Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Mar. 27, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | MEDLEY MANAGEMENT INC. | ||
Entity Central Index Key | 1611110 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Trading Symbol | mdly | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $0 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 6,000,000 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 100 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Sep. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||
Assets | |||||
Cash and cash equivalents | $87,206 | $5,395 | $1,292 | $1,334 | |
Investment, at fair value | 9,901 | 10,173 | |||
Investments, at fair value | 734,870 | 453,396 | |||
Management fees receivable | 15,173 | 8,921 | |||
Performance fees receivable | 5,573 | 3,339 | |||
Other assets | 9,230 | 5,308 | |||
Total assets | 910,399 | 550,292 | |||
Liabilities and Equity | |||||
Loans payable | 103,057 | 27,990 | |||
Accounts payable, accrued expenses and other liabilities | 27,583 | 17,613 | |||
Secured borrowings | 141,135 | 41,178 | |||
Performance fee compensation payable | 11,807 | 16,225 | |||
Total liabilities | 289,349 | 104,331 | |||
Equity | |||||
Capital deficit | -2,384 | ||||
Retained earnings | 272 | ||||
Total stockholder's deficit, Medley Management Inc. | -2,052 | ||||
Medley LLC members' capital prior to reorganization | -18,554 | ||||
Total equity | 621,050 | 475,608 | 445,961 | 406,936 | 265,315 |
Total liabilities and equity | 910,399 | 550,292 | |||
Consolidated Funds [Member] | |||||
Assets | |||||
Cash and cash equivalents | 38,111 | 60,355 | |||
Investments, at fair value | 734,870 | 453,396 | |||
Interest and dividends receivable | 6,654 | 2,969 | |||
Other assets | 3,681 | 436 | |||
Liabilities and Equity | |||||
Accounts payable, accrued expenses and other liabilities | 5,767 | 1,325 | |||
Secured borrowings | 141,135 | 41,178 | |||
Equity | |||||
Non-controlling interests | 625,548 | 464,475 | |||
Consolidated Subsidiaries [Member] | |||||
Equity | |||||
Non-controlling interests | 1,526 | 40 | |||
Medley LLC [Member] | |||||
Assets | |||||
Other assets | 9,230 | 5,308 | |||
Equity | |||||
Non-controlling interests | -3,972 | ||||
Common Class A [Member] | |||||
Equity | |||||
Common Stock, Value, Issued | $60 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 |
Common Class A [Member] | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $0.01 |
Common Stock, Shares Authorized | 3,000,000,000 |
Common Stock, Shares, Issued | 6,000,000 |
Common Stock, Shares, Outstanding | 6,000,000 |
Common Class B [Member] | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $0.01 |
Common Stock, Shares Authorized | 1,000,000 |
Common Stock, Shares, Issued | 100 |
Common Stock, Shares, Outstanding | 100 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | ||||||||||||||
Management fees | $61,252 | $36,446 | $25,325 | |||||||||||
Performance fees | 2,050 | 2,412 | 765 | |||||||||||
Other income and fees | 8,871 | 5,011 | 2,152 | |||||||||||
Total revenues | 18,187 | 20,765 | 17,225 | 15,996 | 7,828 | 9,300 | 11,429 | 15,312 | 72,173 | 43,869 | 28,242 | |||
Expenses | ||||||||||||||
Compensation and benefits | 20,322 | 13,712 | 11,477 | |||||||||||
Performance fee compensation | -1,543 | 7,192 | 5,148 | |||||||||||
Consolidated Funds expenses | 1,670 | 1,225 | 1,653 | |||||||||||
General, administrative and other expenses | 16,312 | 12,655 | 9,679 | |||||||||||
Total expenses | 5,564 | 8,510 | 12,861 | 9,826 | 7,689 | 10,635 | 7,892 | 8,568 | 36,761 | 34,784 | 27,957 | |||
Other income (expense) | ||||||||||||||
Dividend income | 886 | 886 | 245 | |||||||||||
Interest expense | -5,520 | -1,479 | -831 | |||||||||||
Other income (expenses), net | -1,773 | -483 | -552 | |||||||||||
Interest and other income of Consolidated Funds | 71,468 | 52,550 | 39,001 | |||||||||||
Net realized gain (loss) on investments of Consolidated Funds | 789 | -16,080 | -1,600 | |||||||||||
Net change in unrealized (depreciation) appreciation on investments of Consolidated Funds | -20,557 | -3,361 | -10,103 | |||||||||||
Total other income, net | 3,575 | 11,726 | 17,228 | 3,987 | 5,647 | 1,918 | 10,424 | 11,100 | 36,516 | 29,089 | 24,281 | |||
Income before income taxes | 16,198 | 23,981 | 21,592 | 10,157 | 5,786 | 583 | 13,961 | 17,844 | 71,928 | 38,174 | 24,566 | |||
Provision for income taxes | 2,528 | 1,639 | 1,087 | |||||||||||
Net income | 15,844 | 17,690 | 23,058 | 20,845 | 9,653 | 5,461 | 232 | 13,499 | 17,343 | 51,710 | 69,400 | 36,535 | 23,479 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 11,918 | |||||||||||||
Net income attributable to Medley Management Inc. | 1,317 | 378 | 1,695 | |||||||||||
Dividends declared per Class A common stock | $0.20 | |||||||||||||
Net income per share attributable to stockholders of Class A common stock of Medley Management Inc: | ||||||||||||||
Earnings Per Share, Basic (in dollars per share) | $0.19 | $0.05 | $0.24 | [1] | ||||||||||
Earnings Per Share, Diluted (in dollars per share) | $0.19 | $0.05 | $0.24 | [1] | ||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted (in shares) | 6,000,000 | 6,000,000 | 6,000,000 | |||||||||||
Consolidated Funds [Member] | ||||||||||||||
Expenses | ||||||||||||||
Consolidated Funds expenses | 1,670 | 1,225 | 1,653 | |||||||||||
Other income (expense) | ||||||||||||||
Interest and other income of Consolidated Funds | 71,468 | 52,550 | 39,001 | |||||||||||
Interest expense on secured borrowings of Consolidated Funds | 9,951 | 2,638 | 2,666 | |||||||||||
Net realized gain (loss) on investments of Consolidated Funds | 789 | -16,080 | -1,600 | |||||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings | 1,174 | -306 | 787 | |||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 6,815 | 9,933 | 9,057 | 3,912 | 1,283 | -1,635 | 6,183 | 7,067 | 29,717 | 12,898 | 11,561 | |||
Consolidated Subsidiaries [Member] | ||||||||||||||
Other income (expense) | ||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | -239 | 612 | 1,607 | -47 | 1,933 | |||||||||
Medley LLC [Member] | ||||||||||||||
Other income (expense) | ||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $7,951 | $12,135 | $10,181 | $5,788 | $4,178 | $1,867 | $7,316 | $10,276 | $36,055 | $23,637 | $11,918 | |||
[1] | Based on net income attributable to Medley Management Inc. from September 29, 2014 through December 31, 2014. |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Members' Equity [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Common Class A [Member] | Common Class B [Member] | Total |
In Thousands, except Share data | USD ($) | Common Class A [Member] | Common Class B [Member] | USD ($) | USD ($) | Consolidated Subsidiaries [Member] | Consolidated Funds [Member] | Medley LLC [Member] | USD ($) | ||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Balance at Dec. 31, 2011 | $6,296 | $259,019 | $265,315 | ||||||||
Contributions | 40 | 201,433 | 201,473 | ||||||||
Distributions | -18,671 | -64,538 | -83,209 | ||||||||
Deconsolidation of consolidated fund | -122 | -122 | |||||||||
Net income | 11,918 | 11,561 | 23,479 | ||||||||
Balance at Dec. 31, 2012 | -457 | 40 | 407,353 | 406,936 | |||||||
Contributions | 167,382 | 167,382 | |||||||||
Distributions | -41,734 | -123,158 | -164,892 | ||||||||
Net income | 23,637 | 12,898 | 36,535 | ||||||||
Balance at Dec. 31, 2013 | -18,554 | 40 | 464,475 | 445,961 | |||||||
Contributions | 928 | 120,318 | 121,246 | ||||||||
Distributions | -120,621 | -22,688 | -143,309 | ||||||||
Net income | 26,753 | 2,055 | 22,902 | 51,710 | |||||||
Effects of Reorganization and Offering | 112,422 | -112,422 | |||||||||
Balance at Sep. 28, 2014 | 3,023 | 585,007 | -112,422 | 475,608 | |||||||
Balance at Sep. 28, 2014 | -112,422 | 3,023 | 585,007 | 475,608 | |||||||
Contributions | 33,726 | 33,726 | |||||||||
Distributions | -1,375 | -795 | -2,170 | ||||||||
Net income | 1,695 | -122 | 6,815 | 9,302 | 17,690 | ||||||
Issuance of Class A shares in Initial Public Offering, net of underwriters discount | 60 | 100,380 | 100,440 | ||||||||
Issuance of shares in Initial Public Offering (in shares) | 6,000,000 | ||||||||||
Issuance of Class B shares (in shares) | 100 | ||||||||||
Dilution assumed with initial Publc Offering | -103,658 | 103,658 | |||||||||
Stock-based compensation | 894 | 894 | |||||||||
Dividends declared on common stock | -1,423 | -1,423 | |||||||||
Initial Public Offering costs | -3,715 | -3,715 | |||||||||
Balance at Dec. 31, 2014 | $60 | ($2,384) | $272 | $1,526 | $625,548 | ($3,972) | $621,050 | ||||
Balance (in shares) at Dec. 31, 2014 | 6,000,000 | 100 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | Dec. 31, 2014 |
Statement of Stockholders' Equity [Abstract] | |
Dividends declared, amount per share | $0.20 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $69,400 | $36,535 | $23,479 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Net change in unrealized appreciation on investments | 272 | -244 | -600 |
Non-cash stock-based compensation | 894 | ||
Depreciation and amortization | 401 | 276 | 270 |
Amortization of deferred financing costs | 752 | ||
Benefit from deferred taxes | -726 | -96 | -51 |
Accretion of debt discount | 604 | 476 | 357 |
Net realized loss (gain) on investments | -789 | 16,080 | 1,600 |
Changes in operating assets and liabilities: | |||
Management fees receivable | -6,252 | -4,249 | -2,461 |
Performance fees receivable | -2,234 | -2,412 | -765 |
Other assets | -1,671 | -1,295 | -789 |
Accounts payable, accrued expenses and other liabilities | 8,693 | 5,023 | 7,199 |
Performance fee compensation liability | -4,418 | 5,367 | 4,423 |
Net cash (used in) provided by operating activities | -196,426 | -42,428 | -117,314 |
Cash flows from investing activities | |||
Investment in subsidiary | -10,000 | ||
Purchases of property and equipment | -521 | -918 | -140 |
Net cash used in investing activities | -521 | -918 | -10,140 |
Cash flows from financing activities | |||
Proceeds from issuance of debt obligations, net | 123,900 | 21,000 | 10,000 |
Repayment of loans payable | -51,937 | -3,000 | |
Proceeds from Initial Public Offering, net of underwriting discount | 100,440 | ||
Initial Public Offering costs | -3,715 | ||
Distributions to members | -119,363 | -41,734 | -14,171 |
Contribution from non-controlling interest in consolidated subsidiaries | 40 | ||
Debt issuance costs | -2,546 | ||
Deconsolidation of consolidated fund | -47 | ||
Net cash provided by (used in) financing activities | 278,758 | 47,449 | 127,412 |
Net increase in cash and cash equivalents | 81,811 | 4,103 | -42 |
Cash and cash equivalents, beginning of period | 5,395 | 1,292 | 1,334 |
Cash and cash equivalents, end of period | 87,206 | 5,395 | 1,292 |
Supplemental cash flow information | |||
Interest Paid | 3,900 | 1,078 | 401 |
Income Taxes Paid, Net | 2,411 | 1,577 | 859 |
Supplemental disclosure of non-cash financing activities | |||
Non-cash distribution to members | 3,428 | 4,931 | |
Non-cash distribution from Consolidated Funds | -431 | ||
Non-cash debt | 2,500 | 1,000 | |
Dividends declared but not paid | 1,423 | ||
Transfer of membership interests to non-controlling interests in consolidated subsidiaries | 928 | ||
Standalone [Member] | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||
Benefit from deferred taxes | -483 | -139 | -51 |
Consolidated Funds [Member] | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||
Net change in unrealized depreciation (appreciation) on investments | 20,556 | 3,361 | 10,103 |
Benefit from deferred taxes | -243 | -126 | -29 |
Accretion of debt discount | -1,760 | -1,438 | -1,294 |
Interest income paid-in-kind | -5,264 | -9,590 | -6,606 |
Net realized loss (gain) on investments | -789 | 16,080 | 1,600 |
Net change in unrealized depreciation (appreciation) on secured borrowings | -1,174 | 306 | -787 |
Changes in operating assets and liabilities: | |||
Other assets | -6,784 | 293 | -782 |
Accounts payable, accrued expenses and other liabilities | 4,539 | 220 | 204 |
Cash and cash equivalents | 22,244 | 13,778 | -37,632 |
Cost of investments purchased | -448,258 | -199,665 | -170,353 |
Proceeds from sales and repayments of investments | 154,549 | 95,015 | 57,200 |
Cash flows from financing activities | |||
Contribution from non-controlling interest in consolidated subsidiaries | 154,044 | 167,382 | 201,433 |
Distributions to non-controlling interest holders | -22,688 | -123,158 | -64,538 |
Proceeds from secured borrowings of Consolidated Funds | 115,439 | 25,605 | |
Repayments on secured borrowings of Consolidated Funds | -14,816 | -1,646 | -2,305 |
Cash and cash equivalents, beginning of period | 60,355 | ||
Cash and cash equivalents, end of period | $38,111 | $60,355 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Organization and Basis of Presentation & Consolidating Schedules [Abstract] | ||||
Organization and Basis of Presentation | 1 | ORGANIZATION AND BASIS OF PRESENTATION | ||
Medley Management Inc. (the “Corporation”) is an asset management firm offering yield solutions to retail and institutional investors. The Corporation’s national direct origination franchise provides capital to the middle market in the U.S. The Corporation, through its consolidated subsidiary Medley LLC, provides investment management services to permanent capital vehicles, long dated private funds and separately managed accounts and serves as the general partner to the private funds, which are generally organized as pass-through entities. Medley LLC is headquartered in New York City and has an office in San Francisco. | ||||
Initial Public Offering of Medley Management Inc. | ||||
Medley Management Inc. was incorporated on June 13, 2014 and commenced operations on September 29, 2014 upon the completion of its initial public offering (“IPO”) of its Class A common stock. Medley Management Inc. raised $100.4 million, net of underwriting discount, through the issuance of 6,000,000 shares of Class A common stock at an offering price to the public of $18.00 per share. Medley Management Inc. used the offering proceeds to purchase 6,000,000 newly issued LLC Units (defined below) from Medley LLC. Prior to the IPO, Medley Management Inc. had not engaged in any business or other activities except in connection with its formation and IPO. | ||||
In connection with the IPO, Medley Management Inc. issued 100 shares of Class B common stock to Medley Group LLC (“Medley Group”), an entity wholly owned by the pre-IPO members of Medley LLC. For as long as the pre-IPO members and then-current Medley personnel hold at least 10% of the aggregate number of shares of Class A common stock and LLC Units (defined below) (excluding those LLC Units held by Medley Management Inc.) then outstanding, the Class B common stock entitles Medley Group to a number of votes that is equal to 10 times the aggregate number of LLC Units held by all non-managing members of Medley LLC that do not themselves hold shares of Class B common stock and entitle each other holder of Class B common stock, without regard to the number of shares of Class B common stock held by such other holder, to a number of votes that is equal to 10 times the number of membership units held by such holder. The Class B shares do not participate in dividends and do not have any liquidation rights. | ||||
Medley LLC Reorganization | ||||
In connection with the IPO, Medley LLC amended and restated its limited liability agreement to modify its capital structure by reclassifying the 23,333,333 interests held by the pre-IPO members into a single new class of units (“LLC Units”). The pre-IPO members also entered into an exchange agreement under which they (or certain permitted transferees thereof) have the right, from and after the first anniversary of the date of the closing of the IPO, subject to the terms of an exchange agreement, to exchange their LLC Units for shares of Medley Management Inc.’s Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. In addition, pursuant to the amended and restated limited liability agreement, Medley Management Inc. became the sole managing member of Medley LLC. | ||||
Basis of Presentation | ||||
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of Medley Management Inc., Medley LLC and its consolidated subsidiaries together with certain funds (individually “Consolidated Funds”, collectively, “Medley” or the “Company”). | ||||
The Consolidated Funds have been consolidated in the accompanying financial statements for the periods presented in accordance with U.S. GAAP. Including the results of the Consolidated Funds significantly increases the reported amounts of the assets, liabilities, revenues, expenses and cash flows of the Company; however, the Consolidated Funds’ results included herein have no direct effect on the net income attributable to members or on total equity. The economic ownership interests of the investors in the Consolidated Funds are reflected as ‘‘Non-controlling interests in Consolidated Funds’’ and as ‘‘Net income attributable to non-controlling interests in Consolidated Funds’’ in the accompanying consolidated financial statements. | ||||
Prior to the reorganization and IPO on September 29, 2014, all compensation for services rendered by senior Medley LLC professionals were reflected as distributions from members’ capital rather than as compensation expense. Subsequent to the reorganization and IPO, all guaranteed payments made to these senior professionals are recognized as compensation expense. | ||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary of Significant Accounting Policies [Abstract] | ||||
Summary of Significant Accounting Policies | ||||
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Principles of Consolidation | ||||
In accordance with Accounting Standards Codification (‘‘ASC’’) 810, Consolidation, the Company consolidates those entities where it has a direct and indirect controlling financial interest based on either a variable interest model or voting interest model. As such, the Company consolidates entities that the Company concludes are variable interest entities (‘‘VIEs’’), for which the Company is deemed to be the primary beneficiary and entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity. | ||||
An entity in which the Company holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both, and substantially all of the legal entity’s activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Entities that do not qualify as VIEs are generally assessed for consolidation under the voting interest model. | ||||
For those entities that qualify as a VIE, the Company performs an analysis to determine if it is the primary beneficiary. With respect to certain VIEs that qualify for accounting treatment under Accounting Standard Update (“ASU”) 2010-10, the Company determines that it is the primary beneficiary only if its involvement, through holding interests directly or indirectly in the VIE or contractually through other variable interests (e.g., carried interest and management fees), would be expected to absorb a majority of the VIE’s expected losses, receive a majority of the VIE’s expected residual returns, or both. In order to qualify for this accounting treatment, certain conditions have to be met, including if the entities have all the attributes of an investment company and are not securitization or asset-backed financing entities. For all other entities, the Company determines that it is the primary beneficiary if it holds a controlling financial interest defined as possessing both (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes initially involved with the VIE and reconsiders that conclusion continuously. In making its assessment the Company takes into consideration all fee and substantive arrangements, terms and transactions that may exist. The assessment of whether an entity is a VIE and the determination of whether the Company should consolidate such VIE requires judgments and is dependent on the particular facts and circumstances. Each entity is assessed for consolidation on a case by case basis. | ||||
For those entities evaluated under the voting interest model, the Company consolidates those entities it controls through a majority voting interest or through other means whereby the Company is the general partner and is presumed to have control. The Company would not consolidate an entity in which the presumption of control by the general partner has been overcome through either the granting of substantive rights to the unaffiliated investors to either dissolve the entity or remove the general partner (‘‘kick-out-rights”) or the granting of substantive participating rights. | ||||
Consolidated Variable Interest Entities | ||||
Medley Management Inc. is the sole managing member of Medley LLC and, as such, it operates and controls all of the business and affairs of Medley LLC and, through Medley LLC, conducts its business. Under ASC 810, Medley LLC meets the definition of a variable interest entity because the equity of Medley LLC is not sufficient to permit activities without additional subordinated financial support. Since Medley Management Inc. has the obligation to absorb expected losses that could be significant to Medley LLC and holds 100% of the voting power, Medley Management Inc. is considered to be the primary beneficiary of Medley LLC. | ||||
As a result, Medley Management Inc. consolidates the financial results of Medley LLC and its subsidiaries and records a non-controlling interest for the economic interest in Medley LLC held by the non-managing members. Medley Management Inc.’s and the non-managing members’ economic interest in Medley LLC is 20.5% and 79.5%, respectively, as of December 31, 2014. Net income attributable to the non-controlling interest in Medley LLC on the consolidated statements of operations represents the portion of earnings attributable to the economic interest in Medley LLC held by its non-managing members. Non-controlling interests in Medley LLC on the consolidated balance sheets represents the portion of net assets of Medley LLC attributable to the non-managing members based on total LLC Units of Medley LLC owned by such non-managing members. | ||||
Medley LLC has one majority owned subsidiary, SIC Advisors LLC, that is a consolidated VIE. This entity was organized as a limited liability company and was legally formed to manage a designated fund and to isolate business risk. As of December 31, 2014 and 2013, total assets, after eliminating entries, of this VIE reflected in the consolidated balance sheets were $18.0 million and $11.9 million, respectively. Total liabilities, after eliminating entries, of this VIE were $19.6 million and $16.1 million as of December 31, 2014 and 2013, respectively. Except to the extent of the assets of this VIE that are consolidated, the holders of the consolidated VIE’s liabilities generally do not have recourse to the Company. | ||||
Consolidated Funds | ||||
With respect to the Consolidated Funds, which represent limited partnerships, Medley LLC earns a fixed management fee based on either (a) limited partners’ capital commitments to the funds, (b) invested capital, (c) net asset value (‘‘NAV’’), or (d) lower of cost or market value of a fund’s portfolio investments. In addition, Medley earns a performance fee based upon the investment returns in excess of a stated hurdle rate. The Company considered the accounting treatment under ASU 2010-10 as all the respective conditions have been met and determined that the funds were not VIEs. However, as the general partner, and due to the lack of substantive kick out or participating rights of the limited partners, these funds have been consolidated under the voting interest model in accordance with ASC 810-20, Control of Partnerships and Similar Entities. | ||||
Effective January 1, 2015, the Company completed its role as investment manager of one of its Consolidated Funds and transitioned the management of the residual assets of the fund to another asset manager. As a result of this transition, the Company deconsolidated the fund on January 1, 2015 (Note 17). | ||||
In December 2014, the Company formed the Medley Opportunity Fund III (MOF III) which is structured as a limited partnership. One of the Company’s wholly owned subsidiaries is the general partner and investment manager of MOF III. The Company considered the accounting treatment under ASU 2010-10 as all the respective conditions have been met and determined that MOF III was not a VIE. However, as the general partner, and due to the lack of substantive kick out or participating rights of the limited partners, this fund has been consolidated under the voting interest model in accordance with ASC 810-20, Control of Partnerships and Similar Entities. | ||||
Non-Consolidated Variable Interest Entities | ||||
Beginning in November 2006, Medley held a variable interest in an investment fund which was formed under the laws of the Cayman Islands and organized to make investments in a diversified portfolio of corporate and asset-based investments. The equity holders (as a group) lack the direct and indirect ability through voting rights or similar rights to make decisions about this legal entity’s activities that have a significant effect on the success of the legal entity. As such, this entity is considered to be a VIE. Medley had a variable interest in the fund through an investment management agreement pursuant to which Medley managed the investment activities of the fund, received an annual base management fee and was entitled to receive an incentive fee, subject to the underlying financial performance of the investment fund. The Company did not consolidate this entity as Medley was not deemed to be its primary beneficiary. Medley determined that it was not the primary beneficiary as it did not absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns or have majority control of the entity. Medley considered the accounting treatment under ASU 2010-10 as all the respective conditions were met. Effective October 31, 2014, the investment management agreement was terminated and Medley transferred its responsibilities to a new investment manager and, as such, no longer held a variable interest in this entity. | ||||
Since inception through December 31, 2012, the annual base management fee was equal to 2.0% of the fund’s net assets. Effective January 1, 2013 and 2014 the annual base management fee was reduced to 1.25% and 0.75%, respectively, of the fund’s net assets. For the years ended December 31, 2014, 2013 and 2012, the Company received management fees of $1.1 million, $3.7 million and $7.7 million, respectively. As of December 31, 2014 and 2013, there were no assets recognized in the Company’s consolidated balance sheets related to this non-consolidated VIE and Medley had no exposure to losses from the entity. | ||||
Deconsolidation of a Fund | ||||
Commencing in 2012, the Company initially owned 100% of the outstanding shares of Sierra Income Corporation (“SIC”) and had consolidated SIC in its consolidated financial statements. Following SIC’s raising of additional third-party capital, the Company no longer had a controlling interest in SIC and it deconsolidated the entity at December 31, 2012 in accordance with ASC 810-10, Consolidation – Overall. | ||||
Seed Investments | ||||
Medley accounts for seed investments through the application of the voting interest model under ASC 810-10-25-1 through 25-14 and would consolidate a seed investment when the investment advisor holds a controlling interest, in general, 50% or more of the equity in such investment. For seed investments for which Medley does not hold a controlling interest, Medley would account for such seed investment under the equity method of accounting, at its ownership percentage of such seed investment’s net asset value. Medley’s investment in Sierra Income Corporation (“SIC”) amounted to $9.9 million and $10.2 million as of December 31, 2014 and 2013, respectively, and is included as a component of investments, at fair value, on the Company’s consolidated balance sheets. | ||||
Basis of Accounting | ||||
Management has determined that the Company’s Consolidated Funds are investment companies under U.S. GAAP for the purposes of financial reporting. U.S. GAAP requires that investments held by an investment company be recorded at fair value and any unrealized appreciation (depreciation) in an investment’s fair value be recognized on a current basis in the consolidated statements of operations. Additionally, the Consolidated Funds do not consolidate their majority-owned and controlled investments in portfolio companies. In the preparation of these consolidated financial statements, the Company has retained the specialized accounting guidance for the Consolidated Funds under U.S. GAAP. As such, all of the investments held by the Consolidated Funds are presented at their estimated fair values in the Company’s consolidated balance sheets. Interest income of the Consolidated Funds is included in interest and other income of Consolidated Funds in the Company’s consolidated statements of operations. | ||||
Concentrations of Credit and Market Risk | ||||
In the normal course of business, the Company encounters significant credit and market risk. Credit risk is the risk of default on investments in debt securities, loans and derivatives that result from a borrower’s or derivative counterparty’s inability or unwillingness to make required or expected payments. Credit risk is increased in situations where the Company is investing in distressed assets or unsecured or subordinate loans or in securities that are a material part of its respective business. Market risk reflects changes in the value of investments due to changes in interest rates, credit spreads or other market factors. | ||||
The Company may make investments outside of the United States. These non-U.S. investments are subject to the same risks associated with U.S. investments as well as additional risks, such as fluctuations in foreign currency exchange rates, unexpected changes in regulatory requirements, heightened risk of political and economic instability, difficulties in managing the investments, potentially adverse tax consequences, and the burden of complying with a wide variety of foreign laws. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management’s estimates are based on historical experience and other factors, including expectations of future events that management believes to be reasonable under the circumstances. These assumptions and estimates also require management to exercise judgment in the process of applying the Company’s accounting policies. Assumptions and estimates regarding the valuation of investments and their resulting impact on performance fees involve a higher degree of judgment and complexity and these assumptions and estimates may be significant to the consolidated financial statements. Actual results could differ from these estimates and such differences could be material. | ||||
Indemnification | ||||
In the normal course of business, the Company enters into contractual agreements that provide general indemnifications against losses, costs, claims and liabilities arising from the performance of individual obligations under such agreements. The Company has not experienced any prior claims or payments pursuant to such agreements. The Company’s individual maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on management’s experience, the Company expects the risk of loss to be remote. | ||||
Non-Controlling Interests in Consolidated Entities | ||||
Non-controlling interests in Consolidated Funds and consolidated subsidiaries represent the component of equity in such consolidated entities held by third party investors. These interests are adjusted for general partner allocations and, for funds, by subscriptions and redemptions that occur during the reporting period. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents for the Company include liquid investments in money market funds and demand deposits. The Company had cash balances with financial institutions in excess of Federal Deposit Insurance Corporation insured limits during 2014 and 2013. The Company monitors the credit standing of these financial institutions and has not experienced, and has no expectations of experiencing any losses with respect to such balances. | ||||
Class A Earnings per Share | ||||
The Company computes and presents earnings per share using the two-class method. Under the two-class method, the Company allocates earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, the Company reduces its reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to Class A common stockholders. Earnings is then divided by the weighted average number of Class A common stock outstanding to arrive at basic earnings per share. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in our earnings. Participating securities consist of the Company’s unvested restricted stock units that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in its basic and diluted calculations. | ||||
Investments | ||||
Investments include an equity method investment that is not consolidated but in which the Company exerts significant influence, and investments held by the Consolidated Funds. Medley measures the fair value of its equity method investment that does not have a readily determinable fair value at net asset value or market value. Unrealized appreciation (depreciation) resulting from changes in fair value of the equity method investee is reflected as a component of other income (expense) in the consolidated statements of operations. | ||||
The Consolidated Funds reflect their investments at fair value with unrealized appreciation (depreciation) resulting from changes in fair value reflected as a component of net change in unrealized depreciation on investments of Consolidated Funds in the consolidated statements of operations. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., the exit price). | ||||
Fair Value Measurements | ||||
The Consolidated Funds apply fair value accounting to all of its financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC 820, the Consolidated Funds have categorized their financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy as discussed in Note 4. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity specific measure. Therefore, when market assumptions are not readily available, the Consolidated Funds’ own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date. | ||||
Investments for which market quotations are readily available are valued at such market quotations, which are generally obtained from an independent pricing service or multiple broker-dealers or market makers. The Company weights the use of third-party broker quotes, if any, in determining fair value based on the Company’s understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer. However, debt investments with remaining maturities within 60 days that are not credit impaired are valued at cost plus accreted discount, or minus amortized premium, which approximates fair value. Investments for which market quotations are not readily available are valued at fair value as determined by the Company based upon inputs by third-party valuation firms. Because these investments are illiquid and because there may not be any directly comparable companies whose financial instruments have observable market values, these loans are valued using a fundamental valuation methodology, consistent with traditional asset pricing standards, that is objective and consistently applied across all loans and through time. | ||||
The Consolidated Funds use third-party valuation firms to assist in the valuation of its portfolio investments. The valuation reports generated by the third-party valuation firms consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information, including comparable transactions, performance multiples, and movement in yields of debt instruments, among other factors. Based on market data obtained from the third-party valuation firms, the Consolidated Funds use a market yield analysis under the income approach or an enterprise model of valuation under the market approach, or a combination thereof. In applying the market yield analysis, the value of the Consolidated Funds’ loans is determined based upon inputs such as the coupon rate, current market yield, interest rate spreads of similar securities, the stated value of the loan, and the length to maturity. In applying the enterprise model, the Consolidated Funds use a waterfall analysis that takes into account the specific capital structure of the borrower and the related seniority of the instruments within the borrower’s capital structure. To estimate the enterprise value of the portfolio company, some or all of the traditional market valuation methods and factors are weighed based on the individual circumstances of the portfolio company in order to estimate the enterprise value. | ||||
The methodologies and information that the Company utilizes when applying the Market Approach for performing investments includes, among other things: | ||||
· | valuations of comparable public companies (Guideline Comparable approach), | |||
· | recent sales of private and public comparable companies (Guideline Comparable approach), | |||
· | recent acquisition prices of the company, debt securities or equity securities (Acquisition Price Approach), | |||
· | external valuations of the portfolio company, offers from third parties to buy the company (Estimated Sales Proceeds approach), | |||
· | subsequent sales made by the company of its investments (Expected Sales Proceeds approach); and | |||
· | estimating the value to potential buyers. | |||
The methodologies and information that the Company utilizes when applying the Income Approach for performing investments includes: | ||||
· | discounting the forecasted cash flows of the portfolio company or securities (Discounted Cash Flow “DCF” approach); and | |||
· | Black-Scholes model or simulation models or a combination thereof (Income Approach – Option Model) with respect to the valuation of warrants. | |||
For non-performing investments, the Company may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities using an expected recovery model (Income Approach – Expected Recovery Analysis or Estimated Liquidation Proceeds). | ||||
A multi-step valuation process is undertaken each quarter when valuing portfolio investments for which market quotations are not readily available, as described below: | ||||
· | The quarterly valuation process begins with each portfolio investment being initially valued by the Company’s internal valuation team; | |||
· | An independent valuation firm engaged by the Consolidated Funds prepares an independent valuation report for approximately one third of the portfolio investments each quarter on a rotating quarterly basis on non-fiscal year-end quarters, such that each of these investments will be valued by independent valuation firms at least twice per annum when combined with the fiscal year-end review of all the investments by independent valuation firms; and | |||
· | Preliminary valuation conclusions are then documented and discussed with senior management. | |||
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Consolidated Funds’ investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. | ||||
Property and Equipment | ||||
Property and equipment consist primarily of furniture, fixtures, computer equipment, and leasehold improvements and are recorded at cost, less accumulated depreciation and amortization. | ||||
The Company calculates depreciation expense for furniture, fixtures, and computer equipment using the straight-line method over the estimated useful life used for the respective assets, which generally ranges from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis over the shorter of the remaining term of the underlying lease or estimated useful life of the improvement. Useful lives of leasehold improvements range from three to eight years. | ||||
Deferred Financing Costs | ||||
