Note 12—Carried Interest Due from Investment Funds

The activity in the Company’s Carried Interest due from Investment Funds, which were dissolved during the year ended December 31, 2018, is included in Other assets, and is summarized as follows:


	Year ended December 31,
	2018		2017		2016
	(in thousands)
Balance at beginning of year	$	8,552	$	70,906	$	69,926
Carried Interest recognized during the year		(365)		(1,040)		980
Cash received during the year		(8,187)		(61,314)		—
Balance at end of year	$	—	$	8,552	$	70,906

The Carried Interest that the Company recognized from the Investment Funds was determined by the Investment Funds’ performance and its contractual rights to share in the Investments Funds’ returns in excess of the preferred returns, if any, that accrued to the funds’ investors. The Company recognized Carried Interest as a participation in the profits in the Investment Funds after the investors in the Investment Funds achieved a preferred return as defined in the fund agreements. After the investors achieved the preferred returns specified in the respective fund agreements, a “catch up” return accrued to the Company until it received a specified percentage of the preferred return. Thereafter, the Company participated in future returns in excess of the preferred return at the rates specified in the fund agreements.