we believe that our revenue is consistent and predictable due to our investment strategy and nature of our fees . the significant majority of our revenue is derived from management fees , which include base management fees earned on all of our investment products as well as part i incentive fees earned from our permanent capital vehicles . our base management fees are generally calculated based upon fee earning assets and paid quarterly in cash . our part i incentive fees from our permanent capital vehicles are typically 15 % to 20 % of net investment income , subject to a hurdle rate , and are also paid quarterly in cash . we also earn performance fees from our long-dated private funds and smas . typically , these performance fees are 15 % or 20 % of the total return above a hurdle rate . these performance fees are accrued quarterly and paid after return of all invested capital and an amount sufficient to achieve the hurdle rate of return . we also receive incentive fees related to realized capital gains in our permanent capital vehicles that we refer to as part ii incentive fees . part ii incentive fees are payable annually and are calculated at the end of each applicable year by subtracting ( i ) the sum of cumulative realized capital losses and unrealized capital depreciation from ( ii ) cumulative aggregate realized capital gains . if the amount calculated is positive , then the part ii incentive fee for such year is equal to 20 % of such amount , less the aggregate amount of part ii incentive fees paid in all prior years . if such amount is negative , then no part ii incentive fee will be payable for such year . as our investment strategy is focused on generating yield from senior secured credit , historically we have not generated part ii incentive fees . 41 our primary expenses are compensation to our employees , performance fee compensation and general , administrative and other expenses . compensation includes salaries , discretionary bonuses , stock-based compensation expenses and benefits paid and payable to our employees . performance fee compensation is related to performance fees , generally consisting of incentive allocations in our long-dated private funds that we grant to certain of our professionals . general and administrative expenses include costs primarily related to professional services , office rent and equipment expenses , expense support agreement expenses related to sic , depreciation and amortization , travel and related expenses , information technology , communication and information services , placement fees and third-party marketing expenses and other general operating items . reorganization and initial public offering medley management inc. was incorporated on june 13 , 2014 and commenced operations on september 29 , 2014 upon the completion of its ipo of its class a common stock . we raised $ 100.4 million , net of underwriting discounts , through the issuance of 6,000,000 shares of class a common stock at a public offering price of $ 18.00 per share . the offering proceeds were used to purchase 6,000,000 newly issued llc units 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 so 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 ( 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 . 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 . the pre-ipo members also entered into an exchange agreement under which they ( or certain permitted transferees thereof ) have the right , subject to the terms of the 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 . our structure medley management inc. is a holding company and its sole asset is a controlling equity interest in medley llc . medley management inc. operates and controls all of the business and affairs and consolidates the financial results of medley llc and its subsidiaries . we and our pre-ipo owners have also entered into an exchange agreement under which they ( or certain permitted transferees ) have the right ( subject to the terms of the exchange agreement ) , to exchange their llc units for shares of our class a common stock on a one-for-one basis , subject to customary conversion rate adjustments for stock splits , stock dividends and reclassifications . story_separator_special_tag no fee is earned until mcc 's net investment income exceeds the 2.0 % hurdle rate . there is a catch-up provision that allocates to us all investment income above the hurdle rate but below a 2.5 % return on the prior quarter nav . thereafter , we receive 20.0 % of mcc 's net investment income above a 2.5 % return on the prior quarter nav . we believe mcc part i incentive fees are predictable and are recurring in nature . mcc part i incentive fees are not subject to repayment ( or clawback ) , and are paid quarterly in cash . on december 3 , 2015 , mcc advisors llc , one of our subsidiaries and the investment manager for mcc , recommended and , in consultation with mcc 's board of directors , agreed to reduce its fees under its investment management agreement with mcc . beginning january 1 , 2016 , mcc advisors llc 's base management fee will be calculated at an annual rate of 1.75 % on mcc 's gross assets up to $ 1.0 billion and a reduced 1.50 % from 1.75 % on mcc 's gross assets above $ 1.0 billion . in addition , mcc advisors llc will reduce its incentive fee from 20 % on pre-incentive fee net investment income over an 8 % hurdle , to 17.5 % on pre-incentive fee net investment income over a 6 % hurdle with a catch-up . moreover , the revised incentive fee will include a netting mechanism and will be subject to a rolling three-year look back from january 1 , 2016 forward . for details of the new mcc fee structure , please see “ business — fee structure . ” under no circumstances will the new