” direct origination , careful structuring and active monitoring of the loan portfolios we manage are important success factors in our business , which can be adversely affected by difficult market and political conditions , such as the turmoil in the global capital markets from 2007 to 2009. since our inception in 2006 , we have adhered to a disciplined investment process that employs these principles with the goal of delivering strong risk-adjusted investment returns while protecting investor capital . we believe that our ability to directly originate , structure and lead deals enables us to consistently lend at higher yields with better terms . in addition , the loans we manage generally have a contractual maturity of between three and seven years and are typically floating rate , which we believe positions our business well for rising interest rates . our senior management team has , on average , over 20 years of experience in credit , including originating , underwriting , principal investing and loan structuring . we have made significant investments in our corporate infrastructure and have over 85 employees , including over 45 investment , origination and credit management professionals , and over 40 operations , accounting , legal , compliance and marketing professionals , each with extensive experience in their respective disciplines . 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 and from certain of our long-dated private funds . our base management fees are generally calculated based upon fee earning assets and paid quarterly in cash . our part i incentive fees are typically calculated based upon net investment income , subject to a hurdle rate , and are also paid quarterly in cash . we also generally earn performance fees from our long-dated private funds and smas . typically , these performance fees are 15.0 % to 20.0 % 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 . 44 we also receive incentive fees related to realized capital gains in our permanent capital vehicles and certain of our long-dated private funds 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 . for the years ended december 31 , 2016 , 2015 and 2014 , 89 % , 89 % and 88 % , respectively , of our revenues were generated from management fees and performance fees derived primarily from net interest income on senior secured loans . 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 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 related 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 . story_separator_special_tag 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 year ended december 31 , 2016 , we did not reverse previously recognized performance fees . for the year ended december 31 , 2015 , we reversed $ 24.0 million of previously recognized performance fees . for the year ended december 31 , 2014 , we reversed $ 4.4 million and $ 2.3 million of previously recognized performance fees on a standalone and consolidated basis , respectively . as of december 31 , 2016 , we recognized cumulative performance fees of $ 7.1 million . 49 part ii incentive fees . for our permanent capital vehicles and certain of our long-dated private funds , part ii incentive fees generally represent 20.0 % of each fund 's cumulative realized capital gains ( net of realized capital losses and unrealized capital depreciation ) . we have not received these fees historically , and do not expect such fees to be material in the future given our focus on senior secured lending . other revenues and fees . we provide administrative services to certain of our vehicles that are reported as other revenues and fees . such fees are recognized as revenue in the period that administrative services are rendered . these fees are generally based on expense reimbursements for the portion of overhead and other expenses incurred by certain professionals directly attributable to each respective fund . these fees are reported within total revenues in our audited consolidated financial statements included in this form 10-k. in certain cases , the entities that receive management and incentive fees from our funds are owned by medley llc together with other persons . see “ critical accounting policies ” and note 2 , “ summary of significant accounting policies , ” to our audited consolidated financial statements included in this form 10-k for additional information regarding the manner in which management fees , performance fees and other fees are generated . expenses compensation and benefits . compensation and benefits generally includes salaries , discretionary bonuses and benefits paid and payable to our employees . compensation also includes stock-based compensation associated with the grants of equity-based awards to our employees . compensation expense relating to restricted stock units that are expected to vest are measured at fair value as of the grant date , and are expensed over the vesting period on a straight-line basis . bonuses are accrued over the service period to which they relate . guaranteed payments made to our senior professionals who are members of medley llc are recognized as compensation expense . the guaranteed payments to our co-chief executive officers are performance based and periodically set subject to maximums based on our total assets under management . such maximums aggregated