Variable Interest Entities

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

VARIABLE INTEREST ENTITIES

In the ordinary course of business, the Company sponsors the formation of funds that are considered VIEs. See Note 2 of the Company’s Annual Report for a discussion of entities that are VIEs and the evaluation of those entities for consolidation by the Company.

The table below presents the assets and liabilities of VIEs consolidated by the Company:

	March 31, 2017		December 31, 2016
	(dollars in thousands)
Assets
Assets of consolidated Och-Ziff funds:
Investments, at fair value	$	35,996	$	37,661
Other assets of Och-Ziff funds	21,314		17,544
Total Assets	$	57,310	$	55,205
Liabilities
Liabilities of consolidated Och-Ziff funds:
Other liabilities of Och-Ziff funds	16,658		15,197
Total Liabilities	$	16,658	$	15,197

The assets presented in the table above belong to the investors in those funds, are available for use only by the fund to which they belong, and are not available for use by the Company. The consolidated funds have no recourse to the general credit of the Company with respect to any liability.

The Company’s direct involvement with funds that are VIEs and not consolidated by the Company is generally limited to providing asset management services and, in certain cases, direct investments in the VIEs. The maximum exposure to loss represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback, in the event of any future fund losses. The Company has commitments to certain funds that are VIEs as discussed in Note 15. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support to its VIEs that are not consolidated.

The table below presents the net assets of VIEs in which the Company has variable interests:

	March 31, 2017		December 31, 2016
	(dollars in thousands)
Net assets of unconsolidated VIEs in which the Company has a variable interest	$	3,988,814	$	4,069,617
Maximum risk of loss as a result of the Company's involvement with VIEs:
Unearned revenues	101,260		96,409
Income and fees receivable	27,165		13,074
Investments in Och-Ziff funds	34,423		35,868
Maximum Exposure to Loss	$	162,848	$	145,351