DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2016

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

6. DERIVATIVE FINANCIAL INSTRUMENTS

In the normal course of business, the Company and the Consolidated Funds are exposed to certain risks relating to their ongoing operations and use various types of derivative instruments primarily to mitigate against credit and foreign exchange risk. The derivative instruments used by the Company and Consolidated Funds include warrants, currency options, interest rate swaps, total return swaps and forward contracts. The derivative instruments are not designated as hedging instruments under the accounting standards for derivatives and hedging. The Company recognizes all of its derivative instruments at fair value as either assets or liabilities in the Condensed Consolidated Statements of Financial Condition with changes in value presentedin the Condensed Consolidated Statements of Operations.

Quantitative Disclosures of Derivative Financial Instruments

The following tables identify the fair value and notional amounts of derivative contracts by major product type on a gross basis for the Company and the Consolidated Funds as of June 30, 2016 and December 31, 2015. These amounts may be offset (to the extent that there is a legal right to offset) and presented on a net basis in either other assets or accounts payable, accrued expenses and other liabilities in the Condensed Consolidated Statements of Financial Condition:

	As of June 30, 2016								As of December 31, 2015
	Assets				Liabilities				Assets				Liabilities
The Company	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	—	$	250,000	$	214
Foreign exchange contracts		47,137		3,366		33,984		729		94,634		1,339		53,245		176
Total derivatives, at fair value	$	47,137	$	3,366	$	33,984	$	729	$	94,634	$	1,339	$	303,245	$	390

	As of June 30, 2016								As of December 31, 2015
	Assets				Liabilities				Assets				Liabilities
Consolidated Funds	Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value		Notional(1)		Fair Value
Foreign exchange contracts	$	11,580	$	289	$	12,226	$	297	$	—	$	—	$	25,572	$	369
Other financial instruments		—		—		4,633		2,076		—		—		4,063		10,307
Total derivatives, at fair value		11,580		289		16,859		2,373		—		—		29,635		10,676
Other—equity(2)		253		—		—		—		522		159		—		—
Total	$	11,833	$	289	$	16,859	$	2,373	$	522	$	159	$	29,635	$	10,676

(1) Represents the total contractual amount of derivative assets and liabilities outstanding.

(2) Includes the fair value of warrants which are presented as equity securities within investments of the Consolidated Funds in the Condensed Consolidated Statements of Financial Condition.

The tables below set forth the rights of offset and related arrangements associated with the Company’s derivative and other financial instruments as of June 30, 2016 and December 31, 2015. The columns titled “Gross Amounts Not Offset in the Statement of Financial Condition” in the tables below relate to derivative instruments that are eligible to be offset in accordance with applicable accounting guidance but for which management has elected not to offset in the Condensed Consolidated Statements of Financial Condition.

							Gross Amounts
							Not Offset
							in the Statement
	Gross Amounts of		Gross Amounts		Net Amounts of		of Financial Condition
	Recognized Assets		Offset in Assets		Assets (Liabilities)		Financial
The Company as of  June 30, 2016	(Liabilities)		(Liabilities)		Presented		Instruments		Net Amount
Assets:
Derivatives	$	3,366	$	—	$	3,366	$	(729)	$	2,637
Liabilities:
Derivatives		(729)		—		(729)		729		—
Net derivatives liabilities	$	2,637	$	—	$	2,637	$	—	$	2,637

							Gross Amounts
							Not Offset
							in the Statement
	Gross Amounts of		Gross Amounts		Net Amounts of		of Financial Condition
	Recognized Assets		Offset in Assets		Assets (Liabilities)		Financial
The Company as of  December 31, 2015	(Liabilities)		(Liabilities)		Presented		Instruments		Net Amount
Assets:
Derivatives	$	1,339	$	—	$	1,339	$	(176)	$	1,163
Liabilities:
Derivatives		(390)		—		(390)		176		(214)
Net derivatives assets	$	949	$	—	$	949	$	—	$	949

The tables below set forth the rights of offset and related arrangements associated with the Consolidated Funds’ derivative and other financial instruments as of June 30, 2016 and December 31, 2015. The columns titled “Gross Amounts Not Offset in the Statement of Financial Condition” in the tables below relate to derivative instruments that are eligible to be offset in accordance with applicable accounting guidance but for which management has elected not to offset in the Condensed Consolidated Statements of Financial Condition.

							Gross Amounts Not
							Offset in the Statement
							of Financial Condition
	Gross Amounts of		Gross Amounts		Net Amounts of				Cash Collateral
	Recognized Assets		Offset in Assets		Assets (Liabilities)		Financial		Received
Consolidated Funds as of  June 30, 2016	(Liabilities)		(Liabilities)		Presented		Instruments		(Pledged)		Net Amount
Assets:
Derivatives	$	1,814	$	(1,525)	$	289	$	289	$	—	$	—
Liabilities:
Derivatives		(3,898)		1,525		(2,373)		(289)		(8)		(2,076)
Net derivatives liabilities	$	(2,084)	$	—	$	(2,084)	$	—	$	(8)	$	(2,076)

							Gross Amounts Not
							Offset in the Statement
							ofFinancial Condition
	Gross Amounts of		Gross Amounts		Net Amounts of				Cash Collateral
	Recognized Assets		Offset in Assets		Assets (Liabilities)		Financial		Received
Consolidated Funds as of  December 31, 2015	(Liabilities)		(Liabilities)		Presented		Instruments		(Pledged)		Net Amount
Assets:
Derivatives	$	85	$	(85)	$	—	$	—	$	—	$	—
Liabilities:
Derivatives		(10,761)		85		(10,676)		—		—		(10,676)
Net derivatives liabilities	$	(10,676)	$	—	$	(10,676)	$	—	$	—	$	(10,676)