XML 31 R16.htm IDEA: XBRL DOCUMENT v3.25.1

Note 6 - Variable Interest Entities

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Variable Interest Entity Disclosure [Text Block]

NOTE 6 VARIABLE INTEREST ENTITIES

(a) Consolidated VIE

Argo Holdings Fund I, LLC

The Company holds a 43.4% investment in Argo Holdings at December 31, 2024 and December 31, 2023. Argo Holdings makes investments, primarily in established lower middle market companies based in North America, through investments in search funds. The managing member of Argo Holdings is Argo Management Group, LLC ("Argo Management"), a wholly owned subsidiary of the Company. Argo Holdings is considered to be a VIE as the members holding equity at risk lack characteristics of a controlling financial interest. The Company holds a variable interest in Argo Holdings due to its right to absorb significant economics in Argo Holdings and through its controlling interest in Argo Management, through which the Company holds the power to direct the significant activities of Argo Holdings. As such, the Company was the primary beneficiary of Argo Holdings and consolidated Argo Holdings at December 31, 2024 and December 31, 2023.

The following table summarizes the assets and liabilities related to the VIE consolidated by the Company at December 31, 2024 and December 31, 2023:     

(in thousands)		December 31,
		2024				2023
Assets
Limited liability investment, at fair value		$	2,859			$	3,496
Cash and cash equivalents			222				270
Other receivables			7				—
Accrued investment income			430				527
Total Assets			3,518				4,293
Liabilities
Accrued expenses and other liabilities			618				289
Total Liabilities		$	618			$	289

No arrangements exist requiring the Company to provide additional funding to the consolidated VIE in excess of the Company’s unfunded commitments to its consolidated VIE. At December 31, 2024 and December 31, 2023, the Company had no unfunded commitments. There are no restrictions on assets consolidated by the VIE. There are no structured settlements of liabilities consolidated by the VIE. Creditors have no recourse to the general credit of the Company as the primary beneficiary of the VIE.

(b) Non-Consolidated VIEs

The Company’s investments include certain non-consolidated investments, primarily in limited liability companies and limited partnerships in which the Company holds variable interests, that are considered VIEs due to the legal entities holding insufficient equity; the holders of equity at risk in the legal entities lacking controlling financial interests; and/or the holders of equity at risk having non-proportional voting rights.

The Company’s risk of loss associated with its non-consolidated VIEs is limited and depends on the investment. Limited liability investments accounted for under the equity method are limited to the Company’s initial investments. At December 31, 2024 and December 31, 2023, the Company had no unfunded commitments to its non-consolidated VIEs.

The following table summarizes the carrying value and maximum loss exposure of the Company’s non-consolidated VIEs at December 31, 2024 and December 31, 2023:

(in thousands)		December 31,
		2024								2023
						Maximum Loss								Maximum Loss
		Carrying Value				Exposure				Carrying Value				Exposure
Investments in non-consolidated VIEs		$	692			$	692			$	854			$	854

The following table summarizes the Company’s non-consolidated VIEs by category at December 31, 2024 and December 31, 2023:

(in thousands)		December 31,
		2024								2023
		Carrying								Carrying
		Value				Percent of total				Value				Percent of total
Investments in non-consolidated VIEs:
Non-real estate related			692				100.0	%			854				100.0	%
Total investments in non-consolidated VIEs		$	692				100.0	%		$	854				100.0	%

The following table presents aggregated summarized financial information of the Company’s non-consolidated VIEs at December 31, 2024 and December 31, 2023. For certain of the non-consolidated VIEs, the financial information is presented on a lag basis, consistent with how the changes in the Company’s share of the net asset values of these equity method investees are recorded in net investment income. The difference between the end of the reporting period of an equity method investee and that of the Company is typically no more than three months.

(in thousands)		December 31,
		2024				2023
Assets		$	191,796			$	222,249
Liabilities		$	283,737			$	313,573
Equity		$	(91,941	)		$	(91,324	)

(in thousands)		December 31,
		2024				2023
Net income		$	7,965			$	8,306

X

- References

No definition available.

+ Details

Name:	us-gaap_DisclosureTextBlockAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 810
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/810/tableOfContent

+ Details

Name:	us-gaap_VariableInterestEntityDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration