Management, performance and Founders fees

The Company and Third Point Re are party to a Joint Venture and Investment Management Agreement (the “Investment Agreement”) with Third Point LLC and Third Point Advisors LLC under which Third Point LLC manages certain jointly held assets.

Pursuant to the Investment Agreement, Third Point Advisors LLC receives an annual performance fee allocation equal to 20% of the net investment income of the Company’s share of the investment assets managed by Third Point LLC, subject to a loss carry forward provision. Additionally, a total management fee equal to 2% annually of the Company’s share of the investment assets managed by Third Point LLC is paid to Third Point LLC and various Founders of the Company. Management fees are paid monthly, whereas performance fees are paid annually, in arrears.

Investment fee expenses related to the Investment Agreement, which are included in net investment income in the condensed consolidated statements of income for the three months ended March 31, 2014 and 2013 are as follows:



		2014		2013
	($ in thousands)
Management fees - Third Point LLC		$	1,189	$	724
Management fees - Founders		6,735		4,102
Performance fees - Third Point Advisors LLC		12,295		20,006
		$	20,219	$	24,832

As of March 31, 2014, $12.3 million was included in performance fee payable to related party in the condensed consolidated balance sheets related to performance fees due under the Investment Agreement. As of December 31, 2013, $63.0 million was included in non-controlling interests related to the performance fee payable to Third Point Advisors LLC. Since the performance fee allocation is based on annual performance, the performance fees are included in total liabilities until the performance fee is determined at year end and allocated to Third Point Advisors LLC's capital account, in accordance with the Investment Agreement.