Related Party Transactions
 9 Months Ended
Sep. 30, 2018
Related Party Transactions  
Related Party Transactions

5. Related-Party Transactions

The Company considers certain funds that it manages, including the Victory Funds, the VictoryShares and the Victory Collective Funds, to be related parties as a result of the Company’s advisory relationship.

The Company receives investment management, administrative, distribution and compliance fees in accordance with contracts that VCM and VCA have with the Victory Funds. The Company also receives investment management fees from the VictoryShares and Victory Collective Funds under VCM’s advisory contracts with these funds and administrative fees under VCM’s administration contract with the VictoryShares.

Under the terms of monitoring agreements with affiliates of two shareholders of the Company, the Company paid fees for monitoring services, which are included in general and administrative expense in the unaudited condensed consolidated statements of operations. These monitoring agreements terminated upon the completion of the IPO.

Balances and transactions involving related parties included in the unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of operations are summarized below. Included in receivables (fund administration and distribution fees) are amounts due from the Victory Funds for compliance services and expense reimbursements. Included in fund administration and distribution fees are amounts earned for compliance services.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

    

September 30, 2018

    

December 31, 2017

    

Related party assets

 

 

 

  

 

 

  

 

Receivables (investment management fees)

 

 

$

22,909

 

$

23,027

 

Receivables (fund administration and distribution fees)

 

 

 

3,569

 

 

3,925

 

Investments

 

 

 

14,138

 

 

10,925

 

Total

 

 

$

40,616

 

$

37,877

 

 

 

 

 

 

 

 

 

 

Related party liabilities

 

 

 

  

 

 

  

 

Accounts payable and accrued expenses (fund reimbursements)

 

 

$

974

 

$

1,155

 

Other liabilities (promissory note)

 

 

 

239

 

 

671

 

Total

 

 

$

1,213

 

$

1,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

Nine Months Ended September 30, 

 

 

    

    

2018

    

2017

    

2018

    

2017

    

Related party revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment management fees

 

 

$

68,386

 

$

64,282

 

$

200,728

 

$

188,009

 

Fund administration and distribution fees

 

 

 

15,557

 

 

16,372

 

 

46,792

 

 

49,378

 

Total

 

 

$

83,943

 

$

80,654

 

$

247,520

 

$

237,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related party expense

 

 

 

  

 

 

  

 

 

  

 

 

  

 

Distribution and other asset-based expenses (fund reimbursements)

 

 

$

3,072

 

$

2,216

 

$

9,352

 

$

9,826

 

General and administrative

 

 

 

 —

 

 

288

 

 

135

 

 

864

 

Total

 

 

$

3,072

 

$

2,504

 

$

9,487

 

$

10,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related party other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense and other income/(expense) (realized gains/(losses) on available-for-sale securities, net)

 

 

$

 —

 

$

15

 

$

 —

 

$

15

 

Interest expense and other financing costs (promissory note)

 

 

 

(5)

 

 

(10)

 

 

(16)

 

 

(29)

 

Total

 

 

$

(5)

 

$

 5

 

$

(16)

 

$

(14)