fee structure result in higher fees to mcc advisors llc than fees under its current investment management agreement with mcc . other than the foregoing , no other fee reductions have been made under the company 's management agreements . sic part i incentive fees are equal to 20.0 % of its net investment income ( before sic part i incentive fees and sic part ii incentive fees ) , subject to a fixed hurdle rate of 1.75 % per quarter , calculated on the prior quarter nav . no fee is earned until sic 's net investment income exceeds the 1.75 % hurdle rate . there is a catch-up provision that allocates to us all investment income above the hurdle rate but below a 2.1875 % return on the prior quarter nav . thereafter , we receive 20.0 % of sic 's net investment income above a 2.1875 % return on the prior quarter net assets value . we believe sic part i incentive fees are predictable and are recurring in nature . sic part i incentive fees are not subject to repayment ( or clawback ) and are paid quarterly in cash . 46 performance fees . our long-dated private funds and smas have industry standard carried interest performance fee structures and are typically 15 % to 20 % of the total return over a 6.0 % to 8.0 % annualized preferred return . we record these fees on an accrual basis , to the extent such amounts are contractually due but not paid , and we present this revenue as a separate line item on our consolidated statements of operations . these fees are subject to clawbacks , and netted against unrealized and realized losses . the timing and amount of performance fees generated by our funds is uncertain . if we were to have a realization event in a particular quarter or year , it may have a significant impact on our results for that particular quarter or year that may not be replicated in subsequent periods . refer to “ risk factors – risks related to our business and industry ” included in this form 10-k. generally , if at the termination of a fund ( and sometimes at interim points in the life of a fund ) , the fund has not achieved investment returns that ( in most cases ) exceed the preferred return threshold or ( in all cases ) the general partner receives net profits over the life of the fund in excess of its allocable share under the applicable partnership agreement , we will be obligated to repay an amount equal to the extent to which carried interest that was previously distributed to us exceeds the amounts to which we are ultimately entitled . medley had not received any distributions of performance fees through december 31 , 2015 , other than tax distributions , a portion of which is subject to clawback . as of december 31 , 2015 , we accrued $ 7.1 million for clawback obligations that would need to be paid if the funds were liquidated at fair value as of the end of the reporting period . the company 's actual obligation , however , would not become payable or realized until the end of a fund 's life . for any given period , performance fee revenue on our consolidated statements of operations may include reversals of previously recognized performance fees due to a decrease in the value of a particular fund that results in a decrease of cumulative performance fees earned to date . since fund return hurdles are cumulative , previously recognized fees also may be reversed in a period of appreciation that is lower than the particular fund 's hurdle rate . for the years ended december 31 , 2015 and 2014 , the company reversed $ 24.0 million and $ 2.3 million , respectively , of previously recognized performance fees . the company did not reverse any previously recognized performance fees during the year ended december 31 , 2013. cumulative performance fees recognized through december 31 , 2015 were $ 4.6 million . · part ii incentive fees . for our permanent capital

debt instruments senior secured credit facilities on august 14 , 2014 , we entered into a $ 110.0 million senior secured term loan credit facility ( the “ 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. as of such date , the aggregate principal amount of indebtedness outstanding under the term loan facility was $ 110.0 million . we used the proceeds of the borrowings under the term loan facility , together with cash on hand , to repay all of the approximately $ 33.2 million of indebtedness outstanding under our senior secured term loan and revolving credit facility with another financial institution , to pay related fees and expenses of approximately $ 2.6 million and to fund a $ 74.5 million distribution to medley llc 's members . on august 19 , 2014 , we entered into a $ 15.0 million senior secured revolving credit facility with city national bank ( the “ revolving credit facility ” and , together with the term loan facility , the “ senior secured credit facilities ” ) , as administrative agent and collateral agent thereunder , and the lenders from time to time party thereto , which will mature on august 19 , 2017 , with a one-year extension at the option of the borrower , provided certain conditions are met . we intend to use any proceeds of borrowings under the revolving credit facility for general corporate purposes , including funding our working capital needs . we have not incurred any borrowings under the revolving credit facility through the date of this filing . we refer to the entry into the senior secured credit facilities , the incurrence of $ 110.0 million of indebtedness under the term loan facility , the repayment of the $ 33.2 million of outstanding indebtedness , the payment of $ 2.6 million of related fees and expenses and the $ 74.5 million distribution to medley llc 's members , collectively , as the “ refinancing transactions.


 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.
