FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2024

In accordance with the fair value hierarchy described above, the following tables show the fair value of the Fund’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2024 and 2023, are as follows (in thousands):


Description	Total Fair Value as of December 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments in unconsolidated entities	$	119,127	$	—	$	—	$	119,127
Notes payable	$	295,464	$	—	$	—	$	295,464


Description	Total Fair Value as of December 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Investments in unconsolidated entities	$	148,219	$	—	$	—	$	148,219
Notes payable	$	275,957	$	—	$	—	$	275,957

Schedule of Valuation Techniques and Unobservable Inputs

The following table summarizes the valuation techniques and significant unobservable inputs used for the Fund’s financial assets and liabilities that are categorized within Level 3 of the fair value hierarchy as of December 31, 2024:


Investment	Fair Value (in thousands)		Valuation Techniques		Unobservable Input	Range/Amount (Weighted Average)
Investments in Unconsolidated Entities
Renewable Energy	$	119,127	Sales comparison		Value per acre	$	35,000
			Blended approach		Discounted cash flow weighting	60		%
					Cost approach weighting	40		%
			Discounted cash flow		Discount rate	5.5% - 7.5%
						(5.9%)
					Investment tax credit rate	30.0		%
					Investment tax credit eligibility	94.9		%
					Economic useful life	35 years
Debt
Notes Payable	$	295,464	Net present value		Market interest rate	6.3% - 8.0%
						(7.4%)
			Discounted cash flow	(1)	Discount rate	7.8		%
					Investment tax credit rate	30		%
					Investment tax credit eligibility	95.0		%
					Economic useful life	40 years

___________________

(1)Represents the valuation techniques and unobservable inputs for the underlying value of the solar project that the respective notes payable value is tied to.


Investment	Fair Value (in thousands)		Valuation Techniques		Unobservable Input	Range/Amount (Weighted Average)
Investments in Unconsolidated Entities
Renewable Energy	$	148,219	Sales comparison		Value per acre	$	35,001
			Blended approach		Discounted cash flow weighting	60		%
					Cost approach weighting	40		%
			Discounted cash flow		Discount rate	7.3% - 12.5%
						(7.9%)
					Investment tax credit rate	30.0		%
					Investment tax credit eligibility	94.9		%
					Economic useful life	35 years
Debt
Notes Payable	$	275,957	Net present value		Market interest rate	6.4% - 8.9%
						(8.0%)
			Discounted cash flow	(1)	Discount rate	6.0		%
					Investment tax credit rate	30		%
					Investment tax credit eligibility	97.5		%
					Economic useful life	40 years

___________________

(1)Represents the valuation techniques and unobservable inputs for the underlying value of the solar project that the respective notes payable value is tied to.

Schedule of Changes in Assets Classified as Level 3

The following table presents the changes in assets and liabilities classified in Level 3 of the fair value hierarchy for the year ended December 31, 2024 and 2023 (in thousands):


Description	Investments in Unconsolidated Entities		Notes Payable
Beginning balance, January 1, 2023	$	151,066	$	232,937

Notes payable borrowing	—		40,691
Repayment of notes payable	—		(18,312)

Unrealized loss on investments in unconsolidated entities	(2,847)		—
Change in fair value of notes payable	—		20,641

Ending balance, December 31, 2023	$	148,219	$	275,957

Notes payable borrowing	—		10,442
Repayment of notes payable	—		(7,691)
Return of investment in unconsolidated entities	(4,632)		—
Return on investment in unconsolidated entities	(3,836)		—
Unrealized loss on investments in unconsolidated entities	(20,624)		—
Change in fair value of notes payable	—		16,756

Ending balance, December 31, 2024	$	119,127	$	295,464

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

CIM Opportunity Zone Fund, L.P. 10-K