our brokerage revenues may vary between periods , in part depending on commission rates , trading volumes and our ability to continue to deliver research and other value-added services to our clients . the ability to execute trades electronically , through the internet and through other alternative trading systems has increased pressure on trading commissions and spreads . we expect this trend toward alternative trading systems and pricing pressures in our brokerage business to continue . we are , to some extent , compensated through brokerage commissions for the value of research and other value added services we deliver to our clients . these “ soft dollar ” practices have been the subject of discussion among regulators , the investment banking community and our sales and trading clients . in particular , commission sharing arrangements have been adopted by some large institutional investors . in these arrangements , institutional investors concentrate their trading with fewer “ execution ” brokers and pay a fixed amount for execution with an additional amount set aside for payments to other firms for research or other brokerage services . accordingly , we may experience reduced ( or eliminated ) trading volume with such investors but may be compensated for our research and sales efforts through allocations of the designated amounts . depending on the extent to which we adopt this practice and depending on our ability to reach arrangements on terms acceptable to us , this trend would likely impair the revenues and profitability of our commission business by negatively affecting both volumes and trading commissions in our commission business . asset management fees asset management fees for hedge funds , hedge funds of funds , private equity funds , hcc llc ( through may 2 , 2013 ) , and hcc include base management fees and incentive fees earned from managing our family of investment partnerships and a publicly-traded specialty finance company . earned base management fees are generally based on the fair value of assets under management or aggregate capital commitments and the fee schedule for each fund and account . we also earn incentive fees based upon the performance of investment funds and accounts . for most of the funds , such fees are based on a percentage of the excess of an investment return over a specified high-water mark or hurdle rate over a defined performance period . for private equity funds , incentive fees are based on a specified percentage of realized gains from the disposition of each portfolio investment in which each investor participates , and we earn after returning contributions by the investors for that portfolio investment and for all other portfolio investments in which each such investor participates that have been disposed of at the time of distribution . generally , we do not earn management fees on assets calculated on an average assets under management ( “ aum ” ) basis . as of december 31 , 2013 , the contractual base management fees earned from each of these investment funds or company ranged between 1 % and 2 % of assets under management or were 2 % of aggregate committed capital . the contractual incentive fees were generally ( i ) 20 % , subject to high-water marks , for the hedge funds ; ( ii ) 5 % to 20 % , subject to high-water marks or a performance hurdle rate , for the hedge funds of funds ; ( iii ) 20 % , subject to high-water marks , for harvest growth capital llc ( “ hgc “ ) and hgc ii . our asset management revenues are subject to fluctuations due to a variety of factors that are unpredictable , including the overall condition of the economy and the securities markets as a whole and our core sectors . these conditions can have a material effect on the inflows and outflows of assets under management , and the performance of our asset management funds . for example , a significant portion of the performance-based or incentive revenues that we recognize are based on the value of securities held in the funds we manage . the value of these securities includes unrealized gains or losses that may change from one period to another . as we consolidate hgc , hgc ii and hcc llc ( through may 2 , 2013 ) , the management and incentive fees earned at hcs from hgc , hgc ii , and hcc llc ( through may 2 , 2013 ) , are eliminated in consolidation . asset management fees for the clos we manage currently consist only of senior and subordinated base management fees . we recognize base management fees for the clos on a monthly basis over the period in which the collateral management services are performed . the base management fees for the clos are calculated as a percentage of the average aggregate collateral balances for a specified period . as we consolidate clo i , clo ii , and clo iii , the management fees earned at jmp credit advisors llc ( “ jmpca “ ) from the clos are eliminated on consolidation in accordance with accounting principles gaap . at december 31 , 2013 , the contractual senior and subordinated base management fees earned from the clos were 0.50 % of the average aggregate collateral balance for a specified period . 