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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Valuation of Investments and Other Financial Instruments by Fair Value Hierarchy Levels

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2021:


Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	52,397	$	—	$	52,397
Common stock and other equity securities	—		1,440		108,949		—		110,389
Partnership interests	—		—		2,575		6,016		8,591
Total investments, at fair value	—		1,440		163,921		6,016		171,377
Derivatives-foreign currency forward contracts and interest rate swaps	—		5,682		—		—		5,682
Total assets, at fair value	$	—	$	7,122	$	163,921	$	6,016	$	177,059
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(328)	$	—	$	—	$	(328)
Contingent consideration	—		—		(57,435)		—		(57,435)
Total liabilities, at fair value	$	—	$	(328)	$	(57,435)	$	—	$	(57,763)


Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	525,393	$	331,732	$	—	$	857,125
Loans	—		9,499,469		411,220		—		9,910,689
U.S. Treasury securities	1,000,285		—		—		—		1,000,285

Total fixed income investments	1,000,285		10,024,862		742,952		—		11,768,099
Equity securities	956		133		339,183		—		340,272
Partnership interests	—		—		238,673		469,634		708,307





Total assets, at fair value	$	1,001,241	$	10,024,995	$	1,320,808	$	469,634	$	12,816,678
Liabilities, at fair value
Derivatives:
Warrants	$	(17,822)	$	—	$	—	$	—	$	(17,822)
Asset swaps	—		—		(3,105)		—		(3,105)
Total derivative liabilities, at fair value	(17,822)		—		(3,105)		—		(20,927)
Loan obligations of CLOs	—		(10,657,661)		—		—		(10,657,661)
Total liabilities, at fair value	$	(17,822)	$	(10,657,661)	$	(3,105)	$	—	$	(10,678,588)

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2020:


Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Collateralized loan obligations and other fixed income	$	—	$	—	$	53,349	$	—	$	53,349
Common stock and other equity securities	—		1,007		88,412		—		89,419
Partnership interests	—		—		2,575		1,209		3,784
Total investments, at fair value	—		1,007		144,336		1,209		146,552
Derivatives-foreign currency forward contracts	—		1,440		—		—		1,440
Total assets, at fair value	$	—	$	2,447	$	144,336	$	1,209	$	147,992
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(1,565)	$	—	$	—	$	(1,565)
Total liabilities, at fair value	$	—	$	(1,565)	$	—	$	—	$	(1,565)


Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Bonds	$	—	$	397,485	$	9	$	—	$	397,494
Loans	—		9,470,651		542,297		—		10,012,948

Total fixed income investments	—		9,868,136		542,306		—		10,410,442
Equity securities	5,749		239		221,043		—		227,031
Partnership interests	—		—		231,857		7,767		239,624
Total investments, at fair value	5,749		9,868,375		995,206		7,767		10,877,097
Derivatives:

Asset swaps	—		—		1,104		—		1,104

Total assets, at fair value	$	5,749	$	9,868,375	$	996,310	$	7,767	$	10,878,201
Liabilities, at fair value
Derivatives:

Asset swaps	$	—	$	—	$	(44)	$	—	$	(44)

Loan obligations of CLOs	—		(9,958,076)		—		—		(9,958,076)
Total liabilities, at fair value	$	—	$	(9,958,076)	$	(44)	$	—	$	(9,958,120)

