NOTE 8 - INVESTMENTS IN UNCONSOLIDATED ENTITIES AND LOAN MANAGER

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 ownership interests owned (in thousands, except percentages):



	Range of Combined Ownership Interests	March 31,		December 31,
	Range of Combined Ownership Interests	2015		2014
Real estate investment entities	1% – 12%	$	7,939	$	8,313
Financial fund management partnerships	0.01% − 50%	4,452		4,162
Trapeza entities	33% − 50%	714		614
Investments in unconsolidated entities		$	13,105	$	13,089

Included in real estate investment entities is the Company's $2.5 million investment in Opportunity REIT I, which completed its initial public offering in December 2013 as well as a $1.3 million investment in Opportunity REIT II, which is still in its offering stage and a $200,000 investment in Innovation Office REIT, Inc. ("Innovation Office REIT"), which is not yet effective. The Company accounts for its investments in Opportunity REIT I, II and the Innovation Office REIT on the cost method.

Included in financial fund management partnerships is the Company's $200,000 investment in Resource Credit Income Fund ("CIF"), a new interval fund, whose registration statement with respect to the offer and sale of its shares of beneficial interest was declared effective by the Securities and Exchange Commission on April 17, 2015.

The Company evaluates all of these investments for impairment on a quarterly basis. There were no identified events that had a significant adverse effect on these investments and, as such, no impairment has been recorded.

Investment in Unconsolidated Loan Manager. The Company records its 33% equity share of the results of CVC Credit Partners in Financial Fund Management Revenues on the consolidated statements of operations and comprehensive income. Under the terms of the CVC Credit Partners shareholders' agreement, CVC has an irrevocable option to buy 9% of the Company's interests in the joint venture, which would reduce the Company's interest to 24%. This option may be exercised during a sixty-day period that commenced April 25, 2015 (30 days after the audit report date for the CVC Credit Partners audit for the year ended December 31, 2014).

Summarized operating data for CVC Credit Partners is presented below (in thousands):



	Three Months Ended
	March 31,
	2015			2014
Management fee revenues	$	16,738		$	12,388
Costs and expenses	(14,809		)	(11,295		)
Net income	$	1,929		$	1,093
Portion of net income attributable to the Company	$	637		$	361

The Company has a preferred interest in Apidos Capital Management, LLC ("Apidos") relating to incentive management fees on legacy CLOs that had been sponsored and managed by Apidos. The Company accounts for this interest, with a book value of $6.8 million at March 31, 2015, on the cost method. As these incentive fees are received, in accordance with its preferred interest, the Company receives a distribution of 75% of those amounts which will initially be recorded as income, net of any contractual amounts due to third-parties. The Company continually evaluates the investment for impairment by estimating the fair value of the expected future cash flows from the incentive management fees. If the estimated fair value is less than the cost basis of the interest, the preferred interest will be deemed to be impaired. If the Company determines that the shortfall is other-than-temporary, the impairment will be recorded as a reduction of the preferred interest by reducing the revenues previously recorded on these preferred shares. At such time that the investment has been reduced to zero, all subsequent distributions will be recorded as income.