33 redemption provisions of our funds require at least 90 days ' advance notice , except for one fund that requires twelve months advance notice.the following tables present certain information with respect to the investment funds managed by hcs , hcap advisors , and clos managed by jmpca : replace_table_token_9_th ( 1 ) for hedge funds , private equity funds and funds of funds , assets under management represent the net assets of such funds . for new york mortgage trust ( “ nymt ” ) , assets under management represent certain assets for which hcs earns incentive fees . story_separator_special_tag the company and affiliates owned approximately 59 % of hcc llc at december 31 , 2012. the company consolidated hcc llc into its consolidated financial statements . in 2013 , the outstanding limited liability company units of hcc llc were converted into a number of shares of hcc common stock . on may 2 , 2013 , hcc priced its initial pubic offering , which reduced the company 's ownership of hcc to 11.6 % . at such date , the company no longer consolidated hcc . hcap advisors was formed on december 18 , 2012. hcap advisors appointed jmp group llc as its manager effective may 1 , 2013 , and began offering investment advisory services . the company owns 51 % equity interest in the entity . 39 historical results of operations the following table sets forth our historical results of operations for the years ended december 31 , 2013 , 2012 and 2011 and is not necessarily indicative of the results to be expected for any future period . replace_table_token_14_th 40 overview year ended december 31 , 2013 , compared to year ended december 31 , 2012 total net revenues after provision for loan losses increased $ 48.3 million , or 47.9 % , from $ 100.9 million for the year ended december 31 , 2012 to $ 149.2 million for the year ended december 31 , 2013 , resulting from an increase in total non-interest revenues of $ 38.4 million , and an increase in net interest income of $ 10.3 million , partially offset by an increase in provision for loan losses of $ 0.4 million . total non-interest revenues increased $ 38.4 million , or 34.8 % , primarily due to increases in investment banking revenues of $ 23.2 million , an increase of asset management fees of $ 10.2 million , an increase of principal transactions of $ 10.2 million , partially offset by a decrease in gain on sale , payoff and mark-to-market of loans of $ 5.5 million . net interest income increased $ 10.3 million , or 145.6 % , from net interest income expense of $ 7.1 million for the year ended december 31 , 2012 to net interest income of $ 3.2 million for the same period in 2013. this increase in net interest income is primarily attributed to an increase in net interest earned at jmp credit , partially offset by $ 3.6 million net interest expense related to the bond issued in january 2013. total non-interest expenses increased $ 40.3 million , or 44.1 % , from $ 91.4 million for the year ended december 31 , 2012 to $ 131.7 million for the year ended december 31 , 2013 , primarily due to an increase in compensation and benefits of $ 36.0 million . net income attributable to jmp group inc. increased $ 0.9 million , or 31.6 % , from $ 2.8 million for the year ended december 31 , 2012 to $ 3.6 million for the year ended december 31 , 2013 and includes income tax expense of $ 1.6 million and $ 4.0 million for the years ended december 31 , 2012 and 2013 , respectively . year ended december 31 , 2012 , compared to year ended december 31 , 2011 total net revenues after provision for loan losses decreased $ 10.7 million , or 9.5 % , from $ 111.6 million for the year ended december 31 , 2011 to $ 100.9 million for the year ended december 31 , 2012 , resulting from a decrease in total non-interest revenues of $ 5.5 million , and a decrease in net interest income of $ 4.7 million , and an increase in provision for loan losses of $ 0.5 million . total non-interest revenues decreased $ 5.5 million , or 4.7 % , primarily due to a decrease in gain on sale , payoff and mark-to-market of loans of $ 9.7 million , a decrease of asset management fees of $ 4.0 million , and a decrease of brokerage revenues of $ 3.6 million , partially offset by an increase in principal transaction revenues of $ 8.9 million and an increase in investment banking revenues of $ 4.9 million . net interest expense increased $ 4.7 million , or 196.7 % , from $ 2.4 million for the year ended december 31 , 2011 to $ 7.1 million for the same period in 2012. the increase was primarily due to an increase in net