Deferred financing costs represent direct costs incurred in conjunction with the establishment of credit facilities and debt refinancing. Deferred financing costs, and the related amortization expense, are adjusted when any prepayments of principal are made to the related outstanding debt. These costs are amortized as an adjustment to interest expense over the term of the related debt. | ||||
Revenues | ||||
Management Fees | ||||
Medley provides investment management services to both public and private investment vehicles. Management fees include both base management fees, other management fees, and Part I incentive fees, as described below. | ||||
Base management fees are calculated based on either (a) the average or ending gross assets balance for the relevant period, (b) limited partners’ capital commitments to the funds, (c) invested capital, (d) the net asset value or (e) lower of cost or market value of a fund’s portfolio investments. For the private funds, Medley receives base management fees during a specified period of time, which is generally ten years from the initial closing date. However, such termination date may be earlier in certain limited circumstances or later if extended for successive one-year periods, typically up to a maximum of two years. Depending upon the contracted terms of the investment management agreement, management fees are paid either quarterly in advance or quarterly in arrears, and are recognized as earned over the period the services are provided. | ||||
Certain management agreements provide for Medley to receive other management fee revenue derived from up front origination fees paid by the portfolio companies of the Consolidated Funds, as well as, separately managed accounts. These fees are recognized when Medley becomes entitled to such fees. | ||||
Certain management agreements also provide for Medley to receive Part I incentive fee revenue derived from net interest income (excluding gains and losses) above a hurdle rate. These fees are not subject to repayment, clawbacks or netting against realized losses. Part I incentive fees are paid quarterly and are recognized as earned over the period the services are provided. | ||||
Performance Fees | ||||
Performance fees consist principally of the allocation of profits from certain funds, including separately managed accounts, to which Medley provides management services. Medley is generally entitled to an allocation of income as a performance fee after returning the invested capital plus a specified preferred return as set forth in each respective agreement. Medley recognizes revenues attributable to performance fees based upon the amount that would be due pursuant to the respective agreement at each period end as if the funds were terminated at that date. Accordingly, the amount recognized reflects Medley’s share of the gains and losses of the associated funds’ underlying investments measured at their current fair values. Performance fee revenue may include reversals of previously recognized performance fees due to a decrease in the net income of a particular fund that results in a decrease of cumulative performance fees earned to date. Since fund return hurdles are cumulative, previously recognized performance fees also may be reversed in a period of appreciation that is lower than the particular fund’s hurdle rate. For the year ended December 31, 2014, the Company reversed $4.4 million and $2.3 million of previously recognized performance fees on a standalone and consolidated basis, respectively. The Company did not reverse any previously recognized performance fees for the years ended December 31, 2013 and 2012. Cumulative performance fees recognized through December 31, 2014 were $20.4 million and $5.6 million on a standalone and consolidated basis, respectively. | ||||
Performance fees received in prior periods may be required to be returned by Medley in future periods if the funds’ investment performance declines below certain levels. Each fund is considered separately in this regard and, for a given fund, performance fees can never be negative over the life of a fund. If upon a hypothetical liquidation of a fund’s investments at their then current fair values previously recognized and distributed performance fees would be required to be returned, a liability is established for the potential clawback obligation. As of December 31, 2014, the Company had not received any performance fee distributions, except for tax distributions related to the Company’s allocation of net income, which included an allocation of performance fees. Pursuant to the organizational documents of each respective fund, tax distributions are not subject to clawback. As such, no amounts have been accrued for clawback obligations in the accompanying consolidated financial statements. | ||||
Other Revenues and Fees | ||||
Medley provides administrative services to certain affiliated funds and is reimbursed for direct and allocated expenses incurred in providing such administrative services, as set forth in the respective agreement. These fees are recognized as revenue in the period administrative services are rendered. | ||||
Included in other revenues and fees are reimbursements received by Medley from SIC under its investment advisory agreement. Expenses incurred by Medley under this agreement are recorded within general, administrative, and other expenses in the consolidated statements of operations. For additional information on these reimbursements, refer to Note 10. | ||||
Performance Fee Compensation | ||||
Medley has issued profit interests in certain subsidiaries to selected employees. These profit-sharing arrangements are accounted for under ASC 710, Compensation — General, which requires compensation expense to be measured at fair value at the grant date and expensed over the vesting period, which is usually the period over which the service is provided. The fair value of the profit interests are re-measured at each balance sheet date and adjusted for changes in estimates of cash flows and vesting percentages. The impact of such changes is recorded in the consolidated statements of operations as an increase or decrease to performance fee compensation. | ||||
Stock-based Compensation | ||||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. Under the fair value recognition provision of this guidance, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period. | ||||
Stock-based compensation expense recognized for the year ended December 31, 2014 is based on awards ultimately expected to vest and have been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The effect of such change in estimated forfeitures is recognized through a cumulative catch-up adjustment that is included in the period of the change in estimate. | ||||
The value of the portion of the award that is ultimately expected to vest on a straight-line basis over the requisite service period is included within compensation and benefits on the Company’s consolidated statements of operations. | ||||
Income Taxes | ||||
The Company accounts for income taxes using the asset and liability approach, which requires the recognition of tax benefits or expenses for temporary differences between the financial reporting and tax basis of assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company also recognizes a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. The Company’s policy is to recognize interest and penalties on uncertain tax positions and other tax matters as a component of income tax expense. | ||||
Prior to the Company’s reorganization and IPO, no provision was made for U.S. federal income taxes in the accompanying consolidated financial statements since the Company was a group of pass-through entities for U.S. income tax purposes and its profits and losses are allocated to the partners who are individually responsible for reporting such amounts. A provision for income taxes was made for certain entities that were subject to New York City unincorporated business tax. | ||||
Following the IPO, Medley LLC and its subsidiaries continue to operate as pass-through entities for U.S. income tax purposes. Accordingly, these entities in some cases continue to be subject to New York City unincorporated business taxes. Medley Management Inc. is subject to U.S. corporate federal, state and local income taxes which are reflected in the Company’s consolidated financial statements. | ||||
The Company analyzes its tax filing positions in all of the U.S. federal, state and local tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, the Company determines that uncertainties in tax positions exist, a liability is established. | ||||
Leases | ||||
Certain lease agreements contain escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the length of the lease term. The difference between rent expense and rent paid is recorded as deferred rent. Leasehold improvements made by the lessee and funded by landlord allowances or other incentives are also recorded as deferred rent and are amortized as a reduction in rent expense over the term of the lease. Deferred rent is included as a component of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. | ||||
Secured Borrowings of Consolidated Funds | ||||
The Consolidated Funds follow the guidance in ASC 860, Transfers and Servicing when accounting for loan participations and other partial loan sales. Such guidance provides accounting and reporting standards for transfers and servicing of financial assets and requires a participation or other partial loan sale to meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain on the Company’s Consolidated Balance Sheets and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value. | ||||
For these participations or partial loan sales which do not meet the definition of a participating interest, the interest income earned on the entire loan balance is recorded within interest and other income of Consolidated Funds and the interest income earned by the buyer in the partial loan sale is recorded as interest expense of Consolidated Funds expenses in the accompanying consolidated statements of operations. Changes in the fair value of secured borrowings of Consolidated Funds are included in net change in unrealized depreciation (appreciation) on secured borrowings in the consolidated statement of operations. | ||||
Revisions to Previously Issued Financial Statements | ||||
The Company accounts for certain loan participations as secured borrowings that in previously issued financial statements had been accounted for as true sales, as defined in ASC 860, Transfers and Servicing. These loan participation agreements did not contain any prohibited constraints on exchange or transfer and the assets were legally isolated from the transferor. Upon further analysis the Company determined that a provision in the asset management agreement between the transferee and a consolidated affiliate of the transferor had a standard provision which restricted transfer of the assets for a period of time. As a result of this constraint, the Company determined that in accordance with ASC 860-10-40-5 the transactions should be reported as secured borrowings. The Company has determined that the impact on its previously issued financial statements was not material. As a result, prior periods were revised as follows: (i) both assets and liabilities of Consolidated Funds increased by $41.3 million as of December 31, 2013, (ii) interest and other income of Consolidated Funds increased by $2.6 million and $2.7 million for the years ended December 31, 2013 and 2012, respectively, with direct offsetting amounts to interest expense of Consolidated Funds, (iii) the recording of unrealized appreciation (depreciation) on investments of Consolidated Funds of $(0.3) and $0.8 million for the years ended December 31, 2013 and 2012, respectively, with direct offsetting amounts to unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds, and (iv) a change in net cash used in operating activities of $24.0 million and $(2.3) million for the years ended December 31, 2013 and 2012, respectively, with offsetting changes in cash provided by financing activities. These changes had no impact on consolidated and standalone equity or net income. | ||||
Recent Accounting Pronouncements | ||||
In June 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. This guidance clarifies the characteristics of an investment company and provides guidance for assessing whether an entity is an investment company. Consistent with existing guidance for investment companies, all investments are to be measured at fair value including non-controlling ownership interests in other investment companies. There are no changes to the current requirements relating to the retention of specialized accounting in the consolidated financial statements of a non-investment company parent. The guidance is effective for interim and annual periods beginning after December 15, 2013 and early application was prohibited. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The amendments are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact, if any, that this ASU will have on its consolidated financial statements. | ||||
In February 2015, the FASB issued ASU 2015-02, Consolidation – Principal versus Agent Analysis. This guidance requires an entity to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (a) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (b) eliminate the presumption that a general partner should consolidate a limited partnership; (c) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; (d) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for interim and annual periods beginning after December 15, 2015 and early application is permitted. The Company is currently evaluating the impact, if any, that this ASU will have on its consolidated financial statements. | ||||
INVESTMENTS
INVESTMENTS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Investments [Abstract] | ||||||||||||
Investments | ||||||||||||
3.INVESTMENTS | ||||||||||||
The composition of investments is as follows: | ||||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Equity method investment, at fair value | $ | 9,901 | $ | 10,173 | ||||||||
Investments of Consolidated Funds, at fair value | 734,870 | 453,396 | ||||||||||
Total Investments | $ | 744,771 | $ | 463,569 | ||||||||
Equity Method Investments, at Fair Value | ||||||||||||
The Company made an investment in SIC, a non-diversified closed-end management investment company that commenced operations in April 2012. At such time, the Company owned 100% of the outstanding shares of SIC, and accordingly, consolidated the entity. In December 2012, outside investors purchased additional shares in SIC, which diluted the Company’s ownership in the voting interest entity to 48.2%. As a result, the Company no longer had a controlling interest in SIC and it deconsolidated the entity in accordance with ASC 810-10, Consolidation – Overall, and recognized no gain or loss on its investment. | ||||||||||||
Medley measures its equity method investment in SIC at net asset value or at market value. Total unrealized appreciation (depreciation) recorded for the Company’s equity method investment is included in other income (expense) and amounted to $(0.3) million, $0.2 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Investments in Consolidated Funds | ||||||||||||
The following table presents a summary of the investments held by the Consolidated Funds and as a percentage of total investments of Consolidated Funds. | ||||||||||||
Investments of Consolidated Funds | ||||||||||||
Fair Value | Percentage | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(Amounts in thousands) | ||||||||||||
Geographic Region/Investment Type/Industry Description: | ||||||||||||
North America: | ||||||||||||
Senior secured loans and notes: | ||||||||||||
Automobile | $ | 39,577 | $ | - | 5.4 | % | 0.0 | % | ||||
Banking | 28,325 | 28,903 | 3.8 | % | 6.4 | % | ||||||
Business Services | 25,898 | 14,370 | 3.5 | % | 3.2 | % | ||||||
Chemicals, Plastics and Rubber | 21,196 | - | 2.9 | % | 0.0 | % | ||||||
Consumer Goods | 34,791 | 19,160 | 4.7 | % | 4.3 | % | ||||||
Container and Packaging | 25,657 | 7,000 | 3.5 | % | 1.6 | % | ||||||
Financial Services | 85,157 | 24,708 | 11.6 | % | 5.5 | % | ||||||
Healthcare, Wellness and Education | 44,991 | 18,575 | 6.1 | % | 4.1 | % | ||||||
Insurance | 8,116 | 6,456 | 1.1 | % | 1.4 | % | ||||||
Manufacturing | 53,477 | 1,853 | 7.3 | % | 0.4 | % | ||||||
Media and Entertainment Services | 20,404 | 33,815 | 2.8 | % | 7.5 | % | ||||||
Medical Transcription Services | 36,930 | 14,235 | 5 | % | 3.2 | % | ||||||
Oil and Gas/Energy | 32,736 | 35,915 | 4.5 | % | 8.0 | % | ||||||
Personal and Nondurable Consumer Products | 39,488 | 52,040 | 5.4 | % | 11.6 | % | ||||||
Personal Services | 20,886 | 18,666 | 2.8 | % | 4.1 | % | ||||||
Real Estate | 119,601 | 50,157 | 16.3 | % | 11.1 | % | ||||||
Retail and Commercial Kitchen Appliances | 24,886 | 25,000 | 3.4 | % | 5.6 | % | ||||||
Structured Finance Securities | - | 49,326 | 0.0 | % | 11.0 | % | ||||||
Vehicle Service Contracts | - | 17,110 | 0.0 | % | 3.7 | % | ||||||
Other | 539 | 799 | 0.1 | % | 0.2 | % | ||||||
Total Senior Secured Loans and Notes, North America (cost of $711,398 and $435,661, respectively) | $ | 662,655 | $ | 418,088 | 90.2 | % | 92.9 | % | ||||
South America: | ||||||||||||
Senior secured loans and notes: | ||||||||||||
Energy | $ | 424 | $ | 2,922 | 0.1 | % | 0.7 | % | ||||
Financial Services | 1,029 | 2,314 | 0.1 | % | 0.5 | % | ||||||
Total Senior Secured Loans and Notes, South America (cost of $13,049 and $12,810, respectively) | $ | 1,453 | $ | 5,236 | 0.2 | % | 1.2 | % | ||||
Asia: | ||||||||||||
Real Estate (cost of $1,373) | $ | 1,377 | $ | 1,376 | 0.2 | % | 0.2 | % | ||||
Investments of Consolidated Funds | ||||||||||||
Fair Value | Percentage | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(Amounts in thousands) | ||||||||||||
Geographic Region/Investment Type/Industry Description: | ||||||||||||
North America: | ||||||||||||
Equity interests in limited liability companies: | ||||||||||||
Banking | $ | 5,623 | $ | 3,646 | 0.8 | % | 0.8 | % | ||||
Healthcare Education | 63 | - | 0.0 | % | 0.0 | % | ||||||
Oil and Gas | 2,596 | 565 | 0.4 | % | 0.1 | % | ||||||
Packaging/Manufacturing | 320 | 2,896 | 0.0 | % | 0.7 | % | ||||||
Real Estate | 40,012 | 10,549 | 5.4 | % | 1.6 | % | ||||||
Telecommunications | 170 | 968 | 0.0 | % | 0.2 | % | ||||||
Total Equity Interest in Limited Liability Companies (cost of $40,944 and $16,912, respectively) | $ | 48,784 | $ | 18,624 | 6.6 | % | 3.4 | % | ||||
Common Stock (cost of $8,913 and $8,913, respectively) | $ | 964 | $ | 2,073 | 0.1 | % | 0.5 | % | ||||
Preferred Stock (cost of $10,187 and $10,567, respectively) | $ | 545 | $ | 362 | 0.1 | % | 0.1 | % | ||||
Warrants: | ||||||||||||
Container and Packaging | 105 | - | 0.0 | % | 0.0 | % | ||||||
Healthcare and Wellness | 4,700 | 1,115 | 0.7 | % | 0.3 | % | ||||||
Medical Transcription Services | 437 | 15 | 0.1 | % | 0.0 | % | ||||||
Oil and Gas | 1,793 | - | 0.2 | % | 0.0 | % | ||||||
Real Estate | 113 | 540 | 0.0 | % | 0.1 | % | ||||||
Retail and Commercial Kitchen Appliances | 893 | 1,318 | 0.1 | % | 0.3 | % | ||||||
Structured Finance Securities | 10,363 | 2,639 | 1.4 | % | 0.6 | % | ||||||
Vehicle Service Contracts | - | 588 | 0.0 | % | 0.1 | % | ||||||
Total Warrants (cost of $3,428 and $1,366, respectively) | 18,404 | 6,215 | 2.5 | % | 1.4 | % | ||||||
Total Equity Securities (cost of $22,528 and $20,846, respectively) | $ | 19,913 | $ | 8,650 | 2.7 | % | 2.0 | % | ||||
Collectibles (cost of $1,385) | $ | 688 | $ | 1,422 | 0.1 | % | 0.3 | % | ||||
Total Investments of Consolidated Funds (cost of $790,677 and $488,987, respectively) | $ | 734,870 | $ | 453,396 | 100.0 | % | 100.0 | % | ||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||
Fair Value Measurements | 4.FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||
The Company follows ASC 820 for measuring the fair value of portfolio investments. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. The Company’s fair value analysis includes an analysis of the value of any unfunded loan commitments. Financial investments recorded at fair value in the consolidated financial statements are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the investment as of the measurement date. The three levels are defined as follows: | |||||||||||||||||||||||||||||||
· | Level I - Valuations based on quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||||||||||||||||||||||||||||
· | Level II - Valuations based on inputs other than quoted prices in active markets included in Level I, which are either directly or indirectly observable at the measurement date. This category includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in non-active markets including actionable bids from third parties for privately held assets or liabilities, and observable inputs other than quoted prices such as yield curves and forward currency rates that are entered directly into valuation models to determine the value of derivatives or other assets or liabilities. | ||||||||||||||||||||||||||||||
· | Level III - Valuations based on inputs that are unobservable and where there is little, if any, market activity at the measurement date. The inputs for the determination of fair value may require significant management judgment or estimation and is based upon management’s assessment of the assumptions that market participants would use in pricing the assets or liabilities. These investments include debt and equity investments in private companies or assets valued using the market or income approach and may involve pricing models whose inputs require significant judgment or estimation because of the absence of any meaningful current market data for identical or similar investments. The inputs in these valuations may include, but are not limited to, capitalization and discount rates, beta and EBITDA multiples. The information may also include pricing information or broker quotes which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimer would result in classification as Level III information, assuming no additional corroborating evidence. | ||||||||||||||||||||||||||||||
Fair Value Measurement on a Recurring Basis | |||||||||||||||||||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. | |||||||||||||||||||||||||||||||
In addition to using the above inputs in investment valuations, the Company continues to employ a valuation policy that is consistent with ASC 820 (Note 2). Consistent with the Company’s valuation policy, management evaluates the source of inputs, including any markets in which the investments are trading, in determining fair value. | |||||||||||||||||||||||||||||||
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. | |||||||||||||||||||||||||||||||
The Company’s equity method investment is valued based on its proportionate share of the net assets of the underlying fund. The terms of the investments generally preclude the ability to redeem the investment. Distributions from this investment will be received as the underlying assets in the funds are liquidated, the timing of which cannot be readily determined. | |||||||||||||||||||||||||||||||
The following tables present the fair value measurements of investments, by major class according to the fair value hierarchy: | |||||||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Senior secured loans and notes | $ | - | $ | - | $ | 664,108 | $ | 664,108 | |||||||||||||||||||||||
Equity interests in LLCs | - | - | 48,784 | 48,784 | |||||||||||||||||||||||||||
Equity securities | 62 | 29 | 19,822 | 19,913 | |||||||||||||||||||||||||||
Investments in tangible assets | - | - | 2,065 | 2,065 | |||||||||||||||||||||||||||
Equity method investment | - | - | 9,901 | 9,901 | |||||||||||||||||||||||||||
Total assets | $ | 62 | $ | 29 | $ | 744,680 | $ | 744,771 | |||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 16 | $ | - | $ | 141,119 | $ | 141,135 | |||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Senior secured loans and notes | $ | - | $ | - | $ | 423,324 | $ | 423,324 | |||||||||||||||||||||||
Equity interests in LLCs | - | - | 18,624 | 18,624 | |||||||||||||||||||||||||||
Equity securities | 140 | 95 | 8,415 | 8,650 | |||||||||||||||||||||||||||
Investments in tangible assets | - | - | 2,798 | 2,798 | |||||||||||||||||||||||||||
Equity method investment | - | - | 10,173 | 10,173 | |||||||||||||||||||||||||||
Total assets | $ | 140 | $ | 95 | $ | 463,334 | $ | 463,569 | |||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 35 | $ | - | $ | 41,143 | $ | 41,178 | |||||||||||||||||||||||
A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting Level III of the fair value hierarchy are reported as transfers in or out of the Level III category as of the beginning of the quarter in which the reclassifications occur. There were no transfers between any levels in the fair value hierarchy during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
The following tables provide a reconciliation of the beginning and ending balances for the Consolidated Funds’ Level III investments and the Company’s investment in its equity method investee: | |||||||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||
Financial Assets | Liabilities | ||||||||||||||||||||||||||||||
Investments of Consolidated Funds | |||||||||||||||||||||||||||||||
Senior Secured Loans and Notes | Equity Interests in LLCs | Equity Securities | Investment in Tangible Assets | Equity Method Investment | Total | Secured borrowings of Consolidated Funds | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 423,324 | $ | 18,624 | $ | 8,415 | $ | 2,798 | $ | 10,173 | $ | 463,334 | $ | 41,143 | |||||||||||||||||
Amortization | 1,949 | - | - | - | - | 1,949 | - | ||||||||||||||||||||||||
Paid in-kind interest income | 5,531 | 53 | - | - | - | 5,584 | - | ||||||||||||||||||||||||
Purchases | 423,954 | 24,753 | 2,499 | - | - | 451,206 | - | ||||||||||||||||||||||||
Sales and settlements | -155,129 | - | -2,369 | - | - | -157,498 | - | ||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | -35,521 | 5,354 | 11,277 | -733 | -272 | -19,895 | - | ||||||||||||||||||||||||
Unrealized depreciation on secured borrowings of Consolidated Funds, net | - | - | - | - | - | - | -1,155 | ||||||||||||||||||||||||
Proceeds from secured borrowings, net | - | - | - | - | - | - | 101,131 | ||||||||||||||||||||||||
Balance, end of year | $ | 664,108 | $ | 48,784 | $ | 19,822 | $ | 2,065 | $ | 9,901 | $ | 744,680 | $ | 141,119 | |||||||||||||||||
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | $ | -36,330 | $ | 5,354 | $ | 11,297 | $ | -734 | $ | -272 | $ | -20,685 | $ | -1,155 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||
Financial Assets | Liabilities | ||||||||||||||||||||||||||||||
Investments of Consolidated Funds | |||||||||||||||||||||||||||||||
Senior Secured Loans and Notes | Equity Interests in LLCs | Equity Securities | Investment in Tangible Assets | Equity Method Investment | Total | Secured borrowings of Consolidated Funds | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 324,353 | $ | 14,790 | $ | 11,973 | $ | 5,160 | $ | 9,929 | $ | 366,205 | $ | 16,374 | |||||||||||||||||
Amortization | 1,644 | - | - | - | - | 1,644 | - | ||||||||||||||||||||||||
Paid in-kind interest income | 9,500 | - | - | - | - | 9,500 | - | ||||||||||||||||||||||||
Purchases | 196,813 | 2,727 | 391 | - | - | 199,931 | - | ||||||||||||||||||||||||
Sales and settlements | -91,184 | -105 | -2,926 | -800 | - | -95,015 | - | ||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | -17,802 | 1,212 | -1,023 | -1,562 | 244 | -18,931 | - | ||||||||||||||||||||||||
Unrealized appreciation on secured borrowings of Consolidated Funds, net | - | - | - | - | - | - | 310 | ||||||||||||||||||||||||
Proceeds from secured borrowings, net | - | - | - | - | - | - | 24,459 | ||||||||||||||||||||||||
Balance, end of year | $ | 423,324 | $ | 18,624 | $ | 8,415 | $ | 2,798 | $ | 10,173 | $ | 463,334 | $ | 41,143 | |||||||||||||||||
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | $ | -16,061 | $ | 2,739 | $ | -972 | $ | -2,361 | $ | 244 | $ | -16,411 | $ | 310 | |||||||||||||||||
Total realized and unrealized appreciation (depreciation) recorded for the Consolidated Funds’ Level III investments is included in net realized gain (loss) on investments of Consolidated Funds and net change in unrealized depreciation on investments of Consolidated Funds in the consolidated statements of operations, respectively. | |||||||||||||||||||||||||||||||
The following tables summarize the quantitative inputs and assumptions used for the Consolidated Funds’ Level III inputs and the Company’s investment in its equity method investee as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Assets | Fair Value as of December 31, 2014 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | ||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Senior Secured Loans and Notes | $ | 193 | Negotiated Sales Proceeds | Expected Sales Proceeds | $ | - | $ | 4,000,000 | $ | 1,932,000 | |||||||||||||||||||||
4,009 | Sales Comparison Approach | Price per Acre | $ | 8,000 | $ | 41,000 | $ | 24,500 | |||||||||||||||||||||||
Price per room | $ | 43,200 | $ | 71,429 | $ | 57,315 | |||||||||||||||||||||||||
Price per unit | $ | 155,734 | $ | 228,009 | $ | 191,872 | |||||||||||||||||||||||||
403 | Market Approach (Guideline Comparable) | LTM Revenue Multiple | 0.60x | 0.60x | 0.45x | ||||||||||||||||||||||||||
346 | Market Approach (Guideline Comparable) | LTM EBITDA Multiple | 3.10x | 3.62x | 3.60x | ||||||||||||||||||||||||||
1,167 | Market Approach (Guideline Comparable) | LTM EBITDA multiple | 3.10x | 5.50x | 4.30x | ||||||||||||||||||||||||||
LTM Revenue multiple | 0.50x | 0.65x | 0.58x | ||||||||||||||||||||||||||||
1,989 | Income Approach (DCF) | Discount rate | 12.0% | 35.0% | 20.5% | ||||||||||||||||||||||||||
144 | Liquidation Approach | Asset Coverage | $ | 144,531 | $ | 144,531 | $ | 144,531 | |||||||||||||||||||||||
566,010 | Income approach | Market yield | 10.00% | 15.21% | 12.45% | ||||||||||||||||||||||||||
37,600 | Recent Arms-length transaction | Recent Arms-length transaction | N/A | N/A | N/A | ||||||||||||||||||||||||||
21,005 | Income approach | Discount Rate | 14.00% | 18.00% | 16.45% | ||||||||||||||||||||||||||
15,859 | Market Approach (Guideline Comparable) | EBITDA Multiple | 5.50x | 6.00x | 5.75x | ||||||||||||||||||||||||||
5,095 | Enterprise Valuation Analysis | EBITDA Multiple | 6.00x | 7.00x | 7.00x | ||||||||||||||||||||||||||
8,910 | Market Approach (Guideline Comparable) | Rev Multiple / EBITDA Multiple | 0.43x / 4.09x | 0.43x / 4.09x | 0.43x / 4.09x | ||||||||||||||||||||||||||
1,378 | Enterprise Valuation Analysis | EBITDA Multiple/Estimated Liquidation Proceeds | 2.00x / $205.8M | 2.00x / $205.8M | 2.00x / $205.8M | ||||||||||||||||||||||||||
Equity Interests in LLCs | 1,370 | Market Approach | Unsolicited Offer Price | $ | 12,000,000 | $ | 12,000,000 | $ | 12,000,000 | ||||||||||||||||||||||
5,623 | Market Approach (Guideline Comparable) | Investment Portfolio Multiple | 1.10x | 1.10x | 1.10x | ||||||||||||||||||||||||||
3,099 | Market Approach (Guideline Comparable) | EBITDA Multiple | 6.25x | 8.50x | 6.70x | ||||||||||||||||||||||||||
2,595 | Market Approach (Guideline Comparable) | EBITDA Multiple / Volatility | 3.75x / 50% | 3.75x / 50% | 3.75x / 50% | ||||||||||||||||||||||||||
581 | Income Approach (DCF) | Market Yield | 13.14% | 13.14% | 13.14% | ||||||||||||||||||||||||||
14,516 | Income Approach (DCF) | Discount Rate | 14.00% | 18.00% | 18.00% | ||||||||||||||||||||||||||
15,000 | Income Approach (DCF) | Capitalization rate | 8.70% | 8.70% | 8.70% | ||||||||||||||||||||||||||
6,000 | Recent Arms-length transaction | Recent Arms-length transaction | N/A | N/A | N/A | ||||||||||||||||||||||||||
Equity Securities | 7,936 | Market Approach (Guideline Comparable) | EBITDA Multiple | 4.00x | 8.31x | 5.20x | |||||||||||||||||||||||||
10,364 | Option Model | Tangible Book Value Multiple / Volatility | 1.30x / 41.5% | 1.30x / 41.5% | 1.30x / 41.5% | ||||||||||||||||||||||||||
105 | Option Model | Volatility | 90.80% | 90.80% | 90.80% | ||||||||||||||||||||||||||
194 | Market Approach (Guideline Comparable) | LTM EBITDARD multiple | 10.40x | 11.10x | 10.75x | ||||||||||||||||||||||||||
NTM EBITDARD multiple | 9.50x | 10.80x | 10.15x | ||||||||||||||||||||||||||||
261 | Market Approach (Guideline Comparable) | Revenue Multiple | 0.30x | 0.60x | 0.45x | ||||||||||||||||||||||||||
417 | Income Approach (DCF) | Discount rate | 13.0% | 18.0% | 16.4% | ||||||||||||||||||||||||||
545 | Market Approach (Guideline Comparable) | LTM EBITDA multiple | 5.00x | 5.50x | 5.25x | ||||||||||||||||||||||||||
LTM Revenue multiple | 0.50x | 0.65x | 0.58x | ||||||||||||||||||||||||||||
Tangible Assets | 688 | Market Approach | Appraisal of assets | $ | 500,000 | $ | 2,200,000 | $ | 1,350,000 | ||||||||||||||||||||||
1,377 | Sales Comparison Approach | Price per SQM | 1,146 | 1,274 | 1,210 | ||||||||||||||||||||||||||
Equity Method Investment | 9,901 | Net Asset Value of Underlying Fund | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||
$ | 744,680 | ||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Liability | Fair Value as of December 31, 2014 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 130,157 | Income approach | Market yield | 10.00% | 15.21% | 12.45% | ||||||||||||||||||||||||
5,947 | Market Approach (Guideline Comparable) | EBITDA Multiple | 5.50x | 6.00x | 5.75x | ||||||||||||||||||||||||||
5,000 | Income Approach (DCF) | Capitalization rate | 8.70% | 8.70% | 8.70% | ||||||||||||||||||||||||||
15 | Market Approach (Guideline Comparable) | EBITDA Multiple | 4.00x | 8.31x | 5.20x | ||||||||||||||||||||||||||
$ | 141,119 | ||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Assets | Fair Value as of December 31, 2013 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Senior Secured Loans | $ | 386 | Sales Comparison Approach | Price per ton | $ | 0.25 | $ | 1.00 | $ | 0.63 | |||||||||||||||||||||
1,487 | Market Approach | Price per acre | $ | 8,750 | $ | 42,396 | $ | 25,573 | |||||||||||||||||||||||
2,169 | Market Approach | Price per room | $ | 32,038 | $ | 71,429 | $ | 51,734 | |||||||||||||||||||||||
Price per unit | $ | 152,507 | $ | 417,016 | $ | 284,762 | |||||||||||||||||||||||||
Discount-lack of | |||||||||||||||||||||||||||||||
marketability | 25.0% | 35.0% | 30.0% | ||||||||||||||||||||||||||||
7,362 | Income Approach (DCF) | Discount rate | 12.0% | 17.4% | 14.7% | ||||||||||||||||||||||||||
390,770 | Income Approach (DCF) | Market yield | 9.0% | 20.2% | 13.7% | ||||||||||||||||||||||||||
14,780 | Market Approach (Guideline Comparable) | EBITDA multiple | 6.0x | 6.0x | 6.0x | ||||||||||||||||||||||||||
1,871 | Enterprise valuation analysis | Liquidation proceeds | $ | 205.8M | $ | 205.8M | $ | 205.8M | |||||||||||||||||||||||
34 | Income Approach (DCF) | Market yield | 14.2% | 14.2% | 14.2% | ||||||||||||||||||||||||||
335 | Current Value | LTM Revenue multiple | 1.50x | 1.75x | 1.63x | ||||||||||||||||||||||||||
412 | Guideline Comparable | Forward EBITDA multiple | 3.75x | 3.75x | 3.75x | ||||||||||||||||||||||||||
1,109 | Guideline Comparable | LTM EBITDA multiple | 5.25x | 5.25x | 5.25x | ||||||||||||||||||||||||||
Guideline Comparable | LTM Revenue multiple | 0.6x | 0.6x | 0.6x | |||||||||||||||||||||||||||
1,000 | Cost Approach | Expected proceeds | $ | 10,000,000 | $ | 10,000,000 | $ | 10,000,000 | |||||||||||||||||||||||
1,609 | Liquidation Approach | Asset coverage | $ | 16,095,312 | $ | 16,095,312 | $ | 16,095,312 | |||||||||||||||||||||||
Equity Interests in LLCs | 2,313 | Income Approach (DCF) | Discount rate | 16.5% | 16.5% | 16.5% | |||||||||||||||||||||||||
Income Approach (DCF) | Long term growth rate | 1.5% | 1.5% | 1.5% | |||||||||||||||||||||||||||
3,646 | Market Approach (Guideline Comparable) | Investment portfolio multiple | 1.0x | 1.0x | 1.0x | ||||||||||||||||||||||||||
11,697 | Cost approach | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
968 | Expected Precedent Transaction | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Equity Securities | 411 | Income Approach (DCF) | Discount rate | 12.0% | 50.0% | 15.9% | |||||||||||||||||||||||||
154 | Market Approach (Guideline Comparable) | LTM EBITDA multiple | 11.5x | 11.5x | 11.5x | ||||||||||||||||||||||||||
LTM Revenue multiple | 1.5x | 1.5x | 1.5x | ||||||||||||||||||||||||||||
964 | Market Approach (Current Value) | Revenue multiple | 1.6x | 1.6x | 1.6x | ||||||||||||||||||||||||||
Market Approach (Current Value) | Price per ton | $ | 148 | $ | 148 | $ | 148 | ||||||||||||||||||||||||
720 | Income Approach (DCF) | Discount rate | 30.0% | 30.0% | 30.0% | ||||||||||||||||||||||||||
362 | Guideline Comparable | LTM revenue multiple | 5.3x | 5.3x | 5.3x | ||||||||||||||||||||||||||
3,150 | Market Approach (Guideline Comparable) | EBITDA multiple | 3.5x | 7.5x | 6.1x | ||||||||||||||||||||||||||
2,639 | Option Model | Volatility | 47.9% | 47.9% | 47.9% | ||||||||||||||||||||||||||
15 | Cost Approach | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Tangible Assets | 1,421 | Market Approach | Appraisal of assets | $ | 100,000 | $ | 3,700,000 | $ | 1,900,000 | ||||||||||||||||||||||
1,377 | Sales Comparison Approach | Price per square meter | 6,716 | 6,716 | 6,716 | ||||||||||||||||||||||||||
Equity method investment | 10,173 | Net Asset Value of Underlying Fund | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||
463,334 | |||||||||||||||||||||||||||||||
a | |||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Liability | Fair Value as of December 31, 2013 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 41,135 | Income Approach (DCF) | Market yield | 9.0% | 20.2% | 13.7% | ||||||||||||||||||||||||
8 | Income Approach (DCF) | Market yield | 14.2% | 14.2% | 14.2% | ||||||||||||||||||||||||||
$ | 41,143 | ||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Consolidated Funds’ investments in senior secured loans include discount due to lack of marketability, discount rate, market yield, earnings before interest, tax, depreciation and amortization (“EBITDA”) and revenue multiples, expected proceeds, and asset coverage. Significant increases or decreases in discount rates, market yields, EBITDA multiples in isolation would result in a significantly higher or lower fair value measurement. | |||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Consolidated Funds’ investments in equity interests in LLCs include discount rates, long term growth rates, and portfolio multiples. Significant increases or decreases in discount rates, growth rates and portfolio multiples would result in lower or higher fair value measurements. | |||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Consolidated Funds’ investments in equity securities include revenue, EBITDA and revenue multiples, price per ton, expected proceeds, discount rates, and stock price valuation. Significant increases or decreases in these factors would result in a significantly higher or lower fair value measurement. | |||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Consolidated Funds’ investments in tangible assets include price per ton, price per acre, price per room, price per unit appraisals and price per square foot. Significant increases or decreases in these factors would result in a significantly higher or lower fair value measurement. | |||||||||||||||||||||||||||||||
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Asset [Abstract] | |||||||
Other Assets | |||||||
5. Other Assets | |||||||
The components of other assets are as follows: | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Other Assets of Medley LLC: | (Amounts in thousands) | ||||||
Property and equipment, net of accumulated depreciation of $1,232 and $1,351, respectively | $ | 1,367 | $ | 1,247 | |||
Security deposits | 1,218 | 1,218 | |||||
Administrative fees receivable (Note 10) | 1,500 | 1,640 | |||||
Deferred tax assets | 874 | 634 | |||||
Deferred financing costs, net of accumulated amortization of $217 and $0, respectively | 2,329 | 337 | |||||