Summary of Changes in the Fair Value of the Level III Investments, Assets

The following tables set forth a summary of changes in the fair value of the Level III measurements for the year ended December 31, 2021:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	—	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		—		7,623
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	19,278		1,689		—		—		20,967
Sales/settlements(2)	—		(13,290)		—		—		(13,290)
Change in fair value	—		—		—		(23,235)		(23,235)
Realized and unrealized appreciation, net	1,259		3,026		—		—		4,285
Balance, end of period	$	108,949	$	52,397	$	2,575	$	(57,435)	$	106,486
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	1,259	$	1,575	$	—	$	(23,235)	$	(20,401)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,306	$	231,857	$	1,060	$	996,266
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		59,845		—		—		62,040
Transfer out	(33)		(214,906)		—		—		(214,939)
Purchases(1)	118,963		904,497		15,000		—		1,038,460
Sales/settlements(2)	(1,180)		(512,505)		(45,500)		301		(558,884)
Amortized discounts/premiums	—		1,683		—		—		1,683
Realized and unrealized appreciation (depreciation), net	(1,648)		11,358		37,316		(4,466)		42,560
Balance, end of period	$	339,183	$	742,952	$	238,673	$	(3,105)	$	1,317,703
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(848)	$	3,886	$	37,316	$	(3,627)	$	36,727

(1)Purchases include paid-in-kind interest and securities received in connection with restructuring.

(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 year ended December 31, 2020:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	69,183	$	35,192	$	119,079
Transfer in due to changes in consolidation	72,967		6,294		—		79,261
Purchases(1)	—		12,970		—		12,970
Sales/settlements(2)	—		(37,058)		(32,430)		(69,488)
Realized and unrealized appreciation (depreciation), net	741		1,960		(187)		2,514
Balance, end of period	$	88,412	$	53,349	$	2,575	$	144,336
Change in net unrealized appreciation included in earnings related to financial assets still held at the reporting date	$	741	$	4,227	$	5,511	$	10,479


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	85,988	$	339,136	$	296,012	$	(4,106)	$	717,030
Transfer in (out) due to changes in consolidation	(635)		403,751		—		—		403,116
Transfer in	32		127,633		—		—		127,665
Transfer out	—		(286,294)		—		—		(286,294)
Purchases(1)	186,881		340,475		66,000		—		593,356
Sales/settlements(2)	(10,997)		(370,966)		(141,025)		(911)		(523,899)
Amortized discounts/premiums	—		1,049		—		389		1,438
Realized and unrealized appreciation (depreciation), net	(40,226)		(12,478)		10,870		5,688		(36,146)
Balance, end of period	$	221,043	$	542,306	$	231,857	$	1,060	$	996,266
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(44,877)	$	(5,736)	$	10,870	$	3,595	$	(36,148)

(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 Changes in the Fair Value of the Level III Investments, Liabilities

The following tables set forth a summary of changes in the fair value of the Level III measurements for the year ended December 31, 2021:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	—	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		—		7,623
Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	19,278		1,689		—		—		20,967
Sales/settlements(2)	—		(13,290)		—		—		(13,290)
Change in fair value	—		—		—		(23,235)		(23,235)
Realized and unrealized appreciation, net	1,259		3,026		—		—		4,285
Balance, end of period	$	108,949	$	52,397	$	2,575	$	(57,435)	$	106,486
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	1,259	$	1,575	$	—	$	(23,235)	$	(20,401)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,306	$	231,857	$	1,060	$	996,266
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		59,845		—		—		62,040
Transfer out	(33)		(214,906)		—		—		(214,939)
Purchases(1)	118,963		904,497		15,000		—		1,038,460
Sales/settlements(2)	(1,180)		(512,505)		(45,500)		301		(558,884)
Amortized discounts/premiums	—		1,683		—		—		1,683
Realized and unrealized appreciation (depreciation), net	(1,648)		11,358		37,316		(4,466)		42,560
Balance, end of period	$	339,183	$	742,952	$	238,673	$	(3,105)	$	1,317,703
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(848)	$	3,886	$	37,316	$	(3,627)	$	36,727

(1)Purchases include paid-in-kind interest and securities received in connection with restructuring.