amortization of liquidity discounts at jmp credit of $ 7.7 million , from a $ 21.5 million loss for the year ended december 31 , 2011 to a $ 29.2 million loss for the year ended december 31 , 2012. total non-interest expenses decreased $ 24.4 million , or 21.1 % , from $ 115.8 million for the year ended december 31 , 2011 to $ 91.4 million for the year ended december 31 , 2012 , primarily due to a decrease in compensation and benefits of $ 22.6 million . net income attributable to jmp group inc. increased $ 5.2 million , or 212.3 % , from a $ 2.5 million loss for the year ended december 31 , 2011 to $ 2.8 million for the year ended december 31 , 2012 and includes an income tax benefit of $ 1.6 million and tax expense of $ 1.6 million for the years ended december 31 , 2011 and 2012 , respectively . adjusted operating net income ( non-gaap financial measure ) management uses adjusted operating net income as a key , non-gaap metric when evaluating the performance of jmp group 's core business strategy and ongoing operations , as management believes that this metric appropriately illustrates the operating results of jmp group 's core operations and business activities . adjusted operating net income is derived from our segment reported results and is the measure of segment profitability on an after-tax basis used by management to evaluate

liquidity considerations related to clos on april 7 , 2009 , we invested $ 4.0 million of cash and granted $ 3.0 million original par amount , with a $ 2.3 million estimated fair value , of contingent consideration ( a zero coupon note ) to acquire 100 % of the membership interests and net assets of $ 7.5 million of cratos . in december 2009 , we repurchased the contingent consideration for $ 1.8 million . as we own substantially all of the subordinated securities of the clo , in accordance with the authoritative guidance under gaap on accounting for consolidation of variable interest entities , we are the primary beneficiary and are required to consolidate all of the assets and liabilities of the clo securitization structure even though it is a bankruptcy remote entity with no recourse to us . our maximum exposure to loss of capital on the clos is the original april 7 , 2009 investment of $ 4.0 million plus the $ 1.8 million paid to repurchase the contingent consideration related to the cratos acquisition , $ 17.3 million related to clo ii , and $ 10.0 million investment related to clo iii plus any earnings retained in the clos since the acquisition date . however , for u.s. federal tax purposes , the clos are treated as a disregarded entity such that the taxable income earned in the clo is taxable to us . if the clo is in violation of certain coverage tests , mainly any of its over-collateralization ratios , residual cash flows otherwise payable to us as owners of the subordinated notes would be required to be used to buy additional collateral or repay indebtedness senior to us in the securitization . this could require us to pay income tax on earnings prior to the residual cash flow distributions to us .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity considerations related to clos on april 7 , 2009 , we invested $ 4.0 million of cash and granted $ 3.0 million original par amount , with a $ 2.3 million estimated fair value , of contingent consideration ( a zero coupon note ) to acquire 100 % of the membership interests and net assets of $ 7.5 million of cratos . in december 2009 , we repurchased the contingent consideration for $ 1.8 million . as we own substantially all of the subordinated securities of the clo , in accordance with the authoritative guidance under gaap on accounting for consolidation of variable interest entities , we are the primary beneficiary and are required to consolidate all of the assets and liabilities of the clo securitization structure even though it is a bankruptcy remote entity with no recourse to us . our maximum exposure to loss of capital on the clos is the original april 7 , 2009 investment of $ 4.0 million plus the $ 1.8 million paid to repurchase the contingent consideration related to the cratos acquisition , $ 17.3 million related to clo ii , and $ 10.0 million investment related to clo iii plus any earnings retained in the clos since the acquisition date . however , for u.s. federal tax purposes , the clos are treated as a disregarded entity such that the taxable income earned in the clo is taxable to us . if the clo is in violation of certain coverage tests , mainly any of its over-collateralization ratios , residual cash flows otherwise payable to us as owners of the subordinated notes would be required to be used to buy additional collateral or repay indebtedness senior to us in the securitization . this could require us to pay income tax on earnings prior to the residual cash flow distributions to us .
