Equity Method Investments

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and 2021 (in thousands):

	Nine Months Ended September 30,
	2022		2021
Revenues:
Oak Grove Asset Acquisitions LP	$	—	$	5
CPFH LLC		31,072		350
KNFH LLC		16,882		—
HGC Funding I LLC and Origination I LLC		1,611		73
Total revenues	$	49,565	$	428
Operating (loss) income:
Oak Grove Asset Acquisitions LP	$	—	$	4
CPFH LLC		15,357		(402	)
KNFH LLC		6,915		—
HGC Funding I LLC and Origination I LLC		1,589		51
Total operating (loss) income	$	23,861	$	(347	)

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

	September 30,		December 31,
	2022		2021
Assets:
CPFH LLC		779		11,789
KNFH LLC		2,712		—
HGC Funding I LLC and Origination I LLC		31,790		10,476
Total assets	$	35,281	$	22,265
Liabilities:
CPFH LLC		138		6,099
KNFH LLC		43		—
HGC Funding I LLC and Origination I LLC		—		—
Total liabilities	$	181	$	6,099