

 

2026

 

 

2025

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,797

 

 

$

13,374

 

Transfers In(1)

 

 

3,756

 

 

 

-

 

Transfers Out(1)

 

 

(84

)

 

 

-

 

Purchases

 

 

28

 

 

 

-

 

Sales and Paydowns

 

 

(568

)

 

 

-

 

Net Accretion

 

 

5

 

 

 

-

 

Change in fair value

 

 

(88

)

 

 

(358

)

Ending balance

 

$

4,846

 

 

$

13,016

 

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

 

$

(95

)

 

$

(358

)

(1) Transfers in and out include changes in the observability of inputs used in valuations and pricing transparency, or transfers of assets from Consolidated Funds to the Company.

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.

As of September 30, 2026

Investment Type

 

Fair value

 

 

Valuation Technique

 

Unobservable Input

 

Range (Weighted Average)

Debt

 

$

2,887

 

 

Income Approach

 

Discount Rate

 

11.39% - 20.84% (15.22%)

Total Debt

 

$

2,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity/Other

 

 

540

 

 

Income Approach

 

Discount Rate

 

10.18% - 11.67% (11.43%)

 

 

 

212

 

 

Market Approach

 

Earnings Multiple

 

0.97 - 9.25 (8.57)

 

 

 

1,207

 

 

Recent Transaction

 

 

 

 

Total Equity/Other

 

$

1,959

 

 

 

 

 

 

 

 

 

 

As of June 30, 2026

Investment Type

 

Fair value

 

 

Valuation Technique

 

Unobservable Input

 

Range (Weighted Average)

Equity/Other

 

 

797

 

 

Income Approach

 

Discount Rate

 

10.00% - 11.40% (11.20%)

 

 

 

1,000

 

 

Recent Transaction

 

 

 

 

Total Equity/Other

 

$

1,797