Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions (Notes)

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Related Party Transactions (Notes)
 9 Months Ended
Sep. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
The following summary provides disclosure of the material transactions with affiliates of the Company.
In accordance with its management agreement with PRCM Advisers, the Company incurred $12.6 million and $38.0 million as a management fee to PRCM Advisers for the three and nine months ended September 30, 2015, respectively, and $12.3 million and $36.6 million as a management fee to PRCM Advisers for the three and nine months ended September 30, 2014, respectively, which represents approximately 1.5% of stockholders’ equity on an annualized basis as defined by the Management Agreement. For purposes of calculating the management fee, stockholders’ equity is adjusted to exclude any common stock repurchases as well as any unrealized gains, losses or other items that do not affect realized net income (loss), among other adjustments, in accordance with the Management Agreement. In addition, the Company reimbursed PRCM Advisers for direct and allocated costs incurred by PRCM Advisers on behalf of the Company. These direct and allocated costs totaled approximately $5.9 million and $16.0 million for the three and nine months ended September 30, 2015, respectively, and $4.3 million and $11.5 million for the three and nine months ended September 30, 2014, respectively.
The Company has established an accounts payable function and direct relationships with the majority of its third-party vendors. The Company will continue to have certain costs allocated to it by PRCM Advisers for compensation, data services and proprietary technology, but most direct expenses with third-party vendors are paid directly by the Company.
The Company recognized $1.7 million and $7.4 million of compensation expense during the three and nine months ended September 30, 2015, respectively, related to restricted common stock. The Company recognized $2.0 million and $8.9 million of compensation expense during the three and nine months ended September 30, 2014, respectively, related to restricted common stock. See Note 20 - Equity Incentive Plan for additional information.