4. INVESTMENTS

The Company’s investments are comprised of investments at fair value as a result of the election of the fair value option or in accordance with investment company accounting, equity-method investments (using the equity method or fair value option) and held-to-maturity investments.

Fair Value Investments, excluding Equity-method Investments Held at Fair Value


					Fair value as a
					percentage of total
	Fair value at				investments at
	June 30,		December 31,		June 30,		December 31,
	2016		2015		2016		2015
Private Investment Partnership Interests:
AREA Sponsor Holdings, LLC	$	32,435	$	37,275	7.2	%	8.7	%
ACE II Master Fund, L.P. (1)(2)		22,537		22,015	5.0	%	5.2	%
Ares Corporate Opportunities Fund III, L.P.		101,450		108,506	22.7	%	25.4	%
Ares Corporate Opportunities Fund IV, L.P. (2)		36,972		30,571	8.3	%	7.2	%
Resolution Life L.P.		39,646		40,703	8.9	%	9.5	%
Other private investment partnership interests (1)(3)		160,576		132,405	35.8	%	31.0	%
Total private investment partnership interests (cost: $309,434 and $297,026 at June 30, 2016 and December 31, 2015, respectively)		393,616		371,475	87.9	%	87.0	%
Collateralized Loan Obligations Interests:
Collateralized loan obligations(3)		54,155		55,752	12.1	%	13.0	%
Total collateralized loan obligations (cost: $57,827 and $53,669 at June 30, 2016 and December 31, 2015, respectively)		54,155		55,752	12.1	%	13.0	%
Common Stock:
Common stock(3)		87		81	0.0	%	0.0	%
Total common stock (cost: $120 and $116 at June 30, 2016 and December 31, 2015, respectively)		87		81	0.0	%	0.0	%
Total fair value investments (cost: $367,381 and $350,811 at June 30, 2016 and December 31, 2015, respectively)	$	447,858	$	427,308

(1)

Investment or portion of the investment is denominated in foreign currency; fair value is translated into U.S. dollars at each reporting date

(2)

Represents underlying security that is held through various legal entities

(3)

No single issuer or investment had a fair value that exceeded 5% of the Company's total investments.

Equity-Method Investments

The Company’s equity-method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company's equity-method investments, including those where the fair value option was elected, are summarized below:


	As of June 30, 2016		As of December 31, 2015
Equity-method investments	$	3,639	$	4,486
Equity-method investments at fair value		15,672		19,471
Total equity-method investments	$	19,311	$	23,957

The following table presents summarized financial information for an equity-method investment that the Company has determined to be significant based on the change in fair value:


		Three Months Ended				Six Months Ended
		Ended June 30,				Ended June 30,
		2016		2015		2016		2015

Revenue	$	755	$	(172)	$	1,511	$	941
Expenses		4,239		5,099		8,752		9,925
Net loss	$	(3,484)	$	(5,271)	$	(7,241)	$	(8,984)

Held-to-Maturity Investments

The Company classifies certain investments as held-to-maturity investments when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are reported as investments and are recorded at amortized cost. A summary of the cost and fair value of CLO notes classified as held-to-maturity investments is as follows:


	As of June 30, 2016		As of December 31, 2015
Amortized Cost	$	17,368	$	17,022
Unrealized loss, net		(562)		(334)
Fair value	$	16,806	$	16,688

Based on the Company’s ability and intent to hold the investments until maturity and the underlying credit performance, the Company has determined that the net unrealized losses are temporary impairments as of June 30, 2016 and December 31, 2015.

There were no sales of held-to-maturity investments during the six months ended June 30, 2016 and 2015. All contractual maturities are greater than 10 years as of June 30, 2016. Actual maturities may differ from contractual maturities because underlying collateral may have the right to call or prepay obligations with or without call or prepayment penalties.

Investments of the Consolidated Funds

Investments held in the Consolidated Funds are summarized below:


					Fair value as a
					percentage of total
	Fair value at				investments at
		June 30,	December 31,		June 30,		December 31,
	2016		2015		2016		2015
United States:
Fixed income securities:
Consumer discretionary	$	407,161	$	393,902	16.2	%	15.4	%
Consumer staples		45,017		40,030	1.8	%	1.6	%
Energy		46,341		38,617	1.8	%	1.5	%
Financials		75,041		78,806	3.0	%	3.1	%
Healthcare, education and childcare		171,475		162,191	6.8	%	6.3	%
Industrials		151,775		161,830	6.0	%	6.3	%
Information technology		172,128		138,186	6.8	%	5.4	%
Materials		97,395		95,767	3.9	%	3.7	%
Partnership interests		115,440		86,902	4.6	%	3.4	%
Telecommunication services		176,548		202,256	7.0	%	7.9	%
Utilities		29,820		12,733	1.2	%	0.5	%
Total fixed income securities (cost: $1,504,932 and $1,462,570 at June 30, 2016 and December 31, 2015, respectively)		1,488,141		1,411,220	59.1	%	55.1	%
Equity securities:
Healthcare, education and childcare		344		344	0.0	%	0.0	%
Telecommunication services		286		510	0.0	%	0.0	%
Total equity securities (cost: $5,620 and $8,304 at June 30, 2016 and December 31, 2015, respectively)	$	630	$	854	0.0	%	0.0	%