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 Suspicious Activity Report : our brokerage revenues may vary between periods , in part depending on commission rates , trading volumes and our ability to continue to deliver research and other value-added services to our clients . the ability to execute trades electronically , through the internet and through other alternative trading systems has increased pressure on trading commissions and spreads . we expect this trend toward alternative trading systems and pricing pressures in our brokerage business to continue . we are , to some extent , compensated through brokerage commissions for the value of research and other value added services we deliver to our clients . these “ soft dollar ” practices have been the subject of discussion among regulators , the investment banking community and our sales and trading clients . in particular , commission sharing arrangements have been adopted by some large institutional investors . in these arrangements , institutional investors concentrate their trading with fewer “ execution ” brokers and pay a fixed amount for execution with an additional amount set aside for payments to other firms for research or other brokerage services . accordingly , we may experience reduced ( or eliminated ) trading volume with such investors but may be compensated for our research and sales efforts through allocations of the designated amounts . depending on the extent to which we adopt this practice and depending on our ability to reach arrangements on terms acceptable to us , this trend would likely impair the revenues and profitability of our commission business by negatively affecting both volumes and trading commissions in our commission business . asset management fees asset management fees for hedge funds , hedge funds of funds , private equity funds , hcc llc ( through may 2 , 2013 ) , and hcc include base management fees and incentive fees earned from managing our family of investment partnerships and a publicly-traded specialty finance company . earned base management fees are generally based on the fair value of assets under management or aggregate capital commitments and the fee schedule for each fund and account . we also earn incentive fees based upon the performance of investment funds and accounts . for most of the funds , such fees are based on a percentage of the excess of an investment return over a specified high-water mark or hurdle rate over a defined performance period . for private equity funds , incentive fees are based on a specified percentage of realized gains from the disposition of each portfolio investment in which each investor participates , and we earn after returning contributions by the investors for that portfolio investment and for all other portfolio investments in which each such investor participates that have been disposed of at the time of distribution . generally , we do not earn management fees on assets calculated on an average assets under management ( “ aum ” ) basis . as of december 31 , 2013 , the contractual base management fees earned from each of these investment funds or company ranged between 1 % and 2 % of assets under management or were 2 % of aggregate committed capital . the contractual incentive fees were generally ( i ) 20 % , subject to high-water marks , for the hedge funds ; ( ii ) 5 % to 20 % , subject to high-water marks or a performance hurdle rate , for the hedge funds of funds ; ( iii ) 20 % , subject to high-water marks , for harvest growth capital llc ( “ hgc “ ) and hgc ii . our asset management revenues are subject to fluctuations due to a variety of factors that are unpredictable , including the overall condition of the economy and the securities markets as a whole and our core sectors . these conditions can have a material effect on the inflows and outflows of assets under management , and the performance of our asset management funds . for example , a significant portion of the performance-based or incentive revenues that we recognize are based on the value of securities held in the funds we manage . the value of these securities includes unrealized gains or losses that may change from one period to another . as we consolidate hgc , hgc ii and hcc llc ( through may 2 , 2013 ) , the management and incentive fees earned at hcs from hgc , hgc ii , and hcc llc ( through may 2 , 2013 ) , are eliminated in consolidation . asset management fees for the clos we manage currently consist only of senior and subordinated base management fees . we recognize base management fees for the clos on a monthly basis over the period in which the collateral management services are performed . the base management fees for the clos are calculated as a percentage of the average aggregate collateral balances for a specified period . as we consolidate clo i , clo ii , and clo iii , the management fees earned at jmp credit advisors llc ( “ jmpca “ ) from the clos are eliminated on consolidation in accordance with accounting principles gaap . at december 31 , 2013 , the contractual senior and subordinated base management fees earned from the clos were 0.50 % of the average aggregate collateral balance for a specified period . 