FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Summary of valuation of investments and other financial instruments by fair value hierarchy levels

The tables below summarize the financial assets and financial liabilities measured at fair value for the Company and Consolidated Funds as of March 31, 2018:

Financial Instruments of the Company	Level I		Level II			Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income-collateralized loan obligations	$	—	$	—		$	242,984	$	—	$	242,984
Equity securities	377		1,019			—		—		1,396
Partnership interests	—		—			44,769		37,266		82,035
Total investments, at fair value	377		1,019			287,753		37,266		326,415
Derivatives—foreign exchange contracts	—		230			—		—		230
Total assets, at fair value	$	377	$	1,249		$	287,753	$	37,266	$	326,645
Liabilities, at fair value
Derivatives—foreign exchange contracts	$	—	$	(4,229	)	$	—	$	—	$	(4,229	)
Total liabilities, at fair value	$	—	$	(4,229	)	$	—	$	—	$	(4,229	)

Financial Instruments of the Consolidated Funds	Level I		Level II			Level III			Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	67,741		$	6,570		$	74,311
Loans	—		4,648,235			234,193			4,882,428
Collateralized loan obligations	—		51,054			—			51,054
Total fixed income investments	—		4,767,030			240,763			5,007,793
Equity securities	58,221		—			160,422			218,643
Partnership interests	—		—			252,700			252,700
Total investments, at fair value	58,221		4,767,030			653,885			5,479,136
Derivatives:
Asset swaps - other	—		—			834			834
Total assets, at fair value	$	58,221	$	4,767,030		$	654,719		$	5,479,970
Liabilities, at fair value
Asset swaps - other	$	—	$	—		$	(748	)	$	(748	)
Loan obligations of CLOs	—		(4,937,264		)	—			(4,937,264		)
Total liabilities, at fair value	$	—	$	(4,937,264	)	$	(748	)	$	(4,938,012	)

The tables below summarize the financial assets and financial liabilities measured at fair value for the Company and Consolidated Funds as of December 31, 2017:

Financial Instruments of the Company	Level I		Level II			Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income-collateralized loan obligations	$	—	$	—		$	195,158	$	—	$	195,158
Equity securities	520		1,116			—		—		1,636
Partnership interests	—		—			44,769		35,998		80,767
Total investments, at fair value	520		1,116			239,927		35,998		277,561
Derivatives—foreign exchange contracts	—		498			—		—		498
Total assets, at fair value	$	520	$	1,614		$	239,927	$	35,998	$	278,059
Liabilities, at fair value
Derivatives—foreign exchange contracts	$	—	$	(2,639	)	$	—	$	—	$	(2,639	)
Total liabilities, at fair value	$	—	$	(2,639	)	$	—	$	—	$	(2,639	)

Financial Instruments of the Consolidated Funds	Level I		Level II			Level III			Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	82,151		$	7,041		$	89,192
Loans	—		4,755,335			260,848			5,016,183
Collateralized loan obligations	—		10,000			—			10,000
Total fixed income investments	—		4,847,486			267,889			5,115,375
Equity securities	72,558		—			162,577			235,135
Partnership interests	—		—			232,332			232,332
Other	—		—			—			—
Total investments, at fair value	72,558		4,847,486			662,798			5,582,842
Derivatives:
Foreign exchange contracts	—		—			—			—
Asset swaps - other	—		—			1,366			1,366
Total derivative assets, at fair value	—		—			1,366			1,366
Total assets, at fair value	$	72,558	$	4,847,486		$	664,164		$	5,584,208
Liabilities, at fair value
Asset swaps - other	$	—	$	—		$	(462	)	$	(462	)
Loan obligations of CLOs	—		(4,963,194		)	—			(4,963,194		)
Total liabilities, at fair value	$	—	$	(4,963,194	)	$	(462	)	$	(4,963,656	)

Summary of changes in the fair value of the Level III investments

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended March 31, 2018:

	Level III Assets
Level III Assets and Liabilities of the Company	Fixed Income			Partnership  Interests		Total
Balance, beginning of period	$	195,158		$	44,769	$	239,927
Deconsolidation of fund	78			—		78
Purchases(1)	48,731			—		48,731
Sales/settlements(2)	(827		)	—		(827		)
Realized and unrealized depreciation, net	(156		)	—		(156		)
Balance, end of period	$	242,984		$	44,769	$	287,753
Decrease in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	(610	)	$	—	$	(610	)

Level III Assets of Consolidated Funds	Equity Securities			Fixed Income			Partnership Interests		Derivatives, Net			Total
Balance, beginning of period	$	162,577		$	267,889		$	232,332	$	904		$	663,702
Deconsolidation of fund	—			(233		)	—		—			(233		)
Transfer in	—			73,814			—		—			73,814
Transfer out	—			(102,045		)	—		—			(102,045		)
Purchases(1)	—			52,984			10,000		—			62,984
Sales(2)	—			(50,935		)	—		—			(50,935		)
Settlements, net	—			—			—		(177		)	(177		)
Amortized discounts/premiums	—			96			—		7			103
Realized and unrealized appreciation (depreciation), net	(2,155		)	(807		)	10,368		(648		)	6,758
Balance, end of period	$	160,422		$	240,763		$	252,700	$	86		$	653,971
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(2,156	)	$	(1,831	)	$	10,368	$	(749	)	$	5,632

(1) Purchases include paid‑in‑kind interest and securities received in connection with restructurings.

