Equity Investments in Unconsolidated Subsidiaries

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Equity Investments in Unconsolidated Subsidiaries

Note 4. Equity Investments in Unconsolidated Subsidiaries

Our equity investments in unconsolidated subsidiaries consist of our co-investments in investment management vehicles that we sponsor and manage. As of March 31, 2012, we had a co-investment in one such vehicle, CT Opportunity Partners I, LP, or CTOPI, in which we have a commitment to invest up to $25.0 million, or 4.6% of CTOPI’s total capital commitments. We have funded $16.1 million of our commitment as of March 31, 2012 and received $6.5 million as a return of capital, resulting in a $9.6 million funded and a $15.4 million unfunded commitment balance.

Activity relating to our equity investments in unconsolidated subsidiaries for the three months ended March 31, 2012 was as follows (in thousands):

	CTOPI
December 31, 2011		$10,399
Contributions		324
Income from equity investments (1)		6,998
Distributions		(738	)
March 31, 2012		$16,983

(1) Includes $6.3 million of incentive income allocated to us from CTOPI under the equity method of accounting. This incentive income has not been recognized into earnings, but recorded as a deferred incentive income liability under accounts payable, accrued expenses and other liabilities on our consolidated balance sheet.

 

In accordance with the CTOPI management agreement, CTIMCO may earn incentive compensation when certain returns are achieved for the partners of CTOPI, which will be accrued if and when earned, and when appropriate contingencies have been eliminated.

As of March 31, 2012, our maximum exposure to loss from CTOPI was $7.6 million.