VARIABLE INTEREST ENTITIES:

As discussed in Note 2 "Summary of Significant Accounting Policies", the CTFs and LLCs (together the “Westwood VIEs”) are considered VIEs, and the Westwood Funds® and UCITS Fund are considered VOEs (together the "Westwood VOEs"). We receive fees for managing assets in these entities commensurate with market rates. As of December 31, 2017 and 2016, we evaluated all of the Westwood VIEs and Westwood VOEs to determine whether or not we should consolidate the entities into our Consolidated Financial Statements. For the Westwood VIEs, we evaluated whether or not we qualify as the primary beneficiary based on whether we have the obligation to absorb significant losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity’s economic performance. For the Westwood VOEs, we evaluated whether or not we own a controlling financial interest in the entities. Based on our analysis, we have not consolidated the Westwood VIEs or Westwood VOEs into our Consolidated Financial Statements for the years ended December 31, 2017 or 2016.

As of December 31, 2017 and 2016, the Company had seed investments totaling $10.7 million and $11.0 million, respectively, in the CTFs, the Westwood Funds® and UCITS Fund. These seed investments were provided for the sole purpose of showing economic substance needed to establish the funds or sub-funds. The Company's seed investments in these funds are included in “Investments, at fair value” on our Consolidated Balance Sheet at December 31, 2017.

We have not otherwise provided any financial support that we were not previously contractually obligated to provide and there are no arrangements that would require us to provide additional financial support to any of these entities. Our seed investments in the above-mentioned CTFs, Westwood Funds® and UCITS Fund are accounted for as investments in accordance with our other investments described in Note 3 "Investments." We recognized fee revenue from the Westwood VIEs and Westwood VOEs of approximately $51.9 million, $52.2 million and $56.4 million for the twelve months ended December 31, 2017, 2016 and 2015, respectively.

The following table displays the assets under management, the amount of our seed investments that are included in “Investments, at fair value” on the Consolidated Balance Sheets, and the financial risk of loss in each vehicle (in millions):



	As of December 31, 2017
	Assets Under Management		Corporate Investment		Amount at Risk
VIEs/VOEs:
Westwood Funds®	$	4,242	$	6	$	6
Common Trust Funds	2,564		2		2
LLCs	116		—		—
UCITS Fund	412		2		2
All other assets:
Private Wealth	2,886
Institutional	14,009
Total AUM	$	24,229