(2) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

The following tables set forth a summary of changes in the fair value of the Level III measurements for the three months ended March 31, 2017:

	Level III Assets									Level III Liabilities
Level III Assets and Liabilities of the Company	Fixed Income			Partnership  Interests			Total			Contingent Considerations
Balance, beginning of period	$	89,111		$	33,410		$	122,521		$	22,156
Purchases(1)	20,442			169			20,611			—
Sales/settlements(2)	(1,917		)	—			(1,917		)	—
Realized and unrealized appreciation (depreciation), net	617			(169		)	448			(20,247		)
Balance, end of period	$	108,253		$	33,410		$	141,663		$	1,909
Increase in unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	470		$	—		$	470		$	30

Level III Assets of Consolidated Funds	Equity Securities			Fixed Income			Partnership Interests		Derivatives, Net			Total
Balance, beginning of period	$	130,690		$	242,253		$	171,696	$	(2,708	)	$	541,931
Transfer in	—			86,197			—		—			86,197
Transfer out	(6,581		)	(66,805		)	—		—			(73,386		)
Purchases(1)	6,692			50,069			23,000		1,690			81,451
Sales(2)	—			(33,297		)	—		1,104			(32,193		)
Amortized discounts/premiums	—			118			—		310			428
Realized and unrealized appreciation, net	11,557			294			1,994		449			14,294
Balance, end of period	$	142,358		$	278,829		$	196,690	$	845		$	618,722
Increase (decrease) in unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(3,488	)	$	(42	)	$	1,994	$	(125	)	$	(1,661	)

(1) Purchases include paid‑in‑kind interest and securities received in connection with restructurings.

(2) Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

Summary of quantitative inputs and assumptions used for Level III inputs

The following table summarizes the quantitative inputs and assumptions used for the Company’s Level III measurements as of March 31, 2018:

	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range
Assets
Partnership interests	$	44,769	Other	N/A	N/A
Collateralized loan obligations	242,984		Broker quotes and/or 3rd party pricing services	N/A	N/A
Total	$	287,753

The following table summarizes the quantitative inputs and assumptions used for the Company’s Level III measurements as of December 31, 2017:

	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range
Assets
Partnership interests	$	44,769	Other	N/A	N/A
Collateralized loan obligations	195,158		Broker quotes and/or 3rd party pricing services	N/A	N/A
Total	$	239,927

The following table summarizes the quantitative inputs and assumptions used for the Consolidated Funds’ Level III measurements as of March 31, 2018:

	Fair Value			Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	61,065		Enterprise value market multiple analysis	EBITDA multiple(2)	3.0x	3.0
	61,216			Market approach (comparable companies)	Net income multiple	24.2x - 35.8x	32.7
					Illiquidity discount	25.0%	25.0%
	60			Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	38,081			Recent transaction price(1)	N/A	N/A	N/A
Partnership interest	252,700			Discounted cash flow	Discount rate	17.0%	17.0%
Fixed income securities
	192,660			Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	48,103			Income approach	Yield	7.6% - 14.9%	11.1%
Derivative instruments	834			Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	654,719
Liabilities
Derivatives instruments	$	(748	)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(748	)

(1) Transaction price consists of securities recently purchased or restructured. The Company determined that there was no change to the valuation based on the underlying assumptions used at the closing of such transactions.

(2) “EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization.

The following table summarizes the quantitative inputs and assumptions used for the Consolidated Funds’ Level III measurements as of December 31, 2017:

	Fair Value			Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average
Assets
Equity securities
	$	63,155		Enterprise value market multiple analysis	EBITDA multiple(2)	2.7x	2.7x
	61,215			Market approach (comparable companies)	Net income multiple Illiquidity discount	27.0x - 36.2x 25.0%	33.7x 25.0%
	126			Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	38,081			Recent Transaction price(1)	N/A	N/A	N/A
Partnership interest	232,332			Discounted cash flow	Discount rate	19.0%	19.0%
Fixed income securities
	222,413			Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
	45,243			Income approach	Yield	10.8% - 22.5%	12.1%
	233			Market approach (comparable companies)	EBITDA multiple(2)	6.5x	6.5x
Derivative instruments	1,366			Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total assets	$	664,164
Liabilities
Derivatives instruments	$	(462	)	Broker quotes and/or 3rd party pricing services	N/A	N/A	N/A
Total liabilities	$	(462	)

(1) Transaction price consists of securities purchased or restructured. The Company determined that there has been no change to the valuation based on the underlying assumptions used at the closing of such transactions.

(2) “EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization.

Summary of fair value by segment along with the remaining unfunded commitment and any redemption restriction of investments valued using NAV per share

The Company's investments valued using net asset value (“NAV”) per share have terms and conditions that do not allow for redemption without certain events or approvals that are outside the Company's control. A summary of fair value by segment and the remaining unfunded commitments are presented below:

	As of March 31, 2018				As of December 31, 2017
Segment	Fair Value		Unfunded  Commitments		Fair Value		Unfunded  Commitments
Non-core investments(1)	$	37,266	$	16,317	$	35,998	$	16,492
Total	$	37,266	$	16,317	$	35,998	$	16,492

(1) Non-core investments are reported within the Company's Operations Management Group (“OMG”).