XML 41 R30.htm IDEA: XBRL DOCUMENT v3.24.3
Related party transactions (Tables)
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The below table details the management fees incurred during the three and nine months ended September 30, 2024 and 2023 (in thousands).
Three Months Ended
Nine Months Ended
Consolidated statements of operations line item:September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Management fee to affiliate (1)$1,708 $2,054 $5,202 $6,190 
(1)For the three and nine months ended September 30, 2024, the Manager agreed to waive its right to receive management fees of $0.6 million and $1.8 million, respectively, pursuant to the MITT Management Agreement Amendment executed in connection with the Merger. As of September 30, 2024, all of the $2.4 million management fee waiver agreed upon in connection with the Merger has been utilized.
The below table details the expense reimbursement incurred during the three and nine months ended September 30, 2024 and 2023 (in thousands).
Three Months Ended
Nine Months Ended
Consolidated statements of operations line item:September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Non-investment related expenses (1)
$1,636 $1,400 $4,936 $4,200 
Investment related expenses
194 148 395 360 
Transaction related expenses22326396 707 
Expense reimbursements to Manager or its affiliates$1,852 $1,874 $5,727 $5,267 
(1)For the three and nine months ended September 30, 2024, the Manager agreed to waive its right to receive expense reimbursements of $0.3 million and $0.9 million, respectively, pursuant to the MITT Management Agreement Amendment executed in connection with the Merger. Of the $1.3 million expense reimbursement waiver agreed upon in connection with the Merger, $0.2 million remains outstanding as of September 30, 2024.
The below details the fees paid by the Company to the Asset Manager during the three and nine months ended September 30, 2024 and 2023 (in thousands).
Three Months Ended
Nine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Fees paid to Asset Manager$799 $752 $2,124 $2,115 
The below table details the unpaid principal balance of residential mortgage loans sold to the Company and private funds under the management of TPG Angelo Gordon during the three and nine months ended September 30, 2024 and 2023 (in thousands).
Three Months Ended
Nine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Residential mortgage loans sold by Arc Home to the Company$166,183 $249,488 $379,565 $442,695 
Residential mortgage loans sold by Arc Home to private funds under the management of TPG Angelo Gordon87,006 93,789 366,952 215,436 
    
DateTransactionFair Value (1)Pricing Methodology
June 2023Purchase of Real Estate Securities$0.3 Competitive bidding process (2)
November 2023Purchase of Real Estate Securities (4)4.8 Third party pricing vendors (3)
November 2023Purchase of MATH (4)0.9 Third party pricing vendors (3)
(1)As of the transaction date.
(2)The Company submitted an offer to purchase the securities from an affiliate in a competitive bidding process, which allowed the Company to confirm third-party market pricing and best execution.
(3)Pricing was based on valuations prepared by third-party pricing vendors in accordance with the Company's policy.
(4)Refer to the "MATH Transaction" below.
Schedule of Investments in Debt and Equity of Affiliates
The below table summarizes the components of the "Investments in debt and equity of affiliates" line item on the Company's consolidated balance sheets as of September 30, 2024 and December 31, 2023 (in thousands).

September 30, 2024December 31, 2023
AssetsLiabilitiesEquityAssetsLiabilitiesEquity
Non-QM Securities (1)$13,050 $— $13,050 $15,257 $— $15,257 
Re/Non-Performing Securities7,011 (3,540)3,471 7,569 (3,605)3,964 
Total Residential Investments20,061 (3,540)16,521 22,826 (3,605)19,221 
AG Arc, at fair value30,967 — 30,967 33,574 — 33,574 
Cash and Other assets/(liabilities)1,141 (33)1,108 2,361 (53)2,308 
Investments in debt and equity of affiliates$52,169 $(3,573)$48,596 $58,761 $(3,658)$55,103 
(1)MATH, through its wholly owned subsidiary MATT, only holds risk-retention tranches from past securitizations which continue to pay down and the Company does not expect MATT to acquire additional investments.

The below table reconciles the net income/(loss) to the "Equity in earnings/(loss) from affiliates" line item on the Company's consolidated statements of operations for the three and nine months ended September 30, 2024 and 2023 (in thousands).

Three Months Ended
Nine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Non-QM Securities$(1,070)$2,606 $307 $4,580 
Land Related Financing— 64 — 805 
Re/Non-Performing Securities6 338 322 249 
AG Arc (1)215 (2,820)1,470 (4,992)
Equity in earnings/(loss) from affiliates
$(849)$188 $2,099 $642 
(1)Earnings/(loss) recognized by AG Arc do not include the Company's portion of gains or losses recorded by Arc Home in connection with the sale of residential mortgage loans to the Company. Refer to "Transactions with Arc Home" below for more information on this accounting policy.
The table below summarizes intra-entity profits eliminated during the three and nine months ended September 30, 2024 and 2023 (in thousands).
Three Months Ended
Nine Months Ended
September 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Intra-Entity Profits Eliminated$359 $800 $965 $1,141