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Equity Method Investments
6 Months Ended
Jun. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments

Note 6 – Equity Method Investments

In November 2018, CPFH LLC, of which the Company holds a 25% share, was formed to purchase certain real estate assets among partners in a joint venture. In March 2020, HGC Origination I LLC and HGC Funding I LLC were formed as joint ventures with a partner for purposes of conducting business relating to the sourcing, origination and funding of loans to debt purchasing clients. In April 2022, KNFH LLC, of which the Company holds a 25% share, was formed to purchase certain real estate assets and machinery and equipment among partners in a joint venture. CPFH LLC and KNFH LLC are joint ventures formed in connection with the Company’s Industrial Assets Division, whereas HGC Origination I LLC and HGC Funding I LLC were formed in connection with its Financial Assets Division.

The table below details the Company’s joint venture revenues and earnings during the six months ended June 30, 2022 and 2021 (in thousands):

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

CPFH LLC

 

 

31,021

 

 

 

215

 

KNFH LLC

 

 

4,578

 

 

 

 

HGC Funding I LLC and Origination I LLC

 

 

860

 

 

 

17

 

Total revenues

 

$

36,459

 

 

$

232

 

 

 

 

 

 

 

 

Operating (loss) income:

 

 

 

 

 

 

CPFH LLC

 

 

15,318

 

 

 

 

KNFH LLC

 

 

873

 

 

 

 

HGC Funding I LLC and Origination I LLC

 

 

838

 

 

 

(4

)

Total operating (loss) income

 

$

17,029

 

 

$

(4

)

 

The table below details the summarized components of assets and liabilities of the Company’s joint ventures, as of June 30, 2022 and December 31, 2021 (in thousands):

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets:

 

 

 

 

 

 

CPFH LLC

 

 

779

 

 

 

11,789

 

KNFH LLC

 

 

11,726

 

 

 

 

HGC Funding I LLC and Origination I LLC

 

 

26,328

 

 

 

10,476

 

Total assets

 

$

38,833

 

 

$

22,265

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

CPFH LLC

 

 

231

 

 

 

6,099

 

KNFH LLC

 

 

5,069

 

 

 

 

HGC Funding I LLC and Origination I LLC

 

 

22

 

 

 

 

Total liabilities

 

$

5,322

 

 

$

6,099