ASSET MANAGEMENT REVENUES
The following table presents the composition of asset management revenues:
| | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | | | 2025 | | 2024 | | 2023 |
| Management fees | | | | | $ | 262,805 | | | $ | 232,691 | | | $ | 29,465 | |
| Incentive income | | | | | 364,235 | | | 287,603 | | | 50,804 | |
| Other asset management revenue | | | | | — | | | — | | | 2,412 | |
| Total Asset Management Revenues | | | | | $ | 627,040 | | | $ | 520,294 | | | $ | 82,681 | |
The following table presents the composition of the Company’s income and fees receivable:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| | | |
| Management fees receivable | $ | 47,542 | | | $ | 25,337 | |
| Incentive income receivable | 290,170 | | | 183,335 | |
| | | |
| Total Income and Fees Receivable | $ | 337,712 | | | $ | 208,672 | |
The Company recognizes management fees over the period in which the performance obligation is satisfied, and such management fees are generally recognized at the end of each reporting period. The Company records incentive income when it is probable that a significant reversal of income will not occur. The majority of management fees and incentive income receivable at each balance sheet date is generally collected during the following quarter.
The following table presents the Company’s unearned income and fees:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| | | |
| Unearned management fees | $ | 310 | | | $ | 12 | |
| Unearned incentive income | 9,036 | | | 17,268 | |
| Total Unearned Income and Fees | $ | 9,346 | | | $ | 17,280 | |
A liability for unearned incentive income is generally recognized when the Company receives incentive income distributions from its funds, primarily its real estate funds, whereby the distributions received have not yet met the recognition threshold of it being probable that a significant reversal of cumulative revenue will not occur. A liability for unearned management fees is generally recognized when management fees are paid to the Company on a quarterly basis in advance, based on the amount of AUM at the beginning of the quarter.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.