Bridge Investment Group Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

Fair Value Measurements

6 Months Ended

Jun. 30, 2021

BRIDGE INVESTMENT GROUP HOLDINGS LLC [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

8.	FAIR VALUE MEASUREMENTS

Exchange traded funds:

Valued using the market price of the fund as of the combined balance sheet dates, June 30, 2021 and December 31, 2020. Exchange traded funds valued using quoted prices are classified within Level 1 of the fair value hierarchy.

Mutual funds:

Valued at the number of shares of the underlying fund multiplied by the closing NAV per share quoted by that fund as of the combined balance sheet dates, June 30, 2021 and December 31, 2020. The value of the specific funds the Company has invested in are validated with a sufficient level of observable activity to support classification of the fair value measurement as Level 1 in the fair value hierarchy.

Partnership interests:

The Company generally values its investments in partnerships and carried interest using the NAV per share equivalent calculated by the investment manager as a practical expedient to determining an independent fair value. The Company does not categorize within the fair value hierarchy investments where fair value is measured using the NAV per share practical expedient.

Other Investments:

Investments are accounted for using the measurement alternative to measure at cost adjusted for any impairment and observable price changes.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following schedule presents assets that are measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 (in thousands):


	Level 1		Level 2		Level 3		Measured at NAV		Total
June 30, 2021
Assets:
Exchange Traded Funds	$	736	$	—	$	—	$	—	$	736
Mutual Funds		4,397		—		—		—		4,397
Carried Interest		—		—		—		246,620		246,620
Partnership Interests		—		—		—		34,710		34,710
Other Investments		—		—		341		—		341

Total Assets	$	5,133	$	—	$	341	$	281,330	$	286,804

Liabilities:
Fair value option:
General partner notes payable	$	—	$	—	$	—	$	15,435	$	15,435
December 31, 2020


	Level 1		Level 2		Level 3		Measured at NAV		Total
Assets:

Exchange Traded Funds	$	736	$	—	$	—	$	—	$	736
Mutual Funds		4,317		—		—		—		4,317
Carried Interest		—		—		—		199,410		199,410
Partnership Interests		—		—		—		15,672		15,672
Other Investments		—		—		345		—		345
Total Assets	$	5,053	$	—	$	345	$	215,082	$	220,480
Liabilities:
Fair value option:
General partner notes payable	$	—	$	—	$	—	$	16,458	$	16,458

Investments in funds and limited partnership interest in third party private funds are valued using NAV of the respective vehicle.

The following schedule presents investments carried at fair value using net asset value (in thousands):


	Fair Value		Unfunded Commitments
June 30, 2021:
Carried Interest	$	246,620	$	—
Company-sponsored open-end fund		13,861		—
Company-sponsored closed-end funds		15,768		58
Third party closed-end funds		5,081		3,629

Total	$	281,330	$	3,687

December 31, 2020:
Carried Interest	$	199,410	$	—
Company-sponsored open-end fund		12,643		—
Company-sponsored closed-end funds		332		58
Third party closed-end funds		2,697		4,802

Total	$	215,082	$	4,860

The Company’s interests in its closed-end funds are not subject to redemption

, with distributions to be received through liquidation of underlying investments of the funds. The

closed-end

funds generally have

eight-to-

ten

year lives, which may be extended in one year increments up to two years. The Company can redeem its investment in the Company-sponsored

open-end

fund with a

sixty-day

notice.

Fair Value Information of Financial Instruments Reported at Cost

Carrying amounts and estimated fair values of financial instruments reported at amortized cost are presented below. The carrying values of cash, accounts receivable, due from and to affiliates, interest payable and accounts payable approximate fair value due to their short-term nature and negligible credit risk.

The following schedule presents the financial instruments (in thousands):


	Level 1		Level 2		Level 3		Total		Carrying Value
June 30, 2021:
Line of credit	$	—	$	—	$	—	$	—	$	—
Private Notes		—		—		146,270		146,270		150,000

	$	—	$	—	$	146,270	$	146,270	$	150,000

December 31, 2020:
Line of credit	$	—	$	—	$	—	$	—	$	—
Private Notes		—		—		149,225		149,225		150,000

	$	—	$	—	$	149,225	$	149,225	$	150,000

Fair values of the Letter of Credit and Private Notes were estimated by discounting expected future cash outlays at interest rates available to the Company for similar instruments.

- 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.

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