INVESTMENTS

The Company’s investments are composed 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
	September 30,		December 31,		September 30,		December 31,
	2017		2016		2017		2016
Private Investment Partnership Interests:
AREA Sponsor Holdings, LLC	$	26,002	$	28,898	4.6	%	6.8	%
ACE II Master Fund, L.P. (1)(2)	19,141		22,042		3.4	%	5.2	%
Ares Corporate Opportunities Fund III, L.P.	114,674		97,549		20.3	%	22.9	%
Ares Corporate Opportunities Fund IV, L.P. (2)	34,990		37,308		6.2	%	8.7	%
Resolution Life L.P.	36,439		33,410		6.5	%	7.8	%
Other private investment partnership interests (1)(3)	168,732		118,075		30.0	%	27.7	%
Total private investment partnership interests (cost: $293,804 and $256,638 at September 30, 2017 and December 31, 2016, respectively)	399,978		337,282		71.0	%	79.1	%
Collateralized loan obligations (cost: $163,011 and $89,743 at September 30, 2017 and December 31, 2016, respectively) (3)	162,261		89,111		28.8	%	20.9	%
Common stock (cost: $1,132 and $124 at September 30, 2017 and December 31, 2016, respectively) (3)	1,304		100		0.2	%	0.0	%
Total fair value investments (cost: $457,947 and $346,505 at September 30, 2017 and December 31, 2016, respectively)	$	563,543	$	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 September 30,		As of December 31,
	2017		2016
Equity method investment	$	3,081	$	3,616
Equity method investments at fair value	18,071		21,843
Total equity method investments	$	21,152	$	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 composed 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 September 30,		As of December 31,
	2017		2016
Amortized cost	$	—	$	16,519
Unrealized loss, net	—		(116		)
Fair value	$	—	$	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.

During the third quarter ended September 30, 2017, the Company redeemed its remaining held-to-maturity investments balance of $18.5 million at par, which approximated the amortized cost, with no gain or loss recognized. Redemption occurred in connection with the restructuring and refinancing of the underlying collateral facility during the third quarter ended September 30, 2017.

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
	September 30,		December 31,		September 30,		December 31,
	2017		2016		2017		2016
United States:
Fixed income securities:
Consumer discretionary	$	1,124,210	$	665,773	22.6	%	20.0	%
Consumer staples	55,357		64,840		1.1	%	1.9	%
Energy	138,687		45,409		2.8	%	1.4	%
Financials	234,828		139,285		4.8	%	4.2	%
Healthcare, education and childcare	396,747		246,403		8.0	%	7.4	%
Industrials	298,186		149,632		6.1	%	4.5	%
Information technology	138,390		194,394		2.8	%	5.8	%
Materials	163,728		139,994		3.3	%	4.2	%
Telecommunication services	337,695		261,771		6.9	%	7.9	%
Utilities	54,548		47,800		1.1	%	1.4	%
Total fixed income securities (cost: $2,949,788 and $1,945,977 at September 30, 2017 and December 31, 2016, respectively)	2,942,376		1,955,301		59.5	%	58.7	%
Equity securities:
Energy	158		421		0.0	%	0.0	%
Partnership and LLC interests	224,010		171,696		4.6	%	5.2	%
Total equity securities (cost: $192,265 and $149,872 at September 30, 2017 and December 31, 2016, respectively)	224,168		172,117		4.6	%	5.2	%



	Fair value at				Fair value as a percentage of total investments at
	September 30,		December 31,		September 30,		December 31,
	2017		2016		2017		2016
Europe:
Fixed income securities:
Consumer discretionary	$	523,953	$	274,678	10.6	%	8.2	%
Consumer staples	72,446		39,197		1.5	%	1.2	%
Financials	43,702		28,769		0.9	%	0.9	%
Healthcare, education and childcare	199,823		111,589		4.1	%	3.4	%
Industrials	106,808		118,466		2.2	%	3.6	%
Information technology	46,512		49,507		0.9	%	1.5	%
Materials	235,505		124,629		4.8	%	3.7	%
Telecommunication services	143,972		118,632		2.9	%	3.6	%
Utilities	9,427		4,007		0.2	%	0.1	%
Total fixed income securities (cost: $1,383,866 and $892,108 at September 30, 2017 and December 31, 2016, respectively)	1,382,148		869,474		28.1	%	26.2	%
Equity securities:
Consumer staples	—		1,517		—	%	0.0	%
Healthcare, education and childcare	57,562		41,329		1.2	%	1.2	%
Telecommunication services	—		24		—	%	0.0	%
Total equity securities (cost: $67,198 and $67,290 at September 30, 2017 and December 31, 2016, respectively)	57,562		42,870		1.2	%	1.2	%
Asia and other:
Fixed income securities:
Consumer discretionary	27,950		24,244		0.6	%	0.7	%
Financials	22,402		1,238		0.5	%	0.0	%
Healthcare, education and childcare	—		10,010		—	%	0.3	%
Telecommunication services	22,830		8,696		0.5	%	0.3	%
Total fixed income securities (cost: $73,146 and $46,545 at September 30, 2017 and December 31, 2016, respectively)	73,182		44,188		1.6	%	1.3	%
Equity securities:
Consumer discretionary	48,161		44,642		1.0	%	1.3	%
Consumer staples	47,208		50,101		1.0	%	1.5	%
Healthcare, education and childcare	44,637		32,598		0.9	%	1.0	%
Industrials	16,578		16,578		0.3	%	0.5	%
Total equity securities (cost: $122,418 and $122,418 at September 30, 2017 and December 31, 2016, respectively)	156,584		143,919		3.2	%	4.3	%



	Fair value at				Fair value as a percentage of total investments at
	September 30,		December 31,		September 30,		December 31,
	2017		2016		2017		2016
Canada:
Fixed income securities:
Consumer discretionary	$	4,093	$	—	0.1	%	—	%
Consumer staples	10,387		5,256		0.2	%	0.2	%
Energy	28,459		12,830		0.6	%	0.4	%
Healthcare, education and childcare	—		15,509		—	%	0.5	%
Industrials	12,464		1,401		0.3	%	0.0	%
Telecommunication services	9,725		13,852		0.2	%	0.4	%
Total fixed income securities (cost: $64,567 and $48,274 at September 30, 2017 and December 31, 2016, respectively)	65,128		48,848		1.4	%	1.5	%
Equity securities:
Consumer discretionary	7,862		164		0.2	%	0.0	%
Total equity securities (cost: $17,202 and $408 at September 30, 2017 and December 31, 2016, respectively)	7,862		164		0.2	%	0.0	%
Australia:
Fixed income securities:
Consumer discretionary	3,142		5,627		0.1	%	0.2	%
Energy	2,877		6,046		0.1	%	0.2	%
Industrials	—		2,926		—	%	0.1	%
Utilities	—		21,154		—	%	0.6	%
Total fixed income securities (cost: $6,910 and $37,975 at September 30, 2017 and December 31, 2016, respectively)	6,019		35,753		0.2	%	1.1	%
Equity securities:
Utilities	—		17,569		—	%	0.5	%
Total equity securities (cost: $0 and $18,442 at September 30, 2017 and December 31, 2016, respectively)	—		17,569		—	%	0.5	%
Total fixed income securities	4,468,853		2,953,564		90.8	%	88.8	%
Total equity securities	446,176		376,639		9.2	%	11.2	%
Total investments, at fair value	$	4,915,029	$	3,330,203

At September 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.