Due from affiliates (Note 10) | 382 | 224 | |||||
Prepaid expenses | 627 | - | |||||
Other receivables | 933 | 8 | |||||
Total other assets of Medley LLC | 9,230 | 5,308 | |||||
Other Assets of Consolidated Funds | |||||||
Restricted cash | 3,000 | - | |||||
Deferred tax assets | 340 | - | |||||
Other receivables | 341 | 436 | |||||
Total other assets of Consolidated Funds | 3,681 | 436 | |||||
Total other assets | $ | 12,911 | $ | 5,744 | |||
For the years ended December 31, 2014, 2013 and 2012, depreciation and amortization expense was $0.4 million, $0.3 million and $0.3 million, respectively. | |||||||
Restricted cash of Consolidated Funds consists of $3.0 million held as collateral against an irrevocable standby letter of credit required by a third-party lender to one of the fund’s investments. | |||||||
LOANS_PAYABLE
LOANS PAYABLE | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Loans Payable [Abstract] | |||||||
Loans Payable | |||||||
6.LOANS PAYABLE | |||||||
The Company’s loans payable consist of the following: | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in thousands) | |||||||
Credit Suisse Term Loan Facility: | |||||||
Term loans, net of unamortized discount of $1,006 | $ | 93,994 | $ | - | |||
CNB credit agreement: | |||||||
Term loan | - | 15,000 | |||||
Revolving credit facility | - | 3,000 | |||||
Co-invest term loan | - | 2,000 | |||||
Non-recourse promissory notes, net of unamortized discount of $2,500 and $3,010, respectively | 9,063 | 7,990 | |||||
Total Loans payable | $ | 103,057 | $ | 27,990 | |||
Credit Suisse Term Loan Facility | |||||||
On August 14, 2014, the Company entered into a $110.0 million senior secured term loan credit facility (“Term Loan Facility”) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent thereunder, Credit Suisse Securities (USA) LLC, as bookrunner and lead arranger, and the lenders from time to time party thereto, which will mature on June 15, 2019. The proceeds from the term loans amounting to $108.9 million after a $1.1 million issuer discount, together with cash on hand, were used to: (a) pay off the existing loan under the CNB Credit Agreement in the amount of $33.2 million, (b) pay fees and expenses incurred in connection with this financing in the amount of $2.6 million, of which $2.4 million have been deferred, and (c) pay a distribution to Medley LLC’s members in the amount of $74.5 million. In connection with this financing, the Company terminated its pre-existing credit agreement with City National Bank. | |||||||
Borrowings under the Term Loan Facility bear interest, at the borrower’s option, at a rate equal to either a Eurodollar margin over an adjusted LIBOR (with a “floor” of 1.0%) or a base rate margin over an adjusted base rate determined by reference to the highest of (a) the term loan administrative agent’s prime rate; (b) the federal funds effective rate in effect on such day plus 0.5%; and (c) an adjusted LIBOR plus 1.0%. The applicable margins for the Term Loan Facility are 5.5%, in the case of Eurodollar loans and 4.5%, in the case of adjusted base rate loans. Outstanding borrowings under the Term Loan Facility bore interest at a rate of 6.5% as of December 31, 2014. In addition, the Term Loan Facility also provides the borrower with the option to raise incremental credit facilities (including an uncommitted incremental facility that provides the borrower the option to increase the amount available under the Term Loan Credit Facility by an aggregate of up to $15.0 million, subject to additional increases, provided that the net leverage ratio as of the last day of any four-fiscal quarter period, commencing with the four-fiscal quarter period ending December 31, 2014, shall not exceed 2.0 to 1.0). Borrowings are collateralized by substantially all of the equity interests in Medley LLC and its wholly owned subsidiaries. | |||||||
The Term Loan Facility requires principal repayments in quarterly installments equal to $1.4 million (which amount may be adjusted as a result of prepayment or incremental term loans drawn) commencing on March 31, 2015, with the remaining amount payable at maturity. The Company can also make voluntary repayments, without penalty, at any time prior to August 14, 2016, not to exceed $33.0 million in the aggregate. As of December 31, 2014, outstanding borrowings under this facility was $94.0 million, which is reflected net of unamortized discount of $1.0 million. The discount under the term loans is being accreted, using the effective interest method, over the term of the notes. Total interest expense under this Term Loan Facility, including accretion of the note discount, was $2.6 million for the year ended December 31, 2014. The fair value of the outstanding balance of Term Loan Facility approximated its par value as of December 31, 2014 | |||||||
In October 2014, the Company voluntarily prepaid $15.0 million of the outstanding term loans under this facility using a portion of the proceeds received from its initial public offering. The $15.0 million prepayment is being applied against the upcoming quarterly installments that are due commencing on March 31, 2015. | |||||||
The Term Loan Facility also contains a financial covenant that requires the Company to maintain a Maximum Net Leverage Ratio commencing with the quarter ending on December 31, 2014 of not greater than 3.5 to 1.0, with which the Company is compliant. This ratio is calculated on a trailing twelve months basis and is the ratio of Total Net Debt, as defined, to Core EBITDA, as defined, and is calculated using the Company’s standalone financial results and includes the adjustments made to calculate Core EBITDA (Note 14). Non-compliance with any of the financial or non-financial covenants without cure or waiver would constitute an event of default under the Term Loan Facility. The Term Loan Facility also contains other customary events of default, including defaults based on events of bankruptcy and insolvency, dissolution, nonpayment of principal, interest or fees when due, breach of specified covenants, change in control and material inaccuracy of representations and warranties. There were no events of default under the Term Loan Facility as of December 31, 2014. | |||||||
CNB Credit Agreement | |||||||
In December 2013, the Company entered into a credit agreement (the “Credit Agreement”) with City National Bank (“CNB”), under which it borrowed $15.0 million in a term loan, $2.0 million in a co-invest term loan and $3.0 million under a revolving credit facility. In March 2014, the Company amended the Credit Agreement to increase the term loan to $30.0 million. The proceeds from these loans were primarily used to purchase membership interests from former Medley members. | |||||||
In connection with the execution of the Term Loan Facility amounts outstanding under the Credit Agreement were paid in full and the agreement was terminated. | |||||||
On August 14, 2014, the Company entered into a new $15.0 million senior secured revolving credit facility with City National Bank (the ‘‘Revolving Credit Facility’’). The Company intends to use any proceeds of borrowings under the Revolving Credit Facility for general corporate purposes, including funding of its working capital needs. Borrowings under the Revolving Credit Facility bear interest at the option of the Company, either (a) at an Alternate Base Rate, as defined, plus an applicable margin not to exceed 3.25% or (b) at an Adjusted LIBOR plus an applicable margin not to exceed 4.0%. As of and during the period ended December 31, 2014, there were no amounts drawn under the Revolving Credit Facility. | |||||||
Non-Recourse Promissory Notes | |||||||
In April 2012, the Company borrowed $10.0 million under two non-recourse promissory notes. Proceeds from the borrowings were used to purchase 1,108,033 shares of common stock of SIC, which were pledged as collateral for the obligations. Interest on the notes is paid quarterly and is equal to the dividends received by the Company related to the pledged shares. The Company may prepay the notes in whole or in part at any time without penalty and the lenders may call the notes if certain conditions are met. The notes are scheduled to mature in March 2019. The proceeds from the notes were recorded net of issuance costs of $3.8 million and are being accreted, using the effective interest method, over the term of the non-recourse promissory notes. Total interest expense under these non-recourse promissory notes, including accretion of the note discount, was $1.4 million for each of the years ended December 31, 2014 and 2013 and $0.8 million for the year ended December 31, 2012. The fair value of the outstanding balance of the notes was $10.3 million and $10.2 million as of December 31, 2014 and 2013, respectively. | |||||||
In December 2013, the Company issued an unsecured promissory note in the amount of $1.0 million to a former Medley member in connection with the purchase of his membership interests. Interest on the note accrued at an annual rate of 0.25% and the note plus accrued interest was paid in full as of December 31, 2014. | |||||||
In March 2014, the Company issued a promissory note in the amount of $2.5 million to a former Medley member in connection with the purchase of his membership interests. The promissory note carries no interest, has quarterly amortization payments of $312,500, and matures in March 2016. As of December 31, 2014, the balance under this note was $1.6 million. | |||||||
Contractual Maturities of Loans Payable | |||||||
As of December 31, 2014, future principal payments due under the loans payable are as follows (in thousands): | |||||||
2015 | $ | 1,250 | |||||
2016 | 312 | ||||||
2017 | 2,875 | ||||||
2018 | 5,500 | ||||||
2019 | 96,626 | ||||||
$ | 106,563 | ||||||
ACCOUNTS_PAYABLE_ACCRUED_EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||||
7.ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||
The components of accounts payable, accrued expenses and other liabilities are as follows: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in thousands) | |||||||
Accounts payable, accrued expenses and other liabilities of Medley LLC: | |||||||
Accrued compensation and benefits | $ | 8,575 | $ | 5,650 | |||
Due to affiliates (Note 10) | 6,998 | 3,676 | |||||
Revenue share payable (Note 9) | 6,669 | 5,286 | |||||
Dividends payable | 1,423 | - | |||||
Income taxes payable | 741 | - | |||||
Professional fees | 545 | 647 | |||||
Deferred rent | 474 | 794 | |||||
Deferred tax liabilities | 245 | 391 | |||||
Accounts payable and accrued expenses | 1,913 | 1,169 | |||||
Total accounts payable, accrued expenses and other liabilities of Medley LLC | 27,583 | 17,613 | |||||
Accounts payable, accrued expenses and other liabilities of Consolidated Funds | 5,767 | 1,325 | |||||
Total accounts payable, accrued expenses and other liabilities | $ | 33,350 | $ | 18,938 | |||
Dividends payable is comprised of $1.2 million due to the Company’s Class A common stockholders and $0.2 million payable to the Company’s restricted stock unit holders. Dividends payable to Class A common holders represents a $0.20 per Class A common stock dividend that was declared on November 10, 2014 to shareholders of record as of the close of business on December 17, 2014 but not paid until January 2015. As the restricted stock units are participating securities, the Company calculated the amount due to the holders of the restricted stock units based on the $0.20 per Class A common stock dividend declaration amount and the number of restricted stock units expected to vest. | |||||||
SECURED_BORROWINGS
SECURED BORROWINGS | 12 Months Ended |
Dec. 31, 2014 | |
Secured Borrowings [Abstract] | |
Secured Borrowings | 8.SECURED BORROWINGS |
The Consolidated Funds have loan participations which do not meet the definition of a “participating interest”, as defined in ASC 860, Transfers and Servicing. As such, these loan participations remain on the Company’s Consolidated Balance Sheets and are recorded at fair value, as secured borrowings of Consolidated Funds. | |
As of December 31, 2014, secured borrowings of Consolidated Funds at cost and fair value totaled $143.0 million and $141.1 million, respectively. The fair value of the investments that are associated with these secured borrowings was $141.1 million. During the year ended December 31, 2014, the Consolidated Funds received net proceeds from secured borrowings of $100.6 million. | |
As of December 31, 2013, secured borrowings of Consolidated Funds at cost and fair value totaled $41.5 million and $41.2 million, respectively. The fair value of the investments that are associated with these secured borrowings was $41.2 million. During the year ended December 31, 2013, the Consolidated Funds received net proceeds from secured borrowings of $24.0 million. | |
For the years ended December 31, 2014, 2013 and 2012, the Company recorded interest expense related to the secured borrowings of the Consolidated Funds of $10.0 million, $2.6 million and $2.7 million, respectively. | |
Future minimum repayments under the secured borrowings of the Consolidated Funds are $0 for the years ending December 31, 2015 and 2016, $19.1 million, $31.0 million and $92.0 million for the years ended December 31, 2017, 2018 and 2019, respectively, and $0.9 million thereafter. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
Commitments and Contingencies | ||||
9.COMMITMENTS AND CONTINGENCIES | ||||
Operating Leases | ||||
Medley leases office space in New York City and San Francisco under non-cancelable lease agreements that expire at various times through December 2020. Rent expense was $2.6 million, $2.2 million and $2.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
Future minimum rental payments under non-cancelable leases are as follows (in thousands): | ||||
2015 | $ | 2,454 | ||
2016 | 784 | |||
2017 | 452 | |||
2018 | 457 | |||
2019 | 463 | |||
Thereafter | 469 | |||
Total future minimum lease payments | $ | 5,079 | ||
Capital Commitments to Funds | ||||
As of December 31, 2014 and 2013, the Company had aggregate unfunded commitments of $1.1 million and $1.5 million, respectively, to certain long dated private funds. | ||||
Other Commitments | ||||
In April 2012, the Company entered into an obligation to pay a fixed percentage of management and incentive fees received by the Company from SIC. The agreement was entered into contemporaneously with the $10 million non-recourse promissory notes that were issued to the same parties (Note 6). The two transactions were deemed to be related freestanding contracts and the $10 million of loan proceeds were allocated to the contracts using their relative fair values. At inception, the Company recognized an obligation of $4.4 million representing the present value of the future cash flows expected to be paid under this agreement. At December 31, 2014 and 2013, the obligation amounted to $6.7 million and $5.3 million, respectively and is recorded as a component of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets as revenue share payable. The change in the estimated cash flows for this obligation is recorded in other income (expense) on the consolidated statements of operations. | ||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | |
10.RELATED PARTY TRANSACTIONS | |
Substantially all of Medley’s revenue is earned through agreements with its consolidated and non-consolidated funds for which it collects management and performance fees for providing investment and management services. | |
In April 2012, Medley entered into an investment advisory agreement (“IAA”) with SIC. Pursuant to the terms of the IAA, Medley agreed to bear all organization and offering expenses (“O&O Expenses”) related to SIC until the earlier of the end of the SIC offering period or such time that SIC has raised $300 million in gross proceeds in connection with the sale of shares of its common stock. Effective June 2, 2014, Medley was no longer liable for these expenses as SIC had reached the $300 million in gross proceeds threshold. The SIC IAA also requires SIC to reimburse Medley for O&O Expenses incurred by Medley in an amount equal to 1.25% of the aggregate gross proceeds in connection with the sale of shares of its common stock until the earlier of the end of the SIC offering period, which is currently scheduled to terminate in April 2016, or Medley has been repaid in full. As of December 31, 2014, there were no reimbursements that were due to Medley. | |
During the year ended December 31, 2014, 2013 and 2012, Medley incurred O&O Expenses of $1.5 million, $1.4 million and $1.9 million, respectively, which were recorded within general, administrative, and other expenses in the consolidated statements of operations. Reimbursements of O&O are recorded in other revenues and fees on the consolidated statements of operations and were $3.8 million, $1.8 million and $0.3 million during the years ended December 31, 2014, 2013 and 2012, respectively. | |
In June 2012, Medley entered into an Expense Support and Reimbursement Agreement (“ESA”) with SIC. Under the ESA, until June 30, 2015, unless extended, Medley will pay up to 100% of SIC’s operating expenses in order for SIC to achieve a reasonable level of expenses relative to its investment income. Pursuant to the ESA, SIC has a conditional obligation to reimburse Medley for any amounts they funded under the ESA if, within three years of the date on which Medley funded such amounts, SIC meets certain financial levels. For the years ended December 31, 2014, 2013 and 2012, Medley recorded $5.0 million, $3.9 million and $1.5 million, respectively, for ESA expenses under this agreement. The ESA expenses are recorded within general, administrative, and other expense in the consolidated statements of operations. Medley recorded a liability of $5.2 million and $3.4 million as of December 31, 2014 and 2013, respectively, for ESA expenses related to this agreement. These amounts are included in accounts payable, accrued expenses and other liabilities as due to affiliates on the consolidated balance sheets. | |
In January 2011, Medley entered into an administration agreement with MCC (the “MCC Admin Agreement”), whereby Medley agreed to provide administrative services necessary for the operations of MCC. MCC agreed to pay Medley for the costs and expenses incurred in providing such administrative services, including an allocable portion of Medley’s overhead expenses and an allocable portion of the cost of MCC’s officers and their respective staffs. Medley records these administrative fees as revenue in the period when the services are provided and are included in other revenues and fees on the consolidated statement of operations. During the years ended December 31, 2014, 2013 and 2012, the Company recorded $3.7 million, $2.6 million and $1.8 million, respectively, of revenue related to the MCC Admin Agreement. As of December 31, 2014 and 2013, the Company had $1.1 million and $0.7 million, respectively, of administrative fees receivable under the MCC Admin Agreement, which are included in other assets on the consolidated balance sheets. | |
In April 2012, Medley entered into an administration agreement with SIC (the “SIC Admin Agreement”), whereby Medley agreed to provide administrative services necessary for the operations of SIC. SIC agreed to pay Medley for the costs and expenses incurred in providing such administrative services including an allocable portion of Medley’s overhead expenses and an allocable portion of the cost of SIC’s officers and their respective staffs. Medley records these administrative fees as revenue in the period when the services are provided and are included in other revenues and fees on the consolidated statement of operations. For the years ended December 31, 2014, 2013 and 2012, the Company recorded $1.3 million, $0.6 million and $0.4 million, respectively, of revenue related to the SIC Admin Agreement. As of December 31, 2014 and 2013, the Company had $0.4 million and $1.0 million, respectively, of fees receivable under the SIC Admin Agreement, which are included in other assets on the consolidated balance sheets. | |
Promissory Notes | |
In December 2013, the Company issued an unsecured promissory note in the amount of $1.0 million to a former Medley member in connection with the purchase of his membership interests. Interest on the note accrued at an annual rate of 0.25% and the note plus accrued interest was paid in full at December 31, 2014. | |
In March 2014, the Company issued a promissory note in the amount of $2.5 million to a former Medley member in connection with the purchase of his membership interests. The promissory note carries no interest, has quarterly amortization payments of $312,500, and matures in March 2016. | |
Exchange Agreement | |
Prior to the completion of the IPO, the Medley LLC Agreement was restated among other things, to modify its capital structure by reclassifying the interests held by its existing owners (i.e. the members of Medley prior to the IPO) into the LLC Units. Medley’s existing owners also entered into an exchange agreement under which they (or certain permitted transferees thereof) have the right, from and after the first anniversary of the date of the closing of the IPO (subject to the terms of the exchange agreement as described therein), to exchange their LLC Units for shares of Medley Management Inc.’s Class A Common Stock on a one-for-one basis at fair value, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. | |
Tax Receivable Agreement | |
Medley Management Inc. entered into a tax receivable agreement with the holders of LLC Units that provides for the payment by Medley Management Inc. to exchanging holders of LLC Units of 85% of the benefits, if any, that Medley Management Inc. is deemed to realize as a result of increases in tax basis of tangible and intangible assets of Medley LLC from the future exchange of LLC Units for shares of Class A common stock, as well as certain other tax benefits related to entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. | |
The term of the tax receivable agreement will continue until all such tax benefits under the agreement have been utilized or expired, unless Medley Management Inc. exercises its right to terminate the tax receivable agreement for an amount based on an agreed value of payments remaining to be made under the agreement. As of December 31, 2014, there were no transactions under this agreement. | |
EARNINGS_PER_CLASS_A_SHARE
EARNINGS PER CLASS A SHARE | 12 Months Ended | ||
Dec. 31, 2014 | |||
Earnings Per Class A Share [Abstract] | |||
Earnings Per Class A Share | |||
11.EARNINGS PER CLASS A SHARE | |||
The table below presents basic and diluted net income per Class A share using the two-class method for the year ended December 31, 2014: | |||
Year ended | |||
31-Dec-14 | |||
Basic and diluted net income per share: | (Amounts in thousands, except per share amounts) | ||
Numerator | |||
Net income attributable to Medley Management Inc. | $ | 1,695 | |
Less: Dividends declared on Class A common stock (1) | -1,200 | ||
Less: Dividends payable to participating securities (2) | -222 | ||
Less: Undistributed net income available to participating securities (2) | -45 | ||
Undistributed net income available to class A common stockholders | $ | 228 | |
Denominator | |||
Weighted average shares of Class A shares outstanding, including participating securities | 7,177,432 | ||
Less: weighted average of participating securities (2) | -1,177,432 | ||
Weighted average Class A common stock outstanding: Basic | 6,000,000 | ||
Weighted average shares of Class A shares outstanding: Diluted | 6,000,000 | ||
Add: dilutive effects of conversion of LLC Units (3) | - | ||
Weighted average dilutive shares outstanding | 6,000,000 | ||
Net income per Class A share: Basic and Diluted | |||
Distributable earnings | $ | 0.20 | |
Undistributed income | 0.04 | ||
Net income per Class A share | $ | 0.24 | |
(1)The Company declared a $0.20 dividend on Class A common stock on November 10, 2014. | |||
(2)Participating securities relate to the Company’s grant of restricted stock units in connection with its IPO. | |||
(3)Excludes the assumed conversion of 23,333,333 LLC units to Class A shares as the impact would be antidilutive | |||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Income Taxes | |||||||||
12.INCOME TAXES | |||||||||
The provision for (benefit from) income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following: | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(Amounts in thousands) | |||||||||
Current | |||||||||
Federal | $ | 486 | $ | - | $ | - | |||
State and local | 2,768 | 1,735 | 1,138 | ||||||
Total current provision | 3,254 | 1,735 | 1,138 | ||||||
Deferred | |||||||||
Federal | 2 | - | - | ||||||
State and local | -728 | -96 | -51 | ||||||
Total deferred provision | -726 | -96 | -51 | ||||||
Provision for income taxes | $ | 2,528 | $ | 1,639 | $ | 1,087 | |||
Deferred income taxes reflect the net effect of temporary differences between the tax basis of an asset or liability and its reported amount in the Company’s consolidated balance sheets. These temporary differences result in taxable or deductible amounts in future years. The significant components of deferred tax assets and liabilities included on the Company’s consolidated balance sheets are as follows: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Deferred tax assets | |||||||||
Tax goodwill | $ | 648 | $ | - | |||||
Unrealized losses | 343 | 97 | |||||||
Stock-based compensation | 27 | - | |||||||
Performance fee compensation | 17 | 201 | |||||||
Deferred rent | 13 | 19 | |||||||
Other liabilities | 166 | 317 | |||||||
Total deferred tax assets | $ | 1,214 | $ | 634 | |||||
Deferred tax liabilities | |||||||||
Accrued fee income | $ | 151 | $ | 363 | |||||
Other | 94 | 28 | |||||||
Total deferred tax liabilities | 245 | 391 | |||||||
Net deferred tax assets | $ | 969 | $ | 243 | |||||
The Company’s effective tax rate includes a rate benefit attributable to the fact that the Company’s subsidiaries operate as limited liability companies which are not subject to federal or state income tax. Accordingly, a portion of the Company’s earnings attributable to the non-controlling interest are not subject to corporate level taxes. For the year ended December 31, 2014, the Company was only subject to federal taxes on pre-tax income attributable to Medley Management Inc. during the fourth quarter of 2014 and for a two-day period in the third quarter of the year. | |||||||||
A reconciliation of the federal statutory tax rate to the effective tax rates for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Federal statutory rate | 34.0% | 34.0% | 34.0% | ||||||
Income allocated to non-controlling interests | -32.90% | -34.00% | -34.00% | ||||||
State and local corporate income taxes | 0.2% | 0.0% | 0.0% | ||||||
Partnership unincorporated business tax | 2.6% | 4.3% | 4.4% | ||||||
Permanent differences | -0.40% | 0.0% | 0.0% | ||||||
Effective tax rate | 3.5% | 4.3% | 4.4% | ||||||
Interest expense and penalties related to income tax matters are recognized as a component of the provision for income taxes. There were no such amounts incurred during the years ended December 31, 2014, 2013 and 2012. As of and during the years ended December 31, 2014, 2013 and 2012, there were no uncertain tax positions taken that were not more likely than not to be sustained. Certain subsidiaries of the Company are no longer subject to tax examinations by taxing authorities for tax years prior to 2010 and, presently, have no open examinations for tax years before 2013. | |||||||||
COMPENSATION_EXPENSE
COMPENSATION EXPENSE | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Compensation Expense [Abstract] | ||||||
Compensation Expense | 13.COMPENSATION EXPENSE | |||||
Compensation generally includes salaries, bonuses, and profit sharing awards. Bonuses and profit sharing awards are accrued over the service period to which they relate. Prior to the Company’s reorganization and IPO, all payments made to the Medley LLC’s members were accounted for as distributions on the equity held by such members rather than as employee compensation. Subsequent to the Company’s reorganization and IPO, guaranteed payments paid to Medley LLC’s members who are senior professionals will be accounted for as employee compensation. | ||||||
Performance Fee Compensation | ||||||
In October 2010, the Company granted shares of vested profits interests in certain subsidiaries to selected employees. These awards are viewed as a profit-sharing arrangement and are accounted for under ASC 710, which requires compensation expense to be recognized over the vesting period, which is usually the period over which service is provided. The shares were vested at grant date, subject to a divestiture percentage based on percentage of service completed from the award grant date to the employee’s termination date. The Company adjusts the related liability quarterly based on changes in estimated cash flows for the profit interests. | ||||||
In January 2014, the Company granted additional shares of profit interests in certain subsidiaries to selected employees. The shares were fully vested at grant date and were not subject to a divestiture percentage. For the year ended December 31, 2014, performance compensation was $(1.5) million as a result of a reversal of compensation expense recorded in the prior year. For the years ended December 31, 2013 and 2012, performance compensation expense was $7.2 million and $5.1 million, respectively. As of December 31, 2014 and 2013, the total performance fee compensation payable for these awards was $11.8 million and $16.2 million, respectively. | ||||||
Retirement Plan | ||||||
The Company sponsors a defined-contribution 401(k) retirement plan that covers all employees. Employees are eligible to participate in the plan immediately, and participants are 100% vested from the date of eligibility. The Company makes contributions to the Plan of 3% of an employee’s eligible wages, up to a maximum limit as determined by the Internal Revenue Service. The Company also pays all administrative fees related to the plan. For the years ended December 31, 2014, 2013 and 2012, the Company’s contributions to the plan were $0.4 million, $0.3 million and $0.2 million, respectively. | ||||||
Stock-Based Compensation | ||||||
In connection with the IPO, the Company adopted the Medley Management Inc. 2014 Omnibus Incentive Plan (the "Plan"). The purpose of the Plan is to provide a means through which the Company may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants and advisors (and prospective directors, officers, employees, consultants and advisors) of the Company can acquire and maintain an equity interest in the Company, or be paid incentive compensation, including incentive compensation measured by reference to the value of Medley Management Inc.’s class A common stock or Medley LLC’s unit interests, thereby strengthening their commitment to the welfare of the Company and aligning their interests with those of the Company’s stockholders. The Plan provides for the issuance of incentive stock options ("ISOs"), nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units (“RSUs”), stock bonuses, other stock-based awards and cash awards. The maximum aggregate number of awards available to be granted under the plan, as amended, is 4,500,000, of which all or any portion may be issued as shares of Medley Management Inc.’s class A common stock or Medley LLC’s unit interests. Shares of class A common stock issued by the Company in settlement of awards may be authorized and unissued shares, shares held in the treasury of the Company, shares purchased on the market or by private purchase or a combination of the foregoing. As of December 31, 2014, there were 3.3 million awards available to be granted under the Plan. | ||||||
The fair value of the RSUs granted in 2014 was determined to be the fair value of the underlying shares on the date of grant and aggregated to $16.0 million. This total fair value, which was adjusted for anticipated forfeitures of up to 8% per annum, will be charged to compensation expense on a straight-line basis over the vesting period, which is generally up to five years. For the year ended December 31, 2014, stock-based compensation was $0.9 million. | ||||||
The following summarizes RSU activity for the year ended December 31, 2014: | ||||||
Number of RSUs | Weighted Average Grant Date Fair Value | |||||
Balance at January 1, 2013 | - | $ | - | |||
Granted | 1,203,515 | 17.91 | ||||
Forfeited | -5,600 | 18.00 | ||||
Vested | - | - | ||||
Balance at December 31, 2014 | 1,197,915 | $ | 17.91 | |||
As of December 31, 2014, there were approximately 895,000 RSUs outstanding, net of estimated forfeitures, that are expected to vest. Unamortized compensation cost related to unvested RSUs at December 31, 2014 was $15.1 million and is expected to be recognized over a weighted average period of 4.7 years. | ||||||
MARKET_AND_OTHER_RISK_FACTORS
MARKET AND OTHER RISK FACTORS | 12 Months Ended |
Dec. 31, 2014 | |
Market and Other Risk Factors [Abstract] | |
Market and Other Risk Factors | |
14.MARKET AND OTHER RISK FACTORS | |
Due to the nature of the Consolidated Funds’ investment strategy, their portfolio of investments has significant market and credit risk. As a result, the Company is subject to market and other risk factors, including, but not limited to the following: | |
Market Risk | |
The market price of investments may significantly fluctuate during the period of investment. Investments may decline in value due to factors affecting securities markets generally or particular industries represented in the securities markets. The value of an investment may decline due to general market conditions that are not specifically related to such investment, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. | |
Credit Risk | |
There are no restrictions on the credit quality of the investments the Company intends to make. Investments may be deemed by nationally recognized rating agencies to have substantial vulnerability to default in payment of interest and/or principal. Some investments may have low-quality ratings or be unrated. Lower rated and unrated investments have major risk exposure to adverse conditions and are considered to be predominantly speculative. Generally, such investments offer a higher return potential than higher rated investments, but involve greater volatility of price and greater risk of loss of income and principal. | |
In general, the ratings of nationally recognized rating organizations represent the opinions of agencies as to the quality of the securities they rate. Such ratings, however, are relative and subjective; they are not absolute standards of quality and do not evaluate the market value risk of the relevant securities. It is also possible that a rating agency might not change its rating of a particular issue on a timely basis to reflect subsequent events. The Company may use these ratings as initial criteria for the selection of portfolio assets for the Company but is not required to utilize them. | |
Limited Liquidity of Investments | |
The Company intends to invest in investments that may not be readily marketable. Illiquid investments may trade at a discount from comparable, more liquid investments and, at times there may be no market at all for such investments. Subordinate investments may be less marketable, or in some instances illiquid, because of the absence of registration under federal securities laws, contractual restrictions on transfer, the small size of the market or the small size of the issue (relative to issues of comparable interests). As a result, the Company may encounter difficulty in selling its investments or may, if required to liquidate investments to satisfy redemption requests of its investors or debt service obligations, be compelled to sell such investments at less than fair value. | |
Counterparty Risk | |
Some of the markets in which the Company may effect its transactions are “over-the-counter” or “interdealer” markets. The participants in such markets are typically not subject to credit evaluation and regulatory oversight, unlike members of exchange-based markets. This exposes the Company to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a dispute over the terms of the applicable contract (whether or not such dispute is bona fide) or because of a credit or liquidity problem, causing the Company to suffer loss. Such “counterparty risk” is accentuated for contracts with longer maturities where events may intervene to prevent settlement, or where the Company has concentrated its transactions with a single or small group of counterparties. | |
Currency Risk | |
The Company may invest in financial instruments and enter into transactions denominated in currencies other than its functional currency. Although the Company may seek to hedge currency exposure through financial instruments, the Company may still be exposed to risks that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the Company’s assets or liabilities denominated in currencies other than the functional currency. | |
The Company may enter into derivative contracts to manage the risk associated with foreign currency exchange fluctuations on its non-U.S. dollar denominated holdings. | |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Segment Reporting | ||||||||||
15.SEGMENT REPORTING | ||||||||||
The Company’s business is currently comprised of only one reportable segment, the investment management segment, and substantially all Company operations are conducted through this segment. The investment management segment provides investment management services to permanent capital vehicles, long-dated private funds and separately managed accounts. The Company conducts its investment management business in the United States, where substantially all of its revenues are generated. | ||||||||||
In addition to analyzing the Company’s results on a GAAP basis, management also makes operating decisions and asse0sses business performance based on the financial and operating metrics and data that are presented without the consolidation of any funds. Core Net Income and Core EBITDA are income measures that are used by management to assess the performance of its business. | ||||||||||
Core Net Income. Core Net Income is an income measure that is used by management to assess the performance of the business through the removal of non-core items, as well as other non-recurring expenses. It is calculated by adjusting standalone net income attributable to members of Medley to exclude reimbursable expenses associated with the launch of funds, certain one-time severance costs and stock-based compensation associated with RSUs that were granted to employees in connection with the Company’s IPO. | ||||||||||
Core Earnings before interest, income taxes, depreciation and amortization (Core EBITDA). Core EBITDA is calculated as Core Net Income before interest expense, income taxes and depreciation. | ||||||||||
The following presents the standalone financial results of the Company’s operating results for the years ended December 31, 2014, 2013 and 2012: | ||||||||||
For the Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | ||||||||||
Management fees | $ | 65,765 | $ | 46,424 | $ | 33,690 | ||||
Performance fees | 7,884 | 8,236 | 3,883 | |||||||
Other revenues and fees | 8,871 | 5,011 | 2,527 | |||||||
Total revenues | 82,520 | 59,671 | 40,100 | |||||||
Expenses | ||||||||||
Compensation and benefits | 20,322 | 13,712 | 11,477 | |||||||
Performance fee compensation | -1,543 | 7,192 | 5,148 | |||||||
General, administrative and other expenses | 16,312 | 12,655 | 9,679 | |||||||
Total expenses | 35,091 | 33,559 | 26,304 | |||||||
Other income (expense) | ||||||||||
Dividend income | 886 | 886 | 245 | |||||||
Interest expense | -5,520 | -1,479 | -831 | |||||||
Other expenses, net | -2,097 | -1,168 | -905 | |||||||
Total other expense, net | -6,731 | -1,761 | -1,491 | |||||||
Income before income taxes | $ | 40,698 | $ | 24,351 | $ | 12,305 | ||||
