INVESTMENTS

9 Months Ended

Sep. 30, 2022

INVESTMENTS

INVESTMENTS

4.   INVESTMENTS

As of September 30, 2022 and December 31, 2021, the Company’s investments were comprised of the following (in millions):

	September 30,		December 31,
	2022		2021
Equity method investments:
Investment in 7Ridge Investments 3 LP	$	216.0	$	209.5
Total equity method investments		216.0		209.5
Other equity investments:
Investment in Eris Innovations Holdings, LLC		20.0		20.0
Investment in CSD Br		5.9		—
Investment in Coin Metrics Inc.		5.0		—
Investment in Cboe Vest Financial Group, Inc.		2.9		2.9
Investment in Effective Investing Limited		1.8		—
Investment in OCC		0.3		0.3
Investment in American Financial Exchange, LLC		—		10.6
Investment in Eris Digital Holdings, LLC		—		1.1
Other equity investments		1.7		1.4
Total other equity investments		37.6		36.3
Total investments	$	253.6	$	245.8

Equity Method Investments

The Company’s investment in 7Ridge Investments 3 LP (“7Ridge Fund”), accounted for under the equity method of accounting, represents a nonconsolidated variable interest entity (“VIE”). The Company has determined that consolidation of the VIE is not required as the Company is not the primary beneficiary of the 7Ridge Fund, as it does not have controlling financial interest and lacks the ability to unilaterally remove the general partner, 7Ridge Investments 3 GP

Limited, direct material strategic decisions, or dissolve the entity (i.e., the Company does not have unilateral substantive “kick-out” or “liquidation” rights).

The Company’s interest in the 7Ridge Fund is equal to the carrying value of the investment as of September 30, 2022, or $216.0 million, which includes periodic capital contributions to the 7Ridge Fund, as well as the Company’s share of 7Ridge Fund’s profit or loss, including gains or losses arising from the fair value measurement of the investment held by the 7Ridge Fund, booked against the investment account. The carrying value of the investment is included in investments within the condensed consolidated balance sheets. The Company’s maximum loss exposure, in the unlikely event that all of the VIE’s assets become worthless, is limited to the carrying value of Company’s investment.

Other Equity Investments

In the second quarter of 2022, the Company invested $5.0 million in a funding raise by Coin Metrics, Inc., a digital asset intelligence and crypto data startup, $5.9 million in a funding raise by CSD Br, a Brazilian bank and financial intermediary, and completed the purchase of ErisX, which was subsequently rebranded to Cboe Digital. Eris Innovations Holdings, LLC (formerly Eris Exchange Holdings, LLC) was not a part of this transaction and the Company retains its minority equity ownership interest in Eris Innovations Holdings, LLC. See Note 3 (“Acquisitions”) for more information. In the third quarter of 2022, the Company invested $1.8 million in a funding raise by Effective Investing Limited, an emerging global sustainability data provider measuring the social and environmental impact of companies and investment portfolios.

The carrying value of other equity investments is included in investments in the condensed consolidated balance sheets. The Company accounts for these investments using the measurement alternative given the absence of readily determinable fair values for the respective investments and due to the Company’s inability to exercise significant influence over the investments based upon the respective ownership interests held. As of September 30, 2022, other equity investments primarily consist of minority investments in Eris Innovations Holdings, LLC, CSD Br, Coin Metrics Inc., Cboe Vest Financial Group, Inc, Effective Investing Limited, and a 20% investment in OCC.