Variable Interest Entities

12 Months Ended

Dec. 31, 2019

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 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.

In the third quarter of 2019, the Company redeemed its investments in certain funds it manages, which resulted in the Company no longer holding a controlling financial interest, and therefore deconsolidated the funds. No gain or loss was recognized as a result of the deconsolidation.

	December 31, 2019		December 31, 2018
	(dollars in thousands)
Assets
Assets of consolidated funds:
Investments of consolidated funds, at fair value	$	—	$	171,495
Other assets of consolidated funds	649		21,090
Total Assets	$	649	$	192,585
Liabilities
Liabilities of consolidated funds:
Other liabilities of consolidated funds	389		14,541
Total Liabilities	$	389	$	14,541

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, insignificant 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 19. 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 along with the maximum risk of loss as a result of the Company’s involvement with VIEs:

	December 31, 2019		December 31, 2018
	(dollars in thousands)
Net assets of unconsolidated VIEs in which the Company has a variable interest	$	8,805,128	$	10,236,438
Maximum risk of loss as a result of the Company’s involvement with VIEs:
Unearned revenues	63,337		62,038
Income and fees receivable	21,841		31,658
Investments	200,215		190,674
Maximum Exposure to Loss	$	285,393	$	284,370