Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 264

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 264
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 sometimes in conjunction with our private equity fund sponsors. As of September 30, 2025, $4.0 million or 24.2% of investments in the private equity asset class consisted of investments in private equity funds and $12.5 million or 75.8% 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 September 30, 2025, all 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 September 30, 2025, $82.2 million or 97.9% of investments in the alternatives asset class were direct investments and $1.8 million or 2.1% of the alternatives asset class were invested in funds. One investment in a collateralized direct lending entity of $53.6 million represents 63.8% of this asset class and is discussed further in "Note 4 — Investments" included in Part I Item 1. "Financial Information" in this Quarterly Report on Form 10-Q for the nine months ended September 30, 2025. Prior to the Combination, Maiden had carried the investment in a collateralized direct lending entity at cost less an allowance for expected credit losses.

•Venture Capital – this asset class consists of both fund investments with venture capital firms focused primarily on “insurtech” or “fintech” early-stage investments as well as direct investments in start-up companies in this sector, including equity investments in individual companies made in conjunction with our venture capital fund sponsors. As of September 30, 2025, $14.5 million or 50.3% of investments in the venture capital asset class consisted of investments in funds and $14.3 million or 49.7% consisted of direct equity investments in start-up companies. As of September 30, 2025, $15.1 million or 52.3% of our venture capital