INVESTMENTS IN UNCONSOLIDATED ENTITIES

9 Months Ended

Jun. 30, 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		June 30, 2012		September 30, 2011
Real estate investment entities		1% - 10%	$	7,844	$	8,439
Financial fund management partnerships		3% − 11%		3,860		3,476
Trapeza entities		33% − 50%		1,036		795
LEAF		15.7%  (1)		−		−
Commercial finance investment entities		1% − 6%		−		−
Investments in unconsolidated entities			$	12,740	$	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 June 30, 2012 based on the equity method of accounting.  During the nine months ended June 30, 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						Nine Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Management fees	$	982		$	998		$	2,961		$	3,017
Expenses		(480	)		(288	)		(1,361	)		(1,400	)
Net income	$	502		$	710		$	1,600		$	1,617

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 June 30, 2012
Finance revenues	$	4,134		$	23,293
Costs and expenses		(4,607	)		(26,599	)
Net loss	$	(473	)	$	(3,306	)

Investment in Unconsolidated Loan Manager.  Until the Company sold its Apidos business to CVC on April 17, 2012, the operations of Apidos were included in the Company's consolidated results.  Thereafter, the Company has recorded its 33% equity share of the results of the newly-formed joint venture, CVC Credit Partners, which includes the Apidos operations.  Summarized operating data for CVC Credit Partners is presented below (in thousands):

	For the period from April 17 to June 30, 2012
Management fee revenues	$	5,105
Costs and expenses		(4,522	)
Net income	$	583