XML 35 R13.htm IDEA: XBRL DOCUMENT v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis and level of inputs used for such measurements as of December 31, 2024 and 2023:
Fair Value as of December 31, 2024
Level 1Level 2Level 3Total
Assets
Money market funds
$43,804 $— $— $43,804 
Other investments— — 11,993 11,993 
Total assets$43,804 $— $11,993 $55,797 
Liabilities
Public warrants$21,149 $— $— $21,149 
Private warrants— — 1,361 1,361 
Interest rate derivatives— 3,532 — 3,532 
Total liabilities$21,149 $3,532 $1,361 $26,042 
Fair Value as of December 31, 2023
Level 1Level 2Level 3Total
Assets
Money market funds
$10,282 $— $— $10,282 
Other investments— — 11,192 11,192 
Total assets$10,282 $— $11,192 $21,474 
Liabilities
Public warrants$6,042 $— $— $6,042 
Private warrants— — 389 389 
Interest rate derivatives— 7,469 — 7,469 
Total liabilities$6,042 $7,469 $389 $13,900 
Money Market Funds
Money market funds are valued using quoted market prices and are included in cash and cash equivalents in the Consolidated Statements of Financial Condition.
Interest Rate Derivatives
Management determines the fair value of its interest rate derivative agreements based on the present value of expected future cash flows based on observable future rates applicable to each swap contract using linear interpolation, inclusive of the risk of non-performance, using a discount rate appropriate for the duration. See Note 14 for additional information regarding interest rate derivatives.
Other Investments
Investments in the subordinated notes of a structured alternatives investment solution are not publicly traded and are classified as Level 3. Management determines the fair value of these other investments using a discounted cash flow analysis (“Cash Flow Analysis”), which includes assumptions regarding the expected deployment and realization timing of private investments. The position was classified as Level 3 as of December 31, 2024 and 2023 because of the use of significant unobservable inputs in the Cash Flow Analysis as follows:
December 31, 2024December 31, 2023
Impact to Valuation from an Increase in Input(2)
Significant Unobservable Inputs(1)
RangeWeighted Average RangeWeighted Average
Discount rate(3)
25.8% - 27.8%
26.8 %
26.5% - 27.5%
27.0 %Decrease
Expected remaining term (years)
8 – 12
N/A
8 – 12
N/ADecrease
Expected total value to paid in capital – private assets(4)
1.55x – 2.13x
1.87x
1.55x – 2.05x
1.87x
5
Increase
____________
(1)In determining these inputs, management considers the following factors including, but not limited to: liquidity, estimated yield, capital deployment, diversified multi-strategy appreciation, expected net multiple of investment capital across private assets investments, annual operating expenses, as well as investment guidelines such as concentration limits, position size, and investment periods.
(2)Unless otherwise noted, this column represents the directional change in fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect.
(3)The discount rate was based on the relevant benchmark rate, spread, and yield migrations on related securitized assets.
(4)Inputs were weighted based on actual and estimated commitments to the respective private asset investments included in the range.
The resulting fair values of $12.0 million and $11.2 million were recorded within investments in the Consolidated Statements of Financial Condition as of December 31, 2024 and 2023, respectively.
The following table presents changes in Level 3 assets measured at fair value for the years ended December 31, 2024 and 2023.
Year Ended December 31,
20242023
Balance at beginning of period$11,192 $10,007 
Change in fair value801 1,185 
Balance at end of period$11,993 $11,192 
Public Warrants
The public warrants are valued using quoted market prices on the Nasdaq Stock Market LLC under the ticker GCMGW.
Private Warrants
The private warrants were classified as Level 3 as of December 31, 2024 and 2023 because of the use of significant unobservable inputs in the valuation, however the overall private warrant valuation and change in fair value are not material to the Consolidated Financial Statements.
The valuations for the private warrants were determined to be $1.51 and $0.43 per unit as of December 31, 2024 and 2023, respectively. The resulting fair values of $1.4 million and $0.4 million were recorded within warrant liabilities in the Consolidated Statements of Financial Condition as of December 31, 2024 and 2023, respectively. See Note 8 for additional information regarding the warrant activity.
The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2024 and 2023:
Year Ended December 31,
20242023
Balance at beginning of period$389 $475 
Change in fair value972 (86)
Balance at end of period$1,361 $389