Company: KG
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028251
Chunk: 310

Company: Kestrel Group Ltd
Filing Date: 2025-03-26
Form: 424B3
Chunk 310
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 awards is expected to be recognized over a straight-line basis over a five-year period. Equity-based compensation cost related to the service-based vesting awards was $59,701 for the years ended December 31, 2024, and 2023 and is presented in salaries and benefits in the consolidated statement of operations. There is approximately $165,000 of unrecognized compensation expense which will be recognized over the next three years ending in December 2027.

The fair value of each award was estimated on the grant date using a Black-Scholes option pricing model that used the assumptions noted below and other valuation techniques.

<div align='center'>F-14</div>

TABLE OF CONTENTS

| ​ | Risk-free interest rate  | ​ | ​ | 3.2% to 4.3% | ​ |
| ​ | Expected volatility      | ​ | ​ |        44.7% | ​ |
| ​ | Dividend yield           | ​ | ​ |           0% | ​ |
| ​ | Expected term (in years) | ​ | ​ |            6 | ​ |

Expected volatility was based on historical volatility for guideline public companies that operate in the Company’s industry plus a qualitative adjustment due to the start-up nature of the Company. The expected term of awards granted represents management’s estimate for the number of years until a liquidity event as of the grant date. The risk-free rate for the period of the expected term was based on the U.S. Treasury yield curve in effect at the time of the grants. The dividend yield was based on the Company having no expectations of dividends being paid out in the future. Management considered the distribution priority schedule or “waterfall calculation” in its estimation process.

| ​                                             | ​ | ​ | Class BUnits |   |     |   | ​ | ​ | Weighted-AverageGrant-dateFair Value |   |       |   | ​ |
|:----------------------------------------------|:--|:--|:-------------|:--|----:|:--|:--|:--|:-------------------------------------|:--|------:|:--|:--|
| Nonvested, beginning of year, January 1, 2023 | ​ | ​ | ​            | ​ |  63 | ​ | ​ | ​ | ​                                    | $ | 4,776 | ​ | ​ |
| Granted                                       | ​ | ​ | ​            | ​ |   — | ​ | ​ | ​ | ​                                    | ​ |     —