D. Investments in Partnerships, Offshore Funds and Variable Interest Entities ("VIEs")

The Company is general partner or co-general partner of various affiliated entities in which the Company has investments totaling $93.2 million, $82.0 million and $84.3 million at September 30, 2014, December 31, 2013 and September 30, 2013, respectively, and whose underlying assets consist primarily of marketable securities (the "affiliated entities"). We also have investments in unaffiliated entities of $14.2 million, $14.0 million and $13.5 million at September 30, 2014, December 31, 2013 and September 30, 2013, respectively (the "unaffiliated entities"). On a quarterly basis we evaluate each entity for the appropriate accounting treatment and disclosure. Certain of the affiliated entities, and none of the unaffiliated entities, are consolidated.

For those entities where consolidation is not deemed to be appropriate, we report them in our condensed consolidated statement of financial condition under the caption "Investments in partnerships". This caption includes those investments, in both affiliated and unaffiliated entities, which the Company accounts for under the equity method of accounting, as well as certain investments that the feeder funds hold that are carried at fair value, as described in Note C. The Company reflects the equity in earnings of these equity method investees and the change in fair value of the consolidated feeder funds ("CFFs") under the caption "Net gain/(loss) from investments" on the condensed consolidated statements of income.

The following table highlights the number of entities, including voting interest entities ("VOEs"), that we consolidate as well as under which accounting guidance they are consolidated, including CFFs, which retain their specialized investment company accounting in consolidation, partnerships and offshore funds.

Entities consolidated
	CFFs				Partnerships				Offshore Funds				Total
	VIEs		VOEs		VIEs		VOEs		VIEs		VOEs		VIEs		VOEs
Entities consolidated at December 31, 2012		1		2		-		1		-		1		1		4
Additional consolidated entities		-		-		-		-		-		-		-		-
Deconsolidated entities		-		-		-		-		-		-		-		-
Entities consolidated at September 30, 2013		1		2		-		1		-		1		1		4
Additional consolidated entities		-		-		-		-		-		-		-		-
Deconsolidated entities		-		-		-		-		-		-		-		-
Entities consolidated at December 31, 2013		1		2		-		1		-		1		1		4
Additional consolidated entities		-		-		-		-		-		-		-		-
Deconsolidated entities		-		-		-		-		-		-		-		-
Entities consolidated at September 30, 2014		1		2		-		1		-		1		1		4

At and for the nine months ended September 30, 2014 and 2013 and at December 31, 2013, the one CFF VIE is consolidated, as the Company has been determined to be the primary beneficiary because it has an equity interest and absorbs the majority of the expected losses and/or expected gains. At and for the nine months ended September 30, 2014 and 2013 and at December 31, 2013, the two CFF VOEs, the one Partnership VOE and the one Offshore Fund VOE are consolidated because the unaffiliated partners or shareholders lack substantive rights, and the Company, as either the general partner or investment manager, is deemed to have control.

The following table breaks down the investments in partnerships line by accounting method, either fair value or equity method, and investment type (in thousands):

	September 30, 2014
	Investment Type
	Affiliated						Unaffiliated
	Consolidated
Accounting method	Feeder Funds		Partnerships		Offshore Funds		Partnerships		Offshore Funds		Total

Fair Value	$	24,094	$	-	$	-	$	-	$	-	$	24,094
Equity Method		-		34,967		34,185		6,611		7,577		83,340

Total	$	24,094	$	34,967	$	34,185	$	6,611	$	7,577	$	107,434

	December 31, 2013
	Investment Type
	Affiliated						Unaffiliated
	Consolidated
Accounting method	Feeder Funds		Partnerships		Offshore Funds		Partnerships		Offshore Funds		Total

Fair Value	$	25,253	$	-	$	-	$	-	$	-	$	25,253
Equity Method		-		21,669		35,030		6,509		7,531		70,739

Total	$	25,253	$	21,669	$	35,030	$	6,509	$	7,531	$	95,992

	September 30, 2013
	Investment Type
	Affiliated						Unaffiliated
	Consolidated
Accounting method	Feeder Funds		Partnerships		Offshore Funds		Partnerships		Offshore Funds		Total

Fair Value	$	23,146	$	-	$	-	$	-	$	-	$	23,146
Equity Method		-		26,717		34,460		6,080		7,349		74,606

Total	$	23,146	$	26,717	$	34,460	$	6,080	$	7,349	$	97,752

The following table includes the net impact by line item on the condensed consolidated statements of financial condition for each category of entity consolidated (in thousands):

	September 30, 2014
	Prior to							Offshore
	Consolidation		CFFs		Partnerships			Funds			As Reported
Assets
Cash and cash equivalents	$	358,316	$	7	$	98		$	-		$	358,421
Investments in securities		203,280		-		8,836			42,514			254,630
Investments in sponsored investment companies		39,520		-		-			-			39,520
Investments in partnerships		110,679		4,684		(7,929	)		-			107,434
Receivable from brokers		31,388		-		306			48,191			79,885
Investment advisory fees receivable		31,221		17		(1	)		(82	)		31,155
Other assets		28,528		24		(1,000	)		163			27,715
Total assets	$	802,932	$	4,732	$	310		$	90,786		$	898,760
Liabilities and equity
Securities sold, not yet purchased	$	13,549	$	-	$	-		$	631		$	14,180
Accrued expenses and other liabilities		166,209		71		31			39,009			205,320
Total debt		111,941		-		-			-			111,941
Redeemable noncontrolling interests		-		4,661		279			51,146			56,086
Total equity		511,233		-		-			-			511,233
Total liabilities and equity	$	802,932	$	4,732	$	310		$	90,786		$	898,760

	December 31, 2013
	Prior to								Offshore
	Consolidation		CFFs			Partnerships			Funds			As Reported
Assets
Cash and cash equivalents	$	209,667	$	450		$	334		$	-		$	210,451
Investments in securities		232,211		-			7,464			(8,447	)		231,228
Investments in sponsored investment companies		44,033		-			9			-			44,042
Investments in partnerships		98,494		6,517			(9,019	)		-			95,992
Receivable from brokers		35,151		-			-			14,310			49,461
Investment advisory fees receivable		52,509		(24	)		(14	)		(965	)		51,506
Other assets		27,433		(2,339	)		1,592			119			26,805
Total assets	$	699,498	$	4,604		$	366		$	5,017		$	709,485
Liabilities and equity
Securities sold, not yet purchased	$	6,049	$	-		$	-		$	129		$	6,178
Accrued expenses and other liabilities		121,356		165			29			2,913			124,463
Total debt		111,911		-			-			-			111,911
Redeemable noncontrolling interests		-		4,439			337			1,975			6,751
Total equity		460,182		-			-			-			460,182
Total liabilities and equity	$	699,498	$	4,604		$	366		$	5,017		$	709,485

	September 30, 2013
	Prior to								Offshore
	Consolidation		CFFs			Partnerships			Funds			As Reported
Assets
Cash and cash equivalents	$	243,995	$	1,082		$	334		$	-		$	245,411
Investments in securities		240,113		-			7,400			(9,769	)		237,744
Investments in sponsored investment companies		43,677		-			11			-			43,688
Investments in partnerships		104,010		3,253			(9,511	)		-			97,752
Receivable from brokers		26,981		-			2,115			14,758			43,854
Investment advisory fees receivable		31,241		(8	)		(1	)		(81	)		31,151
Other assets		34,947		-			-			75			35,022
Total assets	$	724,964	$	4,327		$	348		$	4,983		$	734,622
Liabilities and equity
Securities sold, not yet purchased	$	7,577	$	-		$	-		$	148		$	7,725
Accrued expenses and other liabilities		161,394		1,146			32			2,567			165,139
Total debt		117,347		-			-			-			117,347
Redeemable noncontrolling interests		-		3,181			316			2,268			5,765
Total equity		438,646		-			-			-			438,646
Total liabilities and equity	$	724,964	$	4,327		$	348		$	4,983		$	734,622

The following table includes the net impact by line item on the condensed consolidated statements of income for each category of entity consolidated (in thousands):

	Three Months Ended September 30, 2014
	Prior to									Offshore
	Consolidation			CFFs			Partnerships			Funds			As Reported
Total revenues	$	111,073		$	(7	)	$	-		$	(208	)	$	110,858
Total expenses		66,980			20			12			260			67,272
Operating income		44,093			(27	)		(12	)		(468	)		43,586
Total other income/(expense), net		(7,462	)		(186	)		(18	)		(2,323	)		(9,989	)
Income before income taxes		36,631			(213	)		(30	)		(2,791	)		33,597
Income tax provision		13,045			-			-			-			13,045
Net income		23,586			(213	)		(30	)		(2,791	)		20,552
Net loss attributable to noncontrolling interests		(79	)		(213	)		(30	)		(2,791	)		(3,113	)
Net income attributable to GAMCO	$	23,665		$	-		$	-		$	-		$	23,665

	Three Months Ended September 30, 2013
	Prior to								Offshore
	Consolidation		CFFs			Partnerships			Funds			As Reported
Total revenues	$	96,620	$	(8	)	$	(1	)	$	(234	)	$	96,377
Total expenses		63,400		46			11			192			63,649
Operating income		33,220		(54	)		(12	)		(426	)		32,728
Total other income, net		17,404		94			31			462			17,991
Income before income taxes		50,624		40			19			36			50,719
Income tax provision		17,515		-			-			-			17,515
Net income		33,109		40			19			36			33,204
Net income attributable to noncontrolling interests		11		40			19			36			106
Net income attributable to GAMCO	$	33,098	$	-		$	-		$	-		$	33,098

	Nine Months Ended September 30, 2014
	Prior to									Offshore
	Consolidation			CFFs			Partnerships			Funds			As Reported
Total revenues	$	324,287		$	(21	)	$	(2	)	$	(633	)	$	323,631
Total expenses		205,207			34			38			730			206,009
Operating income		119,080			(55	)		(40	)		(1,363	)		117,622
Total other income/(expense), net		6,172			20			19			(1,186	)		5,025
Income before income taxes		125,252			(35	)		(21	)		(2,549	)		122,647
Income tax provision		44,796			-			-			-			44,796
Net income		80,456			(35	)		(21	)		(2,549	)		77,851
Net loss attributable to noncontrolling interests		(113	)		(35	)		(21	)		(2,549	)		(2,718	)
Net income attributable to GAMCO	$	80,569		$	-		$	-		$	-		$	80,569

	Nine Months Ended September 30, 2013
	Prior to									Offshore
	Consolidation			CFFs			Partnerships			Funds			As Reported
Total revenues	$	275,689		$	(20	)	$	(2	)	$	(819	)	$	274,848
Total expenses		178,858			134			36			581			179,609
Operating income		96,831			(154	)		(38	)		(1,400	)		95,239
Total other income, net		33,125			228			79			1,559			34,991
Income before income taxes		129,956			74			41			159			130,230
Income tax provision		46,434			-			-			-			46,434
Net income		83,522			74			41			159			83,796
Net income/(loss) attributable to noncontrolling interests		(14	)		74			41			159			260
Net income attributable to GAMCO	$	83,536		$	-		$	-		$	0		$	83,536

Variable Interest Entities

We sponsor a number of investment vehicles where we are the general partner or investment manager. Certain of these vehicles are VIEs, but we are not the primary beneficiary, in all but one case, because we do not absorb a majority of the entities' expected losses and/or expected returns, and they are, therefore, not consolidated. We consolidate the one VIE where we are the primary beneficiary. The Company has not provided any financial or other support to those VIEs where we are not the primary beneficiary. The total net assets of these non-consolidated VIEs at September 30, 2014, December 31, 2013 and September 30, 2013 were $59.8 million, $72.7 million and $77.7 million, respectively. Our maximum exposure to loss as a result of our involvement with the non-consolidated VIEs is limited to the investment in two VIEs and the deferred carried interest that we have in another. On September 30, 2014, we had an investment in two of the non-consolidated VIE offshore funds of approximately $8.0 million. On December 31, 2013 and September 30, 2013, we had an investment in one of the non-consolidated VIE offshore funds of approximately $10.0 million and $9.9 million, respectively, which was included in investments in partnerships on the condensed consolidated statements of financial condition. On September 30, 2014, December 31, 2013 and September 30, 2013, we had a deferred carried interest in one of the non-consolidated VIE offshore funds of $44,000, $45,000 and $45,000, respectively, which was included in investments in partnerships on the condensed consolidated statements of financial condition. Additionally, as the general partner or investment manager to these VIEs the Company earns fees in relation to these roles, which given a decline in AUMs of the VIEs would result in lower fee revenues earned by the Company which would be reflected on the condensed consolidated statement of income, condensed consolidated statement of financial condition and condensed consolidated statement of cash flows.

The assets of these VIEs may only be used to satisfy obligations of the VIEs. The following table presents the balances related to the VIE that is consolidated and is included on the condensed consolidated statements of financial condition as well as GAMCO's net interest in this VIE. Only one VIE was consolidated at September 30, 2014, December 31, 2013 and September 30, 2013:

	September 30,			December 31,			September 30,
	2014			2013			2013
(In thousands)
Cash and cash equivalents	$	1		$	-		$	1,082
Investments in partnerships		13,618			15,540			13,782
Accrued expenses and other liabilities		(15	)		(2,022	)		(1,088	)
Redeemable noncontrolling interests		(962	)		(1,120	)		-
GAMCO's net interests in consolidated VIE	$	12,642		$	12,398		$	13,776