SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Financial Results for Company's Operating Segments, as well as the OMG

The following tables present the financial results for the Company’s operating segments, as well as the OMG:


	Three months ended September 30, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	271,591	$	69,591	$	55,160	$	41,064	16,544		$	453,950	$	—	$	453,950
Other fees	5,798		370		3,681		—		2		9,851		3,446		13,297
Compensation and benefits	(86,502)		(26,773)		(29,160)		(11,955)		(5,316)		(159,706)		(66,107)		(225,813)
General, administrative and other expenses	(14,930)		(6,238)		(5,420)		(2,593)		(1,774)		(30,955)		(28,142)		(59,097)
Fee related earnings	175,957		36,950		24,261		26,516		9,456		273,140		(90,803)		182,337
Performance income—realized	6,332		34,316		4,693		—		—		45,341		—		45,341
Performance related compensation—realized	(3,079)		(27,483)		(3,166)		—		—		(33,728)		—		(33,728)
Realized net performance income	3,253		6,833		1,527		—		—		11,613		—		11,613
Investment income—realized	618		2,020		1,699		—		1,025		5,362		—		5,362
Interest and other investment income (expense)—realized	4,716		4,861		918		699		163		11,357		(270)		11,087
Interest expense	(2,392)		(2,726)		(1,683)		(427)		(4,135)		(11,363)		(160)		(11,523)
Realized net investment income (loss)	2,942		4,155		934		272		(2,947)		5,356		(430)		4,926
Realized income	$	182,152	$	47,938	$	26,722	$	26,788	$	6,509	$	290,109	$	(91,233)	$	198,876

	Three months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	208,371	$	54,653	$	23,787	$	—	$	13,320	$	300,131	$	—	$	300,131
Other fees	4,898		2		5		—		6		4,911		—		4,911
Compensation and benefits	(74,373)		(21,224)		(13,011)		—		(4,241)		(112,849)		(41,551)		(154,400)
General, administrative and other expenses	(13,789)		(6,002)		(2,987)		—		(1,514)		(24,292)		(19,519)		(43,811)
Fee related earnings	125,107		27,429		7,794		—		7,571		167,901		(61,070)		106,831
Performance income—realized	7,069		115,997		199		—		—		123,265		—		123,265
Performance related compensation—realized	(4,131)		(93,284)		(123)		—		—		(97,538)		—		(97,538)
Realized net performance income	2,938		22,713		76		—		—		25,727		—		25,727
Investment income—realized	—		16,351		486		—		—		16,837		—		16,837
Interest and other investment income (expense)—realized	1,962		1,065		1,308		—		(4)		4,331		(503)		3,828
Interest expense	(2,340)		(2,216)		(1,389)		—		(729)		(6,674)		(141)		(6,815)
Realized net investment income (loss)	(378)		15,200		405		—		(733)		14,494		(644)		13,850
Realized income	$	127,667	$	65,342	$	8,275	$	—	$	6,838	$	208,122	$	(61,714)	$	146,408


	Nine months ended September 30, 2021
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	764,702	$	171,019	$	115,602	$	53,962	$	48,963	$	1,154,248	$	—	$	1,154,248
Other fees	18,494		726		4,604		—		82		23,906		3,446		27,352
Compensation and benefits	(252,783)		(73,534)		(60,767)		(16,244)		(15,440)		(418,768)		(158,943)		(577,711)
General, administrative and other expenses	(37,716)		(17,499)		(12,064)		(3,452)		(5,580)		(76,311)		(69,872)		(146,183)
Fee related earnings	492,697		80,712		47,375		34,266		28,025		683,075		(225,369)		457,706
Performance income—realized	78,255		159,479		12,255		—		—		249,989		—		249,989
Performance related compensation—realized	(49,433)		(127,706)		(8,167)		—		—		(185,306)		—		(185,306)
Realized net performance income	28,822		31,773		4,088		—		—		64,683		—		64,683
Investment income—realized	1,858		5,308		4,182		—		1,347		12,695		—		12,695
Interest and other investment income—realized	14,354		10,716		3,892		701		2,824		32,487		170		32,657
Interest expense	(5,372)		(6,032)		(3,930)		(432)		(8,962)		(24,728)		(397)		(25,125)
Realized net investment income (loss)	10,840		9,992		4,144		269		(4,791)		20,454		(227)		20,227
Realized income	$	532,359	$	122,477	$	55,607	$	34,535	$	23,234	$	768,212	$	(225,596)	$	542,616