Provision for income taxes | 1,015 | 714 | 387 | |||||||
Net income | 39,683 | 23,637 | 11,918 | |||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | - | - | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 37,750 | $ | 23,637 | $ | 11,918 | ||||
Reimbursable fund startup expenses (1) | 5,599 | 3,825 | 1,423 | |||||||
Severance expense (1) | -5 | 737 | - | |||||||
IPO date award stock-based compensation (1) | 822 | - | - | |||||||
Adjustment for pre-IPO guaranteed payments to members (1)(2) | -3,284 | -4,993 | -2,913 | |||||||
Core Net Income | $ | 40,882 | $ | 23,206 | $ | 10,428 | ||||
Interest expense | 5,520 | 1,479 | 831 | |||||||
Income taxes | 1,154 | 701 | 343 | |||||||
Depreciation and amortization | 401 | 276 | 258 | |||||||
Core EBITDA | $ | 47,957 | $ | 25,662 | $ | 11,860 | ||||
(1) Presented net of income taxes. | ||||||||||
(2)Represents a pro forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense. Prior to the Company’s reorganization and IPO, these payments were recorded as distributions from member’s capital. | ||||||||||
The following tables reconcile the Company’s segment results to its consolidated results of operations: | ||||||||||
For the Year Ended December 31, 2014 | ||||||||||
Standalone | Consolidation Adjustments and Reconciling Items | Consolidated Results | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | $ | 82,520 | $ | -10,347 | -1 | $ | 72,173 | |||
Expenses | 35,091 | 1,670 | -2 | 36,761 | ||||||
Other income (expense), net | -6,731 | 43,247 | -3 | 36,516 | ||||||
Provision for income taxes | 1,015 | 1,513 | -4 | 2,528 | ||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | - | 1,933 | |||||||
Net income attributable to non-controlling interest in Consolidated Funds | - | 29,717 | 29,717 | |||||||
Net income attributable to non-controlling interests in Medley LLC | 36,055 | - | 36,055 | |||||||
Net income attributable to Medley Management Inc. | 1,695 | - | 1,695 | |||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 36,055 | - | 36,055 | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 37,750 | - | 37,750 | |||||||
Reimbursable fund startup expenses | 5,599 | - | 5,599 | |||||||
Severance expenses | -5 | - | -5 | |||||||
IPO date award stock-based compensation | 822 | - | 822 | |||||||
Adjustment for pre-IPO guaranteed payments to members | -3,284 | - | -3,284 | |||||||
Core Net Income | $ | 40,882 | $ | - | $ | 40,882 | ||||
For the Year Ended December 31, 2013 | ||||||||||
Standalone | Consolidation Adjustments and Reconciling Items | Consolidated Results | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | $ | 59,671 | $ | -15,802 | -1 | $ | 43,869 | |||
Expenses | 33,559 | 1,225 | -2 | 34,784 | ||||||
Other income (expense) | -1,761 | 30,850 | -3 | 29,089 | ||||||
Provision for income taxes | 714 | 925 | -4 | 1,639 | ||||||
Net income attributable to non-controlling interest in Consolidated Funds | - | 12,898 | 12,898 | |||||||
Net income attributable to non-controlling interests in Medley LLC | 23,637 | - | 23,637 | |||||||
Net income attributed to Medley Management Inc. | - | - | - | |||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 23,637 | - | 23,637 | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 23,637 | - | 23,637 | |||||||
Reimbursable fund startup expenses | 3,825 | - | 3,825 | |||||||
Severance expenses | 737 | - | 737 | |||||||
Adjustment for pre-IPO guaranteed payments to members | -4,993 | - | -4,993 | |||||||
Core Net Income | $ | 23,206 | $ | - | $ | 23,206 | ||||
For the Year Ended December 31, 2012 | ||||||||||
Standalone | Consolidation Adjustments and Reconciling Items | Consolidated Results | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | $ | 40,100 | $ | -11,858 | -1 | $ | 28,242 | |||
Expenses | 26,304 | 1,653 | -2 | 27,957 | ||||||
Other income (expense) | -1,491 | 25,772 | -3 | 24,281 | ||||||
Provision for income taxes | 387 | 700 | -4 | 1,087 | ||||||
Net income attributable to non-controlling interest in Consolidated Funds | - | 11,561 | 11,561 | |||||||
Net income attributable to non-controlling interests in Medley LLC | 11,918 | - | 11,918 | |||||||
Net income attributed to Medley Management Inc. | - | - | - | |||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 11,918 | - | 11,918 | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 11,918 | - | 11,918 | |||||||
Reimbursable fund startup expenses | 1,423 | - | 1,423 | |||||||
Severance expenses | - | - | - | |||||||
Adjustment for pre-IPO guaranteed payments to members | -2,913 | -2,913 | ||||||||
Core Net Income | $ | 10,428 | $ | - | $ | 10,428 | ||||
(1)Adjustments and reconciling items to revenues represent management and performance fees earned from Consolidated Funds which were eliminated in consolidation. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Management fees from Consolidated Funds eliminated in consolidation | $ | -4,513 | $ | -9,978 | $ | -8,365 | ||||
MOF II Performance fees eliminated in consolidation | -5,834 | -5,824 | -3,118 | |||||||
Administrative fees from Consolidated Funds eliminated in consolidation | - | - | -375 | |||||||
Total consolidated adjustments and reconciling items | $ | -10,347 | $ | -15,802 | $ | -11,858 | ||||
(2)The adjustment and reconciling items to expenses represent expenses from Consolidated Funds which were eliminated in consolidation. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Consolidated Funds Expenses | $ | 1,670 | $ | 1,225 | $ | 1,653 | ||||
Total consolidated adjustments and reconciling items | $ | 1,670 | $ | 1,225 | $ | 1,653 | ||||
(3)The other income adjustment and reconciling items primarily represents net interest income and net investment income from Consolidated Funds. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Interest and other income of Consolidated Funds | $ | 71,468 | $ | 52,550 | $ | 39,001 | ||||
Interest expense on secured borrowings of Consolidated Funds | -9,951 | -2,638 | -2,666 | |||||||
Net realized gain (loss) on investment of Consolidated Funds | 789 | -16,080 | -1,600 | |||||||
Net change in unrealized depreciation on investments of Consolidated Funds | -20,557 | -3,361 | -10,103 | |||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 1,174 | -306 | 787 | |||||||
Elimination of equity income from Consolidated Funds | 324 | 685 | 353 | |||||||
Total consolidated adjustments and reconciling items | $ | 43,247 | $ | 30,850 | $ | 25,772 | ||||
(4)The provision for income taxes adjustment and reconciling items represents income taxes from Consolidated Funds. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Consolidated Funds provision for income taxes | $ | 1,513 | $ | 925 | $ | 700 | ||||
Total consolidated adjustments and reconciling items | $ | 1,513 | $ | 925 | $ | 700 | ||||
CONSOLIDATING_SCHEDULES
CONSOLIDATING SCHEDULES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization and Basis of Presentation & Consolidating Schedules [Abstract] | |||||||||||||
Consolidating Schedules | |||||||||||||
16.CONSOLIDATING SCHEDULES | |||||||||||||
The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Company’s financial condition as of December 31, 2014 and 2013, and the Company’s results from operations for the years ended December 31, 2014, 2013 and 2012. The financial condition and results of operations for Medley are presented in the tables below under the “Standalone” column. | |||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Revenues: | |||||||||||||
Management fees | $ | 65,765 | $ | - | $ | -4,513 | $ | 61,252 | |||||
Performance fees | 7,884 | - | -5,834 | 2,050 | |||||||||
Other revenues and fees | 8,871 | - | - | 8,871 | |||||||||
Total revenues | 82,520 | - | -10,347 | 72,173 | |||||||||
Expenses: | |||||||||||||
Compensation and benefits | 20,322 | - | - | 20,322 | |||||||||
Performance fee compensation | -1,543 | - | - | -1,543 | |||||||||
Consolidated Funds expenses | - | 6,183 | -4,513 | 1,670 | |||||||||
General, administrative and other expenses | 16,312 | - | - | 16,312 | |||||||||
Total operating expenses | 35,091 | 6,183 | -4,513 | 36,761 | |||||||||
Other income (expense): | |||||||||||||
Dividend income | 886 | - | - | 886 | |||||||||
Interest expense | -5,520 | - | - | -5,520 | |||||||||
Other income (expenses), net | -2,097 | - | 324 | -1,773 | |||||||||
Interest and other income of Consolidated Funds | - | 71,468 | - | 71,468 | |||||||||
Interest expense of Consolidated Funds | - | -9,951 | - | -9,951 | |||||||||
Net realized gain on investments of Consolidated Funds | - | 789 | - | 789 | |||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | - | -20,557 | - | -20,557 | |||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 1,174 | 1,174 | |||||||||||
Total other income (expense), net | -6,731 | 42,923 | 324 | 36,516 | |||||||||
Income before income taxes | 40,698 | 36,740 | -5,510 | 71,928 | |||||||||
Provision for income taxes | 1,015 | 1,513 | - | 2,528 | |||||||||
Net income | 39,683 | 35,227 | -5,510 | 69,400 | |||||||||
Net income attributable to non-controlling interests in Consolidated Funds | - | - | 29,717 | 29,717 | |||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | - | - | 1,933 | |||||||||
Net income attributable to non-controlling interests in Medley LLC | 36,055 | - | - | 36,055 | |||||||||
Net income attributable to Medley Management Inc. | $ | 1,695 | $ | 35,227 | $ | -35,227 | $ | 1,695 | |||||
As of December 31, 2014 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 87,206 | $ | - | $ | - | $ | 87,206 | |||||
Investment, at fair value | 22,143 | - | -12,242 | 9,901 | |||||||||
Management fees receivable | 15,173 | - | - | 15,173 | |||||||||
Performance fees receivable | 5,573 | - | - | 5,573 | |||||||||
Other assets | 9,230 | - | - | 9,230 | |||||||||
Assets of Consolidated Funds: | - | ||||||||||||
Cash and cash equivalents | - | 38,111 | - | 38,111 | |||||||||
Investments, at fair value | - | 734,870 | - | 734,870 | |||||||||
Interest and dividends receivable | - | 6,654 | - | 6,654 | |||||||||
Other assets | - | 5,057 | -1,376 | 3,681 | |||||||||
Total assets | $ | 139,325 | $ | 784,692 | $ | -13,618 | $ | 910,399 | |||||
Liabilities and equity | |||||||||||||
Loans payable | $ | 103,057 | $ | - | $ | - | $ | 103,057 | |||||
Accounts payable, accrued expenses and other liabilities | 28,959 | - | -1,376 | 27,583 | |||||||||
Performance fee compensation payable | 11,807 | - | - | 11,807 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||||
Accounts payable, accrued expenses and other liabilities | - | 5,767 | - | 5,767 | |||||||||
Secured borrowings | - | 141,135 | - | 141,135 | |||||||||
Total liabilities | 143,823 | 146,902 | -1,376 | 289,349 | |||||||||
Equity | |||||||||||||
Class A Common Stock | 60 | - | - | 60 | |||||||||
Class B Common Stock | - | - | - | - | |||||||||
Capital deficit | -2,384 | - | - | -2,384 | |||||||||
Retained earnings | 272 | - | - | 272 | |||||||||
Total stockholders' deficit, Medley Management Inc. | -2,052 | - | - | -2,052 | |||||||||
Non-controlling interests in Consolidated Funds | - | - | 625,548 | 625,548 | |||||||||
Non-controlling interests in consolidated subsidiaries | 1,526 | - | - | 1,526 | |||||||||
Non-controlling interests in Medley LLC | -3,972 | - | - | -3,972 | |||||||||
Members' equity of consolidated funds | - | 637,790 | -637,790 | - | |||||||||
Total (deficit) equity | -4,498 | 637,790 | -12,242 | 621,050 | |||||||||
Total liabilities and equity | $ | 139,325 | $ | 784,692 | $ | -13,618 | $ | 910,399 | |||||
For the Year Ended December 31, 2013 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Revenues: | |||||||||||||
Management fees | $ | 46,424 | $ | - | $ | -9,978 | $ | 36,446 | |||||
Performance fees | 8,236 | - | -5,824 | 2,412 | |||||||||
Other revenues and fees | 5,011 | - | - | 5,011 | |||||||||
Total revenues | 59,671 | - | -15,802 | 43,869 | |||||||||
Expenses: | |||||||||||||
Compensation and benefits | 13,712 | - | - | 13,712 | |||||||||
Performance fee compensation | 7,192 | - | - | 7,192 | |||||||||
Consolidated Funds expenses | - | 11,203 | -9,978 | 1,225 | |||||||||
General, administrative and other expenses | 12,655 | - | - | 12,655 | |||||||||
Total operating expenses | 33,559 | 11,203 | -9,978 | 34,784 | |||||||||
Other income (expense): | |||||||||||||
Dividend income | 886 | - | - | 886 | |||||||||
Interest expense | -1,479 | - | - | -1,479 | |||||||||
Other income (expenses), net | -1,168 | - | 685 | -483 | |||||||||
Interest and other income of Consolidated Funds | - | 52,550 | - | 52,550 | |||||||||
Interest expense of Consolidated Funds | -2,638 | -2,638 | |||||||||||
Net realized loss on investments of Consolidated Funds | - | -16,080 | - | -16,080 | |||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | - | -3,361 | - | -3,361 | |||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | -306 | -306 | |||||||||||
Total other income (expense) | -1,761 | 30,165 | 685 | 29,089 | |||||||||
Income before income taxes | 24,351 | 18,962 | -5,139 | 38,174 | |||||||||
Provision for income taxes | 714 | 925 | - | 1,639 | |||||||||
Net income | 23,637 | 18,037 | -5,139 | 36,535 | |||||||||
Net income attributable to non-controlling interests in Consolidated Funds | - | - | 12,898 | 12,898 | |||||||||
Net income attributable to Medley LLC | $ | 23,637 | $ | 18,037 | $ | -18,037 | $ | 23,637 | |||||
As of December 31, 2013 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 5,395 | $ | - | $ | - | $ | 5,395 | |||||
Investment, at fair value | 21,443 | - | -11,270 | 10,173 | |||||||||
Management fees receivable | 8,921 | - | - | 8,921 | |||||||||
Performance fees receivable | 3,339 | - | - | 3,339 | |||||||||
Other assets | 4,216 | - | 1,092 | 5,308 | |||||||||
Assets of Consolidated Funds: | |||||||||||||
Cash and cash equivalents | - | 60,355 | - | 60,355 | |||||||||
Investments, at fair value | - | 453,396 | - | 453,396 | |||||||||
Interest and dividends receivable | - | 2,969 | - | 2,969 | |||||||||
Other assets | - | 1,565 | -1,129 | 436 | |||||||||
Total assets | $ | 43,314 | $ | 518,285 | $ | -11,307 | $ | 550,292 | |||||
Liabilities and equity | |||||||||||||
Loans payable | $ | 27,990 | $ | - | $ | - | $ | 27,990 | |||||
Accounts payable, accrued expenses and other liabilities | 17,613 | - | - | 17,613 | |||||||||
Performance fee compensation payable | 16,225 | - | - | 16,225 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||||
Accounts payable, accrued expenses and other liabilities | - | 1,363 | -38 | 1,325 | |||||||||
Secured borrowings | - | 41,178 | - | 41,178 | |||||||||
Total liabilities | 61,828 | 42,541 | -38 | 104,331 | |||||||||
Equity | |||||||||||||
Non-controlling interest in Consolidated Funds | - | - | 464,475 | 464,475 | |||||||||
Non-controlling interest in consolidated subsidiaries | 40 | - | - | 40 | |||||||||
Members' (deficit) equity | -18,554 | 475,744 | -475,744 | -18,554 | |||||||||
Total (deficit) equity | -18,514 | 475,744 | -11,269 | 445,961 | |||||||||
Total liabilities and equity | $ | 43,314 | $ | 518,285 | $ | -11,307 | $ | 550,292 | |||||
For the Year Ended December 31, 2012 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Revenues: | |||||||||||||
Management fees | $ | 33,690 | $ | - | $ | -8,365 | $ | 25,325 | |||||
Performance fees | 3,883 | - | -3,118 | 765 | |||||||||
Other revenues and fees | 2,527 | - | -375 | 2,152 | |||||||||
Total revenues | 40,100 | - | -11,858 | 28,242 | |||||||||
Expenses: | |||||||||||||
Compensation and benefits | 11,477 | - | - | 11,477 | |||||||||
Performance fee compensation | 5,148 | - | - | 5,148 | |||||||||
Consolidated Funds expenses | - | 10,393 | -8,740 | 1,653 | |||||||||
General, administrative and other expenses | 9,679 | - | - | 9,679 | |||||||||
Total operating expenses | 26,304 | 10,393 | -8,740 | 27,957 | |||||||||
Other income (expense): | |||||||||||||
Dividend income | 245 | - | - | 245 | |||||||||
Interest expense | -831 | - | - | -831 | |||||||||
Other income (expenses), net | -905 | - | 353 | -552 | |||||||||
Interest and other income of Consolidated Funds | - | 39,001 | - | 39,001 | |||||||||
Interest expense of Consolidated Funds | -2,666 | -2,666 | |||||||||||
Net realized loss on investments of Consolidated Funds | - | -1,600 | - | -1,600 | |||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | - | -10,103 | - | -10,103 | |||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 787 | 787 | |||||||||||
Total other income (expense) | -1,491 | 25,419 | 353 | 24,281 | |||||||||
Income before income taxes | 12,305 | 15,026 | -2,765 | 24,566 | |||||||||
Provision for income taxes | 387 | 700 | - | 1,087 | |||||||||
Net income | 11,918 | 14,326 | -2,765 | 23,479 | |||||||||
Net income attributable to non-controlling interests in Consolidated Funds | - | 122 | 11,439 | 11,561 | |||||||||
Net income attributable to Medley LLC | $ | 11,918 | $ | 14,204 | $ | -14,204 | $ | 11,918 | |||||
QUARTERLY_FINANCIAL_DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Quarterly Financial Data | 17.QUARTERLY FINANCIAL DATA (unaudited) | |||||||||||
The following tables present the Company’s consolidated unaudited quarterly results of operations for 2014 and 2013. | ||||||||||||
For the Three Months Ended | ||||||||||||
(unaudited) | ||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
(Amounts in thousands) | ||||||||||||
Revenues | $ | 18,187 | $ | 20,765 | $ | 17,225 | $ | 15,996 | ||||
Expenses | 5,564 | 8,510 | 12,861 | 9,826 | ||||||||
Total other income, net | 3,575 | 11,726 | 17,228 | 3,987 | ||||||||
Income before income taxes | 16,198 | 23,981 | 21,592 | 10,157 | ||||||||
Net income | 15,844 | 23,058 | 20,845 | 9,653 | ||||||||
Net income attributable to non-controlling interest in Consolidated Funds | 6,815 | 9,933 | 9,057 | 3,912 | ||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | -239 | 612 | 1,607 | -47 | ||||||||
Net income attributable to non-controlling interests in Medley LLC | $ | 7,951 | $ | 12,135 | 10,181 | 5,788 | ||||||
Net income attributable to Medley Management Inc. | 1,317 | 378 | ||||||||||
Net income per Class A common stock: | ||||||||||||
Basic (Note 11) | 0.19 | 0.05 | ||||||||||
Diluted (Note 11) | 0.19 | 0.05 | ||||||||||
Weighted average shares - Basic and Diluted | 6,000,000 | 6,000,000 | ||||||||||
For the Three Months Ended | ||||||||||||
(unaudited) | ||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||
2013 | 2013 | 2013 | 2013 | |||||||||
(Amounts in thousands) | ||||||||||||
Revenues | $ | 15,312 | $ | 11,429 | $ | 9,300 | $ | 7,828 | ||||
Expenses | 8,568 | 7,892 | 10,635 | 7,689 | ||||||||
Total other expense, net | 11,100 | 10,424 | 1,918 | 5,647 | ||||||||
Income before income taxes | 17,844 | 13,961 | 583 | 5,786 | ||||||||
Net income | 17,343 | 13,499 | 232 | 5,461 | ||||||||
Net income attributable to non-controlling interest in Consolidated Funds | 7,067 | 6,183 | -1,635 | 1,283 | ||||||||
Net income attributable to non-controlling interests in Medley LLC | $ | 10,276 | $ | 7,316 | $ | 1,867 | $ | 4,178 | ||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18.SUBSEQUENT EVENTS |
Effective January 1, 2015, Medley completed its role as investment manager of Medley's first private debt fund, Medley Opportunity Fund I LP ("MOF I LP"), one of the Consolidated Funds, and transitioned the management of the residual assets of MOF I LP to another asset manager. As a result of this transition, the Company deconsolidated the financial statements of MOF I LP, on January 1, 2015. There was no gain or loss recorded on the deconsolidation. | |
Had the Company deconsolidated the assets and liabilities of MOF I LP as of December 31, 2014, the total assets of Consolidated Funds would have been reduced by $20.0 million, the total liabilities of Consolidated Funds would have been reduced by $2.9 million and the non-controlling interests in Consolidated Funds would have been reduced by $15.3 million. Partially offsetting the impact of the decrease in total consolidated assets would have been a $1.8 million increase in investments held by Medley LLC. The Company believes that the impact of the deconsolidation of MOF I LP would not have had a material impact on the Company’s balance sheet as of December 31, 2014. | |
On March 29, 2015, the Company’s board of directors declared a quarterly dividend of $0.20 per share of Class A common stock, for the first quarter 2015, payable on May 6, 2015, to shareholders of record of the Company’s Class A common stock as of the close of business on April 23, 2015. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary of Significant Accounting Policies [Abstract] | ||||
Principles of Consolidation | Principles of Consolidation | |||
In accordance with Accounting Standards Codification (‘‘ASC’’) 810, Consolidation, the Company consolidates those entities where it has a direct and indirect controlling financial interest based on either a variable interest model or voting interest model. As such, the Company consolidates entities that the Company concludes are variable interest entities (‘‘VIEs’’), for which the Company is deemed to be the primary beneficiary and entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity. | ||||
An entity in which the Company holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity’s activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both, and substantially all of the legal entity’s activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Entities that do not qualify as VIEs are generally assessed for consolidation under the voting interest model. | ||||
For those entities that qualify as a VIE, the Company performs an analysis to determine if it is the primary beneficiary. With respect to certain VIEs that qualify for accounting treatment under Accounting Standard Update (“ASU”) 2010-10, the Company determines that it is the primary beneficiary only if its involvement, through holding interests directly or indirectly in the VIE or contractually through other variable interests (e.g., carried interest and management fees), would be expected to absorb a majority of the VIE’s expected losses, receive a majority of the VIE’s expected residual returns, or both. In order to qualify for this accounting treatment, certain conditions have to be met, including if the entities have all the attributes of an investment company and are not securitization or asset-backed financing entities. For all other entities, the Company determines that it is the primary beneficiary if it holds a controlling financial interest defined as possessing both (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes initially involved with the VIE and reconsiders that conclusion continuously. In making its assessment the Company takes into consideration all fee and substantive arrangements, terms and transactions that may exist. The assessment of whether an entity is a VIE and the determination of whether the Company should consolidate such VIE requires judgments and is dependent on the particular facts and circumstances. Each entity is assessed for consolidation on a case by case basis. | ||||
For those entities evaluated under the voting interest model, the Company consolidates those entities it controls through a majority voting interest or through other means whereby the Company is the general partner and is presumed to have control. The Company would not consolidate an entity in which the presumption of control by the general partner has been overcome through either the granting of substantive rights to the unaffiliated investors to either dissolve the entity or remove the general partner (‘‘kick-out-rights”) or the granting of substantive participating rights. | ||||
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities | |||
Medley Management Inc. is the sole managing member of Medley LLC and, as such, it operates and controls all of the business and affairs of Medley LLC and, through Medley LLC, conducts its business. Under ASC 810, Medley LLC meets the definition of a variable interest entity because the equity of Medley LLC is not sufficient to permit activities without additional subordinated financial support. Since Medley Management Inc. has the obligation to absorb expected losses that could be significant to Medley LLC and holds 100% of the voting power, Medley Management Inc. is considered to be the primary beneficiary of Medley LLC. | ||||
As a result, Medley Management Inc. consolidates the financial results of Medley LLC and its subsidiaries and records a non-controlling interest for the economic interest in Medley LLC held by the non-managing members. Medley Management Inc.’s and the non-managing members’ economic interest in Medley LLC is 20.5% and 79.5%, respectively, as of December 31, 2014. Net income attributable to the non-controlling interest in Medley LLC on the consolidated statements of operations represents the portion of earnings attributable to the economic interest in Medley LLC held by its non-managing members. Non-controlling interests in Medley LLC on the consolidated balance sheets represents the portion of net assets of Medley LLC attributable to the non-managing members based on total LLC Units of Medley LLC owned by such non-managing members. | ||||
Medley LLC has one majority owned subsidiary, SIC Advisors LLC, that is a consolidated VIE. This entity was organized as a limited liability company and was legally formed to manage a designated fund and to isolate business risk. As of December 31, 2014 and 2013, total assets, after eliminating entries, of this VIE reflected in the consolidated balance sheets were $18.0 million and $11.9 million, respectively. Total liabilities, after eliminating entries, of this VIE were $19.6 million and $16.1 million as of December 31, 2014 and 2013, respectively. Except to the extent of the assets of this VIE that are consolidated, the holders of the consolidated VIE’s liabilities generally do not have recourse to the Company. | ||||
Consolidated Funds | Consolidated Funds | |||
With respect to the Consolidated Funds, which represent limited partnerships, Medley LLC earns a fixed management fee based on either (a) limited partners’ capital commitments to the funds, (b) invested capital, (c) net asset value (‘‘NAV’’), or (d) lower of cost or market value of a fund’s portfolio investments. In addition, Medley earns a performance fee based upon the investment returns in excess of a stated hurdle rate. The Company considered the accounting treatment under ASU 2010-10 as all the respective conditions have been met and determined that the funds were not VIEs. However, as the general partner, and due to the lack of substantive kick out or participating rights of the limited partners, these funds have been consolidated under the voting interest model in accordance with ASC 810-20, Control of Partnerships and Similar Entities. | ||||
Effective January 1, 2015, the Company completed its role as investment manager of one of its Consolidated Funds and transitioned the management of the residual assets of the fund to another asset manager. As a result of this transition, the Company deconsolidated the fund on January 1, 2015 (Note 17). | ||||
In December 2014, the Company formed the Medley Opportunity Fund III (MOF III) which is structured as a limited partnership. One of the Company’s wholly owned subsidiaries is the general partner and investment manager of MOF III. The Company considered the accounting treatment under ASU 2010-10 as all the respective conditions have been met and determined that MOF III was not a VIE. However, as the general partner, and due to the lack of substantive kick out or participating rights of the limited partners, this fund has been consolidated under the voting interest model in accordance with ASC 810-20, Control of Partnerships and Similar Entities. | ||||
Non-Consolidated Variable Interest Entities | Non-Consolidated Variable Interest Entities | |||
Beginning in November 2006, Medley held a variable interest in an investment fund which was formed under the laws of the Cayman Islands and organized to make investments in a diversified portfolio of corporate and asset-based investments. The equity holders (as a group) lack the direct and indirect ability through voting rights or similar rights to make decisions about this legal entity’s activities that have a significant effect on the success of the legal entity. As such, this entity is considered to be a VIE. Medley had a variable interest in the fund through an investment management agreement pursuant to which Medley managed the investment activities of the fund, received an annual base management fee and was entitled to receive an incentive fee, subject to the underlying financial performance of the investment fund. The Company did not consolidate this entity as Medley was not deemed to be its primary beneficiary. Medley determined that it was not the primary beneficiary as it did not absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns or have majority control of the entity. Medley considered the accounting treatment under ASU 2010-10 as all the respective conditions were met. Effective October 31, 2014, the investment management agreement was terminated and Medley transferred its responsibilities to a new investment manager and, as such, no longer held a variable interest in this entity. | ||||
Since inception through December 31, 2012, the annual base management fee was equal to 2.0% of the fund’s net assets. Effective January 1, 2013 and 2014 the annual base management fee was reduced to 1.25% and 0.75%, respectively, of the fund’s net assets. For the years ended December 31, 2014, 2013 and 2012, the Company received management fees of $1.1 million, $3.7 million and $7.7 million, respectively. As of December 31, 2014 and 2013, there were no assets recognized in the Company’s consolidated balance sheets related to this non-consolidated VIE and Medley had no exposure to losses from the entity. | ||||
Deconsolidation of a Fund | Deconsolidation of a Fund | |||
Commencing in 2012, the Company initially owned 100% of the outstanding shares of Sierra Income Corporation (“SIC”) and had consolidated SIC in its consolidated financial statements. Following SIC’s raising of additional third-party capital, the Company no longer had a controlling interest in SIC and it deconsolidated the entity at December 31, 2012 in accordance with ASC 810-10, Consolidation – Overall. | ||||
Seed Investments | Seed Investments | |||
Medley accounts for seed investments through the application of the voting interest model under ASC 810-10-25-1 through 25-14 and would consolidate a seed investment when the investment advisor holds a controlling interest, in general, 50% or more of the equity in such investment. For seed investments for which Medley does not hold a controlling interest, Medley would account for such seed investment under the equity method of accounting, at its ownership percentage of such seed investment’s net asset value. Medley’s investment in Sierra Income Corporation (“SIC”) amounted to $9.9 million and $10.2 million as of December 31, 2014 and 2013, respectively, and is included as a component of investments, at fair value, on the Company’s consolidated balance sheets. | ||||
Basis of Accounting | Basis of Accounting | |||
Management has determined that the Company’s Consolidated Funds are investment companies under U.S. GAAP for the purposes of financial reporting. U.S. GAAP requires that investments held by an investment company be recorded at fair value and any unrealized appreciation (depreciation) in an investment’s fair value be recognized on a current basis in the consolidated statements of operations. Additionally, the Consolidated Funds do not consolidate their majority-owned and controlled investments in portfolio companies. In the preparation of these consolidated financial statements, the Company has retained the specialized accounting guidance for the Consolidated Funds under U.S. GAAP. As such, all of the investments held by the Consolidated Funds are presented at their estimated fair values in the Company’s consolidated balance sheets. Interest income of the Consolidated Funds is included in interest and other income of Consolidated Funds in the Company’s consolidated statements of operations. | ||||
Concentrations of Credit Risk | Concentrations of Credit and Market Risk | |||
In the normal course of business, the Company encounters significant credit and market risk. Credit risk is the risk of default on investments in debt securities, loans and derivatives that result from a borrower’s or derivative counterparty’s inability or unwillingness to make required or expected payments. Credit risk is increased in situations where the Company is investing in distressed assets or unsecured or subordinate loans or in securities that are a material part of its respective business. Market risk reflects changes in the value of investments due to changes in interest rates, credit spreads or other market factors. | ||||
The Company may make investments outside of the United States. These non-U.S. investments are subject to the same risks associated with U.S. investments as well as additional risks, such as fluctuations in foreign currency exchange rates, unexpected changes in regulatory requirements, heightened risk of political and economic instability, difficulties in managing the investments, potentially adverse tax consequences, and the burden of complying with a wide variety of foreign laws. | ||||
Use of Estimates | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management’s estimates are based on historical experience and other factors, including expectations of future events that management believes to be reasonable under the circumstances. These assumptions and estimates also require management to exercise judgment in the process of applying the Company’s accounting policies. Assumptions and estimates regarding the valuation of investments and their resulting impact on performance fees involve a higher degree of judgment and complexity and these assumptions and estimates may be significant to the consolidated financial statements. Actual results could differ from these estimates and such differences could be material. | ||||
Indemnification | Indemnification | |||
In the normal course of business, the Company enters into contractual agreements that provide general indemnifications against losses, costs, claims and liabilities arising from the performance of individual obligations under such agreements. The Company has not experienced any prior claims or payments pursuant to such agreements. The Company’s individual maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on management’s experience, the Company expects the risk of loss to be remote. | ||||
Non-Controlling Interests in Consolidated Subsidiaries | Non-Controlling Interests in Consolidated Entities | |||
Non-controlling interests in Consolidated Funds and consolidated subsidiaries represent the component of equity in such consolidated entities held by third party investors. These interests are adjusted for general partner allocations and, for funds, by subscriptions and redemptions that occur during the reporting period. | ||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||
Cash and cash equivalents for the Company include liquid investments in money market funds and demand deposits. The Company had cash balances with financial institutions in excess of Federal Deposit Insurance Corporation insured limits during 2014 and 2013. The Company monitors the credit standing of these financial institutions and has not experienced, and has no expectations of experiencing any losses with respect to such balances. | ||||
Class A Earnings per Share | Class A Earnings per Share | |||
The Company computes and presents earnings per share using the two-class method. Under the two-class method, the Company allocates earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, the Company reduces its reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to Class A common stockholders. Earnings is then divided by the weighted average number of Class A common stock outstanding to arrive at basic earnings per share. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in our earnings. Participating securities consist of the Company’s unvested restricted stock units that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in its basic and diluted calculations. | ||||
Investments | ||||
Investments | ||||
Investments include an equity method investment that is not consolidated but in which the Company exerts significant influence, and investments held by the Consolidated Funds. Medley measures the fair value of its equity method investment that does not have a readily determinable fair value at net asset value or market value. Unrealized appreciation (depreciation) resulting from changes in fair value of the equity method investee is reflected as a component of other income (expense) in the consolidated statements of operations. | ||||
The Consolidated Funds reflect their investments at fair value with unrealized appreciation (depreciation) resulting from changes in fair value reflected as a component of net change in unrealized depreciation on investments of Consolidated Funds in the consolidated statements of operations. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., the exit price). | ||||
Fair Value Measurements | Fair Value Measurements | |||
The Consolidated Funds apply fair value accounting to all of its financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC 820, the Consolidated Funds have categorized their financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy as discussed in Note 4. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity specific measure. Therefore, when market assumptions are not readily available, the Consolidated Funds’ own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date. | ||||
Investments for which market quotations are readily available are valued at such market quotations, which are generally obtained from an independent pricing service or multiple broker-dealers or market makers. The Company weights the use of third-party broker quotes, if any, in determining fair value based on the Company’s understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer. However, debt investments with remaining maturities within 60 days that are not credit impaired are valued at cost plus accreted discount, or minus amortized premium, which approximates fair value. Investments for which market quotations are not readily available are valued at fair value as determined by the Company based upon inputs by third-party valuation firms. Because these investments are illiquid and because there may not be any directly comparable companies whose financial instruments have observable market values, these loans are valued using a fundamental valuation methodology, consistent with traditional asset pricing standards, that is objective and consistently applied across all loans and through time. | ||||
The Consolidated Funds use third-party valuation firms to assist in the valuation of its portfolio investments. The valuation reports generated by the third-party valuation firms consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information, including comparable transactions, performance multiples, and movement in yields of debt instruments, among other factors. Based on market data obtained from the third-party valuation firms, the Consolidated Funds use a market yield analysis under the income approach or an enterprise model of valuation under the market approach, or a combination thereof. In applying the market yield analysis, the value of the Consolidated Funds’ loans is determined based upon inputs such as the coupon rate, current market yield, interest rate spreads of similar securities, the stated value of the loan, and the length to maturity. In applying the enterprise model, the Consolidated Funds use a waterfall analysis that takes into account the specific capital structure of the borrower and the related seniority of the instruments within the borrower’s capital structure. To estimate the enterprise value of the portfolio company, some or all of the traditional market valuation methods and factors are weighed based on the individual circumstances of the portfolio company in order to estimate the enterprise value. | ||||
