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
	June 30,		December 31,		June 30,		December 31,
	2017		2016		2017		2016
Private Investment Partnership Interests:
AREA Sponsor Holdings, LLC	$	25,711	$	28,898	4.6	%	6.8	%
ACE II Master Fund, L.P. (1)(2)	19,897		22,042		3.6	%	5.2	%
Ares Corporate Opportunities Fund III, L.P.	125,097		97,549		22.3	%	22.9	%
Ares Corporate Opportunities Fund IV, L.P. (2)	43,443		37,308		7.8	%	8.7	%
Resolution Life L.P.	33,410		33,410		6.0	%	7.8	%
Other private investment partnership interests (1)(3)	146,577		118,075		26.2	%	27.7	%
Total private investment partnership interests (cost: $270,555 and $256,638 at June 30, 2017 and December 31, 2016, respectively)	394,135		337,282		70.5	%	79.1	%
Collateralized loan obligations (cost: $165,706 and $89,743 at June 30, 2017 and December 31, 2016, respectively)(3)	164,807		89,111		29.3	%	20.9	%
Common stock (cost: $1,128 and $124 at June 30, 2017 and December 31, 2016, respectively)(3)	1,234		100		0.2	%	0.0	%
Total fair value investments (cost: $437,389 and $346,505 at June 30, 2017 and December 31, 2016, respectively)	$	560,176	$	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 June 30,		As of December 31,
	2017		2016
Equity method investment	$	3,480	$	3,616
Equity method investments at fair value	17,104		21,843
Total equity method investments	$	20,584	$	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 June 30,		As of December 31,
	2017		2016
Amortized cost	$	17,921	$	16,519
Unrealized gain (loss), net	142		(116		)
Fair value	$	18,063	$	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 six months ended June 30, 2017 and 2016. All contractual maturities are greater than 10 years as of June 30, 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
	June 30,		December 31,		June 30,		December 31,
	2017		2016		2017		2016
United States:
Fixed income securities:
Consumer discretionary	$	753,922	$	665,773	21.8	%	20.0	%
Consumer staples	45,708		64,840		1.3	%	1.9	%
Energy	74,433		45,409		2.2	%	1.4	%
Financials	162,618		139,285		4.7	%	4.2	%
Healthcare, education and childcare	264,325		246,403		7.7	%	7.4	%
Industrials	142,110		149,632		4.1	%	4.5	%
Information technology	122,366		194,394		3.6	%	5.8	%
Materials	130,831		139,994		3.8	%	4.2	%
Telecommunication services	217,617		261,771		6.3	%	7.9	%
Utilities	40,373		47,800		1.2	%	1.4	%
Total fixed income securities (cost: $1,956,026 and $1,945,977 at June 30, 2017 and December 31, 2016, respectively)	1,954,303		1,955,301		56.7	%	58.7	%
Equity securities:
Energy	271		421		0.0	%	0.0	%
Partnership and LLC interests	217,740		171,696		6.3	%	5.2	%
Total equity securities (cost: $192,265 and $149,872 at June 30, 2017 and December 31, 2016, respectively)	218,011		172,117		6.3	%	5.2	%



	Fair value at				Fair value as a percentage of total investments at
	June 30,		December 31,		June 30,		December 31,
	2017		2016		2017		2016
Europe:
Fixed income securities:
Consumer discretionary	$	353,662	$	274,678	10.3	%	8.2	%
Consumer staples	53,666		39,197		1.6	%	1.2	%
Financials	54,523		28,769		1.6	%	0.9	%
Healthcare, education and childcare	139,683		111,589		4.1	%	3.4	%
Industrials	84,965		118,466		2.5	%	3.6	%
Information technology	39,657		49,507		1.2	%	1.5	%
Materials	151,706		124,629		4.4	%	3.7	%
Telecommunication services	104,514		118,632		3.0	%	3.6	%
Utilities	12,246		4,007		0.4	%	0.1	%
Total fixed income securities (cost: $1,050,273 and $892,108 at June 30, 2017 and December 31, 2016, respectively)	994,622		869,474		29.1	%	26.2	%
Equity securities:
Consumer staples	1,645		1,517		0.0	%	0.0	%
Healthcare, education and childcare	45,063		41,329		1.3	%	1.2	%
Telecommunication services	—		24		—	%	0.0	%
Total equity securities (cost: $67,199 and $67,290 at June 30, 2017 and December 31, 2016, respectively)	46,708		42,870		1.3	%	1.2	%
Asia and other:
Fixed income securities:
Consumer discretionary	20,587		24,244		0.6	%	0.7	%
Financials	—		1,238		—	%	0.0	%
Healthcare, education and childcare	—		10,010		—	%	0.3	%
Telecommunication services	11,917		8,696		0.3	%	0.3	%
Total fixed income securities (cost: $32,149 and $46,545 at June 30, 2017 and December 31, 2016, respectively)	32,504		44,188		0.9	%	1.3	%
Equity securities:
Consumer discretionary	38,843		44,642		1.1	%	1.3	%
Consumer staples	46,746		50,101		1.4	%	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 June 30, 2017 and December 31, 2016, respectively)	146,804		143,919		4.3	%	4.3	%



	Fair value at				Fair value as a percentage of total investments at
	June 30,		December 31,		June 30,		December 31,
	2017		2016		2017		2016
Canada:
Fixed income securities:
Consumer discretionary	$	3,277	$	—	0.1	%	—	%
Consumer staples	2,764		5,256		0.1	%	0.2	%
Energy	16,488		12,830		0.5	%	0.4	%
Healthcare, education and childcare	—		15,509		—	%	0.5	%
Industrials	1,266		1,401		0.0	%	0.0	%
Telecommunication services	10,659		13,852		0.3	%	0.4	%
Total fixed income securities (cost: $34,299 and $48,274 at June 30, 2017 and December 31, 2016, respectively)	34,454		48,848		1.0	%	1.5	%
Equity securities:
Consumer discretionary	7,532		164		0.2	%	0.0	%
Total equity securities (cost: $17,202 and $408 at June 30, 2017 and December 31, 2016, respectively)	7,532		164		0.2	%	0.0	%
Australia:
Fixed income securities:
Consumer discretionary	4,347		5,627		0.1	%	0.2	%
Energy	2,517		6,046		0.1	%	0.2	%
Industrials	—		2,926		—	%	0.1	%
Utilities	—		21,154		—	%	0.6	%
Total fixed income securities (cost: $8,087 and $37,975 at June 30, 2017 and December 31, 2016, respectively)	6,864		35,753		0.2	%	1.1	%
Equity securities:
Utilities	—		17,569		—	%	0.5	%
Total equity securities (cost: $0 and $18,442 at June 30, 2017 and December 31, 2016, respectively)	—		17,569		—	%	0.5	%
Total fixed income securities	3,022,747		2,953,564		87.9	%	88.8	%
Total equity securities	419,055		376,639		12.1	%	11.2	%
Total investments, at fair value	$	3,441,802	$	3,330,203

At June 30, 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.