     ```debt instruments senior secured credit facilities on august 14 , 2014 , we entered into a $ 110.0 million senior secured term loan credit facility ( the “ 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. as of such date , the aggregate principal amount of indebtedness outstanding under the term loan facility was $ 110.0 million . we used the proceeds of the borrowings under the term loan facility , together with cash on hand , to repay all of the approximately $ 33.2 million of indebtedness outstanding under our senior secured term loan and revolving credit facility with another financial institution , to pay related fees and expenses of approximately $ 2.6 million and to fund a $ 74.5 million distribution to medley llc 's members . on august 19 , 2014 , we entered into a $ 15.0 million senior secured revolving credit facility with city national bank ( the “ revolving credit facility ” and , together with the term loan facility , the “ senior secured credit facilities ” ) , as administrative agent and collateral agent thereunder , and the lenders from time to time party thereto , which will mature on august 19 , 2017 , with a one-year extension at the option of the borrower , provided certain conditions are met . we intend to use any proceeds of borrowings under the revolving credit facility for general corporate purposes , including funding our working capital needs . we have not incurred any borrowings under the revolving credit facility through the date of this filing . we refer to the entry into the senior secured credit facilities , the incurrence of $ 110.0 million of indebtedness under the term loan facility , the repayment of the $ 33.2 million of outstanding indebtedness , the payment of $ 2.6 million of related fees and expenses and the $ 74.5 million distribution to medley llc 's members , collectively , as the “ refinancing transactions.
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 Suspicious Activity Report : we believe that our revenue is consistent and predictable due to our investment strategy and nature of our fees . the significant majority of our revenue is derived from management fees , which include base management fees earned on all of our investment products as well as part i incentive fees earned from our permanent capital vehicles . our base management fees are generally calculated based upon fee earning assets and paid quarterly in cash . our part i incentive fees from our permanent capital vehicles are typically 15 % to 20 % of net investment income , subject to a hurdle rate , and are also paid quarterly in cash . we also earn performance fees from our long-dated private funds and smas . typically , these performance fees are 15 % or 20 % of the total return above a hurdle rate . these performance fees are accrued quarterly and paid after return of all invested capital and an amount sufficient to achieve the hurdle rate of return . we also receive incentive fees related to realized capital gains in our permanent capital vehicles that we refer to as part ii incentive fees . part ii incentive fees are payable annually and are calculated at the end of each applicable year by subtracting ( i ) the sum of cumulative realized capital losses and unrealized capital depreciation from ( ii ) cumulative aggregate realized capital gains . if the amount calculated is positive , then the part ii incentive fee for such year is equal to 20 % of such amount , less the aggregate amount of part ii incentive fees paid in all prior years . if such amount is negative , then no part ii incentive fee will be payable for such year . as our investment strategy is focused on generating yield from senior secured credit , historically we have not generated part ii incentive fees . 41 our primary expenses are compensation to our employees , performance fee compensation and general , administrative and other expenses . compensation includes salaries , discretionary bonuses , stock-based compensation expenses and benefits paid and payable to our employees . performance fee compensation is related to performance fees , generally consisting of incentive allocations in our long-dated private funds that we grant to certain of our professionals . general and administrative expenses include costs primarily related to professional services , office rent and equipment expenses , expense support agreement expenses related to sic , depreciation and amortization , travel and related expenses , information technology , communication and information services , placement fees and third-party marketing expenses and other general operating items . reorganization and initial public offering medley management inc. was incorporated on june 13 , 2014 and commenced operations on september 29 , 2014 upon the completion of its ipo of its class a common stock . we raised $ 100.4 million , net of underwriting discounts , through the issuance of 6,000,000 shares of class a common stock at a public offering price of $ 18.00 per share . the offering proceeds were used to purchase 6,000,000 newly issued llc units 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 so 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 ( 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 . 