VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2015

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 8 - VARIABLE INTEREST ENTITIES

In general, a VIE is an entity that does not have sufficient equity to finance its operations without additional subordinated financial support, or an entity for which the risks and rewards of ownership are not directly linked to voting interests. The Company has variable interests in VIEs through its management contracts and investments in various securitization entities, including CDO issuers. The Company serves as the asset manager for the investment entities it sponsored and manages. The management fees the Company earns are excluded from its VIE determination as long as the fees are commensurate with the level of effort provided, are market based and similar to what a third party would charge for similar services, and the Company's other interests in the VIE are not significant. If the entity is deemed to be a VIE, the Company must then evaluate if it is the primary beneficiary of the entity.

Consolidated VIE - Pelium

Pelium is a VIE that the Company manages and in which it has invested $5.0 million for a 20% limited partner interest. Based on its evaluation, the Company concluded that it was the primary beneficiary and, as such, consolidated Pelium.

VIEs not consolidated

The Company’s investments in the structured finance entities that hold investments in asset-backed securities (“Ischus entities”) and trust preferred assets (“Trapeza entities”) were determined to be VIEs that the Company does not consolidate as it does not have the obligation of, or right to, losses or earnings that would be significant to those entities.  The Company has not provided financial or other support to these VIEs and has no liabilities, contingent liabilities, or guarantees (implicit or explicit) related to these VIEs at December 31, 2015.

The following table presents the carrying amounts of the assets in the Company's consolidated balance sheets that relate to the Company's variable interests in identified nonconsolidated VIEs and the Company's maximum exposure to loss associated with these VIEs in which it holds variable interests at December 31, 2015 (in thousands):

	Receivables from Managed Entities and Related Parties, Net		Investments		Maximum Exposure to Loss in Non-consolidated VIEs
Ischus entities	$	—	$	—	$	—
Trapeza entities	—		630		630
	$	—	$	630	$	630