Variable Interest Entities

3 Months Ended

Mar. 31, 2020

Variable Interest Entities

Variable Interest Entities

17. VARIABLE INTEREST ENTITIES

The Partnership’s investment in the Carnero JV represents a variable interest entity (“VIE”) that could expose the Partnership to losses. The amount of losses the Partnership could be exposed to from the Carnero JV is limited to the capital investment of approximately $97.5 million.

As of March 31, 2020, the Partnership had invested approximately $124.1 million in the Carnero JV and no debt has been incurred by the Carnero JV. We have included this VIE in other assets, equity investments on our condensed consolidated balance sheet.

Below is a tabular comparison of the carrying amounts of the assets and liabilities of the VIE and the Partnership’s maximum exposure to loss as of March 31, 2020 and December 31, 2019 (in thousands):

	March 31,		December 31,
	2020		2019
Acquisitions, earnout and capital investments	$	128,140	$	128,140
Earnings in equity investments		24,774		25,976
Distributions received		(55,420)		(53,805)
Maximum exposure to loss	$	97,494	$	100,311