The methodologies and information that the Company utilizes when applying the Market Approach for performing investments includes, among other things: | ||||
· | valuations of comparable public companies (Guideline Comparable approach), | |||
· | recent sales of private and public comparable companies (Guideline Comparable approach), | |||
· | recent acquisition prices of the company, debt securities or equity securities (Acquisition Price Approach), | |||
· | external valuations of the portfolio company, offers from third parties to buy the company (Estimated Sales Proceeds approach), | |||
· | subsequent sales made by the company of its investments (Expected Sales Proceeds approach); and | |||
· | estimating the value to potential buyers. | |||
The methodologies and information that the Company utilizes when applying the Income Approach for performing investments includes: | ||||
· | discounting the forecasted cash flows of the portfolio company or securities (Discounted Cash Flow “DCF” approach); and | |||
· | Black-Scholes model or simulation models or a combination thereof (Income Approach – Option Model) with respect to the valuation of warrants. | |||
For non-performing investments, the Company may estimate the liquidation or collateral value of the portfolio company’s assets and liabilities using an expected recovery model (Income Approach – Expected Recovery Analysis or Estimated Liquidation Proceeds). | ||||
A multi-step valuation process is undertaken each quarter when valuing portfolio investments for which market quotations are not readily available, as described below: | ||||
· | The quarterly valuation process begins with each portfolio investment being initially valued by the Company’s internal valuation team; | |||
· | An independent valuation firm engaged by the Consolidated Funds prepares an independent valuation report for approximately one third of the portfolio investments each quarter on a rotating quarterly basis on non-fiscal year-end quarters, such that each of these investments will be valued by independent valuation firms at least twice per annum when combined with the fiscal year-end review of all the investments by independent valuation firms; and | |||
· | Preliminary valuation conclusions are then documented and discussed with senior management. | |||
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Consolidated Funds’ investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. | ||||
Property and Equipment | Property and Equipment | |||
Property and equipment consist primarily of furniture, fixtures, computer equipment, and leasehold improvements and are recorded at cost, less accumulated depreciation and amortization. | ||||
The Company calculates depreciation expense for furniture, fixtures, and computer equipment using the straight-line method over the estimated useful life used for the respective assets, which generally ranges from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis over the shorter of the remaining term of the underlying lease or estimated useful life of the improvement. Useful lives of leasehold improvements range from three to eight years. | ||||
Deferred Financing Costs | Deferred Financing Costs | |||
Deferred financing costs represent direct costs incurred in conjunction with the establishment of credit facilities and debt refinancing. Deferred financing costs, and the related amortization expense, are adjusted when any prepayments of principal are made to the related outstanding debt. These costs are amortized as an adjustment to interest expense over the term of the related debt. | ||||
Revenues | Revenues | |||
Management Fees | ||||
Medley provides investment management services to both public and private investment vehicles. Management fees include both base management fees, other management fees, and Part I incentive fees, as described below. | ||||
Base management fees are calculated based on either (a) the average or ending gross assets balance for the relevant period, (b) limited partners’ capital commitments to the funds, (c) invested capital, (d) the net asset value or (e) lower of cost or market value of a fund’s portfolio investments. For the private funds, Medley receives base management fees during a specified period of time, which is generally ten years from the initial closing date. However, such termination date may be earlier in certain limited circumstances or later if extended for successive one-year periods, typically up to a maximum of two years. Depending upon the contracted terms of the investment management agreement, management fees are paid either quarterly in advance or quarterly in arrears, and are recognized as earned over the period the services are provided. | ||||
Certain management agreements provide for Medley to receive other management fee revenue derived from up front origination fees paid by the portfolio companies of the Consolidated Funds, as well as, separately managed accounts. These fees are recognized when Medley becomes entitled to such fees. | ||||
Certain management agreements also provide for Medley to receive Part I incentive fee revenue derived from net interest income (excluding gains and losses) above a hurdle rate. These fees are not subject to repayment, clawbacks or netting against realized losses. Part I incentive fees are paid quarterly and are recognized as earned over the period the services are provided. | ||||
Performance Fees | ||||
Performance fees consist principally of the allocation of profits from certain funds, including separately managed accounts, to which Medley provides management services. Medley is generally entitled to an allocation of income as a performance fee after returning the invested capital plus a specified preferred return as set forth in each respective agreement. Medley recognizes revenues attributable to performance fees based upon the amount that would be due pursuant to the respective agreement at each period end as if the funds were terminated at that date. Accordingly, the amount recognized reflects Medley’s share of the gains and losses of the associated funds’ underlying investments measured at their current fair values. Performance fee revenue may include reversals of previously recognized performance fees due to a decrease in the net income of a particular fund that results in a decrease of cumulative performance fees earned to date. Since fund return hurdles are cumulative, previously recognized performance fees also may be reversed in a period of appreciation that is lower than the particular fund’s hurdle rate. For the year ended December 31, 2014, the Company reversed $4.4 million and $2.3 million of previously recognized performance fees on a standalone and consolidated basis, respectively. The Company did not reverse any previously recognized performance fees for the years ended December 31, 2013 and 2012. Cumulative performance fees recognized through December 31, 2014 were $20.4 million and $5.6 million on a standalone and consolidated basis, respectively. | ||||
Performance fees received in prior periods may be required to be returned by Medley in future periods if the funds’ investment performance declines below certain levels. Each fund is considered separately in this regard and, for a given fund, performance fees can never be negative over the life of a fund. If upon a hypothetical liquidation of a fund’s investments at their then current fair values previously recognized and distributed performance fees would be required to be returned, a liability is established for the potential clawback obligation. As of December 31, 2014, the Company had not received any performance fee distributions, except for tax distributions related to the Company’s allocation of net income, which included an allocation of performance fees. Pursuant to the organizational documents of each respective fund, tax distributions are not subject to clawback. As such, no amounts have been accrued for clawback obligations in the accompanying consolidated financial statements. | ||||
Other Revenues and Fees | ||||
Medley provides administrative services to certain affiliated funds and is reimbursed for direct and allocated expenses incurred in providing such administrative services, as set forth in the respective agreement. These fees are recognized as revenue in the period administrative services are rendered. | ||||
Included in other revenues and fees are reimbursements received by Medley from SIC under its investment advisory agreement. Expenses incurred by Medley under this agreement are recorded within general, administrative, and other expenses in the consolidated statements of operations. For additional information on these reimbursements, refer to Note 10. | ||||
Performance Fee Compensation | ||||
Performance Fee Compensation | ||||
Medley has issued profit interests in certain subsidiaries to selected employees. These profit-sharing arrangements are accounted for under ASC 710, Compensation — General, which requires compensation expense to be measured at fair value at the grant date and expensed over the vesting period, which is usually the period over which the service is provided. The fair value of the profit interests are re-measured at each balance sheet date and adjusted for changes in estimates of cash flows and vesting percentages. The impact of such changes is recorded in the consolidated statements of operations as an increase or decrease to performance fee compensation. | ||||
Stock-based Compensation | ||||
Stock-based Compensation | ||||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. Under the fair value recognition provision of this guidance, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period. | ||||
Stock-based compensation expense recognized for the year ended December 31, 2014 is based on awards ultimately expected to vest and have been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The effect of such change in estimated forfeitures is recognized through a cumulative catch-up adjustment that is included in the period of the change in estimate. | ||||
The value of the portion of the award that is ultimately expected to vest on a straight-line basis over the requisite service period is included within compensation and benefits on the Company’s consolidated statements of operations. | ||||
Income Taxes | Income Taxes | |||
The Company accounts for income taxes using the asset and liability approach, which requires the recognition of tax benefits or expenses for temporary differences between the financial reporting and tax basis of assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company also recognizes a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. The Company’s policy is to recognize interest and penalties on uncertain tax positions and other tax matters as a component of income tax expense. | ||||
Prior to the Company’s reorganization and IPO, no provision was made for U.S. federal income taxes in the accompanying consolidated financial statements since the Company was a group of pass-through entities for U.S. income tax purposes and its profits and losses are allocated to the partners who are individually responsible for reporting such amounts. A provision for income taxes was made for certain entities that were subject to New York City unincorporated business tax. | ||||
Following the IPO, Medley LLC and its subsidiaries continue to operate as pass-through entities for U.S. income tax purposes. Accordingly, these entities in some cases continue to be subject to New York City unincorporated business taxes. Medley Management Inc. is subject to U.S. corporate federal, state and local income taxes which are reflected in the Company’s consolidated financial statements. | ||||
The Company analyzes its tax filing positions in all of the U.S. federal, state and local tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, the Company determines that uncertainties in tax positions exist, a liability is established. | ||||
Secured Borrowings of Consolidated Funds | Secured Borrowings of Consolidated Funds | |||
The Consolidated Funds follow the guidance in ASC 860, Transfers and Servicing when accounting for loan participations and other partial loan sales. Such guidance provides accounting and reporting standards for transfers and servicing of financial assets and requires a participation or other partial loan sale to meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain on the Company’s Consolidated Balance Sheets and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value. | ||||
For these participations or partial loan sales which do not meet the definition of a participating interest, the interest income earned on the entire loan balance is recorded within interest and other income of Consolidated Funds and the interest income earned by the buyer in the partial loan sale is recorded as interest expense of Consolidated Funds expenses in the accompanying consolidated statements of operations. Changes in the fair value of secured borrowings of Consolidated Funds are included in net change in unrealized depreciation (appreciation) on secured borrowings in the consolidated statement of operations. | ||||
Leases | Leases | |||
Certain lease agreements contain escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the length of the lease term. The difference between rent expense and rent paid is recorded as deferred rent. Leasehold improvements made by the lessee and funded by landlord allowances or other incentives are also recorded as deferred rent and are amortized as a reduction in rent expense over the term of the lease. Deferred rent is included as a component of accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. | ||||
Recent Accounting Pronouncements | Revisions to Previously Issued Financial Statements | |||
The Company accounts for certain loan participations as secured borrowings that in previously issued financial statements had been accounted for as true sales, as defined in ASC 860, Transfers and Servicing. These loan participation agreements did not contain any prohibited constraints on exchange or transfer and the assets were legally isolated from the transferor. Upon further analysis the Company determined that a provision in the asset management agreement between the transferee and a consolidated affiliate of the transferor had a standard provision which restricted transfer of the assets for a period of time. As a result of this constraint, the Company determined that in accordance with ASC 860-10-40-5 the transactions should be reported as secured borrowings. The Company has determined that the impact on its previously issued financial statements was not material. As a result, prior periods were revised as follows: (i) both assets and liabilities of Consolidated Funds increased by $41.3 million as of December 31, 2013, (ii) interest and other income of Consolidated Funds increased by $2.6 million and $2.7 million for the years ended December 31, 2013 and 2012, respectively, with direct offsetting amounts to interest expense of Consolidated Funds, (iii) the recording of unrealized appreciation (depreciation) on investments of Consolidated Funds of $(0.3) and $0.8 million for the years ended December 31, 2013 and 2012, respectively, with direct offsetting amounts to unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds, and (iv) a change in net cash used in operating activities of $24.0 million and $(2.3) million for the years ended December 31, 2013 and 2012, respectively, with offsetting changes in cash provided by financing activities. These changes had no impact on consolidated and standalone equity or net income. | ||||
Recent Accounting Pronouncements | ||||
In June 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. This guidance clarifies the characteristics of an investment company and provides guidance for assessing whether an entity is an investment company. Consistent with existing guidance for investment companies, all investments are to be measured at fair value including non-controlling ownership interests in other investment companies. There are no changes to the current requirements relating to the retention of specialized accounting in the consolidated financial statements of a non-investment company parent. The guidance is effective for interim and annual periods beginning after December 15, 2013 and early application was prohibited. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | ||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The amendments are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact, if any, that this ASU will have on its consolidated financial statements. | ||||
In February 2015, the FASB issued ASU 2015-02, Consolidation – Principal versus Agent Analysis. This guidance requires an entity to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (a) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (b) eliminate the presumption that a general partner should consolidate a limited partnership; (c) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; (d) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for interim and annual periods beginning after December 15, 2015 and early application is permitted. The Company is currently evaluating the impact, if any, that this ASU will have on its consolidated financial statements. | ||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Investments [Abstract] | ||||||||||||
Composition of Investments | The composition of investments is as follows: | |||||||||||
As of December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Equity method investment, at fair value | $ | 9,901 | $ | 10,173 | ||||||||
Investments of Consolidated Funds, at fair value | 734,870 | 453,396 | ||||||||||
Total Investments | $ | 744,771 | $ | 463,569 | ||||||||
Investments in Consolidated Funds | The following table presents a summary of the investments held by the Consolidated Funds and as a percentage of total investments of Consolidated Funds. | |||||||||||
Investments of Consolidated Funds | ||||||||||||
Fair Value | Percentage | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(Amounts in thousands) | ||||||||||||
Geographic Region/Investment Type/Industry Description: | ||||||||||||
North America: | ||||||||||||
Senior secured loans and notes: | ||||||||||||
Automobile | $ | 39,577 | $ | - | 5.4 | % | 0.0 | % | ||||
Banking | 28,325 | 28,903 | 3.8 | % | 6.4 | % | ||||||
Business Services | 25,898 | 14,370 | 3.5 | % | 3.2 | % | ||||||
Chemicals, Plastics and Rubber | 21,196 | - | 2.9 | % | 0.0 | % | ||||||
Consumer Goods | 34,791 | 19,160 | 4.7 | % | 4.3 | % | ||||||
Container and Packaging | 25,657 | 7,000 | 3.5 | % | 1.6 | % | ||||||
Financial Services | 85,157 | 24,708 | 11.6 | % | 5.5 | % | ||||||
Healthcare, Wellness and Education | 44,991 | 18,575 | 6.1 | % | 4.1 | % | ||||||
Insurance | 8,116 | 6,456 | 1.1 | % | 1.4 | % | ||||||
Manufacturing | 53,477 | 1,853 | 7.3 | % | 0.4 | % | ||||||
Media and Entertainment Services | 20,404 | 33,815 | 2.8 | % | 7.5 | % | ||||||
Medical Transcription Services | 36,930 | 14,235 | 5 | % | 3.2 | % | ||||||
Oil and Gas/Energy | 32,736 | 35,915 | 4.5 | % | 8.0 | % | ||||||
Personal and Nondurable Consumer Products | 39,488 | 52,040 | 5.4 | % | 11.6 | % | ||||||
Personal Services | 20,886 | 18,666 | 2.8 | % | 4.1 | % | ||||||
Real Estate | 119,601 | 50,157 | 16.3 | % | 11.1 | % | ||||||
Retail and Commercial Kitchen Appliances | 24,886 | 25,000 | 3.4 | % | 5.6 | % | ||||||
Structured Finance Securities | - | 49,326 | 0.0 | % | 11.0 | % | ||||||
Vehicle Service Contracts | - | 17,110 | 0.0 | % | 3.7 | % | ||||||
Other | 539 | 799 | 0.1 | % | 0.2 | % | ||||||
Total Senior Secured Loans and Notes, North America (cost of $711,398 and $435,661, respectively) | $ | 662,655 | $ | 418,088 | 90.2 | % | 92.9 | % | ||||
South America: | ||||||||||||
Senior secured loans and notes: | ||||||||||||
Energy | $ | 424 | $ | 2,922 | 0.1 | % | 0.7 | % | ||||
Financial Services | 1,029 | 2,314 | 0.1 | % | 0.5 | % | ||||||
Total Senior Secured Loans and Notes, South America (cost of $13,049 and $12,810, respectively) | $ | 1,453 | $ | 5,236 | 0.2 | % | 1.2 | % | ||||
Asia: | ||||||||||||
Real Estate (cost of $1,373) | $ | 1,377 | $ | 1,376 | 0.2 | % | 0.2 | % | ||||
Investments of Consolidated Funds | ||||||||||||
Fair Value | Percentage | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(Amounts in thousands) | ||||||||||||
Geographic Region/Investment Type/Industry Description: | ||||||||||||
North America: | ||||||||||||
Equity interests in limited liability companies: | ||||||||||||
Banking | $ | 5,623 | $ | 3,646 | 0.8 | % | 0.8 | % | ||||
Healthcare Education | 63 | - | 0.0 | % | 0.0 | % | ||||||
Oil and Gas | 2,596 | 565 | 0.4 | % | 0.1 | % | ||||||
Packaging/Manufacturing | 320 | 2,896 | 0.0 | % | 0.7 | % | ||||||
Real Estate | 40,012 | 10,549 | 5.4 | % | 1.6 | % | ||||||
Telecommunications | 170 | 968 | 0.0 | % | 0.2 | % | ||||||
Total Equity Interest in Limited Liability Companies (cost of $40,944 and $16,912, respectively) | $ | 48,784 | $ | 18,624 | 6.6 | % | 3.4 | % | ||||
Common Stock (cost of $8,913 and $8,913, respectively) | $ | 964 | $ | 2,073 | 0.1 | % | 0.5 | % | ||||
Preferred Stock (cost of $10,187 and $10,567, respectively) | $ | 545 | $ | 362 | 0.1 | % | 0.1 | % | ||||
Warrants: | ||||||||||||
Container and Packaging | 105 | - | 0.0 | % | 0.0 | % | ||||||
Healthcare and Wellness | 4,700 | 1,115 | 0.7 | % | 0.3 | % | ||||||
Medical Transcription Services | 437 | 15 | 0.1 | % | 0.0 | % | ||||||
Oil and Gas | 1,793 | - | 0.2 | % | 0.0 | % | ||||||
Real Estate | 113 | 540 | 0.0 | % | 0.1 | % | ||||||
Retail and Commercial Kitchen Appliances | 893 | 1,318 | 0.1 | % | 0.3 | % | ||||||
Structured Finance Securities | 10,363 | 2,639 | 1.4 | % | 0.6 | % | ||||||
Vehicle Service Contracts | - | 588 | 0.0 | % | 0.1 | % | ||||||
Total Warrants (cost of $3,428 and $1,366, respectively) | 18,404 | 6,215 | 2.5 | % | 1.4 | % | ||||||
Total Equity Securities (cost of $22,528 and $20,846, respectively) | $ | 19,913 | $ | 8,650 | 2.7 | % | 2.0 | % | ||||
Collectibles (cost of $1,385) | $ | 688 | $ | 1,422 | 0.1 | % | 0.3 | % | ||||
Total Investments of Consolidated Funds (cost of $790,677 and $488,987, respectively) | $ | 734,870 | $ | 453,396 | 100.0 | % | 100.0 | % | ||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||
Fair Value of Investments by Class | The following tables present the fair value measurements of investments, by major class according to the fair value hierarchy: | ||||||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Senior secured loans and notes | $ | - | $ | - | $ | 664,108 | $ | 664,108 | |||||||||||||||||||||||
Equity interests in LLCs | - | - | 48,784 | 48,784 | |||||||||||||||||||||||||||
Equity securities | 62 | 29 | 19,822 | 19,913 | |||||||||||||||||||||||||||
Investments in tangible assets | - | - | 2,065 | 2,065 | |||||||||||||||||||||||||||
Equity method investment | - | - | 9,901 | 9,901 | |||||||||||||||||||||||||||
Total assets | $ | 62 | $ | 29 | $ | 744,680 | $ | 744,771 | |||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 16 | $ | - | $ | 141,119 | $ | 141,135 | |||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Senior secured loans and notes | $ | - | $ | - | $ | 423,324 | $ | 423,324 | |||||||||||||||||||||||
Equity interests in LLCs | - | - | 18,624 | 18,624 | |||||||||||||||||||||||||||
Equity securities | 140 | 95 | 8,415 | 8,650 | |||||||||||||||||||||||||||
Investments in tangible assets | - | - | 2,798 | 2,798 | |||||||||||||||||||||||||||
Equity method investment | - | - | 10,173 | 10,173 | |||||||||||||||||||||||||||
Total assets | $ | 140 | $ | 95 | $ | 463,334 | $ | 463,569 | |||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 35 | $ | - | $ | 41,143 | $ | 41,178 | |||||||||||||||||||||||
Reconciliation of Level III Investments | The following tables provide a reconciliation of the beginning and ending balances for the Consolidated Funds’ Level III investments and the Company’s investment in its equity method investee: | ||||||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||||
Financial Assets | Liabilities | ||||||||||||||||||||||||||||||
Investments of Consolidated Funds | |||||||||||||||||||||||||||||||
Senior Secured Loans and Notes | Equity Interests in LLCs | Equity Securities | Investment in Tangible Assets | Equity Method Investment | Total | Secured borrowings of Consolidated Funds | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 423,324 | $ | 18,624 | $ | 8,415 | $ | 2,798 | $ | 10,173 | $ | 463,334 | $ | 41,143 | |||||||||||||||||
Amortization | 1,949 | - | - | - | - | 1,949 | - | ||||||||||||||||||||||||
Paid in-kind interest income | 5,531 | 53 | - | - | - | 5,584 | - | ||||||||||||||||||||||||
Purchases | 423,954 | 24,753 | 2,499 | - | - | 451,206 | - | ||||||||||||||||||||||||
Sales and settlements | -155,129 | - | -2,369 | - | - | -157,498 | - | ||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | -35,521 | 5,354 | 11,277 | -733 | -272 | -19,895 | - | ||||||||||||||||||||||||
Unrealized depreciation on secured borrowings of Consolidated Funds, net | - | - | - | - | - | - | -1,155 | ||||||||||||||||||||||||
Proceeds from secured borrowings, net | - | - | - | - | - | - | 101,131 | ||||||||||||||||||||||||
Balance, end of year | $ | 664,108 | $ | 48,784 | $ | 19,822 | $ | 2,065 | $ | 9,901 | $ | 744,680 | $ | 141,119 | |||||||||||||||||
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | $ | -36,330 | $ | 5,354 | $ | 11,297 | $ | -734 | $ | -272 | $ | -20,685 | $ | -1,155 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||
Financial Assets | Liabilities | ||||||||||||||||||||||||||||||
Investments of Consolidated Funds | |||||||||||||||||||||||||||||||
Senior Secured Loans and Notes | Equity Interests in LLCs | Equity Securities | Investment in Tangible Assets | Equity Method Investment | Total | Secured borrowings of Consolidated Funds | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 324,353 | $ | 14,790 | $ | 11,973 | $ | 5,160 | $ | 9,929 | $ | 366,205 | $ | 16,374 | |||||||||||||||||
Amortization | 1,644 | - | - | - | - | 1,644 | - | ||||||||||||||||||||||||
Paid in-kind interest income | 9,500 | - | - | - | - | 9,500 | - | ||||||||||||||||||||||||
Purchases | 196,813 | 2,727 | 391 | - | - | 199,931 | - | ||||||||||||||||||||||||
Sales and settlements | -91,184 | -105 | -2,926 | -800 | - | -95,015 | - | ||||||||||||||||||||||||
Realized and unrealized appreciation (depreciation), net | -17,802 | 1,212 | -1,023 | -1,562 | 244 | -18,931 | - | ||||||||||||||||||||||||
Unrealized appreciation on secured borrowings of Consolidated Funds, net | - | - | - | - | - | - | 310 | ||||||||||||||||||||||||
Proceeds from secured borrowings, net | - | - | - | - | - | - | 24,459 | ||||||||||||||||||||||||
Balance, end of year | $ | 423,324 | $ | 18,624 | $ | 8,415 | $ | 2,798 | $ | 10,173 | $ | 463,334 | $ | 41,143 | |||||||||||||||||
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | $ | -16,061 | $ | 2,739 | $ | -972 | $ | -2,361 | $ | 244 | $ | -16,411 | $ | 310 | |||||||||||||||||
Summary of Quantitative Inputs and Assumptions | |||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Assets | Fair Value as of December 31, 2014 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | ||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Senior Secured Loans and Notes | $ | 193 | Negotiated Sales Proceeds | Expected Sales Proceeds | $ | - | $ | 4,000,000 | $ | 1,932,000 | |||||||||||||||||||||
4,009 | Sales Comparison Approach | Price per Acre | $ | 8,000 | $ | 41,000 | $ | 24,500 | |||||||||||||||||||||||
Price per room | $ | 43,200 | $ | 71,429 | $ | 57,315 | |||||||||||||||||||||||||
Price per unit | $ | 155,734 | $ | 228,009 | $ | 191,872 | |||||||||||||||||||||||||
403 | Market Approach (Guideline Comparable) | LTM Revenue Multiple | 0.60x | 0.60x | 0.45x | ||||||||||||||||||||||||||
346 | Market Approach (Guideline Comparable) | LTM EBITDA Multiple | 3.10x | 3.62x | 3.60x | ||||||||||||||||||||||||||
1,167 | Market Approach (Guideline Comparable) | LTM EBITDA multiple | 3.10x | 5.50x | 4.30x | ||||||||||||||||||||||||||
LTM Revenue multiple | 0.50x | 0.65x | 0.58x | ||||||||||||||||||||||||||||
1,989 | Income Approach (DCF) | Discount rate | 12.0% | 35.0% | 20.5% | ||||||||||||||||||||||||||
144 | Liquidation Approach | Asset Coverage | $ | 144,531 | $ | 144,531 | $ | 144,531 | |||||||||||||||||||||||
566,010 | Income approach | Market yield | 10.00% | 15.21% | 12.45% | ||||||||||||||||||||||||||
37,600 | Recent Arms-length transaction | Recent Arms-length transaction | N/A | N/A | N/A | ||||||||||||||||||||||||||
21,005 | Income approach | Discount Rate | 14.00% | 18.00% | 16.45% | ||||||||||||||||||||||||||
15,859 | Market Approach (Guideline Comparable) | EBITDA Multiple | 5.50x | 6.00x | 5.75x | ||||||||||||||||||||||||||
5,095 | Enterprise Valuation Analysis | EBITDA Multiple | 6.00x | 7.00x | 7.00x | ||||||||||||||||||||||||||
8,910 | Market Approach (Guideline Comparable) | Rev Multiple / EBITDA Multiple | 0.43x / 4.09x | 0.43x / 4.09x | 0.43x / 4.09x | ||||||||||||||||||||||||||
1,378 | Enterprise Valuation Analysis | EBITDA Multiple/Estimated Liquidation Proceeds | 2.00x / $205.8M | 2.00x / $205.8M | 2.00x / $205.8M | ||||||||||||||||||||||||||
Equity Interests in LLCs | 1,370 | Market Approach | Unsolicited Offer Price | $ | 12,000,000 | $ | 12,000,000 | $ | 12,000,000 | ||||||||||||||||||||||
5,623 | Market Approach (Guideline Comparable) | Investment Portfolio Multiple | 1.10x | 1.10x | 1.10x | ||||||||||||||||||||||||||
3,099 | Market Approach (Guideline Comparable) | EBITDA Multiple | 6.25x | 8.50x | 6.70x | ||||||||||||||||||||||||||
2,595 | Market Approach (Guideline Comparable) | EBITDA Multiple / Volatility | 3.75x / 50% | 3.75x / 50% | 3.75x / 50% | ||||||||||||||||||||||||||
581 | Income Approach (DCF) | Market Yield | 13.14% | 13.14% | 13.14% | ||||||||||||||||||||||||||
14,516 | Income Approach (DCF) | Discount Rate | 14.00% | 18.00% | 18.00% | ||||||||||||||||||||||||||
15,000 | Income Approach (DCF) | Capitalization rate | 8.70% | 8.70% | 8.70% | ||||||||||||||||||||||||||
6,000 | Recent Arms-length transaction | Recent Arms-length transaction | N/A | N/A | N/A | ||||||||||||||||||||||||||
Equity Securities | 7,936 | Market Approach (Guideline Comparable) | EBITDA Multiple | 4.00x | 8.31x | 5.20x | |||||||||||||||||||||||||
10,364 | Option Model | Tangible Book Value Multiple / Volatility | 1.30x / 41.5% | 1.30x / 41.5% | 1.30x / 41.5% | ||||||||||||||||||||||||||
105 | Option Model | Volatility | 90.80% | 90.80% | 90.80% | ||||||||||||||||||||||||||
194 | Market Approach (Guideline Comparable) | LTM EBITDARD multiple | 10.40x | 11.10x | 10.75x | ||||||||||||||||||||||||||
NTM EBITDARD multiple | 9.50x | 10.80x | 10.15x | ||||||||||||||||||||||||||||
261 | Market Approach (Guideline Comparable) | Revenue Multiple | 0.30x | 0.60x | 0.45x | ||||||||||||||||||||||||||
417 | Income Approach (DCF) | Discount rate | 13.0% | 18.0% | 16.4% | ||||||||||||||||||||||||||
545 | Market Approach (Guideline Comparable) | LTM EBITDA multiple | 5.00x | 5.50x | 5.25x | ||||||||||||||||||||||||||
LTM Revenue multiple | 0.50x | 0.65x | 0.58x | ||||||||||||||||||||||||||||
Tangible Assets | 688 | Market Approach | Appraisal of assets | $ | 500,000 | $ | 2,200,000 | $ | 1,350,000 | ||||||||||||||||||||||
1,377 | Sales Comparison Approach | Price per SQM | 1,146 | 1,274 | 1,210 | ||||||||||||||||||||||||||
Equity Method Investment | 9,901 | Net Asset Value of Underlying Fund | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||
$ | 744,680 | ||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Liability | Fair Value as of December 31, 2014 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 130,157 | Income approach | Market yield | 10.00% | 15.21% | 12.45% | ||||||||||||||||||||||||
5,947 | Market Approach (Guideline Comparable) | EBITDA Multiple | 5.50x | 6.00x | 5.75x | ||||||||||||||||||||||||||
5,000 | Income Approach (DCF) | Capitalization rate | 8.70% | 8.70% | 8.70% | ||||||||||||||||||||||||||
15 | Market Approach (Guideline Comparable) | EBITDA Multiple | 4.00x | 8.31x | 5.20x | ||||||||||||||||||||||||||
$ | 141,119 | ||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Assets | Fair Value as of December 31, 2013 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Senior Secured Loans | $ | 386 | Sales Comparison Approach | Price per ton | $ | 0.25 | $ | 1.00 | $ | 0.63 | |||||||||||||||||||||
1,487 | Market Approach | Price per acre | $ | 8,750 | $ | 42,396 | $ | 25,573 | |||||||||||||||||||||||
2,169 | Market Approach | Price per room | $ | 32,038 | $ | 71,429 | $ | 51,734 | |||||||||||||||||||||||
Price per unit | $ | 152,507 | $ | 417,016 | $ | 284,762 | |||||||||||||||||||||||||
Discount-lack of | |||||||||||||||||||||||||||||||
marketability | 25.0% | 35.0% | 30.0% | ||||||||||||||||||||||||||||
7,362 | Income Approach (DCF) | Discount rate | 12.0% | 17.4% | 14.7% | ||||||||||||||||||||||||||
390,770 | Income Approach (DCF) | Market yield | 9.0% | 20.2% | 13.7% | ||||||||||||||||||||||||||
14,780 | Market Approach (Guideline Comparable) | EBITDA multiple | 6.0x | 6.0x | 6.0x | ||||||||||||||||||||||||||
1,871 | Enterprise valuation analysis | Liquidation proceeds | $ | 205.8M | $ | 205.8M | $ | 205.8M | |||||||||||||||||||||||
34 | Income Approach (DCF) | Market yield | 14.2% | 14.2% | 14.2% | ||||||||||||||||||||||||||
335 | Current Value | LTM Revenue multiple | 1.50x | 1.75x | 1.63x | ||||||||||||||||||||||||||
412 | Guideline Comparable | Forward EBITDA multiple | 3.75x | 3.75x | 3.75x | ||||||||||||||||||||||||||
1,109 | Guideline Comparable | LTM EBITDA multiple | 5.25x | 5.25x | 5.25x | ||||||||||||||||||||||||||
Guideline Comparable | LTM Revenue multiple | 0.6x | 0.6x | 0.6x | |||||||||||||||||||||||||||
1,000 | Cost Approach | Expected proceeds | $ | 10,000,000 | $ | 10,000,000 | $ | 10,000,000 | |||||||||||||||||||||||
1,609 | Liquidation Approach | Asset coverage | $ | 16,095,312 | $ | 16,095,312 | $ | 16,095,312 | |||||||||||||||||||||||
Equity Interests in LLCs | 2,313 | Income Approach (DCF) | Discount rate | 16.5% | 16.5% | 16.5% | |||||||||||||||||||||||||
Income Approach (DCF) | Long term growth rate | 1.5% | 1.5% | 1.5% | |||||||||||||||||||||||||||
3,646 | Market Approach (Guideline Comparable) | Investment portfolio multiple | 1.0x | 1.0x | 1.0x | ||||||||||||||||||||||||||
11,697 | Cost approach | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
968 | Expected Precedent Transaction | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Equity Securities | 411 | Income Approach (DCF) | Discount rate | 12.0% | 50.0% | 15.9% | |||||||||||||||||||||||||
154 | Market Approach (Guideline Comparable) | LTM EBITDA multiple | 11.5x | 11.5x | 11.5x | ||||||||||||||||||||||||||
LTM Revenue multiple | 1.5x | 1.5x | 1.5x | ||||||||||||||||||||||||||||
964 | Market Approach (Current Value) | Revenue multiple | 1.6x | 1.6x | 1.6x | ||||||||||||||||||||||||||
Market Approach (Current Value) | Price per ton | $ | 148 | $ | 148 | $ | 148 | ||||||||||||||||||||||||
720 | Income Approach (DCF) | Discount rate | 30.0% | 30.0% | 30.0% | ||||||||||||||||||||||||||
362 | Guideline Comparable | LTM revenue multiple | 5.3x | 5.3x | 5.3x | ||||||||||||||||||||||||||
3,150 | Market Approach (Guideline Comparable) | EBITDA multiple | 3.5x | 7.5x | 6.1x | ||||||||||||||||||||||||||
2,639 | Option Model | Volatility | 47.9% | 47.9% | 47.9% | ||||||||||||||||||||||||||
15 | Cost Approach | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Tangible Assets | 1,421 | Market Approach | Appraisal of assets | $ | 100,000 | $ | 3,700,000 | $ | 1,900,000 | ||||||||||||||||||||||
1,377 | Sales Comparison Approach | Price per square meter | 6,716 | 6,716 | 6,716 | ||||||||||||||||||||||||||
Equity method investment | 10,173 | Net Asset Value of Underlying Fund | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||
463,334 | |||||||||||||||||||||||||||||||
a | |||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||
Liability | Fair Value as of December 31, 2013 | Valuation Technique(s) | Unobservable input | Minimum | Maximum | Weighted Average | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Secured borrowings of Consolidated Funds | $ | 41,135 | Income Approach (DCF) | Market yield | 9.0% | 20.2% | 13.7% | ||||||||||||||||||||||||
8 | Income Approach (DCF) | Market yield | 14.2% | 14.2% | 14.2% | ||||||||||||||||||||||||||
$ | 41,143 | ||||||||||||||||||||||||||||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Asset [Abstract] | |||||||
Components of Other Assets | The components of other assets are as follows: | ||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
Other Assets of Medley LLC: | (Amounts in thousands) | ||||||
Property and equipment, net of accumulated depreciation of $1,232 and $1,351, respectively | $ | 1,367 | $ | 1,247 | |||
Security deposits | 1,218 | 1,218 | |||||
Administrative fees receivable (Note 10) | 1,500 | 1,640 | |||||
Deferred tax assets | 874 | 634 | |||||
Deferred financing costs, net of accumulated amortization of $217 and $0, respectively | 2,329 | 337 | |||||
Due from affiliates (Note 10) | 382 | 224 | |||||
Prepaid expenses | 627 | - | |||||
Other receivables | 933 | 8 | |||||
Total other assets of Medley LLC | 9,230 | 5,308 | |||||
Other Assets of Consolidated Funds | |||||||
Restricted cash | 3,000 | - | |||||
Deferred tax assets | 340 | - | |||||
Other receivables | 341 | 436 | |||||
Total other assets of Consolidated Funds | 3,681 | 436 | |||||
Total other assets | $ | 12,911 | $ | 5,744 | |||
LOANS_PAYABLE_Tables
LOANS PAYABLE (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Loans Payable [Abstract] | |||||||
Schedule of Debt | The Company’s loans payable consist of the following: | ||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in thousands) | |||||||
Credit Suisse Term Loan Facility: | |||||||
Term loans, net of unamortized discount of $1,006 | $ | 93,994 | $ | - | |||
CNB credit agreement: | |||||||
Term loan | - | 15,000 | |||||
Revolving credit facility | - | 3,000 | |||||
Co-invest term loan | - | 2,000 | |||||
Non-recourse promissory notes, net of unamortized discount of $2,500 and $3,010, respectively | 9,063 | 7,990 | |||||
Total Loans payable | $ | 103,057 | $ | 27,990 | |||
Schedule of Maturities of Long-term Debt | As of December 31, 2014, future principal payments due under the loans payable are as follows (in thousands): | ||||||
2015 | $ | 1,250 | |||||
2016 | 312 | ||||||
2017 | 2,875 | ||||||
2018 | 5,500 | ||||||
2019 | 96,626 | ||||||
$ | 106,563 | ||||||
ACCOUNTS_PAYABLE_ACCRUED_EXPEN1
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | |||||||
Components of Accounts Payable, Accrued Expenses, and Other Liabilities | The components of accounts payable, accrued expenses and other liabilities are as follows: | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
(Amounts in thousands) | |||||||
Accounts payable, accrued expenses and other liabilities of Medley LLC: | |||||||
Accrued compensation and benefits | $ | 8,575 | $ | 5,650 | |||
Due to affiliates (Note 10) | 6,998 | 3,676 | |||||
Revenue share payable (Note 9) | 6,669 | 5,286 | |||||
Dividends payable | 1,423 | - | |||||
Income taxes payable | 741 | - | |||||
Professional fees | 545 | 647 | |||||
Deferred rent | 474 | 794 | |||||
Deferred tax liabilities | 245 | 391 | |||||
Accounts payable and accrued expenses | 1,913 | 1,169 | |||||
Total accounts payable, accrued expenses and other liabilities of Medley LLC | 27,583 | 17,613 | |||||
Accounts payable, accrued expenses and other liabilities of Consolidated Funds | 5,767 | 1,325 | |||||
Total accounts payable, accrued expenses and other liabilities | $ | 33,350 | $ | 18,938 | |||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies [Abstract] | ||||
Future Minimum Rental Payments | ||||
Future minimum rental payments under non-cancelable leases are as follows (in thousands): | ||||
2015 | $ | 2,454 | ||
2016 | 784 | |||
2017 | 452 | |||
2018 | 457 | |||
2019 | 463 | |||
Thereafter | 469 | |||
