|12 Months Ended|
Dec. 31, 2022
|Equity Method Investments and Joint Ventures [Abstract]|
The Company has interests in 153 partnership or joint venture entities. The limited liability companies and limited partnerships in which the Company is the general partner are generally engaged directly or indirectly in the acquisition, development, operation and ownership of real estate. The accounting principles of these entities are substantially the same as those of the Company. Additionally, the Company has direct investments in several funds, including certain Bridge sponsored funds. The Company’s investments are summarized below (in thousands):
(1)Represents various investment accounts held by Bridge GP’s for carried interest in Bridge-sponsored funds. There is a disproportionate allocation of returns to the Company as general partner or equivalent based on the extent to which cumulative performance of the fund exceeds minimum return hurdles. Investment is valued using NAV of the respective vehicle, which are based on asset valuations one quarter in arrears.
(2)Partnership interests in Company-sponsored funds are valued using NAV of the respective vehicle.
(3)Investments in limited partnership interests in third-party private property technology (“PropTech”) venture capital firms are valued using NAV of the respective vehicle.
(4)Other investments are accounted for using the measurement alternative to measure at cost adjusted for any impairment and observable price changes.
The Company recognized income related to its accrued performance allocations and other investments of $188.7 million, $339.0 million and $104.7 million for the years ended December 31, 2022, 2021, and 2020, respectively, of which $184.5 million, $329.6 million, and $104.2 million for years ended December 31, 2022 and 2021, respectively, related to accrued performance allocations recognized under the equity method.
Of the total accrued performance allocations balance as of December 31, 2022 and 2021, $66.8 million and $41.0 million, respectively, were payable to affiliates and are included in accrued performance allocations compensation in the consolidated balance sheets as of the periods then ended.
Fair value of the accrued performance allocations is reported on a three-month lag from the fund financial statements due to timing of the information provided by the funds and third-party entities unless information is available on a more timely basis. During the period between October 1, 2022 and December 31, 2022, there has been a change in market conditions including an increase in the Federal Funds rate of 125 basis points, an expansion of cap rates for real estate assets, and other changes in the markets in which our managed funds operate. These changes result in a decline in the fair values of the assets owned by our managed funds and the real estate markets generally. This is expected to result in a decrease in the carrying value of our unrealized accrued performance allocation.The Company evaluates each of its equity method investments, excluding Accrued Performance Allocations, to determine if any were significant as defined by the SEC. As of December 31, 2022 and 2021, no individual equity method investment held by the Company met the significance criteria. As a result, the Company is not required to provide separate financial statements for any of its equity method investments.
The entire disclosure for investment.
Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef