Transactions With Related Parties

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Transactions With Related Parties

TRANSACTIONS WITH RELATED PARTIES

We are managed by our Manager pursuant to the Management Agreement, the current term of which expires on December 19, 2023, and will be automatically renewed for a one year term upon such date and each anniversary thereafter unless earlier terminated.

As of March 31, 2023 and December 31, 2022, our consolidated balance sheets included $31.1 million and $33.8 million of accrued management and incentive fees payable to our Manager, respectively. During the three months ended March 31, 2023, we paid aggregate management and incentive fees of $33.8 million, to our Manager, compared to $28.4 million during the same period of 2022. In addition, during the three months ended March 31, 2023, we incurred expenses of $382,000, that were paid by our Manager and will be reimbursed by us, compared to $193,000 of such expenses during the same period of 2022.

As of March 31, 2023, our Manager held 1,092,795 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $29.7 million, and vest in installments over three years from the date of issuance. During the three months ended March 31, 2023 and 2022, we recorded non-cash expenses related to shares held by our Manager of $3.9 million and $4.2 million, respectively. Refer to Note 16 for further details on our restricted class A common stock.

An affiliate of our Manager is the special servicer of the CLOs. This affiliate did not earn any special servicing fees related to the CLOs during the years ended March 31, 2023 and 2022.

During the three months ended March 31, 2023 and 2022, we incurred $238,000 and $97,000, respectively, of expenses for various administrative and operations services to third-party service providers that are affiliates of our Manager.