Total future minimum lease payments | $ | 5,079 | ||
EARNINGS_PER_CLASS_A_SHARE_Tab
EARNINGS PER CLASS A SHARE (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Earnings Per Class A Share [Abstract] | |||
Basic and Diluted Income per Class A Share | The table below presents basic and diluted net income per Class A share using the two-class method for the year ended December 31, 2014: | ||
Year ended | |||
31-Dec-14 | |||
Basic and diluted net income per share: | (Amounts in thousands, except per share amounts) | ||
Numerator | |||
Net income attributable to Medley Management Inc. | $ | 1,695 | |
Less: Dividends declared on Class A common stock (1) | -1,200 | ||
Less: Dividends payable to participating securities (2) | -222 | ||
Less: Undistributed net income available to participating securities (2) | -45 | ||
Undistributed net income available to class A common stockholders | $ | 228 | |
Denominator | |||
Weighted average shares of Class A shares outstanding, including participating securities | 7,177,432 | ||
Less: weighted average of participating securities (2) | -1,177,432 | ||
Weighted average Class A common stock outstanding: Basic | 6,000,000 | ||
Weighted average shares of Class A shares outstanding: Diluted | 6,000,000 | ||
Add: dilutive effects of conversion of LLC Units (3) | - | ||
Weighted average dilutive shares outstanding | 6,000,000 | ||
Net income per Class A share: Basic and Diluted | |||
Distributable earnings | $ | 0.20 | |
Undistributed income | 0.04 | ||
Net income per Class A share | $ | 0.24 | |
(1)The Company declared a $0.20 dividend on Class A common stock on November 10, 2014. | |||
(2)Participating securities relate to the Company’s grant of restricted stock units in connection with its IPO. | |||
(3)Excludes the assumed conversion of 23,333,333 LLC units to Class A shares as the impact would be antidilutive | |||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Provision for Income Taxes | The provision for (benefit from) income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following: | ||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
(Amounts in thousands) | |||||||||
Current | |||||||||
Federal | $ | 486 | $ | - | $ | - | |||
State and local | 2,768 | 1,735 | 1,138 | ||||||
Total current provision | 3,254 | 1,735 | 1,138 | ||||||
Deferred | |||||||||
Federal | 2 | - | - | ||||||
State and local | -728 | -96 | -51 | ||||||
Total deferred provision | -726 | -96 | -51 | ||||||
Provision for income taxes | $ | 2,528 | $ | 1,639 | $ | 1,087 | |||
Summary of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities included on the Company’s consolidated balance sheets are as follows: | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
(Amounts in thousands) | |||||||||
Deferred tax assets | |||||||||
Tax goodwill | $ | 648 | $ | - | |||||
Unrealized losses | 343 | 97 | |||||||
Stock-based compensation | 27 | - | |||||||
Performance fee compensation | 17 | 201 | |||||||
Deferred rent | 13 | 19 | |||||||
Other liabilities | 166 | 317 | |||||||
Total deferred tax assets | $ | 1,214 | $ | 634 | |||||
Deferred tax liabilities | |||||||||
Accrued fee income | $ | 151 | $ | 363 | |||||
Other | 94 | 28 | |||||||
Total deferred tax liabilities | 245 | 391 | |||||||
Net deferred tax assets | $ | 969 | $ | 243 | |||||
Reconciliation of Statutory to Effective Tax Rates | A reconciliation of the federal statutory tax rate to the effective tax rates for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Federal statutory rate | 34.0% | 34.0% | 34.0% | ||||||
Income allocated to non-controlling interests | -32.90% | -34.00% | -34.00% | ||||||
State and local corporate income taxes | 0.2% | 0.0% | 0.0% | ||||||
Partnership unincorporated business tax | 2.6% | 4.3% | 4.4% | ||||||
Permanent differences | -0.40% | 0.0% | 0.0% | ||||||
Effective tax rate | 3.5% | 4.3% | 4.4% | ||||||
COMPENSATION_EXPENSE_Tables
COMPENSATION EXPENSE (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Compensation Expense [Abstract] | ||||||
Schedule of Nonvested RSU Activity | ||||||
Number of RSUs | Weighted Average Grant Date Fair Value | |||||
Balance at January 1, 2013 | - | $ | - | |||
Granted | 1,203,515 | 17.91 | ||||
Forfeited | -5,600 | 18.00 | ||||
Vested | - | - | ||||
Balance at December 31, 2014 | 1,197,915 | $ | 17.91 | |||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Schedule of Segment Reporting Information, by Segment | The following presents the standalone financial results of the Company’s operating results for the years ended December 31, 2014, 2013 and 2012: | |||||||||
For the Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | ||||||||||
Management fees | $ | 65,765 | $ | 46,424 | $ | 33,690 | ||||
Performance fees | 7,884 | 8,236 | 3,883 | |||||||
Other revenues and fees | 8,871 | 5,011 | 2,527 | |||||||
Total revenues | 82,520 | 59,671 | 40,100 | |||||||
Expenses | ||||||||||
Compensation and benefits | 20,322 | 13,712 | 11,477 | |||||||
Performance fee compensation | -1,543 | 7,192 | 5,148 | |||||||
General, administrative and other expenses | 16,312 | 12,655 | 9,679 | |||||||
Total expenses | 35,091 | 33,559 | 26,304 | |||||||
Other income (expense) | ||||||||||
Dividend income | 886 | 886 | 245 | |||||||
Interest expense | -5,520 | -1,479 | -831 | |||||||
Other expenses, net | -2,097 | -1,168 | -905 | |||||||
Total other expense, net | -6,731 | -1,761 | -1,491 | |||||||
Income before income taxes | $ | 40,698 | $ | 24,351 | $ | 12,305 | ||||
Provision for income taxes | 1,015 | 714 | 387 | |||||||
Net income | 39,683 | 23,637 | 11,918 | |||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | - | - | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | $ | 37,750 | $ | 23,637 | $ | 11,918 | ||||
Reimbursable fund startup expenses (1) | 5,599 | 3,825 | 1,423 | |||||||
Severance expense (1) | -5 | 737 | - | |||||||
IPO date award stock-based compensation (1) | 822 | - | - | |||||||
Adjustment for pre-IPO guaranteed payments to members (1)(2) | -3,284 | -4,993 | -2,913 | |||||||
Core Net Income | $ | 40,882 | $ | 23,206 | $ | 10,428 | ||||
Interest expense | 5,520 | 1,479 | 831 | |||||||
Income taxes | 1,154 | 701 | 343 | |||||||
Depreciation and amortization | 401 | 276 | 258 | |||||||
Core EBITDA | $ | 47,957 | $ | 25,662 | $ | 11,860 | ||||
(1) Presented net of income taxes. | ||||||||||
(2)Represents a pro forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense. Prior to the Company’s reorganization and IPO, these payments were recorded as distributions from member’s capital. | ||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables reconcile the Company’s segment results to its consolidated results of operations: | |||||||||
For the Year Ended December 31, 2014 | ||||||||||
Standalone | Consolidation Adjustments and Reconciling Items | Consolidated Results | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | $ | 82,520 | $ | -10,347 | -1 | $ | 72,173 | |||
Expenses | 35,091 | 1,670 | -2 | 36,761 | ||||||
Other income (expense), net | -6,731 | 43,247 | -3 | 36,516 | ||||||
Provision for income taxes | 1,015 | 1,513 | -4 | 2,528 | ||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | - | 1,933 | |||||||
Net income attributable to non-controlling interest in Consolidated Funds | - | 29,717 | 29,717 | |||||||
Net income attributable to non-controlling interests in Medley LLC | 36,055 | - | 36,055 | |||||||
Net income attributable to Medley Management Inc. | 1,695 | - | 1,695 | |||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 36,055 | - | 36,055 | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 37,750 | - | 37,750 | |||||||
Reimbursable fund startup expenses | 5,599 | - | 5,599 | |||||||
Severance expenses | -5 | - | -5 | |||||||
IPO date award stock-based compensation | 822 | - | 822 | |||||||
Adjustment for pre-IPO guaranteed payments to members | -3,284 | - | -3,284 | |||||||
Core Net Income | $ | 40,882 | $ | - | $ | 40,882 | ||||
For the Year Ended December 31, 2013 | ||||||||||
Standalone | Consolidation Adjustments and Reconciling Items | Consolidated Results | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | $ | 59,671 | $ | -15,802 | -1 | $ | 43,869 | |||
Expenses | 33,559 | 1,225 | -2 | 34,784 | ||||||
Other income (expense) | -1,761 | 30,850 | -3 | 29,089 | ||||||
Provision for income taxes | 714 | 925 | -4 | 1,639 | ||||||
Net income attributable to non-controlling interest in Consolidated Funds | - | 12,898 | 12,898 | |||||||
Net income attributable to non-controlling interests in Medley LLC | 23,637 | - | 23,637 | |||||||
Net income attributed to Medley Management Inc. | - | - | - | |||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 23,637 | - | 23,637 | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 23,637 | - | 23,637 | |||||||
Reimbursable fund startup expenses | 3,825 | - | 3,825 | |||||||
Severance expenses | 737 | - | 737 | |||||||
Adjustment for pre-IPO guaranteed payments to members | -4,993 | - | -4,993 | |||||||
Core Net Income | $ | 23,206 | $ | - | $ | 23,206 | ||||
For the Year Ended December 31, 2012 | ||||||||||
Standalone | Consolidation Adjustments and Reconciling Items | Consolidated Results | ||||||||
(Amounts in thousands) | ||||||||||
Revenues | $ | 40,100 | $ | -11,858 | -1 | $ | 28,242 | |||
Expenses | 26,304 | 1,653 | -2 | 27,957 | ||||||
Other income (expense) | -1,491 | 25,772 | -3 | 24,281 | ||||||
Provision for income taxes | 387 | 700 | -4 | 1,087 | ||||||
Net income attributable to non-controlling interest in Consolidated Funds | - | 11,561 | 11,561 | |||||||
Net income attributable to non-controlling interests in Medley LLC | 11,918 | - | 11,918 | |||||||
Net income attributed to Medley Management Inc. | - | - | - | |||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 11,918 | - | 11,918 | |||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 11,918 | - | 11,918 | |||||||
Reimbursable fund startup expenses | 1,423 | - | 1,423 | |||||||
Severance expenses | - | - | - | |||||||
Adjustment for pre-IPO guaranteed payments to members | -2,913 | -2,913 | ||||||||
Core Net Income | $ | 10,428 | $ | - | $ | 10,428 | ||||
(1)Adjustments and reconciling items to revenues represent management and performance fees earned from Consolidated Funds which were eliminated in consolidation. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Management fees from Consolidated Funds eliminated in consolidation | $ | -4,513 | $ | -9,978 | $ | -8,365 | ||||
MOF II Performance fees eliminated in consolidation | -5,834 | -5,824 | -3,118 | |||||||
Administrative fees from Consolidated Funds eliminated in consolidation | - | - | -375 | |||||||
Total consolidated adjustments and reconciling items | $ | -10,347 | $ | -15,802 | $ | -11,858 | ||||
(2)The adjustment and reconciling items to expenses represent expenses from Consolidated Funds which were eliminated in consolidation. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Consolidated Funds Expenses | $ | 1,670 | $ | 1,225 | $ | 1,653 | ||||
Total consolidated adjustments and reconciling items | $ | 1,670 | $ | 1,225 | $ | 1,653 | ||||
(3)The other income adjustment and reconciling items primarily represents net interest income and net investment income from Consolidated Funds. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Interest and other income of Consolidated Funds | $ | 71,468 | $ | 52,550 | $ | 39,001 | ||||
Interest expense on secured borrowings of Consolidated Funds | -9,951 | -2,638 | -2,666 | |||||||
Net realized gain (loss) on investment of Consolidated Funds | 789 | -16,080 | -1,600 | |||||||
Net change in unrealized depreciation on investments of Consolidated Funds | -20,557 | -3,361 | -10,103 | |||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 1,174 | -306 | 787 | |||||||
Elimination of equity income from Consolidated Funds | 324 | 685 | 353 | |||||||
Total consolidated adjustments and reconciling items | $ | 43,247 | $ | 30,850 | $ | 25,772 | ||||
(4)The provision for income taxes adjustment and reconciling items represents income taxes from Consolidated Funds. For the years ended December 31, 2014, 2013 and 2012, such adjustments and reconciling items were as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(Amounts in thousands) | ||||||||||
Consolidated Funds provision for income taxes | $ | 1,513 | $ | 925 | $ | 700 | ||||
Total consolidated adjustments and reconciling items | $ | 1,513 | $ | 925 | $ | 700 | ||||
CONSOLIDATING_SCHEDULES_Tables
CONSOLIDATING SCHEDULES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization and Basis of Presentation & Consolidating Schedules [Abstract] | |||||||||||||
Consolidated Income Statement | For the Year Ended December 31, 2014 | ||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Revenues: | |||||||||||||
Management fees | $ | 65,765 | $ | - | $ | -4,513 | $ | 61,252 | |||||
Performance fees | 7,884 | - | -5,834 | 2,050 | |||||||||
Other revenues and fees | 8,871 | - | - | 8,871 | |||||||||
Total revenues | 82,520 | - | -10,347 | 72,173 | |||||||||
Expenses: | |||||||||||||
Compensation and benefits | 20,322 | - | - | 20,322 | |||||||||
Performance fee compensation | -1,543 | - | - | -1,543 | |||||||||
Consolidated Funds expenses | - | 6,183 | -4,513 | 1,670 | |||||||||
General, administrative and other expenses | 16,312 | - | - | 16,312 | |||||||||
Total operating expenses | 35,091 | 6,183 | -4,513 | 36,761 | |||||||||
Other income (expense): | |||||||||||||
Dividend income | 886 | - | - | 886 | |||||||||
Interest expense | -5,520 | - | - | -5,520 | |||||||||
Other income (expenses), net | -2,097 | - | 324 | -1,773 | |||||||||
Interest and other income of Consolidated Funds | - | 71,468 | - | 71,468 | |||||||||
Interest expense of Consolidated Funds | - | -9,951 | - | -9,951 | |||||||||
Net realized gain on investments of Consolidated Funds | - | 789 | - | 789 | |||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | - | -20,557 | - | -20,557 | |||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 1,174 | 1,174 | |||||||||||
Total other income (expense), net | -6,731 | 42,923 | 324 | 36,516 | |||||||||
Income before income taxes | 40,698 | 36,740 | -5,510 | 71,928 | |||||||||
Provision for income taxes | 1,015 | 1,513 | - | 2,528 | |||||||||
Net income | 39,683 | 35,227 | -5,510 | 69,400 | |||||||||
Net income attributable to non-controlling interests in Consolidated Funds | - | - | 29,717 | 29,717 | |||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | - | - | 1,933 | |||||||||
Net income attributable to non-controlling interests in Medley LLC | 36,055 | - | - | 36,055 | |||||||||
Net income attributable to Medley Management Inc. | $ | 1,695 | $ | 35,227 | $ | -35,227 | $ | 1,695 | |||||
For the Year Ended December 31, 2013 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Revenues: | |||||||||||||
Management fees | $ | 46,424 | $ | - | $ | -9,978 | $ | 36,446 | |||||
Performance fees | 8,236 | - | -5,824 | 2,412 | |||||||||
Other revenues and fees | 5,011 | - | - | 5,011 | |||||||||
Total revenues | 59,671 | - | -15,802 | 43,869 | |||||||||
Expenses: | |||||||||||||
Compensation and benefits | 13,712 | - | - | 13,712 | |||||||||
Performance fee compensation | 7,192 | - | - | 7,192 | |||||||||
Consolidated Funds expenses | - | 11,203 | -9,978 | 1,225 | |||||||||
General, administrative and other expenses | 12,655 | - | - | 12,655 | |||||||||
Total operating expenses | 33,559 | 11,203 | -9,978 | 34,784 | |||||||||
Other income (expense): | |||||||||||||
Dividend income | 886 | - | - | 886 | |||||||||
Interest expense | -1,479 | - | - | -1,479 | |||||||||
Other income (expenses), net | -1,168 | - | 685 | -483 | |||||||||
Interest and other income of Consolidated Funds | - | 52,550 | - | 52,550 | |||||||||
Interest expense of Consolidated Funds | -2,638 | -2,638 | |||||||||||
Net realized loss on investments of Consolidated Funds | - | -16,080 | - | -16,080 | |||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | - | -3,361 | - | -3,361 | |||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | -306 | -306 | |||||||||||
Total other income (expense) | -1,761 | 30,165 | 685 | 29,089 | |||||||||
Income before income taxes | 24,351 | 18,962 | -5,139 | 38,174 | |||||||||
Provision for income taxes | 714 | 925 | - | 1,639 | |||||||||
Net income | 23,637 | 18,037 | -5,139 | 36,535 | |||||||||
Net income attributable to non-controlling interests in Consolidated Funds | - | - | 12,898 | 12,898 | |||||||||
Net income attributable to Medley LLC | $ | 23,637 | $ | 18,037 | $ | -18,037 | $ | 23,637 | |||||
For the Year Ended December 31, 2012 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Revenues: | |||||||||||||
Management fees | $ | 33,690 | $ | - | $ | -8,365 | $ | 25,325 | |||||
Performance fees | 3,883 | - | -3,118 | 765 | |||||||||
Other revenues and fees | 2,527 | - | -375 | 2,152 | |||||||||
Total revenues | 40,100 | - | -11,858 | 28,242 | |||||||||
Expenses: | |||||||||||||
Compensation and benefits | 11,477 | - | - | 11,477 | |||||||||
Performance fee compensation | 5,148 | - | - | 5,148 | |||||||||
Consolidated Funds expenses | - | 10,393 | -8,740 | 1,653 | |||||||||
General, administrative and other expenses | 9,679 | - | - | 9,679 | |||||||||
Total operating expenses | 26,304 | 10,393 | -8,740 | 27,957 | |||||||||
Other income (expense): | |||||||||||||
Dividend income | 245 | - | - | 245 | |||||||||
Interest expense | -831 | - | - | -831 | |||||||||
Other income (expenses), net | -905 | - | 353 | -552 | |||||||||
Interest and other income of Consolidated Funds | - | 39,001 | - | 39,001 | |||||||||
Interest expense of Consolidated Funds | -2,666 | -2,666 | |||||||||||
Net realized loss on investments of Consolidated Funds | - | -1,600 | - | -1,600 | |||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | - | -10,103 | - | -10,103 | |||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings of Consolidated Funds | 787 | 787 | |||||||||||
Total other income (expense) | -1,491 | 25,419 | 353 | 24,281 | |||||||||
Income before income taxes | 12,305 | 15,026 | -2,765 | 24,566 | |||||||||
Provision for income taxes | 387 | 700 | - | 1,087 | |||||||||
Net income | 11,918 | 14,326 | -2,765 | 23,479 | |||||||||
Net income attributable to non-controlling interests in Consolidated Funds | - | 122 | 11,439 | 11,561 | |||||||||
Net income attributable to Medley LLC | $ | 11,918 | $ | 14,204 | $ | -14,204 | $ | 11,918 | |||||
Consolidated Balance Sheet | |||||||||||||
As of December 31, 2014 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 87,206 | $ | - | $ | - | $ | 87,206 | |||||
Investment, at fair value | 22,143 | - | -12,242 | 9,901 | |||||||||
Management fees receivable | 15,173 | - | - | 15,173 | |||||||||
Performance fees receivable | 5,573 | - | - | 5,573 | |||||||||
Other assets | 9,230 | - | - | 9,230 | |||||||||
Assets of Consolidated Funds: | - | ||||||||||||
Cash and cash equivalents | - | 38,111 | - | 38,111 | |||||||||
Investments, at fair value | - | 734,870 | - | 734,870 | |||||||||
Interest and dividends receivable | - | 6,654 | - | 6,654 | |||||||||
Other assets | - | 5,057 | -1,376 | 3,681 | |||||||||
Total assets | $ | 139,325 | $ | 784,692 | $ | -13,618 | $ | 910,399 | |||||
Liabilities and equity | |||||||||||||
Loans payable | $ | 103,057 | $ | - | $ | - | $ | 103,057 | |||||
Accounts payable, accrued expenses and other liabilities | 28,959 | - | -1,376 | 27,583 | |||||||||
Performance fee compensation payable | 11,807 | - | - | 11,807 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||||
Accounts payable, accrued expenses and other liabilities | - | 5,767 | - | 5,767 | |||||||||
Secured borrowings | - | 141,135 | - | 141,135 | |||||||||
Total liabilities | 143,823 | 146,902 | -1,376 | 289,349 | |||||||||
Equity | |||||||||||||
Class A Common Stock | 60 | - | - | 60 | |||||||||
Class B Common Stock | - | - | - | - | |||||||||
Capital deficit | -2,384 | - | - | -2,384 | |||||||||
Retained earnings | 272 | - | - | 272 | |||||||||
Total stockholders' deficit, Medley Management Inc. | -2,052 | - | - | -2,052 | |||||||||
Non-controlling interests in Consolidated Funds | - | - | 625,548 | 625,548 | |||||||||
Non-controlling interests in consolidated subsidiaries | 1,526 | - | - | 1,526 | |||||||||
Non-controlling interests in Medley LLC | -3,972 | - | - | -3,972 | |||||||||
Members' equity of consolidated funds | - | 637,790 | -637,790 | - | |||||||||
Total (deficit) equity | -4,498 | 637,790 | -12,242 | 621,050 | |||||||||
Total liabilities and equity | $ | 139,325 | $ | 784,692 | $ | -13,618 | $ | 910,399 | |||||
As of December 31, 2013 | |||||||||||||
Standalone | Consolidated Funds | Eliminations | Consolidated | ||||||||||
(Amounts in thousands) | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 5,395 | $ | - | $ | - | $ | 5,395 | |||||
Investment, at fair value | 21,443 | - | -11,270 | 10,173 | |||||||||
Management fees receivable | 8,921 | - | - | 8,921 | |||||||||
Performance fees receivable | 3,339 | - | - | 3,339 | |||||||||
Other assets | 4,216 | - | 1,092 | 5,308 | |||||||||
Assets of Consolidated Funds: | |||||||||||||
Cash and cash equivalents | - | 60,355 | - | 60,355 | |||||||||
Investments, at fair value | - | 453,396 | - | 453,396 | |||||||||
Interest and dividends receivable | - | 2,969 | - | 2,969 | |||||||||
Other assets | - | 1,565 | -1,129 | 436 | |||||||||
Total assets | $ | 43,314 | $ | 518,285 | $ | -11,307 | $ | 550,292 | |||||
Liabilities and equity | |||||||||||||
Loans payable | $ | 27,990 | $ | - | $ | - | $ | 27,990 | |||||
Accounts payable, accrued expenses and other liabilities | 17,613 | - | - | 17,613 | |||||||||
Performance fee compensation payable | 16,225 | - | - | 16,225 | |||||||||
Liabilities of Consolidated Funds: | |||||||||||||
Accounts payable, accrued expenses and other liabilities | - | 1,363 | -38 | 1,325 | |||||||||
Secured borrowings | - | 41,178 | - | 41,178 | |||||||||
Total liabilities | 61,828 | 42,541 | -38 | 104,331 | |||||||||
Equity | |||||||||||||
Non-controlling interest in Consolidated Funds | - | - | 464,475 | 464,475 | |||||||||
Non-controlling interest in consolidated subsidiaries | 40 | - | - | 40 | |||||||||
Members' (deficit) equity | -18,554 | 475,744 | -475,744 | -18,554 | |||||||||
Total (deficit) equity | -18,514 | 475,744 | -11,269 | 445,961 | |||||||||
Total liabilities and equity | $ | 43,314 | $ | 518,285 | $ | -11,307 | $ | 550,292 | |||||
QUARTERLY_FINANCIAL_DATA_Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Table Text Block [Abstract] | ||||||||||||
Schedule of Quarterly Financial Data | The following tables present the Company’s consolidated unaudited quarterly results of operations for 2014 and 2013. | |||||||||||
For the Three Months Ended | ||||||||||||
(unaudited) | ||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
(Amounts in thousands) | ||||||||||||
Revenues | $ | 18,187 | $ | 20,765 | $ | 17,225 | $ | 15,996 | ||||
Expenses | 5,564 | 8,510 | 12,861 | 9,826 | ||||||||
Total other income, net | 3,575 | 11,726 | 17,228 | 3,987 | ||||||||
Income before income taxes | 16,198 | 23,981 | 21,592 | 10,157 | ||||||||
Net income | 15,844 | 23,058 | 20,845 | 9,653 | ||||||||
Net income attributable to non-controlling interest in Consolidated Funds | 6,815 | 9,933 | 9,057 | 3,912 | ||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | -239 | 612 | 1,607 | -47 | ||||||||
Net income attributable to non-controlling interests in Medley LLC | $ | 7,951 | $ | 12,135 | 10,181 | 5,788 | ||||||
Net income attributable to Medley Management Inc. | 1,317 | 378 | ||||||||||
Net income per Class A common stock: | ||||||||||||
Basic (Note 11) | 0.19 | 0.05 | ||||||||||
Diluted (Note 11) | 0.19 | 0.05 | ||||||||||
Weighted average shares - Basic and Diluted | 6,000,000 | 6,000,000 | ||||||||||
For the Three Months Ended | ||||||||||||
(unaudited) | ||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||
2013 | 2013 | 2013 | 2013 | |||||||||
(Amounts in thousands) | ||||||||||||
Revenues | $ | 15,312 | $ | 11,429 | $ | 9,300 | $ | 7,828 | ||||
Expenses | 8,568 | 7,892 | 10,635 | 7,689 | ||||||||
Total other expense, net | 11,100 | 10,424 | 1,918 | 5,647 | ||||||||
Income before income taxes | 17,844 | 13,961 | 583 | 5,786 | ||||||||
Net income | 17,343 | 13,499 | 232 | 5,461 | ||||||||
Net income attributable to non-controlling interest in Consolidated Funds | 7,067 | 6,183 | -1,635 | 1,283 | ||||||||
Net income attributable to non-controlling interests in Medley LLC | $ | 10,276 | $ | 7,316 | $ | 1,867 | $ | 4,178 | ||||
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 13, 2014 | Dec. 31, 2014 | Sep. 29, 2014 |
Organization And Basis Of Presentation [Line Items] | |||
Proceeds from Initial Public Offering, net of underwriting discount | $100,440 | ||
Date of incorporation | 13-Jun-14 | ||
Commencement of operations date | 29-Sep-14 | ||
Medley LLC [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Conversion of pre-IPO interests to LLC Units, shares | 23,333,333 | ||
Basis of exchange of LLC Units for Class A shares | exchange their LLC Units for shares of Medley Management Inc.'s Class A common stock on a one-for-one basis | ||
Common Class A [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Proceeds from Initial Public Offering, net of underwriting discount | $100,400 | ||
Issuance of shares in Initial Public Offering (in shares) | 6,000,000 | ||
Percentage of common stock owned by LLC personnel for voting rights entitlement, minimum | 10.00% | ||
Issuance of Class A shares, offering price per share | $18 | ||
Common Class B [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Issuance of shares in Initial Public Offering (in shares) | 100 | ||
Voting rights multiplier upon LLC ownership threshold | 10x |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 74 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Percent of voting power in Medley LLC | 100.00% | ||||
Parent ownership percentage of LLC | 48.20% | 48.20% | |||
Management fees | $61,252,000 | $36,446,000 | $25,325,000 | ||
Fair value of investments | 744,771,000 | 744,771,000 | 463,569,000 | ||
Reversal of performance fee | 2,300,000 | 0 | 0 | ||
Cumulative performance fees | 5,600,000 | 5,600,000 | |||
Remaining maturity period, max | 60 days | ||||
Secured borrowings | 141,135,000 | 141,135,000 | 41,178,000 | ||
Interest and other income of Consolidated Funds | 71,468,000 | 52,550,000 | 39,001,000 | ||
Net change in unrealized (depreciation) appreciation on investments of Consolidated Funds | -20,557,000 | -3,361,000 | -10,103,000 | ||
Adjustments for Change in Accounting Principle [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | 41,300,000 | ||||
Secured borrowings | 41,300,000 | ||||
Interest and other income of Consolidated Funds | 2,600,000 | 2,700,000 | |||
Net change in unrealized (depreciation) appreciation on investments of Consolidated Funds | -300,000 | 800,000 | |||
Net proceeds from secured borrowings | 24,000,000 | -2,300,000 | |||
Standalone [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Management fees | 65,765,000 | 46,424,000 | 33,690,000 | ||
Reversal of performance fee | 4,400,000 | ||||
Cumulative performance fees | 20,400,000 | 20,400,000 | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Total assets of consolidated variable interest entity | 0 | 0 | 0 | ||
Annual base management fee | 0.75% | 1.25% | 2.00% | ||
Management fees | 1,100,000 | 3,700,000 | 7,700,000 | ||
Sierra Income Corporation [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Total assets of consolidated variable interest entity | 18,000,000 | 18,000,000 | 11,900,000 | ||
Total liabilities of consolidated variable interest entity | 19,600,000 | 19,600,000 | 16,100,000 | ||
Fair value of investments | $9,900,000 | $9,900,000 | $10,200,000 | ||
Medley LLC [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Parent ownership percentage of LLC | 20.50% | 20.50% | |||
Medley LLC [Member] | Non Management [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Noncontrolling interest ownership percentage of LLC | 79.50% | 79.50% | |||
Maximum [Member] | Furniture, Fixtures and Computer Equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 7 years | ||||
Maximum [Member] | Leasehold Improvements [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 8 years | ||||
Minimum [Member] | Furniture, Fixtures and Computer Equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 3 years | ||||
Minimum [Member] | Leasehold Improvements [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 3 years |
INVESTMENTS_Narrative_Details
INVESTMENTS (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | |
Schedule of Investments [Line Items] | ||||
Ownership percentage | 100.00% | |||
Parent ownership percentage of LLC | 48.20% | |||
Unrealized gain (loss) on equity method investments | ($272,000) | $244,000 | $600,000 | |
Unrealized gain (loss) excluding some equity method investments | 400,000 | |||
Consolidated Funds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 790,677,000 | 488,987,000 | ||
Equity Interests in LLCs [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 40,944,000 | 16,912,000 | ||
Equity Securities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 22,528,000 | 20,846,000 | ||
Common Stock [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 8,913,000 | 8,913,000 | ||
Preferred Stock [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 10,187,000 | 10,567,000 | ||
Warrant [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 3,428,000 | 1,366,000 | ||
Collectibles [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 1,385,000 | 1,385,000 | ||
North America [Member] | Senior Secured Loans And Notes [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 711,398,000 | 435,661,000 | ||
Asia [Member] | Real Estate Funds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | 1,373,000 | 1,373,000 | ||
South America [Member] | Senior Secured Loans And Notes [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment owned, at cost | $13,049,000 | $12,810,000 |
INVESTMENTS_Composition_of_Inv
INVESTMENTS (Composition of Investments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
Equity method investment, at fair value | $9,901 | $10,173 |
Investments of Consolidated Funds, at fair value | 734,870 | 453,396 |
Total Investments | $744,771 | $463,569 |
INVESTMENTS_Investments_in_Con
INVESTMENTS (Investments in Consolidated Funds) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consolidated Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | $734,870 | $453,396 |
Investment Owned, Percent of Net Assets | 100.00% | 100.00% |
Investment Owned, Costs | 790,677 | 488,987 |
Collectibles [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 688 | 1,422 |
Investment Owned, Percent of Net Assets | 0.10% | 0.30% |
Investment Owned, Costs | 1,385 | 1,385 |
Equity Interests in LLCs [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 48,784 | 18,624 |
Investment Owned, Percent of Net Assets | 6.60% | 3.40% |
Investment Owned, Costs | 40,944 | 16,912 |
Equity Interests in LLCs [Member] | Banking [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 5,623 | 3,646 |
Investment Owned, Percent of Net Assets | 0.80% | 0.80% |
Equity Interests in LLCs [Member] | Healthcare, Wellness and Education [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 63 | |
Investment Owned, Percent of Net Assets | 0.00% | 0.00% |
Equity Interests in LLCs [Member] | Manufacturing [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 320 | 2,896 |
Investment Owned, Percent of Net Assets | 0.00% | 0.70% |
Equity Interests in LLCs [Member] | Oil and Gas Energy [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 2,596 | 565 |
Investment Owned, Percent of Net Assets | 0.40% | 0.10% |
Equity Interests in LLCs [Member] | Real Estate [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 40,012 | 10,549 |
Investment Owned, Percent of Net Assets | 5.40% | 1.60% |
Equity Interests in LLCs [Member] | Telecommunications [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 170 | 968 |
Investment Owned, Percent of Net Assets | 0.00% | 0.20% |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 19,913 | 8,650 |
Investment Owned, Percent of Net Assets | 2.70% | 2.00% |
Investment Owned, Costs | 22,528 | 20,846 |
Common Stock [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 964 | 2,073 |
Investment Owned, Percent of Net Assets | 0.10% | 0.50% |
Investment Owned, Costs | 8,913 | 8,913 |
Preferred Stock [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 545 | 362 |
Investment Owned, Percent of Net Assets | 0.10% | 0.10% |
Investment Owned, Costs | 10,187 | 10,567 |
Warrant [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 18,404 | 6,215 |
Investment Owned, Percent of Net Assets | 2.50% | 1.40% |
Investment Owned, Costs | 3,428 | 1,366 |
Warrant [Member] | Container and Packaging [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 105 | |
Investment Owned, Percent of Net Assets | 0.00% | 0.00% |
Warrant [Member] | Healthcare, Wellness and Education [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 4,700 | 1,115 |
Investment Owned, Percent of Net Assets | 0.70% | 0.30% |
Warrant [Member] | Medical Transcription Services [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 437 | 15 |
Investment Owned, Percent of Net Assets | 0.10% | 0.00% |
Warrant [Member] | Oil and Gas Energy [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 1,793 | |
Investment Owned, Percent of Net Assets | 0.20% | 0.00% |
Warrant [Member] | Real Estate [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 113 | 540 |
Investment Owned, Percent of Net Assets | 0.00% | 0.10% |
Warrant [Member] | Retail and Commercial Kitchen Appliances [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 893 | 1,318 |
Investment Owned, Percent of Net Assets | 0.10% | 0.30% |
Warrant [Member] | Structured Finance Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 10,363 | 2,639 |
Investment Owned, Percent of Net Assets | 1.40% | 0.60% |
Warrant [Member] | Vehicle Service Contracts [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 588 | |
Investment Owned, Percent of Net Assets | 0.00% | 0.10% |
North America [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 662,655 | 418,088 |
Investment Owned, Percent of Net Assets | 90.20% | 92.90% |
North America [Member] | Automobile [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 39,577 | |
Investment Owned, Percent of Net Assets | 5.40% | 0.00% |
North America [Member] | Banking [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 28,325 | 28,903 |
Investment Owned, Percent of Net Assets | 3.80% | 6.40% |
North America [Member] | Business Services [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 25,898 | 14,370 |
Investment Owned, Percent of Net Assets | 3.50% | 3.20% |
North America [Member] | Chemicals, Plastics and Rubber [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 21,196 | |
Investment Owned, Percent of Net Assets | 2.90% | 0.00% |
North America [Member] | Consumer Goods [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 34,791 | 19,160 |
Investment Owned, Percent of Net Assets | 4.70% | 4.30% |
North America [Member] | Container and Packaging [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 25,657 | 7,000 |
Investment Owned, Percent of Net Assets | 3.50% | 1.60% |
North America [Member] | Financial Services [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 85,157 | 24,708 |
Investment Owned, Percent of Net Assets | 11.60% | 5.50% |
North America [Member] | Healthcare, Wellness and Education [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 44,991 | 18,575 |
Investment Owned, Percent of Net Assets | 6.10% | 4.10% |
North America [Member] | Insurance [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 8,116 | 6,456 |
Investment Owned, Percent of Net Assets | 1.10% | 1.40% |
North America [Member] | Manufacturing [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 53,477 | 1,853 |
Investment Owned, Percent of Net Assets | 7.30% | 0.40% |
North America [Member] | Media and Entertainment Services [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 20,404 | 33,815 |
Investment Owned, Percent of Net Assets | 2.80% | 7.50% |
North America [Member] | Medical Transcription Services [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 36,930 | 14,235 |
Investment Owned, Percent of Net Assets | 5.00% | 3.20% |
North America [Member] | Oil and Gas Energy [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 32,736 | 35,915 |
Investment Owned, Percent of Net Assets | 4.50% | 8.00% |
North America [Member] | Personal and Nondurable Consumer Products [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 39,488 | 52,040 |
Investment Owned, Percent of Net Assets | 5.40% | 11.60% |
North America [Member] | Personal Services [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 20,886 | 18,666 |
Investment Owned, Percent of Net Assets | 2.80% | 4.10% |
North America [Member] | Real Estate [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 119,601 | 50,157 |
Investment Owned, Percent of Net Assets | 16.30% | 11.10% |
North America [Member] | Retail and Commercial Kitchen Appliances [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 24,886 | 25,000 |
Investment Owned, Percent of Net Assets | 3.40% | 5.60% |
North America [Member] | Structured Finance Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 49,326 | |
Investment Owned, Percent of Net Assets | 0.00% | 11.00% |
North America [Member] | Vehicle Service Contracts [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 17,110 | |
Investment Owned, Percent of Net Assets | 0.00% | 3.70% |
North America [Member] | Others [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 539 | 799 |
Investment Owned, Percent of Net Assets | 0.10% | 0.20% |
North America [Member] | Senior Secured Loans And Notes [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, Costs | 711,398 | 435,661 |
South America [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 1,453 | 5,236 |
Investment Owned, Percent of Net Assets | 0.20% | 1.20% |
South America [Member] | Financial Services [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 1,029 | 2,314 |
Investment Owned, Percent of Net Assets | 0.10% | 0.50% |
South America [Member] | Energy [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | 424 | 2,922 |
Investment Owned, Percent of Net Assets | 0.10% | 0.70% |
South America [Member] | Senior Secured Loans And Notes [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, Costs | 13,049 | 12,810 |
Asia [Member] | Real Estate [Member] | ||
Schedule of Investments [Line Items] | ||
Investment Owned, at Fair Value | $1,377 | $1,376 |
Investment Owned, Percent of Net Assets | 0.20% | 0.20% |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS (Fair Value of Investments by Class) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | $744,771 | $463,569 |
Secured borrowings of Consolidated Funds, at fair value | 141,135 | 41,178 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 62 | 140 |
Secured borrowings of Consolidated Funds, at fair value | 16 | 35 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 29 | 95 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 744,680 | 463,334 |
Secured borrowings of Consolidated Funds, at fair value | 141,119 | 41,143 |
Equity Method Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 9,901 | 10,173 |
Equity Method Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 9,901 | 10,173 |
Senior Secured Loans And Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 664,108 | 423,324 |
Senior Secured Loans And Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 664,108 | 423,324 |
Equity Interest [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 48,784 | 18,624 |
Equity Interest [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 48,784 | 18,624 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 19,913 | 8,650 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 62 | 140 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 29 | 95 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 19,822 | 8,415 |
Investments In Tangible Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | 2,065 | 2,798 |
Investments In Tangible Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments | $2,065 | $2,798 |
