| INVESTMENT IN RELATED PARTY INVESTMENT FUND |
INVESTMENT IN RELATED PARTY INVESTMENT FUND The Company’s maximum exposure to loss relating to Solasglas Investments, LP (“Solasglas”) is limited to GLRE's share of Partners’ capital in Solasglas. At June 30, 2026, GLRE’s share of Partners’ capital in Solasglas was $493.4 million (December 31, 2025: $504.6 million), representing 81.6% (December 31, 2025: 81.4%) of Solasglas’ total capital. DME Advisors II, LLC held the remaining 18.4% (December 31, 2025: 18.6%) of Solasglas’ total capital.
The Company’s share of Solasglas’ income (loss) from operations for the three and six months ended June 30, 2026 was a loss of $27.9 million and income of $5.8 million, respectively, (three and six months ended June 30, 2025: loss of $18.3 million and income of $13.9 million, respectively), as shown in the caption “Income from investment in related party investment fund” in the Company’s condensed consolidated statements of operations.
The summarized financial statements of Solasglas are presented below.
Summarized Statements of Financial Condition of Solasglas Investments, LP | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Assets | | | | | Investments, at fair value | $ | 612,325 | | | $ | 600,837 | | | Derivative contracts, at fair value | 26,359 | | | 22,384 | | | Due from brokers | 377,692 | | | 281,505 | | | | | | | Interest and dividends receivable | 89 | | | 1,463 | | | Total assets | 1,016,465 | | | 906,189 | | | | | | | Liabilities | | | | | Investments sold short, at fair value | (370,975) | | | (275,794) | | | Derivative contracts, at fair value | (33,400) | | | (6,670) | | | Capital withdrawals payable | (5,675) | | | (1,010) | | | | | | | Interest and dividends payable | (1,211) | | | (2,528) | | | Accrued expenses and other liabilities | (180) | | | (178) | | | Total liabilities | (411,441) | | | (286,180) | | | | | | | Partners' capital | $ | 605,024 | | | $ | 620,009 | | | | | | | GLRE’s share of Partners' capital | $ | 493,409 | | | $ | 504,555 | |
Summarized Statements of Operations of Solasglas Investments, LP | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30 | | Six months ended June 30 | | 2026 | | 2025 | | 2026 | | 2025 | | Investment income | | | | | | | | | Dividend income (net of withholding taxes) | $ | 2,201 | | | $ | 2,687 | | | $ | 3,720 | | | $ | 4,177 | | | Interest income | 3,491 | | | 4,822 | | | 6,853 | | | 8,449 | | | Total Investment income | 5,692 | | | 7,509 | | | 10,573 | | | 12,626 | | | | | | | | | | | Expenses | | | | | | | | | Management fee | (1,704) | | | (1,756) | | | (3,570) | | | (3,486) | | | Interest | (1,747) | | | (3,770) | | | (2,298) | | | (5,471) | | | Dividends | (1,356) | | | (916) | | | (2,757) | | | (1,677) | | | Research and operating | (534) | | | (486) | | | (1,038) | | | (971) | | | Total expenses | (5,341) | | | (6,928) | | | (9,663) | | | (11,605) | | | | | | | | | | | Net investment income | 351 | | | 581 | | | 910 | | | 1,021 | | | | | | | | | | | Realized and change in unrealized gains (losses) | | | | | | | | | Net realized gain (loss) | (1,366) | | | 36,584 | | | 60,600 | | | 55,689 | | | Net change in unrealized depreciation | (37,167) | | | (62,256) | | | (53,590) | | | (35,238) | | | Net gain (loss) on investment transactions | (38,533) | | | (25,672) | | | 7,010 | | | 20,451 | | | | | | | | | | Net increase (decrease) in Partners' capital (1) | $ | (38,182) | | | $ | (25,091) | | | $ | 7,920 | | | $ | 21,472 | | | | | | | | | | GLRE’s share of the increase (decrease) in Partners' capital | $ | (27,857) | | | $ | (18,276) | | | $ | 5,832 | | | $ | 13,921 | |
(1) The net increase (decrease) in Partners’ capital is net of management fees and performance allocation presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30 | | Six months ended June 30 | | 2026 | | 2025 | | 2026 | | 2025 | | Management fees | $ | 1,704 | | | $ | 1,756 | | | $ | 3,570 | | | $ | 3,486 | | | Performance allocation | (3,095) | | | (2,031) | | | 648 | | | 1,547 | | | Total | $ | (1,391) | | | $ | (275) | | | $ | 4,218 | | | $ | 5,033 | |
See Note 14 for further details on management fees and performance allocation.
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