	Nine months ended September 30, 2020
	Credit Group		Private Equity Group		Real Estate Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	606,596	$	160,206	$	71,459	$	—	$	13,320	$	851,581	$	—	$	851,581
Other fees	12,057		142		716		—		6		12,921		—		12,921
Compensation and benefits	(222,063)		(62,946)		(38,159)		—		(4,241)		(327,409)		(114,916)		(442,325)
General, administrative and other expenses	(41,626)		(16,083)		(9,185)		—		(1,514)		(68,408)		(56,877)		(125,285)
Fee related earnings	354,964		81,319		24,831		—		7,571		468,685		(171,793)		296,892
Performance income—realized	16,085		276,469		27,106		—		—		319,660		—		319,660
Performance related compensation—realized	(12,142)		(222,949)		(17,484)		—		—		(252,575)		—		(252,575)
Realized net performance income	3,943		53,520		9,622		—		—		67,085		—		67,085
Investment income (loss)—realized	(843)		35,866		2,740		—		—		37,763		(5,698)		32,065
Interest and other investment income (expense)—realized	13,166		2,364		3,024		—		(4)		18,550		(588)		17,962
Interest expense	(6,391)		(6,106)		(3,715)		—		(729)		(16,941)		(1,262)		(18,203)
Realized net investment income (loss)	5,932		32,124		2,049		—		(733)		39,372		(7,548)		31,824
Realized income	$	364,839	$	166,963	$	36,502	$	—	$	6,838	$	575,142	$	(179,341)	$	395,801

Schedule of Segment’ Revenue, Expenses and Realized Net Investment Income

The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Segment revenues
Management fees	$	453,950	$	300,131	$	1,154,248	$	851,581
Other fees	9,851		4,911		23,906		12,921
Performance income—realized	45,341		123,265		249,989		319,660
Total segment revenues	$	509,142	$	428,307	$	1,428,143	$	1,184,162
Segment expenses
Compensation and benefits	$	159,706	$	112,849	$	418,768	$	327,409
General, administrative and other expenses	30,955		24,292		76,311		68,408
Performance related compensation—realized	33,728		97,538		185,306		252,575
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392
Segment realized net investment income
Investment income—realized	$	5,362	$	16,837	$	12,695	$	37,763
Interest and other investment income —realized	11,357		4,331		32,487		18,550
Interest expense	(11,363)		(6,674)		(24,728)		(16,941)
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

Schedule of Segment Revenues Components

The following table reconciles the Company's consolidated revenues to segment revenue:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated revenue	$	948,719	$	489,866	$	2,901,926	$	1,106,033
Performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Management fees of Consolidated Funds eliminated in consolidation	11,051		11,719		33,416		33,601

Incentive fees of Consolidated Funds eliminated in consolidation	—		—		1,528		(70)
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	4,264		4,448		13,157		12,249
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG revenue	(3,446)		—		(3,446)		—
Performance income (loss) reclass(2)	680		(291)		1,285		(3,664)
Principal investment income, net of eliminations	(14,250)		(11,408)		(86,477)		(8,330)
Net income of non-controlling interests in consolidated subsidiaries	(6,927)		(4,323)		(16,795)		(5,808)
Total consolidation adjustments and reconciling items	(439,577)		(61,559)		(1,473,783)		78,129
Total segment revenue	$	509,142	$	428,307	$	1,428,143	$	1,184,162

(1)Represents administrative fees that are presented in administrative, transaction and other fees in the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

(2)Related to performance income for AREA Sponsor Holdings LLC, an investment pool. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

