Transactions With Related Parties

6 Months Ended

Jun. 30, 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 June 30, 2023 and December 31, 2022, our consolidated balance sheets included $32.8 million and $33.8 million of accrued management and incentive fees payable to our Manager, respectively. During the three and six months ended June 30, 2023, we paid aggregate management and incentive fees of $31.1 million and $64.9 million, respectively, to our Manager, compared to $23.5 million and $51.9 million, respectively, during the same period of 2022. In addition, during the three and six months ended June 30, 2023, we incurred expenses of $1.5 million and $1.9 million, respectively, that were paid by our Manager and will be reimbursed by us, compared to $367,000 and $560,000 of such expenses during the same period of 2022.

As of June 30, 2023, our Manager held 901,515 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $24.5 million, and vest in installments over three years from the date of issuance. During the three and six months ended June 30, 2023 and 2022, we recorded non-cash expenses related to shares held by our Manager of $3.9 million and $7.8 million, respectively, compared to $4.2 million and $8.4 million during the same period in 2022. 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 June 30, 2023 and 2022.

During the three and six months ended June 30, 2023, we incurred $242,000 and $480,000, respectively, of expenses for various administrative and operations services to third-party service providers that are affiliates of our Manager, compared to $95,000 and $192,000, respectively, during the same period of 2022.

In the first quarter of 2019, we originated £240.1 million of a total £490.0 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle. The loan terms were negotiated by our third-party co-lender, and we forgo all non-economic rights under the loan, including voting rights, so long as a Blackstone-advised investment vehicle controls the borrower. In the second quarter of 2023, the loan was modified to include, among other changes, an extension of the loan's maturity date, an additional borrower equity contribution and partial repayment, and an increase in the loan’s contractual interest rate (a portion of which is paid-in-kind). The terms of the modification were negotiated by our third-party co-lender, and we agreed to the modification on such terms.