to $ 5.0 million , $ 3.0 million and $ 3.0 million for the years ended december 31 , 2016 , 2015 and 2014. commencing with the fourth quarter of 2014 and for the years ended december 31 , 2016 and 2015 , neither of our co-chief executive officers received any guaranteed payments . performance fee compensation . performance fee compensation includes compensation related to performance fees , which generally consists of profit interests that we grant to our employees . depending on the nature of each fund , the performance fee participation is generally structured as a fixed percentage or as an annual award . the liability is recorded subject to the vesting of the profit interests granted and is calculated based upon the net present value of the projected performance fees . payments to profit interest holders are payable when the performance fees are paid to medley llc by the respective fund . it is possible that we may record performance fee compensation during a period in which we do not record any performance fee revenue or we have a reversal of previously recognized performance fee revenue . we have an obligation to pay our employees a portion of the performance fees earned from certain funds . consolidated funds expenses . consolidated funds expenses consist primarily of costs incurred by our consolidated funds during the year ended december 31 , 2014 , including professional fees , research expenses , trustee fees and other costs associated with administering these funds . these expenses are generally attributable to the related funds ' limited partners and are allocated to non-controlling interests . as such , these expenses have no material impact on the net income attributable to medley and its consolidated subsidiaries . general , administrative and other expenses . general and administrative expenses include costs primarily related to professional services , office rent , depreciation and amortization , general insurance , recruiting , travel and related expenses , information technology , communication and information services , placement fees , sic expenses under an investment advisory and expense support and reimbursement agreements and other general operating items . other income ( expense ) dividend income . dividend income consists of dividends associated with our equity method investment in sic and our available-for-sale securities . dividends are recognized on an accrual basis to the extent that such amounts are declared and expected to be collected . interest expense . interest expense consists primarily of interest expense relating to debt incurred by us . 50 other income ( expenses ) , net . other income ( expenses ) , net consists primarily of expenses associated with our revenue share payable , equity income ( loss ) and unrealized gains ( losses ) associated with our equity method investments . interest and other income of consolidated funds

cash flows the significant captions and amounts from our consolidated financial statements , which for the year ended december 31 , 2014 , include the effects of our consolidated funds in accordance with u.s. gaap , are summarized below . negative amounts represent a net outflow , or use of cash . replace_table_token_17_th operating activities our net cash flow provided by ( used in ) operating activities was $ 14.4 million , $ 24.1 million and $ ( 196.4 ) million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . for the years ended december 31 , 2016 , 2015 and 2014 , net cash flow provided by operating activities was due to net income of $ 10.0 million , $ 20.6 million and $ 69.4 million , respectively , non-cash adjustments of $ 6.7 million , $ 17.4 million and $ 2.4 million , respectively , and changes in operating assets and liabilities of $ ( 2.3 ) million , $ ( 14.0 ) million and $ 5.9 million , respectively . for the year ended december 31 , 2014 , net cash flow used in operating activities also includes net purchases of investments by our consolidated funds , of $ 293.7 million and change in cash and cash equivalents of the consolidated funds of $ 22.2 million .


 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.
     ```cash flows the significant captions and amounts from our consolidated financial statements , which for the year ended december 31 , 2014 , include the effects of our consolidated funds in accordance with u.s. gaap , are summarized below . negative amounts represent a net outflow , or use of cash . replace_table_token_17_th operating activities our net cash flow provided by ( used in ) operating activities was $ 14.4 million , $ 24.1 million and $ ( 196.4 ) million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . for the years ended december 31 , 2016 , 2015 and 2014 , net cash flow provided by operating activities was due to net income of $ 10.0 million , $ 20.6 million and $ 69.4 million , respectively , non-cash adjustments of $ 6.7 million , $ 17.4 million and $ 2.4 million , respectively , and changes in operating assets and liabilities of $ ( 2.3 ) million , $ ( 14.0 ) million and $ 5.9 million , respectively . for the year ended december 31 , 2014 , net cash flow used in operating activities also includes net purchases of investments by our consolidated funds , of $ 293.7 million and change in cash and cash equivalents of the consolidated funds of $ 22.2 million .
