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Fair Value of Financial Instruments
 12 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
We determine the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes observable inputs in active markets when measuring fair value. The three levels of inputs that may be used to measure fair value in order of priority are as follows:
Level 1 — Inputs include quoted prices in active markets for identical assets or liabilities that we have the ability to access.
Level 2 — Inputs include quoted prices in markets that are less active or inactive or for which all significant inputs are observable, either directly or indirectly.
Level 3 — Inputs include unobservable prices and are supported by little or no market activity and are significant to the overall fair value measurement.
As of September 30, 2024 and 2023, the fair values of our financial instruments, which include cash and cash equivalents, amounts due from related parties, accounts payable and accrued expenses and reimbursable accounts payable and accrued expenses, were not materially different from their carrying values due to the short term nature of these financial instruments.
We estimate the fair value of our fixed rate mortgage note payable, loans held for investment and outstanding principal balances under our UBS Master Repurchase Facility using significant observable inputs (Level 3), including discounted cash flow analyses and prevailing market interest rates.
The table below provides information regarding these financial instruments not carried at fair value in our consolidated balance sheet as of September 30, 2024:
As of September 30, 2024
As of September 30, 2023
Carrying Value
Fair Value
Carrying Value
Fair Value
Loans held for investment
$56,221 $57,365 $— $— 
Secured financing facility
41,109 41,793 — — 
Mortgage note payable
45,149 46,520 — — 
On a recurring basis, we measure certain financial assets and financial liabilities at fair value based upon quoted market prices. ASC 820, Fair Value Measurements, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities, or Level 1, the lowest priority to unobservable inputs, or Level 3, and significant other observable inputs, or Level 2. A financial asset’s or financial liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
The following tables present our assets and liabilities that have been measured at fair value on a recurring basis:
September 30, 2024
Total
Level 1
Level 2
Level 3
Due from related parties related to share based payment awards
$14,339 $14,339 $— $— 
Equity method investment in SEVN23,520 23,520 — — 
Employer compensation liability related to share based payment awards
14,339 14,339 — — 
Earnout liability
11,958 — — 11,958 
September 30, 2023
Total
Level 1
Level 2
Level 3
Due from related parties related to share based payment awards
$10,695 $10,695 $— $— 
Equity method investment in SEVN18,651 18,651 — — 
Employer compensation liability related to share based payment awards10,695 10,695 — — 
The following table presents additional information about the valuation techniques and significant unobservable inputs for financial assets and liabilities that are measured at fair value and categorized within Level 3 as of September 30, 2024:
Fair Value
Valuation Technique
Unobservable Input
Range
Earnout liability
$11,958 
Monte Carlo
Capital deployment volatility
15.00%
Discount rate
5.53%
The table below presents a summary of the changes in fair value for our Earnout liability measured on a recurring basis:
Fiscal Year Ended
September 30, 2024
Beginning balance
$— 
Acquisition of MPC Partnership Holdings LLC
14,547 
Changes in fair value for our Earnout liability measured on a recurring basis
(2,589)
Ending balance
$11,958