INVESTMENTS

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

Fair Value Investments, excluding Equity Method Investments Held at Fair Value



	Fair value at				Fair value as a percentage of total investments at
	March 31,		December 31,		March 31,		December 31,
	2017		2016		2017		2016
Private Investment Partnership Interests:
AREA Sponsor Holdings, LLC	$	26,743	$	28,898	6.0	%	6.8	%
ACE II Master Fund, L.P. (1)(2)	20,409		22,042		4.6	%	5.2	%
Ares Corporate Opportunities Fund III, L.P.	94,358		97,549		21.1	%	22.9	%
Ares Corporate Opportunities Fund IV, L.P. (2)	40,776		37,308		9.1	%	8.7	%
Resolution Life L.P.	33,410		33,410		7.5	%	7.8	%
Other private investment partnership interests (1)(3)	121,112		118,075		27.1	%	27.7	%
Total private investment partnership interests (cost: $257,925 and $256,638 at March 31, 2017 and December 31, 2016, respectively)	336,808		337,282		75.4	%	79.1	%
Collateralized Loan Obligations Interests:
Collateralized loan obligations(3)	108,253		89,111		24.3	%	20.9	%
Total collateralized loan obligations (cost: $108,436 and $89,743 at March 31, 2017 and December 31, 2016, respectively)	108,253		89,111		24.3	%	20.9	%
Common Stock:
Common stock(3)	1,317		100		0.3	%	0.0	%
Total common stock (cost: $1,126 and $124 at March 31, 2017 and December 31, 2016, respectively)	1,317		100		0.3	%	0.0	%
Total fair value investments (cost: $367,487 and $346,505 at March 31, 2017 and December 31, 2016, respectively)	$	446,378	$	426,493


(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 assets.

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 March 31,		As of December 31,
	2017		2016
Equity method investment	$	3,802	$	3,616
Equity method investments at fair value	21,540		21,843
Total equity method investments	$	25,342	$	25,459

The material assets of the Company's equity method investments are investments for which long term capital appreciation is expected, the material liabilities are debt instruments collateralized by, or related to, the financing of the assets and net income is primarily comprised of the changes in fair value of these net assets.

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 March 31,		As of December 31,
	2017		2016
Amortized cost	$	16,760	$	16,519
Unrealized gain (loss), net	43		(116		)
Fair value	$	16,803	$	16,403

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

There were no sales of held-to-maturity investments during the three months ended March 31, 2017 and 2016. All contractual maturities are greater than 10 years as of March 31, 2017. 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 at				Fair value as a percentage of total investments at
	March 31,		December 31,		March 31,		December 31,
	2017		2016		2017		2016
United States:
Fixed income securities:
Consumer discretionary	$	697,226	$	665,773	20.6	%	20.0	%
Consumer staples	60,918		64,840		1.8	%	1.9	%
Energy	56,638		45,409		1.7	%	1.4	%
Financials	152,241		139,285		4.5	%	4.2	%
Healthcare, education and childcare	230,378		246,403		6.8	%	7.4	%
Industrials	142,002		149,632		4.2	%	4.5	%
Information technology	161,950		194,394		4.8	%	5.8	%
Materials	137,548		139,994		4.0	%	4.2	%
Telecommunication services	255,755		261,771		7.5	%	7.9	%
Utilities	28,121		47,800		0.8	%	1.4	%
Total fixed income securities (cost: $1,919,405 and $1,945,977 at March 31, 2017 and December 31, 2016, respectively)	1,922,777		1,955,301		56.7	%	58.7	%
Equity securities:
Energy	444		421		0.0	%	0.0	%
Partnership and LLC interests	196,690		171,696		5.8	%	5.2	%
Total equity securities (cost: $172,872 and $149,872 at March 31, 2017 and December 31, 2016, respectively)	197,134		172,117		5.8	%	5.2	%