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 . the pre-ipo members also entered into an exchange agreement under which they ( or certain permitted transferees thereof ) have the right , subject to the terms of the 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 . our structure medley management inc. is a holding company and its sole asset is a controlling equity interest in medley llc . medley management inc. operates and controls all of the business and affairs and consolidates the financial results of medley llc and its subsidiaries . we and our pre-ipo owners have also entered into an exchange agreement under which they ( or certain permitted transferees ) have the right ( subject to the terms of the exchange agreement ) , to exchange their llc units for shares of our class a common stock on a one-for-one basis , subject to customary conversion rate adjustments for stock splits , stock dividends and reclassifications . story_separator_special_tag no fee is earned until mcc 's net investment income exceeds the 2.0 % hurdle rate . there is a catch-up provision that allocates to us all investment income above the hurdle rate but below a 2.5 % return on the prior quarter nav . thereafter , we receive 20.0 % of mcc 's net investment income above a 2.5 % return on the prior quarter nav . we believe mcc part i incentive fees are predictable and are recurring in nature . mcc part i incentive fees are not subject to repayment ( or clawback ) , and are paid quarterly in cash . on december 3 , 2015 , mcc advisors llc , one of our subsidiaries and the investment manager for mcc , recommended and , in consultation with mcc 's board of directors , agreed to reduce its fees under its investment management agreement with mcc . beginning january 1 , 2016 , mcc advisors llc 's base management fee will be calculated at an annual rate of 1.75 % on mcc 's gross assets up to $ 1.0 billion and a reduced 1.50 % from 1.75 % on mcc 's gross assets above $ 1.0 billion . in addition , mcc advisors llc will reduce its incentive fee from 20 % on pre-incentive fee net investment income over an 8 % hurdle , to 17.5 % on pre-incentive fee net investment income over a 6 % hurdle with a catch-up . moreover , the revised incentive fee will include a netting mechanism and will be subject to a rolling three-year look back from january 1 , 2016 forward . for details of the new mcc fee structure , please see “ business — fee structure . ” under no circumstances will the new fee structure result in higher fees to mcc advisors llc than fees under its current investment management agreement with mcc . other than the foregoing , no other fee reductions have been made under the company 's management agreements . sic part i incentive fees are equal to 20.0 % of its net investment income ( before sic part i incentive fees and sic part ii incentive fees ) , subject to a fixed hurdle rate of 1.75 % per quarter , calculated on the prior quarter nav . no fee is earned until sic 's net investment income exceeds the 1.75 % hurdle rate . there is a catch-up provision that allocates to us all investment income above the hurdle rate but below a 2.1875 % return on the prior quarter nav . thereafter , we receive 20.0 % of sic 's net investment income above a 2.1875 % return on the prior quarter net assets value . we believe sic part i incentive fees are predictable and are recurring in nature . sic part i incentive fees are not subject to repayment ( or clawback ) and are paid quarterly in cash . 46 performance fees . our long-dated private funds and smas have industry standard carried interest performance fee structures and are typically 15 % to 20 % of the total return over a 6.0 % to 8.0 % annualized preferred return . we record these fees on an accrual basis , to the extent such amounts are contractually due but not paid , and we present this revenue as a separate line item on our consolidated statements of operations . these fees are subject to clawbacks , and netted against unrealized and realized losses . the timing and amount of performance fees generated by our funds is uncertain . if we were to have a realization event in a particular quarter or year , it may have a significant impact on our results for that particular quarter or year that may not be replicated in subsequent periods . refer to “ risk factors – risks related to our business and industry ” included in this form 10-k. generally , if at the termination of a fund ( and sometimes at interim points in the life of a fund ) , the fund has not achieved investment returns that ( in most cases ) exceed the preferred return threshold or ( in all cases ) the general partner receives net profits over the life of the fund in excess of its allocable share under the applicable partnership agreement , we will be obligated to repay an amount equal to the extent to which carried interest that was previously distributed to us exceeds the amounts to which we are ultimately entitled . medley had not received any distributions of performance fees through december 31 , 2015 , other than tax distributions , a portion of which is subject to clawback . as of december 31 , 2015 , we accrued $ 7.1 million for clawback obligations that would need to be paid if the funds were liquidated at fair value as of the end of the reporting period . the company 's actual obligation , however , would not become payable or realized until the end of a fund 's life . for any given period , performance fee revenue on our consolidated statements of operations may include reversals of previously recognized performance fees due to a decrease in the value of a particular fund that results in a decrease of cumulative performance fees earned to date . since fund return hurdles are cumulative , previously recognized fees also may be reversed in a period of appreciation that is lower than the particular fund 's hurdle rate . for the years ended december 31 , 2015 and 2014 , the company reversed $ 24.0 million and $ 2.3 million , respectively , of previously recognized performance fees . the company did not reverse any previously recognized performance fees during the year ended december 31 , 2013. cumulative performance fees recognized through december 31 , 2015 were $ 4.6 million . · part ii incentive fees . for our permanent capital

