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Variable Interest Entities | 9 Months Ended
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Mar. 31, 2026
Variable Interest Entity, Measure of Activity [Abstract] |
Variable Interest Entities | 7. Variable Interest Entities Through its wholly-owned subsidiaries GECM, MCRE and GEO GP, the Company serves as the investment manager, general partner, or managing member of certain private funds, in which it may also have a direct investment. For funds which are determined to be VIEs and where it is determined that the Company is the primary beneficiary, the criteria for consolidation are met. The Company monitors such funds and related criteria for consolidation on an ongoing basis. Funds that have historically been consolidated will be deconsolidated when the Company is no longer deemed to be the primary beneficiary and will then be treated as equity method investments. The Company retains the specialized investment company accounting guidance under US GAAP with respect to the consolidated funds (collectively, the Consolidated Funds). As such, investments of the Consolidated Funds are included in the condensed consolidated balance sheets at fair value and the net realized and unrealized gains or losses on those investments are included as a component of non-operating income on the condensed consolidated statements of operations. Redeemable non-controlling interest in the Consolidated Funds is included in net (loss) income attributable to non-controlling interest in Consolidated Funds. The Company's risk with respect to the Consolidated Funds is limited to its beneficial interests in these funds. The assets of Consolidated Funds are not available to creditors of the Company. The creditors of Consolidated Funds do not have recourse to the Company other than to the assets of the respective Consolidated Funds. The Company holds investments in certain funds that are VIEs but the Company is not deemed to be the primary beneficiary. Such investments are treated as equity method investments and the Company has elected the fair value option using NAV as a practical expedient with all changes in fair value reported in net realized and unrealized gain (loss) on investments on the condensed consolidated statements of operations. The Company's maximum exposure to loss related to the VIEs that the Company is not deemed to be the primary beneficiary is limited to the fair value of its investments in these entities. See Note 2 - Summary of Significant Accounting Policies for additional details. 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 March 31, 2026 |
(in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets of Consolidated Funds: |  |  |  |  |  |  |  |  |  |  |  |
Equity investments |  | $ | - |  |  | $ | 37 |  |  | $ | 72 |  |  | $ | 109 |
Debt securities |  |  | - |  |  |  | - |  |  |  | 3,845 |  |  |  | 3,845 |
Total assets within the fair value hierarchy |  | $ | - |  |  | $ | 37 |  |  | $ | 3,917 |  |  | $ | 3,954 |
Investments valued at net asset value |  |  |  |  |  |  |  |  |  |  | $ | 1,567 |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 5,521 |
|  | 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 |
The following is a reconciliation of changes in fair value of Level 3 assets of Consolidated Funds:
|  | For the three months ended March 31, |  |  | For the nine months ended March 31, |
(in thousands) |  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Beginning balance |  | $ | 4,729 |  |  | $ | 7,302 |  |  | $ | 5,439 |  |  | $ | 7,781 |
Transfers In(1) |  |  | 89 |  |  |  | 158 |  |  |  | 7 |  |  |  | 382 |
Transfers Out(1) |  |  | (37 | ) |  |  | (731 | ) |  |  | (37 | ) |  |  | (885 | )
Purchases |  |  | 25 |  |  |  | 155 |  |  |  | 1,659 |  |  |  | 859 |
Sales and Paydowns |  |  | (879 | ) |  |  | (553 | ) |  |  | (3,046 | ) |  |  | (1,800 | )
Net Accretion |  |  | 6 |  |  |  | 9 |  |  |  | 30 |  |  |  | 19 |
Change in fair value |  |  | (16 | ) |  |  | (22 | ) |  |  | (135 | ) |  |  | (38 | )
Ending balance |  | $ | 3,917 |  |  | $ | 6,318 |  |  | $ | 3,917 |  |  | $ | 6,318 |
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date |  | $ | (59 | ) |  | $ | (43 | ) |  | $ | (249 | ) |  | $ | 80 |
(1) Transfers in and out include changes in the observability of inputs used in valuations and pricing transparency. The following table below presents the ranges of significant unobservable inputs used to value Level 3 assets as of March 31, 2026 and June 30, 2025.
As of March 31, 2026
Investment Type |  | Fair value |  |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
Debt |  | $ | 3,838 |  |  | Income Approach |  | Discount Rate |  | 10.30% - 29.35% (13.98%)
|  | $ | 7 |  |  | Broker Quotes |  |  |  | 6.08 - 6.08 (6.08)
Total Debt |  | $ | 3,845 |  |  |  |  |  |  |
Equity/Other |  |  | 72 |  |  | Market Approach |  | Earnings Multiple |  | 8.25 - 14.06 (9.22)
Total Equity/Other |  | $ | 72 |  |  |  |  |  |  |
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 |  |  |  |  |  |  |

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- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-3 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-5A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-9 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-4 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-6 + Details
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