Variable Interest Entities

6 Months Ended

Jun. 30, 2023

Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]

Variable Interest Entities

VARIABLE INTEREST ENTITIES

We have financed a portion of our loans through the CLOs, all of which are VIEs. We are the primary beneficiary of, and therefore consolidate, the CLOs on our balance sheet as we (i) control the relevant interests of the CLOs that give us power to direct the activities that most significantly affect the CLOs, and (ii) have the right to receive benefits and obligation to absorb losses of the CLOs through the subordinate interests we own.

The following table details the assets and liabilities of our consolidated VIEs ($ in thousands):

	June 30, 2023		December 31, 2022
Assets
Loans receivable	$	3,316,109	$	3,317,316
Current expected credit loss reserve	(112,999)		(93,396)
Loans receivable, net	3,203,110		3,223,920
Other assets	14,946		15,995
Total assets	$	3,218,056	$	3,239,915
Liabilities
Securitized debt obligations, net	$	2,666,414	$	2,664,010
Other liabilities	7,314		7,234
Total liabilities	$	2,673,728	$	2,671,244

Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate interests owned by us. The liabilities of these VIEs are non-recourse to us and can only be satisfied from the assets of the VIEs. The consolidation of these VIEs results in an increase in our gross assets, liabilities, interest income and interest expense, however it does not affect our stockholders’ equity or net income. We are not obligated to provide, have not provided, and do not intend to provide financial support to these consolidated VIEs.