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Fair Value Measurements | 12 Months Ended
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Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 6. Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP provides a framework for measuring fair value on either a recurring or nonrecurring 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 Fund vary depending on the nature of the investment. 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. Equity investments that do not have readily-available market prices utilize valuation models to determine fair value and are classified as Level 3. As of June 30, 2025, the Company had equity investments in three private companies that were valued using a discounted cash flows model with discount rates ranging from 9.8% - 11.3% (weighted average 10.4%). As of June 30, 2024, the Company had investments in two private companies that were valued using an options pricing model with a volatility ranging from 39.1% - 39.7% (weighted average 39.5%) and risk-free rates of 4.24% - 4.38% (weighted average 4.29%). The change in valuation technique was due to additional information about the assumptions used by market participants and transactional experience. 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. 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 June 30, 2025, 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. During the three months ended December 31, 2024, $4.0 million of our investment in Monomoy UpREIT was transferred to Monomoy REIT via an in-kind contribution which represents a non-cash transaction. As of June 30, 2024, investments in private funds includes investments in Monomoy UpREIT, MP II and Great Elm Opportunities Fund I, LP Series D (GEOF Series D), each of which is managed by a wholly-owned subsidiary 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. Contingent consideration In conjunction with the acquisition of the Monomoy UpREIT investment and property management agreements in May 2022, the Company entered into a contingent consideration agreement that required the Company to pay up to $2.0 million to ICAM if certain fee revenue thresholds were achieved during fiscal years ending June 30, 2023 and 2024. As of June 30, 2023, the Company determined that the fee revenue threshold for the year ending June 30, 2023 was achieved and the amount payable to ICAM was approximately $1.0 million, which was paid in July 2023. As of June 30, 2024, it was determined that the full target revenue threshold for the year ended June 30, 2024 was not met in full and the contingent consideration was updated to $0.4 million, which was paid in July 2024. See Note 12 - Long-Term Debt for additional discussion related to the fair value of our notes payable and other long-term debt. The carrying value of all other financial assets and liabilities approximate their fair values. Investments at Fair Value, held by the Company As of June 30, 2025 and 2024 the Company's cost of investments was $54.2 million and $54.2 million. The assets and liabilities measured at fair value on a recurring and no n-recurring basis which are held by the Company are summarized in the tables below:
|  | Fair Value as of June 30, 2025 |  |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Equity investments |  | $ | 15,427 |  |  | $ | - |  |  | $ | 13,374 |  |  | $ | 28,801 |  |
Total assets within the fair value hierarchy |  | $ | 15,427 |  |  | $ | - |  |  | $ | 13,374 |  |  | $ | 28,801 |  |
Investments valued at net asset value |  |  |  |  |  |  |  |  |  |  | $ | 31,813 |  |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 60,614 |  |
|  | Fair Value as of June 30, 2024 |  |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Equity investments |  | $ | 16,267 |  |  | $ | - |  |  | $ | 5,265 |  |  | $ | 21,532 |  |
Debt securities |  |  | 9,929 |  |  |  | - |  |  |  | - |  |  |  | 9,929 |  |
Total assets within the fair value hierarchy |  | $ | 26,196 |  |  | $ | - |  |  | $ | 5,265 |  |  | $ | 31,461 |  |
Investments valued at net asset value |  |  |  |  |  |  |  |  |  |  | $ | 23,053 |  |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 54,514 |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration liability |  | $ | - |  |  | $ | - |  |  | $ | 428 |  |  | $ | 428 |  |
Total liabilities |  | $ | - |  |  | $ | - |  |  | $ | 428 |  |  | $ | 428 |  |
