Fair Value Measurement

12 Months Ended

Dec. 31, 2023

4. Fair Value Measurement

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the

fair value hierarchy levels disclosed in Note 2 as of December 31, 2023:


	Level I	Level II	Level III	Total
Assets	(Dollars in millions)
Investments of Consolidated Funds(1):
Equity securities(2)	$—	$—	$377.6	$377.6
Bonds	—	—	522.5	522.5
Loans	—	—	5,862.1	5,862.1
	—	—	6,762.2	6,762.2
Investments in CLOs and other:
Investments in CLOs	—	—	532.6	532.6
Other investments(3)	38.7	42.8	84.6	166.1
	38.7	42.8	617.2	698.7
Subtotal	$38.7	$42.8	$7,379.4	$7,460.9
Investments measured at net asset value				502.0
Total				$7,962.9
Liabilities
Loans payable of Consolidated Funds(4)(5)	$—	$—	$6,298.6	$6,298.6
Total	$—	$—	$6,298.6	$6,298.6

(1)This balance excludes $490.9 million related to investments of Consolidated Funds that are included in investments measured at net

asset value.

(2)This balance includes $322.0 million related to investments that have been bridged by the Company to investment funds and are

accounted for as consolidated VIEs as of December 31, 2023.

(3)The Level III balance excludes $50.4 million related to three corporate investments in equity securities which the Company has

elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to

ASC 321, Investments – Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is

excluded from the tabular Level III rollforward disclosures.

(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that

represent compensation for services.

(5)Loans payable of Consolidated Funds balance excludes a $177.9 million revolving credit balance and $10.0 million of senior and

subordinated notes, which are not measured at fair value.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the

above fair value hierarchy levels as of December 31, 2022:


(Dollars in millions)	Level I	Level II	Level III	Total
Assets	(Dollars in millions)
Investments of Consolidated Funds(1):
Equity securities(2)	$—	$—	$430.6	$430.6
Bonds	—	—	594.9	594.9
Loans	—	—	5,352.9	5,352.9
	—	—	6,378.4	6,378.4
Investments in CLOs and other:
Investments in CLOs	—	—	526.1	526.1
Other investments(3)	1.6	41.6	79.4	122.6
	1.6	41.6	605.5	648.7
Corporate treasury investments
Commercial paper and other	—	20.0	—	20.0
	—	20.0	—	20.0
Foreign currency forward contracts	—	2.2	—	2.2
Subtotal	$1.6	$63.8	$6,983.9	$7,049.3
Investments measured at net asset value				528.5
Total				$7,577.8
Liabilities
Loans payable of Consolidated Funds(4)	$—	$—	$5,491.6	$5,491.6
Foreign currency forward contracts	—	3.2	—	3.2
Total	$—	$3.2	$5,491.6	$5,494.8

(1)This balance includes $377.4 million related to investments that have been bridged by the Company to investment funds and are

accounted for as consolidated VIEs as of December 31, 2022.

(2)The Level III balance excludes a $58.2 million related to two corporate investments in equity securities which the Company has

elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to

ASC 321, Investments – Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is

excluded from the tabular Level III rollforward disclosures.

(3)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests

that represent compensation for services.

(4) Loans payable of Consolidated Funds balance excludes a $235.6 million of senior notes measured at amortized cost and a

$178.0 million revolving credit balance, which is not measured at fair value.

The changes in financial instruments measured at fair value for which the Company has used Level III inputs to

determine fair value are as follows (Dollars in millions):


	Financial Assets Year Ended December 31, 2023
	Investments of Consolidated Funds			Investments in CLOs		Total
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$430.6	$594.9	$5,352.9	$526.1	$79.4	$6,983.9
Deconsolidation of funds(1)	(20.0)	—	(429.5)	—	—	(449.5)
Purchases	85.8	168.9	2,549.5	2.0	—	2,806.2
Sales and distributions	(104.5)	(269.0)	(1,151.2)	(58.0)	(3.5)	(1,586.2)
Settlements	—	(8.2)	(740.4)	—	—	(748.6)
Realized and unrealized gains (losses), net
Included in earnings	(14.4)	21.0	182.7	43.4	8.7	241.4
Included in other comprehensive income	0.1	14.9	98.1	19.1	—	132.2
Balance, end of period	$377.6	$522.5	$5,862.1	$532.6	$84.6	$7,379.4
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(15.7)	$13.8	$131.5	$43.3	$5.2	$178.1
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$0.1	$12.4	$93.4	$19.1	$—	$125.0


