18.

VARIABLE INTEREST ENTITIES

As a general matter, a reporting entity must consolidate a VIE when it is deemed to be the primary beneficiary. The primary beneficiary is the entity that has both (a) the power to direct the matters that most significantly impact the VIE's financial performance and (b) a significant variable interest in the VIE.

Consolidated VIEs

The Company determined it was the primary beneficiary of several VIEs and therefore has consolidated them. The following table provides certain summary information regarding the consolidated VIEs:

	As of December 31,
	2020			2019
Cash and cash equivalents	$	270		$	-
Receivables		2,112			-
Other investments, at fair value		36,395			-
Investment in equity method affiliates		9,805			3,222
Non-controlling interest		(27,805	)		(2,262	)
Investment in consolidated VIEs	$	20,777		$	960

The maximum potential loss the Company could incur related to the consolidated VIEs is the investment in consolidated VIEs shown in the table above plus certain obligations the Company has to fund additional working capital to the equity method investees of certain of the consolidated VIEs. The total amount of working capital commitment was

$1,560

and

$750

as of

December 31, 2020

and

2019

respectively.

The Company's Principal Investing Portfolio

Included in other investments, at fair value and investment in equity method affiliates in the consolidated balance sheets are unconsolidated investments in several VIEs. The maximum potential financial statement loss the Company would incur if the VIEs were to default on all their obligations would be the loss of the carrying value of these investments as well as any future investments the Company were to make. As of

December 31, 2020

, there were

$1,567

of unfunded investment commitments to VIEs in which the Company has invested and is

not

consolidating. Other than its investment in these entities, the Company did

not

provide financial support to these VIEs during the years ended

December 31, 2020

and

2019

and had

liabilities, contingent liabilities, or guarantees (implicit or explicit) related to these VIEs at

December 31, 2020

and

2019

. See table below.

For each investment management contract entered into by the Company, the Company assesses whether the entity being managed is a VIE and if the Company is the primary beneficiary. Certain of the Investment Vehicles managed by the Company are VIEs. Under the current guidance of ASU

2015

12,

the Company has concluded that its asset management contracts are

not

variable interests. Currently, the Company has

other interests in entities it manages that are considered variable interests and are considered significant. Therefore, the Company is

not

the primary beneficiary of any VIEs that it manages.

The Company's Trading Portfolio

From time to time, the Company

may

acquire an interest in a VIE through the investments it makes as part of its trading operations, which are included as investments-trading or securities sold,

not

yet purchased in the consolidated balance sheets. Due to the high volume of trading activity in which the Company engages, the Company does

not

perform a formal assessment of each individual investment within its trading portfolio to determine if the investee is a VIE and if the Company is a primary beneficiary. Even if the Company were to obtain a variable interest in a VIE through its trading portfolio, the Company would

not

be deemed to be the primary beneficiary for

two

main reasons: (a) the Company does

not

usually obtain the power to direct activities that most significantly impact any investee's financial performance and (b) a scope exception exists within the consolidation guidance for cases where the reporting entity is a broker-dealer and any control (either as the primary beneficiary of a VIE or through a controlling interest in a voting interest entity) was deemed to be temporary. In the unlikely case that the Company obtained the power to direct activities and obtained a significant variable interest in an investee in its trading portfolio that was a VIE, any such control would be deemed to be temporary due to the rapid turnover of the Company's trading portfolio.

The following table presents the carrying amounts of the assets in the Company's consolidated balance sheets related to the Company's variable interests in unconsolidated VIEs with the exception of (i) the

two

trust VIEs that hold the Company's junior subordinated notes (see note

) and (ii) any security that represents an interest in a VIE that is included in investments-trading or securities sold,

not

yet purchased in the Company's consolidated balance sheets. The table below shows the Company's maximum exposure to loss associated with these identified nonconsolidated VIEs in which it holds variable interests at

December 31, 2020

and

2019

CARRYING VALUE OF VARIABLE INTERESTS IN NON-CONSOLIDATED VARIABLE INTEREST ENTITIES

(Dollars in Thousands)

	As of December 31,
	2020		2019
Other investments, at fair value	$	2,548	$	5,413
Investments in equity method affiliates		363		-
Maximum Exposure	$	2,911	$	5,413