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Investments
 12 Months Ended
Dec. 31, 2013
Investments  
Investments

NOTE 10. Investments

        Fair value information regarding the Company's investments is presented below at December 31:

(In thousands)
  2013   2012  

Investment in FATV(1)

   $ 17,624   $ 17,110  

Employee Investment Funds net of Company's ownership interest

     1,265     1,218  

Other investments

     —     2,150  
           
​ ​ ​ ​ ​ ​ ​ ​

Total Investments

   $ 18,889   $ 20,478  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
(1)
Excludes the Company's share of carried interest in FATV of approximately $2.9 million and $1.6 million at December 31, 2013 and December 31, 2012, which is unrecognized as collection is not reasonably assured.

        The Company's investment in FATV is susceptible to changes in the financial condition or prospects of the companies underlying these investments. It is expected that some or all of the assets in which FATV is invested will experience a "liquidity event" (i.e., there will be a disposition of the assets generating cash distributions to FATV's investors, including the Company), the timing of any such liquidity event is uncertain, and the value realized for any of the investment assets is similarly uncertain. If the Company attempts to sell this investment, it may result in the realization of substantially less in proceeds than if the Company monetizes its investment through the harvesting of the underlying portfolio companies.

        Investment gains and losses were comprised of the following for the years ended December 31:

(In thousands of dollars)
  2013   2012   2011  

Investment in FATV

   $ 3,800   $ 1,261   $ 2,188  

Employee Investment Funds

     (36 )   (28 )   (39 )

Other investments

     (2,497 )   —     847  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total investment gains, net

   $ 1,267   $ 1,233   $ 2,996  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

FATV

        The Company has an equity-method investment in FATV of approximately $17.6 million and $17.1 million at December 31, 2013 and December 31, 2012, respectively. FATV's primary purpose is to provide investment returns consistent with the risk of investing in venture capital. FA Technology Ventures Corporation, a wholly-owned subsidiary of the Company, is the investment advisor to FATV. There were no material open commitments to fund this portfolio at December 31, 2013. At December 31, 2013 and December 31, 2012, total Partnership capital for all investors in FATV equaled $77.3 million and $70.9 million, respectively. The Partnership is now scheduled to terminate on July 19, 2014. The Partnership is considered a variable interest entity. The Company is not the primary beneficiary, due to other investors' level of investment in the Partnership. Accordingly, the Company has not consolidated the Partnership in these consolidated financial statements, but has only recorded the fair value of its investment, which also represents the Company's maximum exposure to loss in the Partnership at December 31, 2013 and December 31, 2012. The Company's share of management fee income derived from the Partnership for the years ended December 31, 2013, 2012 and 2011 was $0.5 million, $0.6 million and $0.6 million, respectively.

        SEC Rule 4-08(g) of Regulation S-X requires summarized financial information to be provided for equity-method investees deemed to be significant. The Company's equity-method investment in FATV has been determined to be significant as the Company's investment in FATV exceeds 10 percent of the Company's total assets at December 31, 2013. Disclosed below is the required summarized financial information of FATV.

FA Technology Ventures, L.P.—Statements of Financial Condition

(In thousands of dollars)
  December 31,
2013		   December 31,
2012		  

Assets:

              

Investments at fair value

   $ 75,188   $ 69,736  

Cash and cash equivalents

     786     1,220  

Escrow receivable and other

     1,352     46  
           
​ ​ ​ ​ ​ ​ ​ ​

Total assets

   $ 77,326   $ 71,002  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Liabilities:

              

Accrued expenses and other liabilities

   $ 57   $ 53  
           
​ ​ ​ ​ ​ ​ ​ ​

Partners' Capital:

              

Partner's capital

     77,269     70,949  
           
​ ​ ​ ​ ​ ​ ​ ​

Total Liabilities and Partners' Capital

   $ 77,326   $ 71,002  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

FA Technology Ventures, L.P.—Statements of Operations

 
   For the years ending
December 31,		  
(In thousands of dollars)
  2013   2012   2011  

Revenue:

                    

Interest income

   $ 1   $ 428   $ 37  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Expenses:

                    

Management fees

     532     576     582  

Professional fees

     61     57     74  

Other

     3     6     49  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total expenses

     596     639     705  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net investment loss

     (595 )   (211 )   (668 )

Net gains on investments

     19,417     7,454     11,507  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net increase in partners' capital from operations

   $ 18,822   $ 7,243   $ 10,839  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

Employee Investment Funds

        The Employee Investment Funds ("EIF") are limited liability companies established by the Company for the purpose of having select employees invest in private equity securities. The EIF is managed by Broadpoint Management Corp., a wholly-owned subsidiary of the Company, which has contracted with FATV to act as an investment advisor with respect to funds invested in parallel with the Partnership. The Company consolidated EIF resulting in approximately $1.3 million and $1.2 million of Investments, respectively, and approximately $0.9 million and $0.9 million of payables to former employees, respectively, being recorded in the Consolidated Statements of Financial Condition at December 31, 2013 and December 31, 2012, respectively. Management fees are not material.

Other Investments

        Other investments of approximately $2.2 million at December 31, 2012 are investments in privately held companies that were strategically aligned with the operations of the Company conducted at the respective times of investment (the Company has ascribed no fair value to such investments at December 31, 2013). Disclosed below is a rollforward of the Company's other investments.

(In thousands of dollars)
  2013   2012  

Balance—January 1

   $ 2,150   $ 1,200  

Purchases of investments

     947     950  

Sales / redemptions of investments

     (600) (1)   —  

Losses on investments

     (2,497 )   —  
           
​ ​ ​ ​ ​ ​ ​ ​

Balance—December 31

   $ —   $ 2,150  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
(1)
The Company held an investment in a privately held newly-formed commercial mortgage origination company ("investee"), which was redeemed during the fourth quarter of 2013 at par ($0.6 million). In connection with this redemption, the investee granted the Company warrants which are exercisable for $1, solely upon a liquidity event, as defined, and expire on November 18, 2023. To the extent that a liquidity event (as defined) were to occur, the warrants would become exercisable into a 0.4%-2.2% ownership interest in the investee. The actual ownership interest for which the warrants convert is dependent upon the certain performance hurdles being met by the investee. The Company ascribed no fair value to these warrants at December 31, 2013 as the warrants cannot be net settled and are not readily convertible to cash.