Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 304

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 304
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 78.5 %   Total alternative investments$206,469 100.0 %

Our allocation to alternative investments increased to 46.3% of our total cash and investments held as of June 30, 2025, reflecting assets assumed in the Combination. In addition to the categories described above, we also evaluate our alternative investments by the following asset classes: 

June 30, 2025($ in thousands)Carrying Value% of TotalPrivate Equity$14,941 7.2 %Private Credit1,666 0.8 %Alternatives78,679 38.1 %Venture Capital26,426 12.8 %Real Estate84,757 41.1 %Total alternative investments$206,469 100.0 %

For further details on these alternative investments, see "Notes to Condensed Consolidated Financial Statements: Note 4(b) Other Investments, Equity Securities and Equity Method Investments" included under Part I Item 1. "Financial Information" of this Report on Form 10-Q. Within these asset classes, our portfolio broadly consists of the following types of investments:

•Private Equity – this asset class consists of both fund investments with leading private equity sponsors and direct equity investments in private companies, sometimes in conjunction with our private equity fund sponsors. As of June 30, 2025, $2.7 million or 17.7% of investments in the private equity asset class consisted of investments in private equity funds and $12.3 million or 82.3% consisted of direct equity investments in private companies.

•Private Credit - this asset class consists of both fund investments with leading private credit sponsors and direct credit investments in private companies, sometimes in conjunction with our private credit fund sponsors. Private credit investments in both funds and on a direct basis will typically be secured lending arrangements with non-rated entities, often with additional protective provisions to enhance the security and returns of these investments. As of June 30, 2025, $1.7 million or 100.0% of the private credit asset class consisted of direct investments in debt securities of private companies.

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•Alternatives – this asset class consists of structured financing arrangements which typically have incentive features to enhance the Company’s returns. As part of these arrangements, the Company requires collateral or bankruptcy-remote structures to protect its investments. As of June 30, 2025, $77.0 million or 97.9% of investments in the alternatives asset