Variable Interest Entities

3 Months Ended

Mar. 31, 2024

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):

	March 31, 2024		December 31, 2023
Assets
Loans receivable	$	2,973,831	$	3,061,278
Current expected credit loss reserve	(168,521)		(183,508)
Loans receivable, net	2,805,310		2,877,770
Other assets	13,462		103,692
Total assets	$	2,818,772	$	2,981,462
Liabilities
Securitized debt obligations, net	$	2,328,073	$	2,505,417
Other liabilities	7,518		8,101
Total liabilities	$	2,335,591	$	2,513,518

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 material financial support to these consolidated VIEs.