SERVICING ASSETS (Tables)

9 Months Ended

Sep. 30, 2023

Transfers and Servicing [Abstract]

Fair value and valuation assumption

The following tables summarizes the fair value and valuation assumptions related to servicing assets at September 30, 2023 and December 31, 2022:

	September 30, 2023								December 31, 2022
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum
Servicing Assets at FV:	$	31,292							$	30,268
Discount factor1			13.75	%	13.75	%	13.75	%			16.50	%	16.50	%	16.50	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			25.00	%	25.00	%	25.00	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			25.00	%	25.00	%	25.00	%
Servicing Assets at LCM:	5,482								—
Discount factor1			13.75	%	13.75	%	13.75	%			—	%	—	%	—	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			—	%	—	%	—	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			—	%	—	%	—	%
Total	$	36,774							$	30,268

(1) Determined based on risk spreads and observable secondary market transactions.

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2023 and December 31, 2022. In addition to the inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at September 30, 2023 and December 31, 2022.

	Fair Value as of			Weighted		Range
	September 30, 2023		Unobservable Input	Average1		Minimum		Maximum
Assets:
Held for investment, at fair value - accrual loans	$	446,220	Market yields	8.50	%	8.50	%	8.50	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Held for investment, at fair value - non-accrual loans	$	46,767	Market yields	8.80	%	8.80	%	8.80	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Held for sale, at fair value	$	69,216	Market yields	7.55	%	7.55	%	7.55	%
			Cumulative prepayment rate	55.60	%	55.60	%	55.60	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint Ventures	$	40,713	Market yields	9.00	%	9.00	%	9.00	%
			Cost of equity	11.00	%	10.00	%	12.00	%
			Weighted average cost of capital	8.50	%	7.50	%	9.50	%
Non-control equity investments	$	1,000	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Cost basis	N/A		N/A		N/A
Servicing assets1	$	31,292	Market yields	13.75	%	13.75	%	13.75	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Other real estate owned	$	2,829	Appraised value	N/A		N/A		N/A
Liabilities:
Equity warrants	$	194	Expected volatility	47.00	%	47.00	%	47.00	%
			Dividend yield	4.90	%	4.90	%	4.90	%
			Risk free rate	4.59	%	4.59	%	4.59	%

(1) $31.3 million of servicing assets at held at FV and $5.5 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.

	Fair Value as of			Weighted		Range
	December 31, 2022		Unobservable Input	Average1		Minimum		Maximum
Assets:
SBA unguaranteed non-affiliate investments - accrual loans	$	470,835	Market yields	7.90	%	7.90	%	7.90	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
SBA unguaranteed non-affiliate investments - non-accrual loans	$	34,433	Market yields	8.87	%	8.87	%	8.87	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Controlled equity investments1	$	241,113	EBITDA multiples-TTM2	8.00x		7.50x		8.50x
			EBITDA multiples-NTM2	6.90x		6.00x		7.50x
			Revenue multiples2	2.46x		0.80x		3.20x
			Book value multiples2	1.00x		0.80x		1.20x
			Weighted average cost of capital2	13.20	%	11.50	%	23.60	%
Controlled debt investments	$	18,104	Market yields	10.00	%	10.00	%	10.00	%
Non-control equity investments	$	1,000	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Recent transaction	N/A		N/A		N/A
Servicing assets	$	30,268	Market yields	16.50	%	16.50	%	16.50	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
Other real estate owned	$	3,529	Appraised value	N/A		N/A		N/A

(1) Weighted by relative fair value.

(2) The Company valued $145.6 million of investments using a combination of EBITDA, trailing twelve months (“TTM”) and next twelve months (“NTM”), and revenue multiples in the overall valuation approach, which included the use of market comparable companies. The Company valued $95.3 million of investments using only discounted cash flows.