(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 year ended December 31, 2020:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	14,704	$	69,183	$	35,192	$	119,079
Transfer in due to changes in consolidation	72,967		6,294		—		79,261
Purchases(1)	—		12,970		—		12,970
Sales/settlements(2)	—		(37,058)		(32,430)		(69,488)
Realized and unrealized appreciation (depreciation), net	741		1,960		(187)		2,514
Balance, end of period	$	88,412	$	53,349	$	2,575	$	144,336
Change in net unrealized appreciation included in earnings related to financial assets still held at the reporting date	$	741	$	4,227	$	5,511	$	10,479


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	85,988	$	339,136	$	296,012	$	(4,106)	$	717,030
Transfer in (out) due to changes in consolidation	(635)		403,751		—		—		403,116
Transfer in	32		127,633		—		—		127,665
Transfer out	—		(286,294)		—		—		(286,294)
Purchases(1)	186,881		340,475		66,000		—		593,356
Sales/settlements(2)	(10,997)		(370,966)		(141,025)		(911)		(523,899)
Amortized discounts/premiums	—		1,049		—		389		1,438
Realized and unrealized appreciation (depreciation), net	(40,226)		(12,478)		10,870		5,688		(36,146)
Balance, end of period	$	221,043	$	542,306	$	231,857	$	1,060	$	996,266
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(44,877)	$	(5,736)	$	10,870	$	3,595	$	(36,148)

(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 tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds' Level III measurements as of December 31, 2021:

Level III Measurements of the Company

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

14,610

Transaction price(1)

N/A

50,690

Discounted Cash Flow

Discount Rates

14.0% - 20.0%

14.3%

43,649

Market Approach

Multiple of Book Value

1.4x

Partnership interests

2,575

Other

N/A

Collateralized loan obligations

30,815

Broker quotes and/or 3rd party pricing services

N/A

Other fixed income

21,582

Other

N/A

Total assets

163,921

Liabilities

Contingent consideration

(9,562)

Monte Carlo simulation

Discount Rates

8.5%

Volatility

18%

(47,873)

Other

N/A

Total liabilities

(57,435)

Level III Measurements of the Consolidated Funds

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

1,261

Market approach

EBITDA multiple(2)

1.0x - 64.4x

17.5x

140,185

Market approach

Multiple of Book Value

1.0x - 1.2x

1.1x

123,685

Discounted cash flow

Discount rate

20.0%

Broker quotes and/or 3rd party pricing services

N/A

74,041

Transaction price(1)

N/A

Partnership interest

238,673

Discounted cash flow

Discount rate

23.4%

Fixed income securities

614,754

Broker quotes and/or 3rd party pricing services

N/A

128,198

Income approach

Yield

3.5%-16.2%

6.7%

Total assets

1,320,808

Liabilities

Derivative instruments

(3,105)

Broker quotes and/or 3rd party pricing services

N/A

Total liabilities

(3,105)

(1)Transaction price consists of securities 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 tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds' Level III measurements as of December 31, 2020:

Level III Measurements of the Company

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Assets

Equity securities

14,704

Transaction price(1)

N/A

32,905

Discounted Cash Flow

Discount Rates

14.0% - 20.0%

40,803

Market Approach

Multiple of Book Value

1.6x

Partnership interests

2,575

Other

N/A

Collateralized loan obligations

31,766

Broker quotes and/or 3rd party pricing services

N/A

Other fixed income

21,583

Other

N/A

Total

144,336

Level III Measurements of the Consolidated Funds

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

438

Market approach

EBITDA multiple(2)

2.9x - 19.5x

13.4x

32,528

Other

Net income multiple

30.0x

Illiquidity discount

25.0%

Broker quotes and/or 3rd party pricing services

N/A

188,044

Transaction price(1)

N/A

Partnership interests

231,857

Discounted cash flow

Discount rate

23.8%

Fixed income securities

384,419

Broker quotes and/or 3rd party pricing services

N/A

6,605

Market approach

EBITDA multiple(2)

6.5x - 7.8x

6.9x

122,962

Income approach

Yield

2.7% - 48.1%

7.9%

28,320

Other

N/A

Derivative instruments

1,104

Broker quotes and/or 3rd party pricing services

N/A

Total assets

996,310

Liabilities

Derivative instruments

(44)

Broker quotes and/or 3rd party pricing services

N/A

Total liabilities

(44)

(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.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details