FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2013

Company's Asset Recorded at Fair Value on Recurring Basis

As of September 30, 2013, the fair values of the Company’s assets recorded at fair value on a recurring basis were as follows (in thousands):



	Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	429	$	—	$	9,329	$	9,758

As of December 31, 2012, the fair values of the Company’s assets recorded at fair value on a recurring basis were as follows (in thousands):



	Level 1		Level 2		Level 3		Total
Assets:	(Restated)						(Restated)
Investment securities	$	209	$	—	$	10,367	$	10,576

Additional Information about Assets Measured at Fair Value on Recurring Basis for which the Company Has Utilized Level 3 Inputs to Determine Fair Value

The following table presents additional information about assets which were measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value during the nine months ended September 30, 2013 (in thousands):



	Investment Securities
Balance, beginning of year	$	10,367
Purchases	9,832
Income accreted	662
Payments and distributions received	(10,383		)
Impairment recognized in earnings	(214		)
Sales	(5,655		)
Gain on sales of trading securities	4,551
Unrealized holding gain on trading securities	773
Change in unrealized losses included in accumulated other comprehensive loss	(604		)
Balance, end of period	$	9,329



	Investment Securities
	(Restated)
Balance, beginning of year	$	2,981
Purchases	11,578
Income accreted	853
Payments and distributions received	(3,201		)
Sales	(4,159		)
Impairment recognized in earnings	(74		)
Gains on sales of trading securities	1,216
Unrealized holding gain on trading securities	1,272
Change in unrealized losses included in accumulated other comprehensive loss	(99		)
Balance, end of period	$	10,367

Quantitative Inputs and Assumptions in Determining the Fair Value of Items Categorized in Level 3

The following table presents the Company's quantitative inputs and assumptions used in determining the fair value of items categorized in Level 3 (in thousands, except percentages):



	Fair value at September 30, 2013		Valuation Technique	Unobservable Inputs	Weighted Average Assumptions
CLO securities	$	5,657	Discounted cash flow	Constant default rate	0% -2%
				Loss severity rate	25%
				Constant prepayment rate- year one	30%
				Constant prepayment rate- year two	25%
				Constant prepayment rate - periods thereafter	25%
				Reinvestment price on collateral	99.75% - 100%
				Discount rates	13.5% - 20%

Trading securities	$	3,672	Discounted cash flow	Discount rates	5% - 15%

Changes in Carrying Value of Assets and Liabilities Measured at Fair Value on Non-recurring Basis

The Company recognized the following changes in carrying value of the assets and liabilities measured at fair value on a non-recurring basis, as follows (in thousands):



	Level 1		Level 2		Level 3		Total
Nine Months Ended September 30, 2013:
Asset:
Receivables from managed entities – commercial finance, real estate and financial fund management	$	—	$	—	$	4,883	$	4,883
Liability:
Apidos contractual commitment	$	—	$	—	$	994	$	994

Year Ended December 31, 2012:
Assets:
Receivables from managed entities – commercial finance and real estate	$	—	$	—	$	14,506	$	14,506
Investment in real estate	—		727		—		727
Investment in real estate - office building	—		—		906		906
Investment in CVC Credit Partners	—		—		28,600		28,600
Investment in Apidos-CVC preferred interest	—		—		6,792		6,792
Total	$	—	$	727	$	50,804	$	51,531
Liability:
Apidos contractual commitment	$	—	$	—	$	589	$	589

Fair Value of Financial Instruments

The fair value of financial instruments required to be disclosed at fair value, excluding instruments valued on a recurring basis, is as follows (in thousands):



	September 30, 2013				December 31, 2012
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:					(Restated)		(Restated)
Receivables from managed entities	$	30,288	$	30,288	30,618		30,618
	$	30,288	$	30,288	$	30,618	$	30,618
Borrowings:
Real estate debt	$	10,335	$	10,869	$	10,473	$	11,398
Senior Notes	10,000		12,223		10,000		11,728
Other debt	45		45		567		567
	$	20,380	$	23,137	$	21,040	$	23,693

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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