Redeemable Non-Controlling Interests in Consolidated Subsidiaries

9 Months Ended

Sep. 30, 2014

Redeemable Non-Controlling Interests in Consolidated Subsidiaries

Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds

Redeemable non-controlling interests in consolidated subsidiaries and funds and the related net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds are comprised as follows:



	As of September 30, 2014		As of December 31, 2013
	(dollars in thousands)
Redeemable non-controlling interests in consolidated subsidiaries and funds
Operating companies	$	11,721	$	12,009
Consolidated funds	79,708		73,805
	$	91,429	$	85,814



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(dollars in thousands)
Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds
Operating companies	$	3,223	$	3,884	$	9,690	$	7,280
Consolidated funds	783		875		3,719		3,229
	$	4,006	$	4,759	$	13,409	$	10,509

On September 29, 2014, the Company entered into an agreement with Neuberger Berman to sell its interest in Orchard Square Partners (“OSP”), which manages a global long/short credit investment strategy with approximately $448.0 million in client assets. The transaction is expected to close on December 31, 2014 subject to customary closing conditions. The Company currently consolidates the assets, liabilities and results of operations of OSP and will cease to consolidate OSP upon closing as the Company’s interest is transferred to Neuberger Berman. As of September 30, 2014, the total assets, liabilities and net assets attributable to the Company and non-controlling interest holders were not significant. In accordance with the terms of the agreement, prior to the closing of the transaction all of the net assets of OSP will be allocated to the Company and the non-controlling members of OSP in accordance with the respective ownership interests and will be distributed soon thereafter. After the distribution of net assets, the Company expects to recognize an immaterial gain/loss which will be included in realized gain/loss in the consolidated statements of operations.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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