Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 12. Fair Value Measurements

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The table below presents the valuation techniques and the nature of significant inputs generally used in determining the fair value of Level 3 Instruments.

Level 3 Instruments	Valuation Techniques and Significant Inputs
Debt and Equity Securities	Recent third-party investments or pending transactions are considered to be the best evidence for any change in fair value. When these are not available, the following valuation methodologies are used, as appropriate and available (i) Transactions in similar instruments; (ii) discounted cash flow techniques; (iii) third party appraisals; (iv) binomial option pricing models; and (v) industry multiples and public comparables.
	Evidence of value in investees includes recent or pending reorganizations (for example, merger proposals, tender offers and debt restructurings) and significant changes in financial metrics, including (i) current financial performance as compared to projected performance; (ii) capitalization rates and multiples; and (iii) market yields implied by transactions of similar or related assets.

The tables below present the ranges of significant unobservable inputs used to value the Company’s Level 3 assets as of June 30, 2024 and December 31, 2023. These ranges do not represent a range of values for any single instrument. For example, the lowest discount rate for a particular redeemable convertible preferred stock investment may be appropriate for valuing that specific debt security but may not be appropriate for valuing any other debt securities in this asset class. Accordingly, the ranges of inputs presented below do not represent uncertainty in, or possible ranges of, fair value measurements of the Company’s Level 3 assets.

Level 3 Instruments	Amount		Valuation Techniques	Significant Unobservable Inputs	Range of Significant Unobservable Inputs
As of June 30, 2024
Debt Securities
Redeemable convertible preferred stock	$	51,025	Option pricing model	Discount rate	9.82%-23.71%
				Volatility	33.5%-65.39%
Total	$	51,025
Equity Securities
Redeemable convertible preferred stock	$	15,000	Measurement alternative
Contribution to investment fund		535	Measurement alternative
Private equity securities		54	Measurement alternative
Convertible preferred stock		8,707	Option pricing model	Discount rate	4.41%-18.26%
				Volatility	40.5%-49.6%
Total	$	24,296
As of December 31, 2023
Debt Securities
Redeemable convertible preferred stock	$	48,277	Option pricing model	Discount rate	9.82%-23.71%
				Volatility	33.5%-65.39%
Total	$	48,277
Equity Securities
Redeemable convertible preferred stock	$	15,000	Measurement alternative
Contribution to investment fund		574	Measurement alternative
Private equity securities		857	Measurement alternative
Convertible preferred stock		8,152	Option pricing model	Discount rate	4.41%-18.26%
				Volatility	40.5%-49.6%
Convertible preferred stock		2,264	Measurement alternative
Total	$	26,847

As noted above, either the binomial optional pricing model or market approach were used in the determination of fair value of Level 3 assets as of June 30, 2024 and December 31, 2023. The significant unobservable inputs used in the binomial option pricing

model are the discount rate or market yield used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. An increase in the discount rate or market yield would result in a decrease in the fair value. Included in the consideration and selection of discount rates or market yields is risk of default, rating of the investment, call provisions and comparable company investments. The significant unobservable inputs used in the market approach are based on market comparable transactions and market multiples of publicly traded comparable companies. Increases or decreases in market comparable transactions or market multiples would result in an increase or decrease in the fair value.

The below tables present a summary of changes in fair value of Level 1 and Level 3 assets, included within Debt and equity securities in the Condensed Consolidated Financial Balance Sheets, by investment type (in thousands of USD):

	Six Months Ended June 30, 2024
	Level 1			Level 3						Total
	Equity Securities			Equity Securities			Debt Securities			Debt & Equity Securities
Beginning balance, January 1	$	16,109		$	26,847		$	48,277		$	91,233
Business disposition		—			(776	)		6,522			5,746
Net unrealized gain		3,352			19			—			3,371
Sales and settlement		—			(4	)		—			(4	)
Reclassification		(18,701	)		—			—			(18,701	)
Currency translation differences		(757	)		(398	)		(2,148	)		(3,303	)
Ending balance, March 31,	$	3		$	25,688		$	52,651			78,342
Net unrealized gain		—			1,852			—			1,852
Sales and settlement		—			(2,709	)		(19	)		(2,728	)
Currency translation differences		—			(535	)		(1,607	)		(2,142	)
Ending balance, June 30	$	3		$	24,296		$	51,025		$	75,324

	Six Months Ended June 30, 2023
	Level 1			Level 3						Total
	Equity Securities			Equity Securities			Debt Securities			Debt & Equity Securities
Beginning balance, January 1	$	8,680		$	31,672		$	68,787		$	109,139
Purchases		—			46			—			46
Net unrealized gain		117			128			—			245
Currency translation differences		7			(617	)		(1,926	)		(2,536	)
Ending balance, March 31,	$	8,804		$	31,229		$	66,861		$	106,894
Purchases		—			—			675			675
Business disposition		—			(1,630	)		2,323			693
Net unrealized gain (loss)		858			(3	)		—			855
Reclassification		19			(19	)		—			—
Currency translation differences		(786	)		(87	)		(461	)		(1,334	)
Ending balance, June 30	$	8,895		$	29,490		$	69,398		$	107,783

The Level 1 equity securities relate to investments in public equity securities that have readily determinable fair values.

The Level 3 equity securities relate to the Company's investments in privately held companies through the purchase of convertible preferred stock, private equity securities, contribution to investment fund and redeemable convertible preferred stock. For these equity securities, the Company does not have the ability to exercise significant influence on the investee, and therefore accounts for them as equity securities under ASC Topic 321, Investments in Equity Securities.

The Level 3 debt securities relate to the Company's investments in privately held companies through the purchase of redeemable convertible preferred stock that meet the definition of a debt security.

For the six months ended June 30, 2024 and June 30, 2023, the Company did not recognize any realized gain or loss on its Level 3 equity or debt securities.