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Beneficial Interests
3 Months Ended
Mar. 31, 2024
Beneficial Interests [Abstract]  
Beneficial Interests Beneficial Interests
The Company has committed capital and other co-investment arrangements in which it is obligated to make payments to third-parties or is entitled to receive payments from third-parties if credit performance on the loans under the arrangements deviates from initial expectations set at the time of loan sales or originations. These cash payments are subject to a dollar cap, which represents the Company’s capital co-invested and maximum exposure to losses in a particular arrangement. As of December 31, 2023 and March 31, 2024, the Company’s aggregate capital co-invested under these arrangements was $98.5 million and $169.6 million, respectively.

The Company has beneficial interests in these arrangements which either meet the definition of a derivative or that meet the criteria of a debt security. The following table presents the aggregate outstanding principal balance of the underlying loan portfolios as well as the fair value of beneficial interest assets, which are presented as a separate asset line item on the condensed consolidated balance sheets and beneficial interest liabilities which are presented in other liabilities on the condensed consolidated balance sheets.

December 31, 2023March 31, 2024
Outstanding Principal Balance
Fair Value
Outstanding Principal Balance
Fair Value
Beneficial interest assets
$958,870 $41,012 $1,468,186 $62,214 
Beneficial interest liabilities$769,102 $4,221 $873,191 $8,485 

The Company recognizes beneficial interests at fair value with changes reported as part of the fair value and other adjustments on the condensed consolidated statements of operations and comprehensive loss. The table below presents losses recognized on beneficial interests during the three months ended March 31, 2024. The Company recognized no gains or losses on beneficial interest during the three months ended March 31, 2023.

Three Months Ended March 31, 2024
Fair value adjustments and realized losses on beneficial interests
$(14,034)

Refer to “Note 6. Fair Value Measurement” for additional information.