	Financial Assets Year Ended December 31, 2022
	Investments of Consolidated Funds			Investments in CLOs		Total
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$17.9	$599.5	$5,898.1	$361.1	$78.7	$6,955.3
Deconsolidation of funds(2)	(47.7)	—	—	—	—	(47.7)
Purchases	486.5	515.4	2,485.0	263.4	0.9	3,751.2
Sales and distributions	(14.5)	(419.6)	(1,738.7)	(41.9)	(4.7)	(2,219.4)
Settlements	—	(1.6)	(649.8)	—	—	(651.4)
Realized and unrealized gains (losses), net
Included in earnings	(10.9)	(60.5)	(392.7)	(25.6)	4.5	(485.2)
Included in other comprehensive income	(0.7)	(38.3)	(249.0)	(30.9)	—	(318.9)
Balance, end of period	$430.6	$594.9	$5,352.9	$526.1	$79.4	$6,983.9
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(16.4)	$(56.9)	$(380.6)	$(25.6)	$1.0	$(478.5)
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$(0.6)	$(16.5)	$(162.5)	$(30.9)	$—	$(210.5)

(1) As a result of the deconsolidation of three funds during the year ended December 31, 2023.

(2) As a result of the deconsolidation of one fund during the year ended December 31, 2022.


	Financial Liabilities
	Loans Payable of Consolidated Funds
	Year Ended December 31,
	2023	2022
Balance, beginning of period	$5,491.6	$5,811.0
Borrowings	903.0	1,603.1
Paydowns	(159.6)	(421.0)
Sales	(290.8)	(892.4)
Realized and unrealized (gains) losses, net
Included in earnings	239.7	(366.6)
Included in other comprehensive income	114.7	(242.5)
Balance, end of period	$6,298.6	$5,491.6
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date	$250.1	$(364.2)
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date	$112.4	$(239.6)

Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and

other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds

and loans payable of the Consolidated Funds are included in net investment gains (losses) of Consolidated Funds in the

consolidated statements of operations.

Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in

accumulated other comprehensive loss and non-controlling interests in consolidated entities.

The following table summarizes quantitative information about the Company’s Level III inputs as of December 31,

2023:


	Fair Value at			Range (Weighted Average)
(Dollars in millions)	December 31, 2023	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Assets
Investments of Consolidated Funds:
Equity securities	$3.3	Consensus Pricing	Indicative Quotes ($ per share)	0.00 - 208.38 (0.11)
	322.1	Discounted Cash Flow	Discount Rates	10% - 11% (10%)
			Terminal Growth Rate	0% - 7% (5%)
		Comparable Multiple	EBITDA Multiple	12.7x - 12.7x (12.7x)
			TCF Multiple	24.3x - 24.3x (24.3x)
	44.4	Discounted Cash Flow	Discount Rates	10% - 10% (10%)
			Terminal Growth Rate	7% - 7% (7%)
		Comparable Multiple	TCF Multiple	24.3x - 24.3x (24.3x)
	7.8	Other(1)	N/A	N/A

Bonds	522.5	Consensus Pricing	Indicative Quotes (% of Par)	30 - 105 (90)
Loans	5,829.3	Consensus Pricing	Indicative Quotes (% of Par)	0 - 102 (95)
	11.0	Discounted Cash Flow	Discount Rates	7% - 16% (15%)
	9.4	Discounted Cash Flow	Discount Rates	17% - 17% (17%)
			Constant Prepayment Rate	8% - 8% (8%)
			Constant Default Rate	1% - 1% (1%)
			Recovery Rate	0% - 0% (0%)
	12.4	Other(1)	N/A	N/A
	6,762.2
Investments in CLOs
Senior secured notes	472.2	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	72 - 101 (96)
			Discount Margins (Basis Points)	139 - 1,600 (319)
			Default Rates	2% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
Subordinated notes and preferred shares	59.4	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	6 - 90 (40)
			Discount Rate	11% - 40% (21%)
			Default Rates	1% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
	1.0	Other(1)	N/A	N/A
Other investments:
BDC preferred shares	81.7	Market Yield Analysis	Market Yields	11% - 11% (11%)
Aviation subordinated notes	2.9	Discounted Cash Flow	Discount Rates	21% - 21% (21%)
Total	$7,379.4
Liabilities
Loans payable of Consolidated Funds:
Senior secured notes	$6,090.1	Other(2)	N/A	N/A
Subordinated notes and preferred shares	190.0	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	16 - 103 (41)
			Discount Rates	14% - 30% (21%)
			Default Rates	2% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
	18.5	Other(1)	N/A	N/A
Total	$6,298.6