Schedule of Segment Expenses Components

The following table reconciles the Company's consolidated expenses to segment expenses:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated expenses	$	813,267	$	392,580	$	2,363,108	$	958,106
Performance related compensation-unrealized	(296,044)		(24,818)		(1,022,393)		61,010
Expenses of Consolidated Funds added in consolidation	(23,206)		(17,737)		(66,653)		(50,237)
Expenses of Consolidated Funds eliminated in consolidation	11,102		11,718		35,078		33,531
Administrative fees(1)	(15,632)		(9,216)		(34,754)		(27,715)
OMG expenses	(94,249)		(61,070)		(228,815)		(171,793)
Acquisition and merger-related expense	(754)		(3,474)		(18,364)		(9,430)
Equity compensation expense	(65,991)		(30,336)		(191,144)		(91,576)
Acquisition-related compensation expense(2)	(28,194)		—		(32,824)		—
Deferred placement fees	(32,413)		(2,942)		(33,740)		(18,677)
Depreciation and amortization expense	(36,668)		(14,336)		(71,742)		(26,197)

Expense of non-controlling interests in consolidated subsidiaries	(6,829)		(5,690)		(17,372)		(8,630)
Total consolidation adjustments and reconciling items	(588,878)		(157,901)		(1,682,723)		(309,714)
Total segment expenses	$	224,389	$	234,679	$	680,385	$	648,392

(2)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.

Schedule of Segment Other Income (Expense) Components

The following table reconciles the Company's consolidated other income to segment realized net investment income:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total consolidated other income (expense)	$	111,536	$	62,355	$	218,011	$	(43,602)
Investment (income) loss—unrealized	(3,609)		1,479		(60,588)		83,369
Interest and other investment (income) loss—unrealized	(1,405)		(1,390)		3,057		(10,330)
Other (income) loss from Consolidated Funds added in consolidation, net	(76,287)		(68,132)		(178,195)		20,719
Other expense from Consolidated Funds eliminated in consolidation, net	(4,973)		(3,470)		(13,783)		(11,478)
OMG other (income) expense	37		(1,820)		646		(781)
Performance (income) loss reclass(1)	(680)		291		(1,285)		3,664
Principal investment income (loss)	20,719		18,080		96,448		(24,951)
Other (income) expense, net	(34,812)		9,534		(34,666)		9,903
Other (income) loss of non-controlling interests in consolidated subsidiaries	(5,170)		(2,433)		(9,191)		12,859
Total consolidation adjustments and reconciling items	(106,180)		(47,861)		(197,557)		82,974
Total segment realized net investment income	$	5,356	$	14,494	$	20,454	$	39,372

(1)Related to performance income for AREA Sponsor Holdings LLC. Changes in value of this investment are reflected within net realized and unrealized gains (losses) on investments in the Company’s Condensed Consolidated Statements of Operations.

Reconciliation of Segment Results to the Company's Income before Taxes and Total Assets

The following table presents the reconciliation of income before taxes as reported in the Condensed Consolidated Statements of Operations to segment results of RI and FRE:


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Income before taxes	$	246,988	$	159,641	$	756,829	$	104,325
Adjustments:
Depreciation and amortization expense	36,668		14,336		71,742		26,197
Equity compensation expense	65,991		30,336		191,144		91,576
Acquisition-related compensation expense(1)	28,194		—		32,824		—
Acquisition and merger-related expense	7,967		3,490		26,188		9,815
Deferred placement fees	32,413		2,942		33,740		18,677
OMG expense, net	90,840		59,250		226,015		171,012
Other (income) expense, net	(42,025)		9,518		(42,490)		9,518
Net (income) expense of non-controlling interests in consolidated subsidiaries	(5,268)		(1,066)		(8,614)		15,681
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(47,372)		(42,744)		(102,331)		38,446
Total performance (income) loss—unrealized	(415,317)		(52,488)		(1,381,697)		77,866
Total performance related compensation—unrealized	296,044		24,818		1,022,393		(61,010)
Total investment (income) loss—unrealized	(5,014)		89		(57,531)		73,039
Realized income	290,109		208,122		768,212		575,142
Total performance income—realized	(45,341)		(123,265)		(249,989)		(319,660)
Total performance related compensation—realized	33,728		97,538		185,306		252,575
Total investment income—realized	(5,356)		(14,494)		(20,454)		(39,372)
Fee related earnings	$	273,140	$	167,901	$	683,075	$	468,685

(1)Represents compensation expense associated with contingent obligations recorded in connection with the Landmark Acquisition and the Black Creek Acquisition and is presented in compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.