There were no transfers between levels of the fair value hierarchy during the years ended June 3 0, 2025 and 2 0 24. The following is a reconciliation of changes in Level 3 assets:
|  | For the twelve months ended June 30, |
(in thousands) |  | 2025 |  |  | 2024 |
Beginning balance |  | $ | 5,265 |  |  | $ | - |
Purchases |  |  | 3,300 |  |  |  | 9,000 |
Payments |  |  | 146 |  |  |  | - |
Change in fair value |  |  | 4,663 |  |  |  | (3,735 | )
Ending balance |  | $ | 13,374 |  |  | $ | 5,265 |
For the year ended June 30, 2025, the Level 3 assets still held as of the balance sheet date had an unrealized gain of $4.7 million. The following is a reconciliation of changes in Level 3 liabilities:
|  | For the twelve months ended June 30, |
(in thousands) |  | 2025 |  |  | 2024 |
Beginning balance |  | $ | 428 |  |  | $ | 1,903 |
Payments |  |  | (422 | ) |  |  | (977 | )
Change in fair value |  |  | (6 | ) |  |  | (498 | )
Ending balance |  | $ | - |  |  | $ | 428 |
Investments at Fair Value, Consolidated Funds The assets of the Consolidated Funds measured at fair value on a recurring basis are summarized in the tables below:
|  | Fair Value as of June 30, 2025 |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets of Consolidated Funds: |  |  |  |  |  |  |  |  |  |  |  |
Equity investments |  | $ | - |  |  | $ | - |  |  | $ | 231 |  |  | $ | 231 |
Debt securities |  |  | - |  |  |  | 3,891 |  |  |  | 5,208 |  |  |  | 9,099 |
Total assets within the fair value hierarchy |  | $ | - |  |  | $ | 3,891 |  |  | $ | 5,439 |  |  | $ | 9,330 |
Investments valued at net asset value |  |  |  |  |  |  |  |  |  |  | $ | 4,997 |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 14,327 |
|  | Fair Value as of June 30, 2024 |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets of Consolidated Funds: |  |  |  |  |  |  |  |  |  |  |  |
Equity investments |  | $ | - |  |  | $ | - |  |  | $ | 10 |  |  | $ | 10 |
Debt securities |  |  | - |  |  |  | 2,190 |  |  |  | 7,771 |  |  |  | 9,961 |
Total assets within the fair value hierarchy |  | $ | - |  |  | $ | 2,190 |  |  | $ | 7,781 |  |  | $ | 9,971 |
Investments valued at net asset value |  |  |  |  |  |  |  |  |  |  | $ | 1,500 |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 11,471 |
The following is a reconciliation of changes in fair value of Level 3 assets of Consolidated Funds:
|  | For the twelve months ended June 30, |
(in thousands) |  | 2025 |  |  | 2024 |
Beginning balance |  | $ | 7,781 |  |  | $ | - |
Net Transfers |  |  | (953 | ) |  |  | - |
Purchases |  |  | 1,788 |  |  |  | 7,976 |
Sales and Paydowns |  |  | (3,224 | ) |  |  | (307 | )
Net Accretion |  |  | 40 |  |  |  | 8 |
Change in fair value |  |  | 7 |  |  |  | 104 |
Ending balance |  | $ | 5,439 |  |  | $ | 7,781 |
For the three months ended June 30, 2025, the Level 3 assets still held as of the balance sheet date had a decrease in unrealized gain of $4,392. Four investments with an aggregate fair value of $2,016,236 were transferred from Level 3 to Level 2 during the year ended June 30, 2025 as a result of increased pricing transparency. Two investments with an aggregate fair value of $606,049 were transferred from Level 2 to Level 3 during the year ended June 30, 2025 as a result of reduced pricing transparency. The following table below presents the ranges of significant unobservable inputs used to value Level 3 assets as of June 30, 2025 and June 30, 2024.
As of June 30, 2025
Investment Type |  | Fair value |  |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
Debt |  | $ | 5,064 |  |  | Income Approach |  | Discount Rate |  | 9.44% - 25.71% (14.14%)
|  |  | 144 |  |  | Recent Transaction |  |  |  |
Total Debt |  | $ | 5,208 |  |  |  |  |  |  |
Equity/Other |  |  | 231 |  |  | Recent Transaction |  |  |  |
Total Equity/Other |  | $ | 231 |  |  |  |  |  |  |
As of June 30, 2024
Investment Type |  | Fair value |  |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
Debt |  | $ | 7,193 |  |  | Income Approach |  | Discount Rate |  | 9.09% - 25.03% (13.81%)
|  |  | 578 |  |  | Recent Transaction |  |  |  |
Total Debt |  | $ | 7,771 |  |  |  |  |  |  |
Equity/Other |  |  | 10 |  |  | Market Approach |  | Earnings Multiple |  | 7.5
Total Equity/Other |  | $ | 10 |  |  |  |  |  |  |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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