Investments in Receivables

3 Months Ended

Mar. 31, 2016

6. Investments in Receivables

As a result of the transfer of investments in receivables from the Predecessor to the Partnership, which met the conditions to be accounted for as a sale in accordance with ASC 860, Transfers and Servicing, the investments in receivables were recorded at their estimated fair value as of November 19, 2014, the date we closed our IPO, using an 8.75% discount rate. The receivables are unsecured with payments collected over periods ranging from 2 to 99 years. In connection with the July 21, 2015 acquisition, the Partnership acquired an additional investment in receivables that are recorded at the fair value at the acquisition date, using a discount rate of 8.65%. Interest income recognized on the receivables totaled $203,347 and $207,310 for the three months ended March 31, 2016 and 2015, respectively.

The following table reflects the activity in investments in receivables:


	March 31, 2016		December 31, 2015
Investments in receivables – beginning	$	8,136,867	$	8,665,274
Acquisitions		—		130,200
Fair value adjustment		—		11,862
Repayments		(186,181)		(694,867)
Interest accretion		18,772		24,398
Investments in receivables – ending	$	7,969,458	$	8,136,867

Annual amounts due as of March 31, 2016, are as follows:


2016 (nine months)	$	1,105,186
2017		1,572,797
2018		1,389,465
2019		905,215
2020		884,230
Thereafter		8,950,807
Total	$	14,807,700
Interest	$	6,838,242
Principal		7,969,458
Total	$	14,807,700