33 redemption provisions of our funds require at least 90 days ' advance notice , except for one fund that requires twelve months advance notice.the following tables present certain information with respect to the investment funds managed by hcs , hcap advisors , and clos managed by jmpca : replace_table_token_9_th ( 1 ) for hedge funds , private equity funds and funds of funds , assets under management represent the net assets of such funds . for new york mortgage trust ( “ nymt ” ) , assets under management represent certain assets for which hcs earns incentive fees . story_separator_special_tag the company and affiliates owned approximately 59 % of hcc llc at december 31 , 2012. the company consolidated hcc llc into its consolidated financial statements . in 2013 , the outstanding limited liability company units of hcc llc were converted into a number of shares of hcc common stock . on may 2 , 2013 , hcc priced its initial pubic offering , which reduced the company 's ownership of hcc to 11.6 % . at such date , the company no longer consolidated hcc . hcap advisors was formed on december 18 , 2012. hcap advisors appointed jmp group llc as its manager effective may 1 , 2013 , and began offering investment advisory services . the company owns 51 % equity interest in the entity . 39 historical results of operations the following table sets forth our historical results of operations for the years ended december 31 , 2013 , 2012 and 2011 and is not necessarily indicative of the results to be expected for any future period . replace_table_token_14_th 40 overview year ended december 31 , 2013 , compared to year ended december 31 , 2012 total net revenues after provision for loan losses increased $ 48.3 million , or 47.9 % , from $ 100.9 million for the year ended december 31 , 2012 to $ 149.2 million for the year ended december 31 , 2013 , resulting from an increase in total non-interest revenues of $ 38.4 million , and an increase in net interest income of $ 10.3 million , partially offset by an increase in provision for loan losses of $ 0.4 million . total non-interest revenues increased $ 38.4 million , or 34.8 % , primarily due to increases in investment banking revenues of $ 23.2 million , an increase of asset management fees of $ 10.2 million , an increase of principal transactions of $ 10.2 million , partially offset by a decrease in gain on sale , payoff and mark-to-market of loans of $ 5.5 million . net interest income increased $ 10.3 million , or 145.6 % , from net interest income expense of $ 7.1 million for the year ended december 31 , 2012 to net interest income of $ 3.2 million for the same period in 2013. this increase in net interest income is primarily attributed to an increase in net interest earned at jmp credit , partially offset by $ 3.6 million net interest expense related to the bond issued in january 2013. total non-interest expenses increased $ 40.3 million , or 44.1 % , from $ 91.4 million for the year ended december 31 , 2012 to $ 131.7 million for the year ended december 31 , 2013 , primarily due to an increase in compensation and benefits of $ 36.0 million . net income attributable to jmp group inc. increased $ 0.9 million , or 31.6 % , from $ 2.8 million for the year ended december 31 , 2012 to $ 3.6 million for the year ended december 31 , 2013 and includes income tax expense of $ 1.6 million and $ 4.0 million for the years ended december 31 , 2012 and 2013 , respectively . year ended december 31 , 2012 , compared to year ended december 31 , 2011 total net revenues after provision for loan losses decreased $ 10.7 million , or 9.5 % , from $ 111.6 million for the year ended december 31 , 2011 to $ 100.9 million for the year ended december 31 , 2012 , resulting from a decrease in total non-interest revenues of $ 5.5 million , and a decrease in net interest income of $ 4.7 million , and an increase in provision for loan losses of $ 0.5 million . total non-interest revenues decreased $ 5.5 million , or 4.7 % , primarily due to a decrease in gain on sale , payoff and mark-to-market of loans of $ 9.7 million , a decrease of asset management fees of $ 4.0 million , and a decrease of brokerage revenues of $ 3.6 million , partially offset by an increase in principal transaction revenues of $ 8.9 million and an increase in investment banking revenues of $ 4.9 million . net interest expense increased $ 4.7 million , or 196.7 % , from $ 2.4 million for the year ended december 31 , 2011 to $ 7.1 million for the same period in 2012. the increase was primarily due to an increase in net amortization of liquidity discounts at jmp credit of $ 7.7 million , from a $ 21.5 million loss for the year ended december 31 , 2011 to a $ 29.2 million loss for the year ended december 31 , 2012. total non-interest expenses decreased $ 24.4 million , or 21.1 % , from $ 115.8 million for the year ended december 31 , 2011 to $ 91.4 million for the year ended december 31 , 2012 , primarily due to a decrease in compensation and benefits of $ 22.6 million . net income attributable to jmp group inc. increased $ 5.2 million , or 212.3 % , from a $ 2.5 million loss for the year ended december 31 , 2011 to $ 2.8 million for the year ended december 31 , 2012 and includes an income tax benefit of $ 1.6 million and tax expense of $ 1.6 million for the years ended december 31 , 2011 and 2012 , respectively . adjusted operating net income ( non-gaap financial measure ) management uses adjusted operating net income as a key , non-gaap metric when evaluating the performance of jmp group 's core business strategy and ongoing operations , as management believes that this metric appropriately illustrates the operating results of jmp group 's core operations and business activities . adjusted operating net income is derived from our segment reported results and is the measure of segment profitability on an after-tax basis used by management to evaluate