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 Suspicious Activity Report : ” direct origination , careful structuring and active monitoring of the loan portfolios we manage are important success factors in our business , which can be adversely affected by difficult market and political conditions , such as the turmoil in the global capital markets from 2007 to 2009. since our inception in 2006 , we have adhered to a disciplined investment process that employs these principles with the goal of delivering strong risk-adjusted investment returns while protecting investor capital . we believe that our ability to directly originate , structure and lead deals enables us to consistently lend at higher yields with better terms . in addition , the loans we manage generally have a contractual maturity of between three and seven years and are typically floating rate , which we believe positions our business well for rising interest rates . our senior management team has , on average , over 20 years of experience in credit , including originating , underwriting , principal investing and loan structuring . we have made significant investments in our corporate infrastructure and have over 85 employees , including over 45 investment , origination and credit management professionals , and over 40 operations , accounting , legal , compliance and marketing professionals , each with extensive experience in their respective disciplines . 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 and from certain of our long-dated private funds . our base management fees are generally calculated based upon fee earning assets and paid quarterly in cash . our part i incentive fees are typically calculated based upon net investment income , subject to a hurdle rate , and are also paid quarterly in cash . we also generally earn performance fees from our long-dated private funds and smas . typically , these performance fees are 15.0 % to 20.0 % 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 . 44 we also receive incentive fees related to realized capital gains in our permanent capital vehicles and certain of our long-dated private funds 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 . for the years ended december 31 , 2016 , 2015 and 2014 , 89 % , 89 % and 88 % , respectively , of our revenues were generated from management fees and performance fees derived primarily from net interest income on senior secured loans . 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 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 related 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 . story_separator_special_tag 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 year ended december 31 , 2016 , we did not reverse previously recognized performance fees . for the year ended december 31 , 2015 , we reversed $ 24.0 million of previously recognized performance fees . for the year ended december 31 , 2014 , we reversed $ 4.4 million and $ 2.3 million of previously recognized performance fees on a standalone and consolidated basis , respectively . as of december 31 , 2016 , we recognized cumulative performance fees of $ 7.1 million . 49 part ii incentive fees . for our permanent capital vehicles and certain of our long-dated private funds , part ii incentive fees generally represent 20.0 % of each fund 's cumulative realized capital gains ( net of realized capital losses and unrealized capital depreciation ) . we have not received these fees historically , and do not expect such fees to be material in the future given our focus on senior secured lending . other revenues and fees . we provide administrative services to certain of our vehicles that are reported as other revenues and fees . such fees are recognized as revenue in the period that administrative services are rendered . these fees are generally based on expense reimbursements for the portion of overhead and other expenses incurred by certain professionals directly attributable to each respective fund . these fees are reported within total revenues in our audited consolidated financial statements included in this form 10-k. in certain cases , the entities that receive management and incentive fees from our funds are owned by medley llc together with other persons . see “ critical accounting policies ” and note 2 , “ summary of significant accounting policies , ” to our audited consolidated financial statements included in this form 10-k for additional information regarding the manner in which management fees , performance fees and other fees are generated . expenses compensation and benefits . compensation and benefits generally includes salaries , discretionary bonuses and benefits paid and payable to our employees . compensation also includes stock-based compensation associated with the grants of equity-based awards to our employees . compensation expense relating to restricted stock units that are expected to vest are measured at fair value as of the grant date , and are expensed over the vesting period on a straight-line basis . bonuses are accrued over the service period to which they relate . guaranteed payments made to our senior professionals who are members of medley llc are recognized as compensation expense . the guaranteed payments to our co-chief executive officers are performance based and periodically set subject to maximums based on our total assets under management . such maximums aggregated to $ 5.0 million , $ 3.0 million and $ 3.0 million for the years ended december 31 , 2016 , 2015 and 2014. commencing with the fourth quarter of 2014 and for the years ended december 31 , 2016 and 2015 , neither of our co-chief executive officers received any guaranteed payments . performance fee compensation . performance fee compensation includes compensation related to performance fees , which generally consists of profit interests that we grant to our employees . depending on the nature of each fund , the performance fee participation is generally structured as a fixed percentage or as an annual award . the liability is recorded subject to the vesting of the profit interests granted and is calculated based upon the net present value of the projected performance fees . payments to profit interest holders are payable when the performance fees are paid to medley llc by the respective fund . it is possible that we may record performance fee compensation during a period in which we do not record any performance fee revenue or we have a reversal of previously recognized performance fee revenue . we have an obligation to pay our employees a portion of the performance fees earned from certain funds . consolidated funds expenses . consolidated funds expenses consist primarily of costs incurred by our consolidated funds during the year ended december 31 , 2014 , including professional fees , research expenses , trustee fees and other costs associated with administering these funds . these expenses are generally attributable to the related funds ' limited partners and are allocated to non-controlling interests . as such , these expenses have no material impact on the net income attributable to medley and its consolidated subsidiaries . general , administrative and other expenses . general and administrative expenses include costs primarily related to professional services , office rent , depreciation and amortization , general insurance , recruiting , travel and related expenses , information technology , communication and information services , placement fees , sic expenses under an investment advisory and expense support and reimbursement agreements and other general operating items . other income ( expense ) dividend income . dividend income consists of dividends associated with our equity method investment in sic and our available-for-sale securities . dividends are recognized on an accrual basis to the extent that such amounts are declared and expected to be collected . interest expense . interest expense consists primarily of interest expense relating to debt incurred by us . 50 other income ( expenses ) , net . other income ( expenses ) , net consists primarily of expenses associated with our revenue share payable , equity income ( loss ) and unrealized gains ( losses ) associated with our equity method investments . interest and other income of consolidated funds