	Fair value at				Fair value as a percentage of total investments at
	March 31,		December 31,		March 31,		December 31,
	2017		2016		2017		2016
Europe:
Fixed income securities:
Consumer discretionary	$	314,705	$	274,678	9.2	%	8.2	%
Consumer staples	39,077		39,197		1.1	%	1.2	%
Financials	39,491		28,769		1.2	%	0.9	%
Healthcare, education and childcare	115,639		111,589		3.4	%	3.4	%
Industrials	124,818		118,466		3.7	%	3.6	%
Information technology	37,476		49,507		1.1	%	1.5	%
Materials	130,887		124,629		3.8	%	3.7	%
Telecommunication services	136,484		118,632		4.0	%	3.6	%
Utilities	11,512		4,007		0.3	%	0.1	%
Total fixed income securities (cost: $992,614 and $892,108 at March 31, 2017 and December 31, 2016, respectively)	950,089		869,474		27.8	%	26.2	%
Equity securities:
Consumer staples	1,538		1,517		0.0	%	0.0	%
Healthcare, education and childcare	41,524		41,329		1.2	%	1.2	%
Telecommunication services	24		24		0.0	%	0.0	%
Total equity securities (cost: $67,266 and $67,290 at March 31, 2017 and December 31, 2016, respectively)	43,086		42,870		1.2	%	1.2	%
Asia and other:
Fixed income securities:
Consumer discretionary	15,281		24,244		0.4	%	0.7	%
Financials	—		1,238		—	%	0.0	%
Healthcare, education and childcare	—		10,010		—	%	0.3	%
Telecommunication services	8,119		8,696		0.2	%	0.3	%
Total fixed income securities (cost: $23,175 and $46,545 at March 31, 2017 and December 31, 2016, respectively)	23,400		44,188		0.6	%	1.3	%
Equity securities:
Consumer discretionary	47,689		44,642		1.4	%	1.3	%
Consumer staples	50,078		50,101		1.5	%	1.5	%
Healthcare, education and childcare	44,637		32,598		1.3	%	1.0	%
Industrials	16,578		16,578		0.5	%	0.5	%
Total equity securities (cost: $122,418 and $122,418 at March 31, 2017 and December 31, 2016, respectively)	158,982		143,919		4.7	%	4.3	%



	Fair value at				Fair value as a percentage of total investments at
	March 31,		December 31,		March 31,		December 31,
	2017		2016		2017		2016
Canada:
Fixed income securities:
Consumer discretionary	$	1,374	$	—	0.0	%	—	%
Consumer staples	5,205		5,256		0.2	%	0.2	%
Energy	13,083		12,830		0.4	%	0.4	%
Healthcare, education and childcare	15,233		15,509		0.4	%	0.5	%
Industrials	1,395		1,401		0.0	%	0.0	%
Telecommunication services	12,296		13,852		0.4	%	0.4	%
Total fixed income securities (cost: $47,982 and $48,274 at March 31, 2017 and December 31, 2016, respectively)	48,586		48,848		1.4	%	1.5	%
Equity securities:
Consumer discretionary	6,160		164		0.2	%	0.0	%
Total equity securities (cost: $17,202 and $408 at March 31, 2017 and December 31, 2016, respectively)	6,160		164		0.2	%	0.0	%
Australia:
Fixed income securities:
Consumer discretionary	5,461		5,627		0.2	%	0.2	%
Energy	2,681		6,046		0.1	%	0.2	%
Industrials	1,450		2,926		0.0	%	0.1	%
Utilities	21,110		21,154		0.6	%	0.6	%
Total fixed income securities (cost: $31,607 and $37,975 at March 31, 2017 and December 31, 2016, respectively)	30,702		35,753		0.9	%	1.1	%
Equity securities:
Utilities	24,975		17,569		0.7	%	0.5	%
Total equity securities (cost: $18,442 and $18,442 at March 31, 2017 and December 31, 2016, respectively)	24,975		17,569		0.7	%	0.5	%
Total fixed income securities	2,975,554		2,953,564		87.4	%	88.8	%
Total equity securities	430,337		376,639		12.6	%	11.2	%
Total investments, at fair value	$	3,405,891	$	3,330,203

At March 31, 2017 and December 31, 2016, no single issuer or investments, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5.0% of the Company’s total assets.