INVESTMENTS IN UNCONSOLIDATED ENTITIES

6 Months Ended

Mar. 31, 2012

INVESTMENTS IN UNCONSOLIDATED ENTITIES [Abstract]

INVESTMENTS IN UNCONSOLIDATED ENTITIES

NOTE 7 − INVESTMENTS IN UNCONSOLIDATED ENTITIES

As a specialized asset manager, the Company develops various types of investment vehicles, which it manages under long-term management agreements or similar arrangements.  The following table details the Company's investments in these vehicles, including the range of interests it owns (in thousands, except percentages):

	Range of Combined Ownership Interests		March 31, 2012		September 30, 2011
Real estate investment entities		1% - 10%	$	7,705	$	8,439
Financial fund management partnerships		4% − 11%		4,015		3,476
Trapeza entities		33% − 50%		1,022		795
LEAF		15.7% (1)		−		−
Commercial finance investment entities		1% − 6%		−		−
Investments in unconsolidated entities			$	12,742	$	12,710

(1) Based upon terms of the agreements for the deconsolidation of LEAF, the Company is calculating its share of losses incurred by LEAF for the period from November 17, 2011 to March 31, 2012 based on the equity method of accounting.  During the three and six months ended March 31, 2012, the Company's share of LEAF's losses, recorded as commercial finance revenues on the consolidated statements of operations, reduced the Company's investment in LEAF to zero.

Two of the Trapeza entities that have incentive distributions, also known as carried interests, are subject to a potential clawback to the extent that such distributions exceed the cumulative net profits of the entities, as defined in the respective partnership agreements (see Note 19).  The general partner of those entities is owned equally by the Company and its co-managing partner.  Performance-based incentive fees in interim periods are recorded based upon a formula as if the contract were terminated at that date.  On a quarterly basis (interim measurement date), the Company quantifies the cumulative net profits/net losses (as defined under the Trapeza partnership agreements) and allocates income/loss to limited and general partners according to the terms of such agreements.

The Trapeza entities include the Company's 50% equity interest in one of the managers of the Trapeza CDO entities, Trapeza Capital Management, LLC ("TCM").  The Company does not control TCM and, accordingly, does not consolidate it.

Summarized operating data for TCM is presented in the following table (in thousands):

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2012			2011			2012			2011
Management fees	$	998		$	1,041		$	1,979		$	2,019
Operating expenses		(588	)		(765	)		(854	)		(1,053	)
Other expense		(11	)		(28	)		(27	)		(59	)
Net income	$	399		$	248		$	1,098		$	907

LEAF's operations were included in the Company's consolidated results from October 1, 2011 until its deconsolidation on November 16, 2011, and thereafter, the Company's share of LEAF's results are reported in commercial finance revenues on the consolidated statements of operations.  There is no comparable information for the prior year as LEAF was not formed until January 4, 2011.  Summarized operating data for LEAF is presented below (in thousands):

	For the period from October 1 to November 16, 2011			For the period from November 17 to March 31, 2012
Finance revenues	$	4,134		$	21,616
Operating expenses		(3,553	)		(17,973	)
Other expense, net		(1,054	)		(6,955	)
Net loss	$	(473	)	$	(3,312	)