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INVESTMENTS

3 Months Ended

Mar. 31, 2022

4. INVESTMENTS

As of March 31, 2022 and December 31, 2021, the Company’s investments were comprised of the following (in millions):


	March 31,		December 31,
	2022		2021
Equity method investments:
Investment in 7Ridge Investments 3 LP	$	208.2	$	209.5
Total equity method investments		208.2		209.5

Other equity investments:
Investment in Eris Exchange Holdings, LLC		20.0		20.0
Investment in American Financial Exchange, LLC		10.6		10.6
Investment in Cboe Vest Financial Group, Inc.		2.9		2.9
Investment in Eris Digital Holdings, LLC		1.1		1.1
Investment in OCC		0.3		0.3
Other equity investments		1.4		1.4
Total other equity investments		36.3		36.3

Total investments	$	244.5	$	245.8

Equity Method Investments

The Company’s investment in 7Ridge Investments 3 LP (“7Ridge Fund”), accounted for under the equity method of accounting, represents a nonconsolidated variable interest entity (“VIE”). The Company has determined that consolidation of the VIE is not required as the Company is not the primary beneficiary of the 7Ridge Fund, as it does not have controlling financial interest and lacks the ability to unilaterally remove the general partner, 7Ridge Investments 3 GP Limited, direct material strategic decisions, or dissolve the entity (i.e., the Company does not have unilateral substantive “kick-out” or “liquidation” rights).

The Company’s interest in the 7Ridge Fund is equal to the carrying value of the investment as of March 31, 2022, or $208.2 million, which includes periodic capital contributions to the 7Ridge Fund, as well as the Company’s share of 7Ridge Fund’s profit or loss, including gains or losses arising from the fair value measurement of the investment(s) held by the 7Ridge Fund, booked against the investment account. The carrying value of the investment is included in investments within the condensed consolidated balance sheets. The Company’s maximum loss exposure, in the unlikely event that all of the VIE’s assets become worthless, is limited to the carrying value of Company’s investment.

Other Equity Investments

The carrying value of other equity investments is included in investments in the condensed consolidated balance sheets. The Company accounts for these investments using the measurement alternative given the absence of readily

determinable fair values for the respective investments and due to the Company’s inability to exercise significant influence over the investments based upon the respective ownership interests held. As of March 31, 2022, other equity investments primarily reflect a 20% investment in OCC and minority investments in Eris Exchange Holdings, LLC, American Financial Exchange, LLC, and Cboe Vest Financial Group, Inc.

As announced on October 20, 2021, the Company plans to acquire the remaining interest in Eris Digital Holdings, LLC. However, Eris Exchange Holdings, LLC is not a part of this transaction and the Company retains its minority equity ownership interest in Eris Exchange Holdings, LLC. The closing of the transaction is subject to customary closing conditions. As a result, the timing of the closing is uncertain, but the Company presently anticipates a closing in the second quarter of 2022. See Item 2 (“Management’s Discussion and Analysis of Financial Condition and Results of Operations”) for more information.