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

3 Months Ended

Mar. 31, 2022

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

FAIR VALUE MEASUREMENTS

Exchange traded funds: Valued using the market price of the fund as of the consolidated balance sheet dates, March 31, 2022 and December 31, 2021. 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 consolidated balance sheet dates, March 31, 2022 and December 31, 2021. 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.

Accrued performance allocations and partnership interests: The Company generally values its investments in accrued performance allocations and partnership interests using the NAV per share equivalent calculated by the investment manager as a practical expedient to determining an 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. Unrealized gains or losses on other investments are included in investment income (loss) on the consolidated and combined statements of operations.

General Partner notes payable: Valued using the NAV per share equivalent calculated by the investment manager as a practical expedient to determining an independent fair value.

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 table presents assets that are measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 (in thousands):


							Measured at
	Level 1		Level 2		Level 3		NAV		Total
March 31, 2022
Assets:
Exchange traded funds	$	1,576	$	—	$	—	$	—	$	1,576
Mutual funds		9,374		—		—		—		9,374
Accrued performance allocations		—		—		—		505,410		505,410
Partnership interests		—		—		—		53,888		53,888
Other investments		—		—		4,326		—		4,326
Total assets at fair value	$	10,950	$	—	$	4,326	$	559,298	$	574,574

Liabilities:
General Partner notes payable	$	—	$	—	$	—	$	11,729	$	11,729

December 31, 2021
Assets:
Exchange traded funds	$	1,171	$	—	$	—	$	—	$	1,171
Mutual funds		6,864		—		—		—		6,864
Accrued performance allocations		—		—		—		439,548		439,548
Partnership interests		—		—		—		39,685		39,685
Other investments		—		—		4,321		—		4,321
Total assets at fair value	$	8,035	$	—	$	4,321	$	479,233	$	491,589

Liabilities:
General Partner notes payable	$	—	$	—	$	—	$	12,003	$	12,003

The following table presents a rollforward of Level 3 assets at cost adjusted for any impairment and observable price changes (in thousands):


	Other
	Investments
Balance as of December 31, 2021	$	4,321
Purchases		5
Balance as of March 31, 2022	$	4,326

Accrued carried interest allocations, investments in funds, and investments in limited partnership interests in third-party private funds are valued using NAV of the respective vehicle. The following table presents investments carried at fair value using NAV (in thousands):


			Unfunded
	Fair Value		Commitments
March 31, 2022:
Accrued performance allocations	$	505,410	$	—

Partnership interests:
Company-sponsored open-end fund		14,440		—
Company-sponsored closed-end funds		28,983		3,927
Third-party closed-end funds		10,465		4,258
Total partnership interests	$	53,888	$	8,185
	\
December 31, 2021:
Accrued performance allocations	$	439,548	$	—

Partnership interests:
Company-sponsored open-end fund		15,474		—
Company-sponsored closed-end funds		16,510		20,885
Third-party closed-end funds		7,701		2,436
Total partnership interests	$	39,685	$	23,321

The Company can redeem its investment in the Company-sponsored open-end fund with a 60-day notice. 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 terms, which may be extended in certain circumstances.

Fair Value Information of Financial Instruments Reported at Cost

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 table presents the carrying amounts and estimated fair values of financial instruments reported at amortized cost (in thousands):


									Carrying
	Level 1		Level 2		Level 3		Total		Value
As of March 31, 2022:
Notes payable (private notes)	$	—	$	—	$	138,122	$	138,122	$	150,000

As of December 31, 2021:
Notes payable (private notes)	$	—	$	—	$	144,577	$	144,577	$	150,000

Fair values of the 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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