					Fair value as a
					percentage of total
	Fair value at				investments at
	June 30,			December 31,	June 30,		December 31,
	2016		2015		2016		2015
Europe:
Fixed income securities:
Consumer discretionary	$	170,248	$	221,707	6.7	%	8.7	%
Consumer staples		48,278		50,625	1.9	%	2.0	%
Financials		27,256		29,922	1.1	%	1.2	%
Healthcare, education and childcare		104,814		104,704	4.1	%	4.1	%
Industrials		104,005		109,778	4.1	%	4.3	%
Information technology		32,944		31,562	1.3	%	1.2	%
Materials		103,071		98,450	4.1	%	3.8	%
Telecommunication services		128,271		149,105	5.1	%	5.8	%
Utilities		788		768	0.0	%	0.0	%
Total fixed income securities (cost: $765,916 and $836,217 at June 30, 2016 and December 31, 2015, respectively)		719,675		796,621	28.4	%	31.1	%
Equity securities:
Consumer discretionary		3,872		4,306	0.2	%	0.2	%
Consumer staples		1,415		1,286	0.1	%	0.1	%
Healthcare, education and childcare		54,064		37,294	2.1	%	1.5	%
Telecommunication services		23		159	0.0	%	0.0	%
Total equity securities (cost: $89,778 and $ 80,827 at June 30, 2016 and December 31, 2015, respectively)		59,374		43,045	2.4	%	1.8	%
Asia and other:
Fixed income securities:
Consumer discretionary		25,541		34,810	1.0	%	1.4	%
Financials		1,236		—	0.0	%	—	%
Healthcare, education and childcare		10,440		23,999	0.4	%	0.9	%
Telecommunication services		8,706		9,909	0.3	%	0.4	%
Total fixed income securities (cost: $47,987 and $57,868 at June 30, 2016 and December 31, 2015, respectively)		45,923		68,718	1.7	%	2.7	%
Equity securities:
Consumer discretionary		31,600		55,532	1.2	%	2.2	%
Consumer staples		48,447		55,442	1.9	%	2.2	%
Healthcare, education and childcare		32,598		32,865	1.3	%	1.3	%
Industrials		12,891		12,891	0.5	%	0.5	%
Total equity securities (cost: $118,730 at June 30, 2016 and December 31, 2015, respectively)	$	125,536	$	156,730	4.9	%	6.2	%


					Fair value as a
					percentage of total
	Fair value at				investments at
		June 30,		December 31,	June 30,		December 31,
	2016		2015		2016		2015
Canada:
Fixed income securities:
Consumer discretionary	$	1,414	$	827	0.1	%	0.0	%
Consumer staples		3,987		1,369	0.2	%	0.1	%
Energy		7,199		8,724	0.3	%	0.3	%
Healthcare, education and childcare		12,969		14,819	0.5	%	0.6	%
Industrials		631		513	0.0	%	0.0	%
Telecommunication services		13,487		6,627	0.5	%	0.3	%
Total fixed income securities (cost: $40,534 and $34,397 at June 30, 2016 and December 31, 2015, respectively)		39,687		32,879	1.6	%	1.3	%
Equity securities:
Consumer discretionary		413		—	—		—
Total equity securities (cost: $408 and $0 at June 30, 2016 and December 31, 2015, respectively)		413		—	—		—
Australia:
Fixed income securities:
Energy		8,827		8,888	0.3	%	0.3	%
Industrials		4,635		3,657	0.2	%	0.1	%
Utilities		15,955		16,041	0.6	%	0.6	%
Total fixed income securities (cost: $36,827 and $39,574 at June 30, 2016 and December 31, 2015, respectively)		29,417		28,586	1.1	%	1.0	%
Equity securities:
Telecommunication services		2,242		5,370	0.1	%	0.2	%
Utilities		18,135		15,760	0.7	%	0.6	%
Total equity securities (cost: $23,693 and $25,524 at June 30, 2016 and December 31, 2015, respectively)		20,377		21,130	0.8	%	0.8	%
Total fixed income securities		2,322,843		2,338,024	91.9	%	91.2	%
Total equity securities		206,330		221,759	8.1	%	8.8	%
Total investments, at fair value	$	2,529,173	$	2,559,783

At June 30, 2016 and December 31, 2015, no single issuer or investment, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5.0% of the Company's total consolidated net assets.