RELATED-PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2016

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

10. RELATED-PARTY TRANSACTIONS

        Aircraft Lease—On August 30, 2014, a related party, Moelis & Company Manager LLC ("Manager"), acquired an aircraft with funds received solely from its managing member (Mr. Moelis). The aircraft is used and operated by the Company pursuant to a dry lease with Manager which terminates on December 31, 2019. The terms of the dry lease are comparable to the market rates of leasing from an independent third party. Pursuant to this dry lease arrangement, the lessee is obligated to bear its share of the costs of operating the aircraft. For each of the three months ended June 30, 2016 and 2015, the Company incurred $312 in aircraft lease costs to be paid to Manager, respectively, and $624 in aircraft costs for each of the six months ended June 30, 2016 and 2015, respectively. In addition, there are two other lessees of the aircraft; one of whom is Mr. Moelis and the other is Moelis Asset Management LP. These lessees share the lease, operating and related costs of the plane in proportion to their respective use pursuant to a cost sharing and operating agreement.

        Promissory Notes—As of June 30, 2016, there were $448 of unsecured promissory notes from employees held by the Company (December 31, 2015: $119). Any outstanding balances are reflected in other receivables on the condensed consolidated statements of financial condition. The notes held as of June 30, 2016 and December 31, 2015 bear a fixed interest rate of 4.00%. During each of the six months ended June 30, 2016 and 2015, the Company received $0 of principal repayments and recognized interest income of $8 and $2, respectively, on such notes, which is included in other income and expenses on the condensed consolidated statements of operations.

        Services Agreement—In connection with the Company's IPO, the Company entered into a services agreement with a related party, Moelis Asset Management LP, whereby the Company provides certain administrative services, technology, and office space to Moelis Asset Management LP for a fee. This fee totaled $349 and $399 for the three months ended June 30, 2016 and 2015, respectively, and $711 and $845 for the six months ended June 30, 2016 and 2015, respectively. The amount of the fee is based upon the estimated usage and related expense of all shared services between the Company and Moelis Asset Management LP during the relevant period, and will be assessed periodically by Management as per the terms of the agreement. As of June 30, 2016 and December 31, 2015, the Company had balances due from Moelis Asset Management LP of $0 and $3, respectively.

        Joint Venture—As of June 30, 2016 and December 31, 2015, the Company had a net balance due from the Australian JV of $54 and a net balance due to the Australian JV of $167, respectively, which are reflected in other receivables on the condensed consolidated statements of financial condition. These balances consist of amounts due from the Australian JV for advisory services performed and billable expenses incurred on behalf of the Company during the period, offset by expenses paid by the Company on behalf of the Australian JV. The relationship between the Company and the Australian JV is governed by a services agreement.

        Other Equity Method Investment—In June of 2014, the Company made an investment of $265 into an entity controlled by a related party, Moelis Asset Management LP. The Company has determined that it should account for this investment as an equity method investment on the condensed consolidated financial statements. For the three months ended June 30, 2016 and 2015, income of $34 and $228 was recorded on this investment, respectively, and income of $1,730 and $2,781 was recorded on this investment for the six months ended June 30, 2016 and 2015, respectively.

        During the six months ended June 30, 2016 and 2015, the Company received cash distributions from this entity in the amounts of $813 and $1,094, respectively.

        Revenues—From time to time, Moelis Asset Management LP and its affiliates hire the Company to provide financial advisory services in the ordinary course of business. The Company earned revenues associated with such transactions of $6,616 and $3,594 for the three months ended June 30, 2016 and 2015, respectively, and revenues of $7,016 and $4,336 for the six months ended June 30, 2016 and 2015, respectively.