(1) Fair value approximates transaction price that was in close proximity to the reporting date.

(2) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that

represent compensation for services.

The following table summarizes quantitative information about the Company’s Level III inputs as of December 31,

2022:


	Fair Value at			Range (Weighted Average)
(Dollars in millions)	December 31, 2022	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Assets
Investments of Consolidated Funds:
Equity securities	$3.1	Consensus Pricing	Indicative Quotes ($ per share)	0.00 - 4.73 (0.18)
	363.5	Discounted Cash Flow	Discount Rates	10% - 10% (10%)
			Terminal Growth Rate	0% - 7% (5%)
		Comparable Multiple	EBITDA Multiple	12.7x - 12.7x (12.7x)
			TCF Multiple	23.8x - 23.8x (23.8x)
	64.0	Other(1)	N/A	N/A

Bonds	594.9	Consensus Pricing	Indicative Quotes (% of Par)	46 - 105 (88)
Loans	5,043.4	Consensus Pricing	Indicative Quotes (% of Par)	0 - 100 (91)
	11.8	Discounted Cash Flow	Discount Rates	0% - 9% (1%)
	248.7	Discounted Cash Flow	Discount Rates	7% - 10% (8%)
	37.4	Consensus Pricing	Indicative Quotes (% of Par)	97% - 98% (97%)
	11.1	Consensus Pricing	Indicative Quotes (% of Par)	91% - 91% (91%)
Other	0.5	Other(1)	N/A	N/A
	6,378.4
Investments in CLOs
Senior secured notes	462.1	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	67 - 100 (93)
			Discount Margins (Basis Points)	170 - 1,800 (386)
			Default Rates	2% - 3% (2%)
			Recovery Rates	50% - 70% (60%)

Subordinated notes and preferred shares	64.0	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	0 - 82 (40)
			Discount Rate	15% - 25% (20%)
			Default Rates	2% - 3% (2%)
			Recovery Rates	50% - 70% (60%)
Other investments:
BDC preferred shares	76.9	Market Yield Analysis	Market Yields	11% - 11% (11%)
Aviation subordinated notes	2.5	Discounted Cash Flow	Discount Rates	21% - 21% (21%)
Total	$6,983.9
Liabilities
Loans payable of Consolidated Funds:
Senior secured notes	$5,303.3	Other(2)	N/A	N/A
Subordinated notes and preferred shares	188.3	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	21 - 96 (38)
			Discount Rates	15% - 25% (20%)
			Default Rates	2% - 3% (3%)
			Recovery Rates	50% - 70% (60%)
Total	$5,491.6

(1)Fair value approximates transaction price that was in close proximity to the reporting date.

(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests

that represent compensation for services.

The significant unobservable inputs used in the fair value measurement of investments of the Company’s consolidated

funds are indicative quotes. Significant decreases in indicative quotes in isolation would result in a significantly lower fair value

measurement.

The significant unobservable inputs used in the fair value measurement of the Company’s investments in CLOs and

other investments include indicative quotes, discount margins, discount rates, default rates, and recovery rates. Significant

decreases in indicative quotes or recovery rates in isolation would result in a significantly lower fair value measurement.

Significant increases in discount margins, discount rates or default rates in isolation would result in a significantly lower fair

value measurement.

The significant unobservable inputs used in the fair value measurement of the Company’s loans payable of

Consolidated Funds are discount rates, default rates, recovery rates and indicative quotes. Significant increases in discount rates

or default rates in isolation would result in a significantly lower fair value measurement. Significant decreases in recovery rates

or indicative quotes in isolation would result in a significantly lower fair value measurement.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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