FAIR_VALUE_MEASUREMENTS_Reconc
FAIR VALUE MEASUREMENTS (Reconciliation of Level III Investments) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Equity Method Investments [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year | $9,929 | |
Realized and unrealized appreciation (depreciation), net | 244 | |
Balance, end of period | 10,173 | |
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | 244 | |
Consolidated Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year | 463,334 | 366,205 |
Amortization | 1,949 | 1,644 |
Paid in-kind interest income | 5,584 | 9,500 |
Purchases | 451,206 | 199,931 |
Sales and settlements | -157,498 | -95,015 |
Realized and unrealized appreciation (depreciation), net | -19,895 | -18,931 |
Balance, end of period | 744,680 | 463,334 |
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | -20,685 | -16,411 |
Consolidated Funds [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year, Liabilities | 41,143 | 16,374 |
Unrealized depreciation on secured borrowings of Consolidated Funds, net | -1,155 | 310 |
Proceeds from secured borrowings, net | 101,131 | 24,459 |
Balance, end of year, Liabilities | 141,119 | 41,143 |
Consolidated Funds [Member] | Equity Method Investments [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year | 10,173 | |
Realized and unrealized appreciation (depreciation), net | -272 | |
Balance, end of period | 9,901 | |
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | -272 | |
Consolidated Funds [Member] | Senior Secured Loans And Notes [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year | 423,324 | 324,353 |
Amortization | 1,949 | 1,644 |
Paid in-kind interest income | 5,531 | 9,500 |
Purchases | 423,954 | 196,813 |
Sales and settlements | -155,129 | -91,184 |
Realized and unrealized appreciation (depreciation), net | -35,521 | -17,802 |
Balance, end of period | 664,108 | 423,324 |
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | -36,330 | -16,061 |
Consolidated Funds [Member] | Equity Interest [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year | 18,624 | 14,790 |
Paid in-kind interest income | 53 | |
Purchases | 24,753 | 2,727 |
Sales and settlements | -105 | |
Realized and unrealized appreciation (depreciation), net | 5,354 | 1,212 |
Balance, end of period | 48,784 | 18,624 |
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | 5,354 | 2,739 |
Consolidated Funds [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year | 8,415 | 11,973 |
Purchases | 2,499 | 391 |
Sales and settlements | -2,369 | -2,926 |
Realized and unrealized appreciation (depreciation), net | 11,277 | -1,023 |
Balance, end of period | 19,822 | 8,415 |
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | 11,297 | -972 |
Consolidated Funds [Member] | Investments In Tangible Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Balance, beginning of year | 2,798 | 5,160 |
Sales and settlements | -800 | |
Realized and unrealized appreciation (depreciation), net | -733 | -1,562 |
Balance, end of period | 2,065 | 2,798 |
Changes in unrealized (gains) losses included in earnings related to financial assets still held at the reporting date | ($734) | ($2,361) |
FAIR_VALUE_MEASUREMENTS_Summar
FAIR VALUE MEASUREMENTS (Summary of Quantitative Inputs and Assumptions) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 744,771,000 | 463,569,000 |
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 141,135,000 | 41,178,000 |
Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 41,143,000 | |
Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 41,135,000 | |
Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 141,135,000 | 41,178,000 |
Minimum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 9.00% | |
Maximum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 20.20% | |
Weighted Average [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 13.70% | |
Market Yield [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 130,157,000 | |
Market Yield [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 10.00% | |
Market Yield [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 15.21% | |
Market Yield [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 12.45% | |
Market Yield, Other [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 8,000 | |
Market Yield, Other [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 14.20% | |
Market Yield, Other [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 14.20% | |
Market Yield, Other [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 14.20% | |
Capitalization Rate [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 5,000,000 | |
Capitalization Rate [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Capitalization Rate | 8.70% | |
Capitalization Rate [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Capitalization Rate | 8.70% | |
Capitalization Rate [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Capitalization Rate | 8.70% | |
EBITDA Multiple [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 5,947,000 | |
EBITDA Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 5.5 | |
EBITDA Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 6 | |
EBITDA Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 5.75 | |
EBITDA, other Multiple [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 15,000 | |
EBITDA, other Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 4 | |
EBITDA, other Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 8.31 | |
EBITDA, other Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 5.2 | |
Senior Secured Loans And Notes [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 664,108,000 | 423,324,000 |
Senior Secured Loans And Notes [Member] | Price per Ton [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 386,000 | |
Senior Secured Loans And Notes [Member] | Price per Ton [Member] | Minimum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per ton | 0.25 | |
Senior Secured Loans And Notes [Member] | Price per Ton [Member] | Maximum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per ton | 1 | |
Senior Secured Loans And Notes [Member] | Price per Ton [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per ton | 0.63 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 4,009,000 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,487,000 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Minimum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Acre | 8,000 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Acre | 8,750 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Maximum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Acre | 41,000 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Acre | 42,396 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Acre | 24,500 | |
Senior Secured Loans And Notes [Member] | Price per acre [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Acre | 25,573 | |
Senior Secured Loans And Notes [Member] | Price per room [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 2,169,000 | |
Senior Secured Loans And Notes [Member] | Price per room [Member] | Minimum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Room | 43,200 | |
Senior Secured Loans And Notes [Member] | Price per room [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Room | 32,038 | |
Senior Secured Loans And Notes [Member] | Price per room [Member] | Maximum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Room | 71,429 | |
Senior Secured Loans And Notes [Member] | Price per room [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Room | 71,429 | |
Senior Secured Loans And Notes [Member] | Price per room [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Room | 57,315 | |
Senior Secured Loans And Notes [Member] | Price per room [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Room | 51,734 | |
Senior Secured Loans And Notes [Member] | Price per unit [Member] | Minimum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Unit | 155,734 | |
Senior Secured Loans And Notes [Member] | Price per unit [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Unit | 152,507 | |
Senior Secured Loans And Notes [Member] | Price per unit [Member] | Maximum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Unit | 228,009 | |
Senior Secured Loans And Notes [Member] | Price per unit [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Unit | 417,016 | |
Senior Secured Loans And Notes [Member] | Price per unit [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Unit | 191,872 | |
Senior Secured Loans And Notes [Member] | Price per unit [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Unit | 284,762 | |
Senior Secured Loans And Notes [Member] | Expected Sales Proceeds [Member] | Negotiated Sales Proceeds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 193,000 | |
Senior Secured Loans And Notes [Member] | Expected Sales Proceeds [Member] | Cost Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,000,000 | |
Senior Secured Loans And Notes [Member] | Expected Sales Proceeds [Member] | Minimum [Member] | Cost Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs Expected Proceeds | 10,000,000 | |
Senior Secured Loans And Notes [Member] | Expected Sales Proceeds [Member] | Maximum [Member] | Negotiated Sales Proceeds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs Expected Proceeds | 4,000,000 | |
Senior Secured Loans And Notes [Member] | Expected Sales Proceeds [Member] | Maximum [Member] | Cost Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs Expected Proceeds | 10,000,000 | |
Senior Secured Loans And Notes [Member] | Expected Sales Proceeds [Member] | Weighted Average [Member] | Negotiated Sales Proceeds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs Expected Proceeds | 1,932,000 | |
Senior Secured Loans And Notes [Member] | Expected Sales Proceeds [Member] | Weighted Average [Member] | Cost Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs Expected Proceeds | 10,000,000 | |
Senior Secured Loans And Notes [Member] | Discount for Lack of Marketability [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Lack Of Marketability | 25.00% | |
Senior Secured Loans And Notes [Member] | Discount for Lack of Marketability [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Lack Of Marketability | 35.00% | |
Senior Secured Loans And Notes [Member] | Discount for Lack of Marketability [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Lack Of Marketability | 30.00% | |
Senior Secured Loans And Notes [Member] | LTM Revenue Multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 403,000 | 335,000 |
Senior Secured Loans And Notes [Member] | LTM Revenue Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.6 | 1.5 |
Fair Value Inputs, Revenue Multiple | 0.6 | |
Senior Secured Loans And Notes [Member] | LTM Revenue Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.6 | 1.75 |
Fair Value Inputs, Revenue Multiple | 0.6 | |
Senior Secured Loans And Notes [Member] | LTM Revenue Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.45 | 1.63 |
Fair Value Inputs, Revenue Multiple | 0.6 | |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 346,000 | 1,109,000 |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 3.1 | 5.25 |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 3.62 | 5.25 |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 3.6 | 5.25 |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple, other [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,167,000 | |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple, other [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 3.1 | |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple, other [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 5.5 | |
Senior Secured Loans And Notes [Member] | LTM EBITDA multiple, other [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 4.3 | |
Senior Secured Loans And Notes [Member] | LTM EBITDA And Revenue Multiples [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.5 | |
Senior Secured Loans And Notes [Member] | LTM EBITDA And Revenue Multiples [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.65 | |
Senior Secured Loans And Notes [Member] | LTM EBITDA And Revenue Multiples [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.58 | |
Senior Secured Loans And Notes [Member] | EBITDA And Revenue Multiples [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 4.09 | |
Fair Value Inputs, Revenue Multiple | 0.43 | |
Senior Secured Loans And Notes [Member] | Forward EBITDA [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 412,000 | |
Senior Secured Loans And Notes [Member] | Forward EBITDA [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Forward Earnings Before Interest Taxes Depreciation Amortization | 3.75 | |
Senior Secured Loans And Notes [Member] | Forward EBITDA [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Forward Earnings Before Interest Taxes Depreciation Amortization | 3.75 | |
Senior Secured Loans And Notes [Member] | Forward EBITDA [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Forward Earnings Before Interest Taxes Depreciation Amortization | 3.75 | |
Senior Secured Loans And Notes [Member] | Discount Rate [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,989,000 | 7,362,000 |
Senior Secured Loans And Notes [Member] | Discount Rate [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 12.00% | 12.00% |
Senior Secured Loans And Notes [Member] | Discount Rate [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 35.00% | 17.40% |
Senior Secured Loans And Notes [Member] | Discount Rate [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 20.50% | 14.70% |
Senior Secured Loans And Notes [Member] | Discount Rate, Other [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 21,005,000 | |
Senior Secured Loans And Notes [Member] | Discount Rate, Other [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 14.00% | |
Senior Secured Loans And Notes [Member] | Discount Rate, Other [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 18.00% | |
Senior Secured Loans And Notes [Member] | Discount Rate, Other [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 16.45% | |
Senior Secured Loans And Notes [Member] | Asset Coverage [Member] | Liquidation Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 144,000 | 1,609,000 |
Senior Secured Loans And Notes [Member] | Asset Coverage [Member] | Minimum [Member] | Liquidation Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Asset coverage | 144,531 | 16,095,312 |
Senior Secured Loans And Notes [Member] | Asset Coverage [Member] | Maximum [Member] | Liquidation Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Asset coverage | 144,531 | 16,095,312 |
Senior Secured Loans And Notes [Member] | Asset Coverage [Member] | Weighted Average [Member] | Liquidation Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Asset coverage | 144,531 | 16,095,312 |
Senior Secured Loans And Notes [Member] | Market Yield [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 566,010,000 | 390,770,000 |
Senior Secured Loans And Notes [Member] | Market Yield [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 10.00% | 9.00% |
Senior Secured Loans And Notes [Member] | Market Yield [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 15.21% | 20.20% |
Senior Secured Loans And Notes [Member] | Market Yield [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 12.45% | 13.70% |
Senior Secured Loans And Notes [Member] | Market Yield, Other [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 34,000 | |
Senior Secured Loans And Notes [Member] | Market Yield, Other [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 14.20% | |
Senior Secured Loans And Notes [Member] | Market Yield, Other [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 14.20% | |
Senior Secured Loans And Notes [Member] | Market Yield, Other [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 14.20% | |
Senior Secured Loans And Notes [Member] | Liquidation Proceeds [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,871,000 | |
Senior Secured Loans And Notes [Member] | Liquidation Proceeds [Member] | Minimum [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Liquidation Proceeds | 205,800,000 | |
Senior Secured Loans And Notes [Member] | Liquidation Proceeds [Member] | Maximum [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Liquidation Proceeds | 205,800,000 | |
Senior Secured Loans And Notes [Member] | Liquidation Proceeds [Member] | Weighted Average [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Liquidation Proceeds | 205,800,000 | |
Senior Secured Loans And Notes [Member] | Recent Arms-length Transaction Input [Member] | Recent Arms-length Transaction [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 37,600,000 | |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 15,859,000 | 14,780,000 |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 5,095,000 | |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 5.5 | 6 |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Minimum [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 6 | |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 6 | 6 |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Maximum [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 7 | |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 5.75 | 6 |
Senior Secured Loans And Notes [Member] | EBITDA Multiple [Member] | Weighted Average [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 7 | |
Senior Secured Loans And Notes [Member] | EBITDA Multiple/Estimated Liquidation Proceeds [Member] | Enterprise Valuation Analysis [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,378,000 | |
Fair Value Inputs, EBITDA Multiple | 2 | |
Fair Value Input Liquidation Proceeds | 205,800,000 | |
Senior Secured Loans And Notes [Member] | Rev Multiple/ EBITDA Multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 8,910,000 | |
Equity Interests in LLCs [Member] | Cost Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 11,697,000 | |
Equity Interests in LLCs [Member] | Expected Precedent Transaction [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 968,000 | |
Equity Interests in LLCs [Member] | Discount Rate [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 14,516,000 | 2,313,000 |
Equity Interests in LLCs [Member] | Discount Rate [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 14.00% | 16.50% |
Equity Interests in LLCs [Member] | Discount Rate [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 18.00% | 16.50% |
Equity Interests in LLCs [Member] | Discount Rate [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 18.00% | 16.50% |
Equity Interests in LLCs [Member] | Market Yield [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 581,000 | |
Equity Interests in LLCs [Member] | Market Yield [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 13.14% | |
Equity Interests in LLCs [Member] | Market Yield [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 13.14% | |
Equity Interests in LLCs [Member] | Market Yield [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Market yield Rate | 13.14% | |
Equity Interests in LLCs [Member] | Recent Arms-length Transaction Input [Member] | Recent Arms-length Transaction [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 6,000,000 | |
Equity Interests in LLCs [Member] | Capitalization Rate [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 15,000,000 | |
Equity Interests in LLCs [Member] | Capitalization Rate [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Capitalization Rate | 8.70% | |
Equity Interests in LLCs [Member] | Capitalization Rate [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Capitalization Rate | 8.70% | |
Equity Interests in LLCs [Member] | Capitalization Rate [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Capitalization Rate | 8.70% | |
Equity Interests in LLCs [Member] | EBITDA Multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 3,099,000 | |
Equity Interests in LLCs [Member] | EBITDA Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 6.25 | |
Equity Interests in LLCs [Member] | EBITDA Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 8.5 | |
Equity Interests in LLCs [Member] | EBITDA Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 6.7 | |
Equity Interests in LLCs [Member] | EBITDA Multiple / Volatility [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 2,595,000 | |
Fair Value Inputs, EBITDA Multiple | 3.75 | |
Fair Value Assumptions, Expected Volatility Rate | 50.00% | |
Equity Interests in LLCs [Member] | Investment Portfolio Multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 5,623,000 | 3,646,000 |
Equity Interests in LLCs [Member] | Investment Portfolio Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Investment Portfolio Multiple | 1.1 | 1 |
Equity Interests in LLCs [Member] | Investment Portfolio Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Investment Portfolio Multiple | 1.1 | 1 |
Equity Interests in LLCs [Member] | Investment Portfolio Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Investment Portfolio Multiple | 1.1 | 1 |
Equity Interests in LLCs [Member] | Unsolicited Offer Price [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,370,000 | |
Equity Interests in LLCs [Member] | Unsolicited Offer Price [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Unsolicited Offer Price | 12,000,000 | |
Equity Interests in LLCs [Member] | Unsolicited Offer Price [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Unsolicited Offer Price | 12,000,000 | |
Equity Interests in LLCs [Member] | Unsolicited Offer Price [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Unsolicited Offer Price | 12,000,000 | |
Equity Interests in LLCs [Member] | Long Term Growth Rate [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Long-term Revenue Growth Rate | 1.50% | |
Equity Interests in LLCs [Member] | Long Term Growth Rate [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Long-term Revenue Growth Rate | 1.50% | |
Equity Interests in LLCs [Member] | Long Term Growth Rate [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Long-term Revenue Growth Rate | 1.50% | |
Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 19,913,000 | 8,650,000 |
Equity Securities [Member] | Cost Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 15,000 | |
Equity Securities [Member] | Price per Ton [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per ton | 148 | |
Equity Securities [Member] | Price per Ton [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per ton | 148 | |
Equity Securities [Member] | Price per Ton [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per ton | 148 | |
Equity Securities [Member] | LTM Revenue Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.5 | 1.5 |
Equity Securities [Member] | LTM Revenue Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.65 | 1.5 |
Equity Securities [Member] | LTM Revenue Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 0.58 | 1.5 |
Equity Securities [Member] | LTM Revenue Multiple, other [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 362,000 | |
Equity Securities [Member] | LTM Revenue Multiple, other [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 5.3 | |
Equity Securities [Member] | LTM Revenue Multiple, other [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 5.3 | |
Equity Securities [Member] | LTM Revenue Multiple, other [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Revenue Multiple | 5.3 | |
Equity Securities [Member] | LTM EBITDA multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 545,000 | 154,000 |
Equity Securities [Member] | LTM EBITDA multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 5 | 11.5 |
Equity Securities [Member] | LTM EBITDA multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 5.5 | 11.5 |
Equity Securities [Member] | LTM EBITDA multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, and Amortization Multiple | 5.25 | 11.5 |
Equity Securities [Member] | Discount Rate [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 417,000 | 411,000 |
Equity Securities [Member] | Discount Rate [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 13.00% | 12.00% |
Equity Securities [Member] | Discount Rate [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 18.00% | 50.00% |
Equity Securities [Member] | Discount Rate [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 16.40% | 15.90% |
Equity Securities [Member] | Discount Rate, Other [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 720,000 | |
Equity Securities [Member] | Discount Rate, Other [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | |
Equity Securities [Member] | Discount Rate, Other [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | |
Equity Securities [Member] | Discount Rate, Other [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Discount Rate | 30.00% | |
Equity Securities [Member] | EBITDA Multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 7,936,000 | 3,150,000 |
Equity Securities [Member] | EBITDA Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 4 | 3.5 |
Equity Securities [Member] | EBITDA Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 8.31 | 7.5 |
Equity Securities [Member] | EBITDA Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, EBITDA Multiple | 5.2 | 6.1 |
Equity Securities [Member] | LTM EBITDARD multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 194,000 | |
Equity Securities [Member] | LTM EBITDARD multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, Amortization, Rent And Donation Multiple | 10.4 | |
Equity Securities [Member] | LTM EBITDARD multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, Amortization, Rent And Donation Multiple | 11.1 | |
Equity Securities [Member] | LTM EBITDARD multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Last Twelve Months Earnings before Interest, Taxes, Depreciation, Amortization, Rent And Donation Multiple | 10.75 | |
Equity Securities [Member] | NTM EBITDARD Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Next Twelve Months Earnings before Interest, Taxes, Depreciation, Amortization, Rent And Donation Multiple | 9.5 | |
Equity Securities [Member] | NTM EBITDARD Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Next Twelve Months Earnings before Interest, Taxes, Depreciation, Amortization, Rent And Donation Multiple | 10.8 | |
Equity Securities [Member] | NTM EBITDARD Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Next Twelve Months Earnings before Interest, Taxes, Depreciation, Amortization, Rent And Donation Multiple | 10.15 | |
Equity Securities [Member] | Volatility [Member] | Option Model [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 105,000 | 2,639,000 |
Equity Securities [Member] | Volatility [Member] | Minimum [Member] | Option Model [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Assumptions, Expected Volatility Rate | 90.80% | 47.90% |
Equity Securities [Member] | Volatility [Member] | Maximum [Member] | Option Model [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Assumptions, Expected Volatility Rate | 90.80% | 47.90% |
Equity Securities [Member] | Volatility [Member] | Weighted Average [Member] | Option Model [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Assumptions, Expected Volatility Rate | 90.80% | 47.90% |
Equity Securities [Member] | Tangible Book Value Multiple / Volatility [Member] | Option Model [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 10,364,000 | |
Fair Value Inputs, Tangible Book Value Multiple | 1.3 | |
Fair Value Assumptions, Expected Volatility Rate | 41.50% | |
Equity Securities [Member] | Revenue Multiple [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 261,000 | 964,000 |
Equity Securities [Member] | Revenue Multiple [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Current Fiscal Year Revenue Multiple | 0.3 | |
Fair Value Inputs, Revenue Multiple | 1.6 | |
Equity Securities [Member] | Revenue Multiple [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Current Fiscal Year Revenue Multiple | 0.6 | |
Fair Value Inputs, Revenue Multiple | 1.6 | |
Equity Securities [Member] | Revenue Multiple [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Current Fiscal Year Revenue Multiple | 0.45 | |
Fair Value Inputs, Revenue Multiple | 1.6 | |
Investments In Tangible Assets [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 2,065,000 | 2,798,000 |
Investments In Tangible Assets [Member] | Price per square meter [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 1,377,000 | 1,377,000 |
Investments In Tangible Assets [Member] | Price per square meter [Member] | Minimum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Square Meter | 1,146 | 6,716 |
Investments In Tangible Assets [Member] | Price per square meter [Member] | Maximum [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Square Meter | 1,274 | 6,716 |
Investments In Tangible Assets [Member] | Price per square meter [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Price Per Square Meter | 1,210 | 6,716 |
Investments In Tangible Assets [Member] | Appraisal of Assets [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 688,000 | 1,421,000 |
Investments In Tangible Assets [Member] | Appraisal of Assets [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Appraisal of assets | 500,000 | 100,000 |
Investments In Tangible Assets [Member] | Appraisal of Assets [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Appraisal of assets | 2,200,000 | 3,700,000 |
Investments In Tangible Assets [Member] | Appraisal of Assets [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Appraisal of assets | 1,350,000 | 1,900,000 |
Equity Method Investments [Member] | Net Asset Value of Underlying Fund [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 9,901,000 | 10,173,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 744,680,000 | 463,334,000 |
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 141,119,000 | 41,143,000 |
Fair Value, Inputs, Level 3 [Member] | Secured Borrowings of Consolidated Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 141,119,000 | |
Fair Value, Inputs, Level 3 [Member] | Senior Secured Loans And Notes [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 664,108,000 | 423,324,000 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 19,822,000 | 8,415,000 |
Fair Value, Inputs, Level 3 [Member] | Investments In Tangible Assets [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments, Fair Value Disclosure | 2,065,000 | 2,798,000 |
OTHER_ASSETS_Narrative_Details
OTHER ASSETS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Asset [Abstract] | |||
Depreciation and amortization | $401 | $276 | $270 |
Property, plant, and equipment, accumulated depreciation | 1,232 | 1,351 | |
Deferred finance costs, accumulated amortization | $217 | $0 |
OTHER_ASSETS_Components_of_Oth
OTHER ASSETS (Components of Other Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets of Medley: | ||
Deferred tax assets | $1,214,000 | $634,000 |
Total other assets | 9,230,000 | 5,308,000 |
Consolidated Funds [Member] | ||
Other Assets of Medley: | ||
Deferred tax assets | 340,000 | |
Restricted cash | 3,000,000 | |
Other receivables | 341,000 | 436,000 |
Total other assets | 3,681,000 | 436,000 |
Medley And Consolidated Funds [Member] | ||
Other Assets of Medley: | ||
Total other assets | 12,911,000 | 5,744,000 |
Medley LLC [Member] | ||
Other Assets of Medley: | ||
Property and equipment, net of accumulated depreciation of $1,232 and $1,351, respectively | 1,367,000 | 1,247,000 |
Security deposits | 1,218,000 | 1,218,000 |
Administrative fees receivable | 1,500,000 | 1,640,000 |
Deferred tax assets | 874,000 | 634,000 |
Deferred financing costs, net | 2,329,000 | 337,000 |
Due from affiliates | 382,000 | 224,000 |
Prepaid expenses | 627,000 | |
Other assets | 933,000 | 8,000 |
Total other assets | $9,230,000 | $5,308,000 |
LOANS_PAYABLE_Narrative_Detail
LOANS PAYABLE (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 14, 2014 | Oct. 31, 2014 | Apr. 30, 2012 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of long-term debt | $123,900,000 | $21,000,000 | $10,000,000 | ||||||
Repayments of long-term debt | 51,937,000 | 3,000,000 | |||||||
Partners capital account, distributions | 2,170,000 | 143,309,000 | 164,892,000 | 83,209,000 | |||||
Long-term Debt | 103,057,000 | 103,057,000 | 27,990,000 | ||||||
London Interbank Offered Rate L I B O R [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 15,000,000 | ||||||||
Line of credit facility, initiation date | 14-Aug-14 | ||||||||
Debt Instrument, Interest Rate Terms | Borrowings under the Revolving Credit Facility bear interest at the option of the Company, either (a) at an Alternate Base Rate, as defined, plus an applicable margin not to exceed 3.25% or (b) at an Adjusted LIBOR plus an applicable margin not to exceed 4.0% | ||||||||
CNB Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of long-term debt | 33,200,000 | ||||||||
Line of credit facility, maximum borrowing capacity | 30,000,000 | ||||||||
CNB Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 3,000,000 | ||||||||
Long-term Debt | 3,000,000 | ||||||||
Credit Suisse Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuance date | 14-Aug-14 | ||||||||
Debt instrument, face amount | 110,000,000 | 110,000,000 | |||||||
Debt instrument, maturity date | 15-Jun-19 | ||||||||
Proceeds from issuance of long-term debt | 108,900,000 | ||||||||
Debt instrument, unamortized discount (premium), net | 1,006,000 | 1,006,000 | 1,100,000 | ||||||
Repayments of long-term debt | 15,000,000 | ||||||||
Debt instrument, fee amount | 2,600,000 | 2,600,000 | |||||||
Deferred finance costs, net | 2,400,000 | 2,400,000 | |||||||
Partners capital account, distributions | 74,500,000 | ||||||||
Debt instrument, interest rate during period | 6.50% | ||||||||
Debt instrument, frequency of periodic payment | quarterly installments | ||||||||
Debt instrument, periodic payment, principal | 1,400,000 | ||||||||
Debt instrument benchmark, aggregate, maximum | 33,000,000 | 33,000,000 | |||||||
Interest expense, debt | 2,600,000 | ||||||||
Debt Instrument, Interest Rate Terms | Borrowings under the Term Loan Facility bear interest, at the borrower's option, at a rate equal to either a Eurodollar margin over an adjusted LIBOR (with a "floor" of 1.0%) or a base rate margin over an adjusted base rate determined by reference to the highest of (a) the term loan administrative agent's prime rate; (b) the federal funds effective rate in effect on such day plus 0.5%; and (c) an adjusted LIBOR plus 1.0%. The applicable margins for the Term Loan Facility are 5.5%, in the case of Eurodollar loans and 4.5%, in the case of adjusted base rate loans | ||||||||
Debt Instrument, Covenant Description | The Term Loan Facility also contains a financial covenant that requires the Company to maintain a Maximum Net Leverage Ratio commencing with the quarter ending on December 31, 2014 of not greater than 3.5 to 1.0 | ||||||||
Debt Instrument Additional Borrowing Covenant Description | subject to additional increases, provided that the net leverage ratio as of the last day of any four-fiscal quarter period, commencing with the four-fiscal quarter period ending December 31, 2014, shall not exceed 2.0 to 1.0 | ||||||||
Long-term Debt | 93,994,000 | 93,994,000 | |||||||
Credit Suisse Term Loan Facility [Member] | Federal Funds Effective Swap Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||
Credit Suisse Term Loan Facility [Member] | Eurodollar [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 5.50% | ||||||||
Credit Suisse Term Loan Facility [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 4.50% | ||||||||
Credit Suisse Term Loan Facility [Member] | Term Loan Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Ratio of indebtedness to net capital | 2 | 2 | |||||||
Debt Instrument, Additional Borrowings Capacity | 15,000,000 | 15,000,000 | |||||||
Term Loan [Member] | CNB Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 15,000,000 | ||||||||
Long-term Debt | 15,000,000 | ||||||||
Co-Invest Term Loan [Member] | CNB Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 2,000,000 | ||||||||
Long-term Debt | 2,000,000 | ||||||||
Non-recourse Promissory Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuance date | 31-Dec-13 | ||||||||
Debt instrument, face amount | 2,500,000 | 2,500,000 | 1,000,000 | 10,000,000 | |||||
Debt instrument, maturity date | 31-Dec-14 | ||||||||
Unamortized Debt Issuance Expense | 3,800,000 | ||||||||
Debt instrument, interest rate, effective percentage | 0.25% | 0.25% | |||||||
Interest expense, debt | 1,400,000 | 1,400,000 | 800,000 | ||||||
Sale of stock, number of shares issued in transaction | 1,108,033 | ||||||||
Notes payable, fair value disclosure | 10,300,000 | 10,300,000 | 10,200,000 | ||||||
Debt Instrument, Collateral | Proceeds from the borrowings were used to purchase 1,108,033 shares of common stock of SIC, which were pledged as collateral for the obligations. | ||||||||
Non-recourse Promissory Notes [Member] | CNB Credit Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, unamortized discount (premium), net | 2,500,000 | 2,500,000 | 3,010,000 | ||||||
Long-term Debt | 9,063,000 | 9,063,000 | 7,990,000 | ||||||
Nonrecourse Promissory Note Zero Interest [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, issuance date | 31-Mar-14 | ||||||||
Debt instrument, face amount | 2,500,000 | 2,500,000 | |||||||
Debt instrument, maturity date | 31-Mar-16 | ||||||||
Debt instrument, interest rate, effective percentage | 0.00% | 0.00% | |||||||
Debt instrument, periodic payment, principal | 312,500 | ||||||||
Long-term Debt | $1,600,000 | $1,600,000 | |||||||
Non Recourse Promissory Notes Due March 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, maturity date | 31-Mar-19 | ||||||||
Maximum [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate L I B O R [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 4.00% | ||||||||
Maximum [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 3.25% | ||||||||
Maximum [Member] | Credit Suisse Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Ratio of indebtedness to net capital | 3.5 | 3.5 | |||||||
Minimum [Member] | Credit Suisse Term Loan Facility [Member] | London Interbank Offered Rate L I B O R [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.00% |
LOANS_PAYABLE_Schedule_of_Debt
LOANS PAYABLE (Schedule of Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 14, 2014 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $103,057 | $27,990 | |
Revolving Credit Facility [Member] | CNB Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 3,000 | ||
Term Loan [Member] | CNB Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 15,000 | ||
Co-Invest Term Loan [Member] | CNB Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 2,000 | ||
Credit Suisse Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 93,994 | ||
Debt instrument, unamortized discount (premium), net | 1,006 | 1,100 | |
Non-recourse Promissory Notes [Member] | CNB Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 9,063 | 7,990 | |
Debt instrument, unamortized discount (premium), net | $2,500 | $3,010 |
LOANS_PAYABLE_Schedule_of_Matu
LOANS PAYABLE (Schedule of Maturities of Long-term Debt) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Loans Payable [Abstract] | |
2015 | $1,250 |
2016 | 312 |
2017 | 2,875 |
2018 | 5,500 |
2019 | 96,626 |
Long-term debt, gross | $106,563 |
ACCOUNTS_PAYABLE_ACCRUED_EXPEN2
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | |
Accounts payable, accrued expenses and other liabilities of Medley: | |
Dividends payable | $1,423 |
Dividends payable, amount per share | $0.20 |
Common Class A [Member] | |
Accounts payable, accrued expenses and other liabilities of Medley: | |
Dividends payable | 1,200 |
Restricted Stock Units (RSUs) [Member] | |
Accounts payable, accrued expenses and other liabilities of Medley: | |
Dividends payable | $200 |
ACCOUNTS_PAYABLE_ACCRUED_EXPEN3
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Components of Accounts Payable, Accrued Expenses, and Other Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts payable, accrued expenses and other liabilities of Medley: | ||
