Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company acts as managing member, general partner and/or investment manager to the Ramius managed funds, Cowen Healthcare Royalty Management, LLC, and the Cowen Healthcare Royalty Partners funds, and certain managed accounts. Management fees and incentive income are primarily earned from affiliated entities. Fees receivable primarily represents the management fees and incentive income owed to the Company from these related funds and certain affiliated managed accounts. As of March 31, 2012 and December 31, 2011, $10.3 million and $14.9 million, respectively, included in fees receivable are earned from related parties.

The Company may, at its discretion, waive certain of the fees charged to the funds that it manages to avoid duplication of fees when such funds have an underlying investment in another affiliated investment fund. For the three months endedMarch 31, 2012 and 2011, the Company reimbursed the funds that it manages $0.3 million and $0.4 million, respectively, which were recorded net in management fees and incentive income in the condensed consolidated statements of operations. As of March 31, 2012 and December 31, 2011, related amounts still payable were $3.6 million and $3.4 million, respectively, and were reflected in fees payable in the condensed consolidated statements of financial condition.

As a result of a business combination in 2004, Ramius Alternative Solutions LLC acquired receivables of $9.6 million and assumed liabilities of a corresponding amount relating to various agreements with investors. Such amounts have been recorded in fees receivable and due to related parties, respectively, in the condensed consolidated statements of financial condition. The remaining balance yet to be paid was $0.8 million and $1.0 million as of March 31, 2012 and December 31, 2011, respectively. Of such amounts outstanding as of March 31, 2012, $0.5 million will be paid in 2012.

The Company may also make loans to employees or other affiliates, excluding executive officers of the Company. These loans are interest bearing and settle pursuant to the agreed-upon terms with such employees or affiliates and are included in due from related parties in the condensed consolidated statements of financial condition. As of March 31, 2012 and December 31, 2011, loans to employees of $4.9 million and $5.3 million, respectively, were included in due from related parties on the condensed consolidated statements of financial condition. For the three months endedMarch 31, 2012 and 2011 the interest income was insignificant for these loans and advances. The remaining balance included in due from related parties primarily relates to amounts due to the Company from affiliated funds and real estate entities due to expenses paid on their behalf.

In April 2011, the Company entered into a credit agreement with Starboard Value LP (see Note 4), whereby the Company can loan up to $3 million to Starboard Value LP at an interest rate of LIBOR plus 3.75% (payable quarterly) with a maturity of March 30, 2014. As of March 31, 2012, $1.5 million is included in due from related parties in the condensed consolidated statement of financial condition. For the three months endedMarch 31, 2012, interest charged for this loan was not significant.

Included in due to related parties is approximately $0.2 million and $0.3 million as of March 31, 2012 and December 31, 2011, respectively, related to a subordination agreement with an investor in certain real estate funds. This total is based on a hypothetical liquidation of the real estate funds as of the balance sheet date.