7. Investment in Unconsolidated Entities

The table below summarizes our investments in unconsolidated entities as of September 30, 2017 and December 31, 2016 (dollars in thousands):


	Participation /	Carrying value as of
	Ownership % (1)	September 30, 2017			December 31, 2016
Equity method:
Retail Fund (see Note 15)	33%	$	109,607	(2)	$	124,977
Investor entity which owns equity in an online real estate company	50%		75,249			21,677
Equity interests in commercial real estate	16% - 50%		23,310			23,297
Various	25% - 50%		7,015			6,640
			215,181			176,591
Cost method:
Equity interest in a servicing and advisory business	6%		12,234			12,234
Investment funds which own equity in a loan servicer and other real estate assets	4% - 6%		9,225			9,225
Various	0% - 3%		6,810			6,555
			28,269			28,014
		$	243,450		$	204,605

(1)

None of these investments are publicly traded and therefore quoted market prices are not available.

(2)

During the nine months ended September 30, 2017, we funded $15.5 million in capital commitments.

During the three months ended September 30, 2017, the Retail Fund, an investment company that measures its assets at fair value on a recurring basis, reported unrealized decreases in the fair value of its real estate properties as a result of lender appraisals obtained by the Retail Fund. We report our interest in the Retail Fund at its liquidation value, which resulted in a $33.7 million decrease to our investment. This amount was recognized within earnings from unconsolidated entities in our condensed consolidated statements of operations during the three and nine months ended September 30, 2017.

In September 2017, the investor entity which owns equity in an online real estate company sold approximately 88% of its interest in the online real estate company. During the three and nine months ended September 30, 2017, we recognized $28.2 million and $53.9 million, respectively, of income from our investment in this investor entity as a result of the sale (see related income tax effect in Note 20) within earnings from unconsolidated entities in our condensed consolidated statements of operations. Subsequent to September 30, 2017, we received a pre-tax cash distribution of $66.0 million from the investor entity related to the sale.

There were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of September 30, 2017.