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Other Investments
 12 Months Ended
Dec. 31, 2024
Investments, All Other Investments [Abstract]  
Other Investments Other Investments
Other Investments at December 31, 2024 and 2023 are summarized in the following table.
Table 11.1 – Components of Other Investments
(In Thousands)December 31, 2024December 31, 2023
Servicer advance investments, at fair value$233,820 $225,345 
Strategic investments, at carrying value74,663 53,147 
Strategic investments, at fair value3,460 2,960 
Excess MSRs, at fair value32,274 37,367 
MSRs, at fair value31,589 24,877 
Other, at fair value— 234 
Total Other Investments$375,806 $343,930 
Income from Other Investments for years ended December 31, 2024, 2023 and 2022 is summarized in the following table.
Table 11.2 – Components of Income From Other Investments, net (1)
Years Ended December 31,
(In Thousands)202420232022
Service Advance Investments:
Other interest income$18,519 $20,597 $19,663 
Investment fair value changes, net8,833 11,863 (11,076)
Strategic Investments:
Other income, net (2)
(1,292)(3,221)(901)
Investment fair value changes, net (3)
(1,586)(2,900)12,800 
Excess MSRs:
Other interest income12,949 14,152 15,912 
Investment fair value changes, net(5,094)(1,668)(5,196)
MSRs:
Other income, net14,415 7,033 14,879 
Total Other Investments Income, Net$46,744 $45,856 $46,081 
(1)Market valuation gains (losses) on Other investments accounted for under the fair value option are recorded in Investment fair value changes, net. All other market valuation gains (losses) on Other investments are recorded in Other income, net.
(2)Represents net equity method earnings (losses) from our Strategic investments that are accounted for under the equity method.
(3)Includes Investment fair value changes related to our Strategic investments that are accounted for under the measurement alternative for equity securities without readily determinable fair values. For the year ended December 31, 2024, includes Investment fair value gains of $4 million and investment fair value losses of $5 million under the measurement alternative. For the year ended December 31, 2023, includes Investment fair value gains of $1 million and investment fair value losses of $3 million under the measurement alternative. For the year ended December 31, 2022, includes Investment fair value gains of $14 million under the measurement alternative.
We account for our Servicer advance investments, Excess MSRs and MSRs at fair value. Depending on the terms of the Strategic investments, we may account for these investments under the fair value option, as non-marketable equity securities under the equity method of accounting or the measurement alternative for equity securities without readily determinable fair values. See Note 3 for additional information on the accounting policies on these investments. Refer to Note 6 for further information on the inputs into the fair valuation of these components.
Strategic Investments
At December 31, 2024, we have investments in private companies, including investments through our RWT Horizons venture investment platform, with a total carrying value of $78 million.
In the second quarter of 2023, we established a joint venture with an institutional investment manager to invest in residential investor bridge loans originated by our CoreVest subsidiary. At December 31, 2024 and 2023, the carrying value of our investment in the joint venture was $3 million and $4 million, respectively. We account for our investment in the joint venture under the equity method of accounting as we have a 20% non-controlling interest, but are deemed to be able to exert significant influence over the affairs of the joint venture. We adjust the carrying value of our equity method investment for our share of earnings or losses, dividends or return of capital on a quarterly basis. For the years ended December 31, 2024 and 2023, we recognized net equity method earnings of $0.3 million and $0.2 million, respectively, through Other income, net in our Consolidated statements of income.
In the first quarter of 2024, we established a joint venture with another institutional investment manager to invest in residential investor bridge and term loans originated by us. At December 31, 2024, the carrying value of our investment in the joint venture was $26 million. We account for our investment in the joint venture under the equity method of accounting as we have a minority non-controlling interest approximating 20% across both Redwood's direct equity capital contribution to this joint venture structure and joint venture co-investments to be held in Redwood's investment portfolio, but we are deemed to be able to exert significant influence over the affairs of the joint venture. We adjust the carrying value of our equity method investment for our share of earnings or losses, dividends or return of capital on a quarterly basis. We recognized net equity method earnings of $1 million for the year ended December 31, 2024, through Other income, net in our Consolidated statements of income.
See Note 8 for further information on residential investor bridge loans sold to these joint ventures.