Accrued compensation and benefits | $8,575 | $5,650 |
Due to affiliates (Note 9) | 6,998 | 3,676 |
Revenue share payable (Note 8) | 6,669 | 5,286 |
Dividends payable | 1,423 | |
Income taxes payable | 741 | |
Professional fees | 545 | 647 |
Deferred rent | 474 | 794 |
Deferred tax liabilities | 245 | 391 |
Secured borrowings of Consolidated Funds, at fair value | 141,135 | 41,178 |
Accounts payable and accrued expenses | 1,913 | 1,169 |
Total accounts payable and accrued expenses | 27,583 | 17,613 |
Total accounts payable, accrued expenses and other liabilities | 289,349 | 104,331 |
Medley And Consolidated Funds [Member] | ||
Accounts payable, accrued expenses and other liabilities of Medley: | ||
Total accounts payable and accrued expenses | 33,350 | 18,938 |
Consolidated Funds [Member] | ||
Accounts payable, accrued expenses and other liabilities of Medley: | ||
Secured borrowings of Consolidated Funds, at fair value | 141,135 | 41,178 |
Total accounts payable and accrued expenses | $5,767 | $1,325 |
SECURED_BORROWINGS_Narratiave_
SECURED BORROWINGS (Narratiave) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Secured borrowings at cost | $143,000,000 | ||
Secured borrowings at fair value | 141,135,000 | 41,178,000 | |
2015 | 1,250,000 | ||
2016 | 312,000 | ||
2017 | 2,875,000 | ||
2018 | 5,500,000 | ||
2019 | 96,626,000 | ||
Secured Debt [Member] | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
2015 | 0 | ||
2016 | 0 | ||
2017 | 19,100,000 | ||
2018 | 31,000 | ||
2019 | 92,000 | ||
Thereafter | 900,000 | ||
Consolidated Funds [Member] | |||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | |||
Secured borrowings at cost | 41,500,000 | ||
Secured borrowings at fair value | 141,135,000 | 41,178,000 | |
Investment associated with secured borrowings | 141,100,000 | 41,200,000 | |
Net proceeds from secured borrowings | 100,600,000 | 24,000,000 | |
Interest expense from secured borrowings | $9,951,000 | $2,638,000 | $2,666,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | |
Commitments And Contingencies [Line Items] | ||||
Lease expiration period | various times through December 2020 | |||
Rent expense | $2,600,000 | $2,200,000 | $2,500,000 | |
Consolidated Funds [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Unfunded capital commitments | 1,100,000 | 1,500,000 | ||
Non-recourse Promissory Notes [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Debt instrument, face amount | 2,500,000 | 1,000,000 | 10,000,000 | |
Proceeds from issuance of debt | 10,000,000 | |||
Present value of future cash flows expected to be paid | 4,400,000 | |||
Contractual obligation | $6,700,000 | $5,300,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies [Abstract] | |
2015 | $2,454 |
2016 | 784 |
2017 | 452 |
2018 | 457 |
2019 | 463 |
Thereafter | 469 |
Total future minimum lease payments | $5,079 |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | |
Related Party Transaction [Line Items] | ||||
Percentage of tax benefit under tax receivable agreement | 85.00% | |||
Non-recourse Promissory Notes [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument, face amount | $2,500,000 | $1,000,000 | $10,000,000 | |
Debt instrument, interest rate, effective percentage | 0.25% | |||
Debt instrument, maturity date | 31-Dec-14 | |||
Debt instrument, issuance date | 31-Dec-13 | |||
Nonrecourse Promissory Note Zero Interest [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument, face amount | 2,500,000 | |||
Debt instrument, interest rate, effective percentage | 0.00% | |||
Debt instrument, periodic payment, principal | 312,500 | |||
Debt instrument, maturity date | 31-Mar-16 | |||
Debt instrument, issuance date | 31-Mar-14 | |||
MCC Admin Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Administrative services revenue | 3,700,000 | 2,600,000 | 1,800,000 | |
Accrued fees and other revenue receivable | 1,100,000 | 700,000 | ||
SIC Admin Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Administrative services revenue | 1,300,000 | 600,000 | 400,000 | |
Accrued fees and other revenue receivable | 400,000 | 1,000,000 | ||
SIC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Investment Advisory Agreement Description | Pursuant to the terms of the IAA, Medley agreed to bear all organization and offering expenses ("O&O Expenses") related to SIC until the earlier of the end of the SIC offering period or such time that SIC has raised $300 million in gross proceeds in connection with the sale of shares of its common stock. Effective June 2, 2014, Medley was no longer liable for these expenses as SIC had reached the $300 million in gross proceeds threshold. The SIC IAA also requires SIC to reimburse Medley for O&O Expenses incurred by Medley in an amount equal to 1.25% of the aggregate gross proceeds in connection with the sale of shares of its common stock until the earlier of the end of the SIC offering period, which is currently scheduled to terminate in April 2016, or Medley has been repaid in full. | |||
Expense Support And Reimbursement Agreement Description | Under the ESA, until June 30, 2015, unless extended, Medley will pay up to 100% of SIC's operating expenses in order for SIC to achieve a reasonable level of expenses relative to its investment income. Pursuant to the ESA, SIC has a conditional obligation to reimburse Medley for any amounts they funded under the ESA if, within three years of the date on which Medley funded such amounts, SIC meets certain financial levels. | |||
SIC [Member] | Investment Advisory Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Gross proceeds benchmark | 300,000,000 | |||
Fee percentage for orgainization and offereing costs | 1.25% | |||
Organization and Offering Expenses | 1,500,000 | 1,400,000 | 1,900,000 | |
Reimbursement revenue | 3,800,000 | 1,800,000 | 300,000 | |
SIC [Member] | Expense Support and Reimbursement Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses percentage | 100.00% | |||
Expense support and reimbursement agreement expenses | 5,000,000 | 3,900,000 | 1,500,000 | |
ESA Liability | $5,200,000 | $3,400,000 |
EARNINGS_PER_CLASS_A_SHARE_Nar
EARNINGS PER CLASS A SHARE (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Dividends declared per Class A common stock | $0.20 |
Common Class A [Member] | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share (shares) | 23,333,333 |
EARNINGS_PER_CLASS_A_SHARE_Bas
EARNINGS PER CLASS A SHARE (Basic and Diluted Income per Class A Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | |
Numerator | ||||
Net income attributable to Medley Management Inc. | $1,317 | $378 | $1,695 | |
Denominator | ||||
Weighted average shares of Class A shares outstanding | 6,000,000 | 6,000,000 | 6,000,000 | |
Common Class A [Member] | ||||
Numerator | ||||
Net income attributable to Medley Management Inc. | 1,695 | |||
Less: Dividends | -1,200 | [1] | ||
Less: Undistributed net income available to participating securities | -45 | [2] | ||
Undistributed net income available to class A common stockholders | 228 | |||
Denominator | ||||
Weighted average shares of Class A shares outstanding | 7,177,432 | |||
Less: weighted average of participating securities | -1,177,432 | [2] | ||
Weighted Average Number of Shares Outstanding, Basic, Total | 6,000,000 | |||
Add: dilutive effects of conversion of LLC Units | [3] | |||
Weighted Average Number of Shares Outstanding, Diluted, Total | 6,000,000 | |||
Basic and diluted, Distributable earnings | $0.20 | |||
Basic and diluted, Undistributed income | $0.04 | |||
Net income per Class A share | $0.24 | |||
Participating Securities [Member] | ||||
Numerator | ||||
Less: Dividends | ($222) | [2] | ||
[1] | The Company declared a $0.20 dividend on Class A common stock on November 10, 2014. | |||
[2] | Participating securities relate to the Companybs grant of restricted stock units in connection with its IPO. | |||
[3] | Excludes the assumed conversion of 23,333,333 LLC units to Class A shares as the impact would be antidilutive. |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Income Tax Examination, Description | Certain subsidiaries of the Company are no longer subject to tax examinations by taxing authorities for tax years prior to 2010 and, presently, have no open examinations for tax years before 2013 | ||
Unrecognized Tax Benefits | $0 | $0 | $0 |
INCOME_TAXES_Provision_for_Inc
INCOME TAXES (Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | $486 | ||
State and local | 2,768 | 1,735 | 1,138 |
Total current provision | 3,254 | 1,735 | 1,138 |
Deferred | |||
Federal | 2 | ||
State and local | -728 | -96 | -51 |
Total deferred provision | -726 | -96 | -51 |
Provision for income taxes | $2,528 | $1,639 | $1,087 |
INCOME_TAXES_Summary_of_Deferr
INCOME TAXES (Summary of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Tax goodwill | $648 | |
Unrealized losses | 343 | 97 |
Stock-based compensation | 27 | |
Performance fee compensation | 17 | 201 |
Deferred rent | 13 | 19 |
Other liabilities | 166 | 317 |
Total deferred tax assets | 1,214 | 634 |
Deferred tax liabilities | ||
Accrued fee income | 151 | 363 |
Other | 94 | 28 |
Total deferred tax liabilities | 245 | 391 |
Net deferred tax assets | $969 | $243 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of Statutory to Effective Tax Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
Income allocated to non-controlling interests | -32.90% | -34.00% | -34.00% |
State and local corporate income taxes | 0.20% | 0.00% | 0.00% |
Partnership unincorporated tax | 2.60% | 4.30% | 4.40% |
Permanent differences | -0.40% | 0.00% | 0.00% |
Effective tax rate | 3.50% | 4.30% | 4.40% |
COMPENSATION_EXPENSE_Narrative
COMPENSATION EXPENSE (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance fee compensation | ($1,543,000) | $7,192,000 | $5,148,000 |
Performance fee compensation payable | 11,807,000 | 16,225,000 | |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 3.00% | ||
Percentage vested from participants eligibility date | 100.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 400,000 | 300,000 | 200,000 |
Incentive Plan shares available for grant | 3,300,000 | ||
Stock-based compensation | 894,000 | ||
Shares authorized for grant | 4,500,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of units issued during period | 16,000,000 | ||
Anticipated forfeiture rate | 8.00% | ||
Stock-based compensation | 900,000 | ||
RSUs forfeited | 5,600 | ||
Units outstanding, net of forfeitures | 895,000 | ||
Unvested RSU compensation cost not yet recognized | $15,100,000 | ||
Recognition period for unvested RSU compensation cost | 4 years 8 months 12 days | ||
RSUs granted, units | 1,203,515 |
COMPENSATION_EXPENSE_Schedule_
COMPENSATION EXPENSE (Schedule of RSU Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | |
Number of RSUs | |
Beginning Balance | |
Granted | 1,203,515 |
Forfeited | -5,600 |
Vested | |
Ending Balance | 1,197,915 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | |
Granted | $17.91 |
Forfeited | $18 |
Vested | |
Ending Balance | $17.91 |
SEGMENT_REPORTING_Schedule_of_
SEGMENT REPORTING (Schedule of Segment Reporting Information, by Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues | ||||||||||||||||
Management fees | $61,252 | $36,446 | $25,325 | |||||||||||||
Performance Fees | 2,050 | 2,412 | 765 | |||||||||||||
Other income and fees | 8,871 | 5,011 | 2,152 | |||||||||||||
Total revenues | 18,187 | 20,765 | 17,225 | 15,996 | 7,828 | 9,300 | 11,429 | 15,312 | 72,173 | 43,869 | 28,242 | |||||
Expenses | ||||||||||||||||
Compensation and benefits | 20,322 | 13,712 | 11,477 | |||||||||||||
Performance fee compensation | -1,543 | 7,192 | 5,148 | |||||||||||||
General, administrative and other expenses | 16,312 | 12,655 | 9,679 | |||||||||||||
Expenses | 5,564 | 8,510 | 12,861 | 9,826 | 7,689 | 10,635 | 7,892 | 8,568 | 36,761 | 34,784 | 27,957 | |||||
Other income (expense) | ||||||||||||||||
Dividend income | 886 | 886 | 245 | |||||||||||||
Interest Expense | -5,520 | -1,479 | -831 | |||||||||||||
Other income (expenses), net | -1,773 | -483 | -552 | |||||||||||||
Total other expense, net | 3,575 | 11,726 | 17,228 | 3,987 | 5,647 | 1,918 | 10,424 | 11,100 | 36,516 | 29,089 | 24,281 | |||||
Income before income taxes | 16,198 | 23,981 | 21,592 | 10,157 | 5,786 | 583 | 13,961 | 17,844 | 71,928 | 38,174 | 24,566 | |||||
Provision for income taxes | 2,528 | 1,639 | 1,087 | |||||||||||||
Net income | 15,844 | 17,690 | 23,058 | 20,845 | 9,653 | 5,461 | 232 | 13,499 | 17,343 | 51,710 | 69,400 | 36,535 | 23,479 | |||
Net income attributable to non-controlling interests in consolidated subsidiaries | 11,918 | |||||||||||||||
Net income | 1,317 | 378 | 1,695 | |||||||||||||
Reimbursable fund startup expenses | 5,599 | 3,825 | 1,423 | |||||||||||||
Severance expense | -5 | 737 | ||||||||||||||
Share-based Compensation | 894 | |||||||||||||||
Adjustment For Pre-IPO Guaranteed Payments | -3,284 | -4,993 | -2,913 | |||||||||||||
Core Net Income | 40,882 | 23,206 | 10,428 | |||||||||||||
Interest expense | 5,520 | 1,479 | 831 | |||||||||||||
Depreciation and amortization | 401 | 276 | 270 | |||||||||||||
Standalone [Member] | ||||||||||||||||
Revenues | ||||||||||||||||
Management fees | 65,765 | 46,424 | 33,690 | |||||||||||||
Performance Fees | 7,884 | 8,236 | 3,883 | |||||||||||||
Other income and fees | 8,871 | 5,011 | 2,527 | |||||||||||||
Total revenues | 82,520 | 59,671 | 40,100 | |||||||||||||
Expenses | ||||||||||||||||
Compensation and benefits | 20,322 | 13,712 | 11,477 | |||||||||||||
Performance fee compensation | -1,543 | 7,192 | 5,148 | |||||||||||||
General, administrative and other expenses | 16,312 | 12,655 | 9,679 | |||||||||||||
Expenses | 35,091 | 33,559 | 26,304 | |||||||||||||
Other income (expense) | ||||||||||||||||
Dividend income | 886 | 886 | 245 | |||||||||||||
Interest Expense | -5,520 | -1,479 | -831 | |||||||||||||
Other income (expenses), net | -2,097 | -1,168 | -905 | |||||||||||||
Total other expense, net | -6,731 | -1,761 | -1,491 | |||||||||||||
Income before income taxes | 40,698 | 24,351 | 12,305 | |||||||||||||
Provision for income taxes | 1,015 | 714 | 387 | |||||||||||||
Net income | 39,683 | 23,637 | 11,918 | |||||||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | 11,918 | ||||||||||||||
Net income | 1,695 | |||||||||||||||
Reimbursable fund startup expenses | 5,599 | [1] | 3,825 | [1] | 1,423 | [1] | ||||||||||
Severance expense | -5 | [1] | 737 | [1] | [1] | |||||||||||
Adjustment For Pre-IPO Guaranteed Payments | -3,284 | [1],[2] | -4,993 | [1],[2] | -2,913 | [1],[2] | ||||||||||
Core Net Income | 40,882 | 23,206 | 10,428 | |||||||||||||
Interest expense | 5,520 | 1,479 | 831 | |||||||||||||
Income taxes | 1,154 | 701 | 343 | |||||||||||||
Depreciation and amortization | 401 | 276 | 258 | |||||||||||||
Core EBITDA | 47,957 | 25,662 | 11,860 | |||||||||||||
Consolidated Subsidiaries [Member] | ||||||||||||||||
Other income (expense) | ||||||||||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | -239 | 612 | 1,607 | -47 | 1,933 | |||||||||||
Consolidated Subsidiaries [Member] | Standalone [Member] | ||||||||||||||||
Other income (expense) | ||||||||||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 1,933 | |||||||||||||||
Medley Management Inc. And Non Controlling Interests In Medley LLC [Member] | ||||||||||||||||
Other income (expense) | ||||||||||||||||
Net income | 37,750 | 23,637 | 11,918 | |||||||||||||
Medley Management Inc. And Non Controlling Interests In Medley LLC [Member] | Standalone [Member] | ||||||||||||||||
Other income (expense) | ||||||||||||||||
Net income | 37,750 | 23,637 | 11,918 | |||||||||||||
Medley LLC [Member] | ||||||||||||||||
Other income (expense) | ||||||||||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | 7,951 | 12,135 | 10,181 | 5,788 | 4,178 | 1,867 | 7,316 | 10,276 | 36,055 | 23,637 | 11,918 | |||||
Medley LLC [Member] | Standalone [Member] | ||||||||||||||||
Other income (expense) | ||||||||||||||||
Net income attributable to non-controlling interests in consolidated subsidiaries | $36,055 | $23,637 | $11,918 | |||||||||||||
[1] | Presented net of income taxes. | |||||||||||||||
[2] | Represents a pro forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense. Prior to the Companybs reorganization and IPO, these payments were recorded as distributions from memberbs capital. |
SEGMENT_REPORTING_Reconciliati
SEGMENT REPORTING (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | $18,187 | $20,765 | $17,225 | $15,996 | $7,828 | $9,300 | $11,429 | $15,312 | $72,173 | $43,869 | $28,242 | |||||
Expenses | 5,564 | 8,510 | 12,861 | 9,826 | 7,689 | 10,635 | 7,892 | 8,568 | 36,761 | 34,784 | 27,957 | |||||
Other income (expense), net | 3,575 | 11,726 | 17,228 | 3,987 | 5,647 | 1,918 | 10,424 | 11,100 | 36,516 | 29,089 | 24,281 | |||||
Income taxes | 2,528 | 1,639 | 1,087 | |||||||||||||
Net income attributable to non-controlling interests | 11,918 | |||||||||||||||
Net income attributable to Medley Management Inc. | 1,317 | 378 | 1,695 | |||||||||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 11,918 | |||||||||||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 15,844 | 17,690 | 23,058 | 20,845 | 9,653 | 5,461 | 232 | 13,499 | 17,343 | 51,710 | 69,400 | 36,535 | 23,479 | |||
Reimbursable fund startup expenses | 5,599 | 3,825 | 1,423 | |||||||||||||
Severance expenses | -5 | 737 | ||||||||||||||
IPO date award stock-based compensation | 822 | |||||||||||||||
Adjustment for pre-IPO guaranteed payments to members | -3,284 | -4,993 | -2,913 | |||||||||||||
Core Net Income | 40,882 | 23,206 | 10,428 | |||||||||||||
Standalone [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | 82,520 | 59,671 | 40,100 | |||||||||||||
Expenses | 35,091 | 33,559 | 26,304 | |||||||||||||
Other income (expense), net | -6,731 | -1,761 | -1,491 | |||||||||||||
Income taxes | 1,015 | 714 | 387 | |||||||||||||
Net income attributable to non-controlling interests | 1,933 | 11,918 | ||||||||||||||
Net income attributable to Medley Management Inc. | 1,695 | |||||||||||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 1,933 | 11,918 | ||||||||||||||
Net income attributable to Medley Management Inc. and non-controlling interests in Medley LLC | 39,683 | 23,637 | 11,918 | |||||||||||||
Reimbursable fund startup expenses | 5,599 | [1] | 3,825 | [1] | 1,423 | [1] | ||||||||||
Severance expenses | -5 | [1] | 737 | [1] | [1] | |||||||||||
IPO date award stock-based compensation | 822 | [1] | [1] | [1] | ||||||||||||
Adjustment for pre-IPO guaranteed payments to members | -3,284 | [1],[2] | -4,993 | [1],[2] | -2,913 | [1],[2] | ||||||||||
Core Net Income | 40,882 | 23,206 | 10,428 | |||||||||||||
Segment Reconciling Items [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues | -10,347 | -15,802 | -11,858 | |||||||||||||
Expenses | 1,670 | 1,225 | 1,653 | |||||||||||||
Other income (expense), net | 43,247 | 30,850 | 25,772 | |||||||||||||
Income taxes | 1,513 | 925 | 700 | |||||||||||||
Consolidated Subsidiaries [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net income attributable to non-controlling interests | -239 | 612 | 1,607 | -47 | 1,933 | |||||||||||
Add: Net income attributable to non-controlling interests in Medley LLC | -239 | 612 | 1,607 | -47 | 1,933 | |||||||||||
Consolidated Subsidiaries [Member] | Standalone [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net income attributable to non-controlling interests | 1,933 | |||||||||||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 1,933 | |||||||||||||||
Consolidated Funds [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net income attributable to non-controlling interests | 6,815 | 9,933 | 9,057 | 3,912 | 1,283 | -1,635 | 6,183 | 7,067 | 29,717 | 12,898 | 11,561 | |||||
Add: Net income attributable to non-controlling interests in Medley LLC | 6,815 | 9,933 | 9,057 | 3,912 | 1,283 | -1,635 | 6,183 | 7,067 | 29,717 | 12,898 | 11,561 | |||||
Consolidated Funds [Member] | Segment Reconciling Items [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Expenses | 1,670 | 1,225 | 1,653 | |||||||||||||
Income taxes | 1,513 | 925 | 700 | |||||||||||||
Net income attributable to non-controlling interests | 29,717 | 12,898 | 11,561 | |||||||||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 29,717 | 12,898 | 11,561 | |||||||||||||
Medley LLC [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net income attributable to non-controlling interests | 7,951 | 12,135 | 10,181 | 5,788 | 4,178 | 1,867 | 7,316 | 10,276 | 36,055 | 23,637 | 11,918 | |||||
Add: Net income attributable to non-controlling interests in Medley LLC | 7,951 | 12,135 | 10,181 | 5,788 | 4,178 | 1,867 | 7,316 | 10,276 | 36,055 | 23,637 | 11,918 | |||||
Medley LLC [Member] | Standalone [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net income attributable to non-controlling interests | 36,055 | 23,637 | 11,918 | |||||||||||||
Add: Net income attributable to non-controlling interests in Medley LLC | 36,055 | 23,637 | 11,918 | |||||||||||||
Medley Management Inc. And Non Controlling Interests In Medley LLC [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net income attributable to Medley Management Inc. | 37,750 | 23,637 | 11,918 | |||||||||||||
Medley Management Inc. And Non Controlling Interests In Medley LLC [Member] | Standalone [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net income attributable to Medley Management Inc. | $37,750 | $23,637 | $11,918 | |||||||||||||
[1] | Presented net of income taxes. | |||||||||||||||
[2] | Represents a pro forma adjustment to reflect guaranteed payments to Medley LLC members as compensation expense. Prior to the Companybs reorganization and IPO, these payments were recorded as distributions from memberbs capital. |
SEGMENT_REPORTING_Adjustments_
SEGMENT REPORTING (Adjustments and Reconciliations to Revenues) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Management fees from Consolidated Funds eliminated in consolidation | $61,252 | $36,446 | $25,325 | ||||||||
MOF II Performance fees eliminated in consolidation | 2,050 | 2,412 | 765 | ||||||||
Total revenues | 18,187 | 20,765 | 17,225 | 15,996 | 7,828 | 9,300 | 11,429 | 15,312 | 72,173 | 43,869 | 28,242 |
Segment Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Management fees from Consolidated Funds eliminated in consolidation | -4,513 | -9,978 | -8,365 | ||||||||
MOF II Performance fees eliminated in consolidation | -5,834 | -5,824 | -3,118 | ||||||||
Administrative fees from Consolidated Funds eliminated in consolidation | -375 | ||||||||||
Total revenues | ($10,347) | ($15,802) | ($11,858) |
SEGMENT_REPORTING_Adjustments_1
SEGMENT REPORTING (Adjustments and Reconciliations to Expenses) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Consolidated Funds Expenses | $1,670 | $1,225 | $1,653 | ||||||||
Total segment expenses | 5,564 | 8,510 | 12,861 | 9,826 | 7,689 | 10,635 | 7,892 | 8,568 | 36,761 | 34,784 | 27,957 |
Segment Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment expenses | 1,670 | 1,225 | 1,653 | ||||||||
Consolidated Funds [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated Funds Expenses | 1,670 | 1,225 | 1,653 | ||||||||
Consolidated Funds [Member] | Segment Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment expenses | $1,670 | $1,225 | $1,653 |
SEGMENT_REPORTING_Adjustment_t
SEGMENT REPORTING (Adjustment to Interest and Investment Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Interest and other income of Consolidated Funds | $71,468 | $52,550 | $39,001 | ||||||||
Net realized gain (loss) on investments of Consolidated Funds | 789 | -16,080 | -1,600 | ||||||||
Net change in unrealized (depreciation) appreciation on investments of Consolidated Funds | -20,557 | -3,361 | -10,103 | ||||||||
Total segment other income (expense), net | 3,575 | 11,726 | 17,228 | 3,987 | 5,647 | 1,918 | 10,424 | 11,100 | 36,516 | 29,089 | 24,281 |
Segment Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest and other income of Consolidated Funds | 71,468 | 52,550 | 39,001 | ||||||||
Net realized gain (loss) on investments of Consolidated Funds | 789 | -16,080 | -1,600 | ||||||||
Interest expense on secured borrowings of Consolidated Funds | -9,951 | -2,638 | -2,666 | ||||||||
Net change in unrealized (depreciation) appreciation on investments of Consolidated Funds | -20,557 | -3,361 | -10,103 | ||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings | 1,174 | -306 | 787 | ||||||||
Elimination of equity income from Consolidated Funds | 324 | 685 | 353 | ||||||||
Total segment other income (expense), net | 43,247 | 30,850 | 25,772 | ||||||||
Consolidated Funds [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest and other income of Consolidated Funds | 71,468 | 52,550 | 39,001 | ||||||||
Net realized gain (loss) on investments of Consolidated Funds | 789 | -16,080 | -1,600 | ||||||||
Interest expense on secured borrowings of Consolidated Funds | 9,951 | 2,638 | 2,666 | ||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings | $1,174 | ($306) | $787 |
SEGMENT_REPORTING_Provision_Fo
SEGMENT REPORTING (Provision For Income Taxes Adjustment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Total segment provision for taxes | $2,528 | $1,639 | $1,087 |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment provision for taxes | 1,513 | 925 | 700 |
Consolidated Funds [Member] | Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Total segment provision for taxes | $1,513 | $925 | $700 |
CONSOLIDATING_SCHEDULES_Consol
CONSOLIDATING SCHEDULES (Consolidated Income Statement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||||
Management fees | $61,252 | $36,446 | $25,325 | ||||||||||
Performance fees | 2,050 | 2,412 | 765 | ||||||||||
Other income and fees | 8,871 | 5,011 | 2,152 | ||||||||||
Total revenues | 18,187 | 20,765 | 17,225 | 15,996 | 7,828 | 9,300 | 11,429 | 15,312 | 72,173 | 43,869 | 28,242 | ||
Expenses: | |||||||||||||
Compensation and benefits | 20,322 | 13,712 | 11,477 | ||||||||||
Performance fee compensation | -1,543 | 7,192 | 5,148 | ||||||||||
Consolidated Funds expenses | 1,670 | 1,225 | 1,653 | ||||||||||
General, administrative and other expenses | 16,312 | 12,655 | 9,679 | ||||||||||
Total operating expenses | 5,564 | 8,510 | 12,861 | 9,826 | 7,689 | 10,635 | 7,892 | 8,568 | 36,761 | 34,784 | 27,957 | ||
Other income (expense): | |||||||||||||
Dividend income | 886 | 886 | 245 | ||||||||||
Interest Expense | -5,520 | -1,479 | -831 | ||||||||||
Other expense, net | -1,773 | -483 | -552 | ||||||||||
Interest and other income of Consolidated Funds | 71,468 | 52,550 | 39,001 | ||||||||||
Net realized loss on investments of Consolidated Funds | 789 | -16,080 | -1,600 | ||||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | -20,557 | -3,361 | -10,103 | ||||||||||
Total other expense, net | 3,575 | 11,726 | 17,228 | 3,987 | 5,647 | 1,918 | 10,424 | 11,100 | 36,516 | 29,089 | 24,281 | ||
Income before income taxes | 16,198 | 23,981 | 21,592 | 10,157 | 5,786 | 583 | 13,961 | 17,844 | 71,928 | 38,174 | 24,566 | ||
Provision for income taxes | 2,528 | 1,639 | 1,087 | ||||||||||
Net income | 15,844 | 17,690 | 23,058 | 20,845 | 9,653 | 5,461 | 232 | 13,499 | 17,343 | 51,710 | 69,400 | 36,535 | 23,479 |
Net income attributable to non-controlling interests | 11,918 | ||||||||||||
Net income attributable to Medley Management Inc. | 1,317 | 378 | 1,695 | ||||||||||
Consolidated Funds [Member] | |||||||||||||
Expenses: | |||||||||||||
Consolidated Funds expenses | 1,670 | 1,225 | 1,653 | ||||||||||
Other income (expense): | |||||||||||||
Interest expense on secured borrowings of Consolidated Funds | 9,951 | 2,638 | 2,666 | ||||||||||
Interest and other income of Consolidated Funds | 71,468 | 52,550 | 39,001 | ||||||||||
Net realized loss on investments of Consolidated Funds | 789 | -16,080 | -1,600 | ||||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings | 1,174 | -306 | 787 | ||||||||||
Net income attributable to non-controlling interests | 6,815 | 9,933 | 9,057 | 3,912 | 1,283 | -1,635 | 6,183 | 7,067 | 29,717 | 12,898 | 11,561 | ||
Consolidated Subsidiaries [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income attributable to non-controlling interests | -239 | 612 | 1,607 | -47 | 1,933 | ||||||||
Medley LLC [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income attributable to non-controlling interests | 7,951 | 12,135 | 10,181 | 5,788 | 4,178 | 1,867 | 7,316 | 10,276 | 36,055 | 23,637 | 11,918 | ||
Standalone [Member] | |||||||||||||
Revenues: | |||||||||||||
Management fees | 65,765 | 46,424 | 33,690 | ||||||||||
Performance fees | 7,884 | 8,236 | 3,883 | ||||||||||
Other income and fees | 8,871 | 5,011 | 2,527 | ||||||||||
Total revenues | 82,520 | 59,671 | 40,100 | ||||||||||
Expenses: | |||||||||||||
Compensation and benefits | 20,322 | 13,712 | 11,477 | ||||||||||
Performance fee compensation | -1,543 | 7,192 | 5,148 | ||||||||||
General, administrative and other expenses | 16,312 | 12,655 | 9,679 | ||||||||||
Total operating expenses | 35,091 | 33,559 | 26,304 | ||||||||||
Other income (expense): | |||||||||||||
Dividend income | 886 | 886 | 245 | ||||||||||
Interest Expense | -5,520 | -1,479 | -831 | ||||||||||
Other expense, net | -2,097 | -1,168 | -905 | ||||||||||
Total other expense, net | -6,731 | -1,761 | -1,491 | ||||||||||
Income before income taxes | 40,698 | 24,351 | 12,305 | ||||||||||
Provision for income taxes | 1,015 | 714 | 387 | ||||||||||
Net income | 39,683 | 23,637 | 11,918 | ||||||||||
Net income attributable to non-controlling interests | 1,933 | 11,918 | |||||||||||
Net income attributable to Medley Management Inc. | 1,695 | ||||||||||||
Standalone [Member] | Consolidated Subsidiaries [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income attributable to non-controlling interests | 1,933 | ||||||||||||
Standalone [Member] | Medley LLC [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income attributable to non-controlling interests | 36,055 | 23,637 | 11,918 | ||||||||||
Consolidated Funds [Member] | |||||||||||||
Expenses: | |||||||||||||
Consolidated Funds expenses | 6,183 | 11,203 | 10,393 | ||||||||||
Total operating expenses | 6,183 | 11,203 | 10,393 | ||||||||||
Other income (expense): | |||||||||||||
Interest and other income of Consolidated Funds | 71,468 | 52,550 | 39,001 | ||||||||||
Net realized loss on investments of Consolidated Funds | 789 | -16,080 | -1,600 | ||||||||||
Net change in unrealized depreciation on investments of Consolidated Funds | -20,557 | -3,361 | -10,103 | ||||||||||
Total other expense, net | 42,923 | 30,165 | 25,419 | ||||||||||
Income before income taxes | 36,740 | 18,962 | 15,026 | ||||||||||
Provision for income taxes | 1,513 | 925 | 700 | ||||||||||
Net income | 35,227 | 18,037 | 14,326 | ||||||||||
Net income attributable to Medley Management Inc. | 35,227 | ||||||||||||
Consolidated Funds [Member] | Consolidated Funds [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Interest expense on secured borrowings of Consolidated Funds | 9,951 | 2,638 | 2,666 | ||||||||||
Net change in unrealized depreciation (appreciation) on secured borrowings | 1,174 | -306 | 787 | ||||||||||
Net income attributable to non-controlling interests | 122 | ||||||||||||
Consolidated Funds [Member] | Medley LLC [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income attributable to non-controlling interests | 18,037 | 14,204 | |||||||||||
Consolidation, Eliminations [Member] | |||||||||||||
Revenues: | |||||||||||||
Management fees | -4,513 | -9,978 | -8,365 | ||||||||||
Performance fees | -5,834 | -5,824 | -3,118 | ||||||||||
Other income and fees | -375 | ||||||||||||
Total revenues | -10,347 | -15,802 | -11,858 | ||||||||||
Expenses: | |||||||||||||
Consolidated Funds expenses | -4,513 | -9,978 | -8,740 | ||||||||||
Total operating expenses | -4,513 | -9,978 | -8,740 | ||||||||||
Other income (expense): | |||||||||||||
Other expense, net | 324 | 685 | 353 | ||||||||||
Total other expense, net | 324 | 685 | 353 | ||||||||||
Income before income taxes | -5,510 | -5,139 | -2,765 | ||||||||||
Net income | -5,510 | -5,139 | -2,765 | ||||||||||
Net income attributable to Medley Management Inc. | -35,227 | ||||||||||||
Consolidation, Eliminations [Member] | Consolidated Funds [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income attributable to non-controlling interests | 29,717 | 12,898 | 11,439 | ||||||||||
Consolidation, Eliminations [Member] | Medley LLC [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income attributable to non-controlling interests | ($18,037) | ($14,204) |
CONSOLIDATING_SCHEDULES_Consol1
CONSOLIDATING SCHEDULES (Consolidated Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Sep. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||
Assets | |||||
Cash and cash equivalents | $87,206 | $5,395 | $1,292 | $1,334 | |
Investments, at fair value | 734,870 | 453,396 | |||
Investments, at fair value | 9,901 | 10,173 | |||
Management fees receivable | 15,173 | 8,921 | |||
Performance fees receivable | 5,573 | 3,339 | |||
Other assets | 9,230 | 5,308 | |||
Total assets | 910,399 | 550,292 | |||
Liabilities and equity | |||||
Loans payable | 103,057 | 27,990 | |||
Accounts payable, accrued expenses and other liabilities | 27,583 | 17,613 | |||
Secured borrowings | 141,135 | 41,178 | |||
Performance fee compensation payable | 11,807 | 16,225 | |||
Total liabilities | 289,349 | 104,331 | |||
Stockholders' Equity | |||||
Additional paid-in-capital | -2,384 | ||||
Retained earnings | 272 | ||||
Total stockholders' equity, Medley Management Inc. | -2,052 | ||||
Members' equity of consolidated funds | -18,554 | ||||
Total (deficit) equity | 621,050 | 475,608 | 445,961 | 406,936 | 265,315 |
Total liabilities and equity | 910,399 | 550,292 | |||
Common Class A [Member] | |||||
Stockholders' Equity | |||||
Common stock value | 60 | ||||
Consolidated Funds [Member] | |||||
Assets | |||||
Cash and cash equivalents | 38,111 | 60,355 | |||
Investments, at fair value | 734,870 | 453,396 | |||
Other assets | 3,681 | 436 | |||
Interest and dividends receivable | 6,654 | 2,969 | |||
Liabilities and equity | |||||
Accounts payable, accrued expenses and other liabilities | 5,767 | 1,325 | |||
Secured borrowings | 141,135 | 41,178 | |||
Stockholders' Equity | |||||
Non-controlling interests | 625,548 | 464,475 | |||
Consolidated Subsidiaries [Member] | |||||
Stockholders' Equity | |||||
Non-controlling interests | 1,526 | 40 | |||
Medley LLC [Member] | |||||
Assets | |||||
Other assets | 9,230 | 5,308 | |||
Stockholders' Equity | |||||
Non-controlling interests | -3,972 | ||||
Standalone [Member] | |||||
Assets | |||||
Cash and cash equivalents | 87,206 | 5,395 | |||
Investments, at fair value | 22,143 | 21,443 | |||
Management fees receivable | 15,173 | 8,921 | |||
Performance fees receivable | 5,573 | 3,339 | |||
Other assets | 9,230 | 4,216 | |||
Total assets | 139,325 | 43,314 | |||
Liabilities and equity | |||||
Loans payable | 103,057 | 27,990 | |||
Accounts payable, accrued expenses and other liabilities | 28,959 | 17,613 | |||
Performance fee compensation payable | 11,807 | 16,225 | |||
Total liabilities | 143,823 | 61,828 | |||
Stockholders' Equity | |||||
Additional paid-in-capital | -2,384 | ||||
Retained earnings | 272 | ||||
Total stockholders' equity, Medley Management Inc. | -2,052 | ||||
Members' equity of consolidated funds | -18,554 | ||||
Total (deficit) equity | -4,498 | -18,514 | |||
Total liabilities and equity | 139,325 | 43,314 | |||
Standalone [Member] | Common Class A [Member] | |||||
Stockholders' Equity | |||||
Common stock value | 60 | ||||
Standalone [Member] | Consolidated Subsidiaries [Member] | |||||
Stockholders' Equity | |||||
Non-controlling interests | 1,526 | 40 | |||
Standalone [Member] | Medley LLC [Member] | |||||
Stockholders' Equity | |||||
Non-controlling interests | -3,972 | ||||
Consolidated Funds [Member] | |||||
Assets | |||||
Total assets | 784,692 | 518,285 | |||
Liabilities and equity | |||||
Secured borrowings | 141,135 | 41,178 | |||
Total liabilities | 146,902 | 42,541 | |||
Stockholders' Equity | |||||
Members' equity of consolidated funds | 637,790 | 475,744 | |||
Total (deficit) equity | 637,790 | 475,744 | |||
Total liabilities and equity | 784,692 | 518,285 | |||
Consolidated Funds [Member] | Consolidated Funds [Member] | |||||
Assets | |||||
Cash and cash equivalents | 38,111 | 60,355 | |||
Investments, at fair value | 734,870 | 453,396 | |||
Other assets | 5,057 | 1,565 | |||
Interest and dividends receivable | 6,654 | 2,969 | |||
Liabilities and equity | |||||
Accounts payable, accrued expenses and other liabilities | 5,767 | 1,363 | |||
Consolidation, Eliminations [Member] | |||||
Assets | |||||
Investments, at fair value | -12,242 | -11,270 | |||
Other assets | 1,092 | ||||
Total assets | -13,618 | -11,307 | |||
Liabilities and equity | |||||
Accounts payable, accrued expenses and other liabilities | -1,376 | ||||
Total liabilities | -1,376 | -38 | |||
Stockholders' Equity | |||||
Members' equity of consolidated funds | -637,790 | -475,744 | |||
Total (deficit) equity | -12,242 | -11,269 | |||
Total liabilities and equity | -13,618 | -11,307 | |||
Consolidation, Eliminations [Member] | Consolidated Funds [Member] | |||||
Assets | |||||
Other assets | -1,376 | -1,129 | |||
Liabilities and equity | |||||
Accounts payable, accrued expenses and other liabilities | -38 | ||||
Stockholders' Equity | |||||
Non-controlling interests | $625,548 | $464,475 |
QUARTERLY_FINANCIAL_DATA_Quart
QUARTERLY FINANCIAL DATA (Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | $18,187 | $20,765 | $17,225 | $15,996 | $7,828 | $9,300 | $11,429 | $15,312 | $72,173 | $43,869 | $28,242 | |||
Expenses | 5,564 | 8,510 | 12,861 | 9,826 | 7,689 | 10,635 | 7,892 | 8,568 | 36,761 | 34,784 | 27,957 | |||
Total other expense, net | 3,575 | 11,726 | 17,228 | 3,987 | 5,647 | 1,918 | 10,424 | 11,100 | 36,516 | 29,089 | 24,281 | |||
Income before income taxes | 16,198 | 23,981 | 21,592 | 10,157 | 5,786 | 583 | 13,961 | 17,844 | 71,928 | 38,174 | 24,566 | |||
Provision for income taxes | 2,528 | 1,639 | 1,087 | |||||||||||
Net income | 15,844 | 17,690 | 23,058 | 20,845 | 9,653 | 5,461 | 232 | 13,499 | 17,343 | 51,710 | 69,400 | 36,535 | 23,479 | |
Net income attributable to non-controlling interests | 11,918 | |||||||||||||
Net income attributable to Medley Management Inc. | 1,317 | 378 | 1,695 | |||||||||||
Net income per share attributable to stockholders of Class A common stock of Medley Management Inc: | ||||||||||||||
Earnings Per Share, Basic (in dollars per share) | $0.19 | $0.05 | $0.24 | [1] | ||||||||||
Earnings Per Share, Diluted (in dollars per share) | $0.19 | $0.05 | $0.24 | [1] | ||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted (in shares) | 6,000,000 | 6,000,000 | 6,000,000 | |||||||||||
Consolidated Funds [Member] | ||||||||||||||
Net income attributable to non-controlling interests | 6,815 | 9,933 | 9,057 | 3,912 | 1,283 | -1,635 | 6,183 | 7,067 | 29,717 | 12,898 | 11,561 | |||
Consolidated Subsidiaries [Member] | ||||||||||||||
Net income attributable to non-controlling interests | -239 | 612 | 1,607 | -47 | 1,933 | |||||||||
Medley LLC [Member] | ||||||||||||||
Net income attributable to non-controlling interests | $7,951 | $12,135 | $10,181 | $5,788 | $4,178 | $1,867 | $7,316 | $10,276 | $36,055 | $23,637 | $11,918 | |||
[1] | Based on net income attributable to Medley Management Inc. from September 29, 2014 through December 31, 2014. |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 0 Months Ended | |||
Jan. 01, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 29, 2015 | |
Subsequent Event [Line Items] | ||||
Investments, at fair value | $734,870,000 | $453,396,000 | ||
Dividends payable, amount per share | $0.20 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends payable, amount per share | $0.20 | |||
Medley Opportunity Fund I LP [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Variable Interest Entity Deconsolidation Carrying Amount Assets | 20,000,000 | |||
Variable Interest Entity Deconsolidation Carrying Amount Liabilities | 2,900,000 | |||
Variable Interest Entity Deconsolidation Noncontrolling Interest | 15,300,000 | |||
Variable Interest Entity Deconsolidation Carrying Amount Investments | $1,800,000 |