SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022
	Credit Group		Private Equity Group		Real Assets Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	303,159	$	45,957	$	72,487	$	44,504	$	16,814	$	482,921	$	—	$	482,921
Fee related performance revenues	12,353		—		358		—		—		12,711		—		12,711
Other fees	5,766		297		7,866		—		50		13,979		5,876		19,855
Compensation and benefits	(105,696)		(19,566)		(33,637)		(11,640)		(7,401)		(177,940)		(64,067)		(242,007)
General, administrative and other expenses	(16,697)		(6,288)		(7,637)		(3,078)		(1,726)		(35,426)		(32,384)		(67,810)
Fee related earnings	198,885		20,400		39,437		29,786		7,737		296,245		(90,575)		205,670
Performance income—realized	7,363		2,212		34,293		—		—		43,868		—		43,868
Performance related compensation—realized	(4,580)		(1,786)		(22,209)		—		—		(28,575)		—		(28,575)
Realized net performance income	2,783		426		12,084		—		—		15,293		—		15,293
Investment income—realized	415		1,603		3,453		—		861		6,332		—		6,332
Interest and other investment income (expense)—realized	5,726		1,502		2,777		644		3		10,652		(284)		10,368
Interest expense	(3,414)		(3,373)		(2,389)		(465)		(5,838)		(15,479)		(167)		(15,646)
Realized net investment income (loss)	2,727		(268)		3,841		179		(4,974)		1,505		(451)		1,054
Realized income	$	204,395	$	20,558	$	55,362	$	29,965	$	2,763	$	313,043	$	(91,026)	$	222,017

	Three months ended March 31, 2021
	Credit Group		Private Equity Group		Real Assets Group		Secondary Solutions Group		Strategic Initiatives		Total Segments		OMG		Total
Management fees	$	232,877	$	39,138	$	39,825	$	—	$	15,623	$	327,463	$	—	$	327,463
Fee related performance revenues	1,370		—		666		—		—		2,036		—		2,036
Other fees	5,969		108		648		—		79		6,804		—		6,804
Compensation and benefits	(81,203)		(16,848)		(20,179)		—		(4,740)		(122,970)		(44,407)		(167,377)
General, administrative and other expenses	(10,809)		(4,486)		(3,677)		—		(2,035)		(21,007)		(18,656)		(39,663)
Fee related earnings	148,204		17,912		17,283		—		8,927		192,326		(63,063)		129,263
Performance income—realized	2,446		71,218		1,281		—		—		74,945		—		74,945
Performance related compensation—realized	(2,055)		(57,026)		(776)		—		—		(59,857)		—		(59,857)
Realized net performance income	391		14,192		505		—		—		15,088		—		15,088
Investment income (loss)—realized	—		(8,898)		1,506		—		—		(7,392)		—		(7,392)
Interest and other investment income—realized	3,669		118		2,354		—		33		6,174		355		6,529
Interest expense	(1,515)		(1,453)		(1,335)		—		(2,302)		(6,605)		(90)		(6,695)
Realized net investment income (loss)	2,154		(10,233)		2,525		—		(2,269)		(7,823)		265		(7,558)
Realized income	$	150,749	$	21,871	$	20,313	$	—	$	6,658	$	199,591	$	(62,798)	$	136,793

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 March 31,
		2022		2021
Segment revenues
Management fees		$	482,921	$	327,463
Fee related performance revenues		12,711		2,036
Other fees		13,979		6,804
Performance income—realized		43,868		74,945
Total segment revenues		$	553,479	$	411,248
Segment expenses
Compensation and benefits		$	177,940	$	122,970
General, administrative and other expenses		35,426		21,007
Performance related compensation—realized		28,575		59,857
Total segment expenses		$	241,941	$	203,834
Segment realized net investment income (expense)
Investment income (loss)—realized		$	6,332	$	(7,392)
Interest and other investment income —realized		10,652		6,174
Interest expense		(15,479)		(6,605)
Total segment realized net investment income (expense)		$	1,505	$	(7,823)

Schedule of Segment Revenues Components

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


	Three months ended March 31,
		2022		2021
Total consolidated revenue		$	714,999	$	658,388
Performance income—unrealized		(133,532)		(224,954)
Management fees of Consolidated Funds eliminated in consolidation		11,479		11,706

Incentive fees of Consolidated Funds eliminated in consolidation		34		1,525
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation		4,769		4,145
Administrative fees(1)		(19,475)		(9,808)
OMG revenue		(5,876)		—
Performance income (loss) reclass(2)		(14)		55

Principal investment income, net of eliminations		(8,326)		(25,100)
Net income of non-controlling interests in consolidated subsidiaries		(10,579)		(4,709)
Total consolidation adjustments and reconciling items		(161,520)		(247,140)
Total segment revenue		$	553,479	$	411,248

(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 March 31,
		2022		2021
Total consolidated expenses		$	611,684	$	525,109
Performance related compensation-unrealized		(91,198)		(160,337)
Expenses of Consolidated Funds added in consolidation		(16,077)		(17,436)
Expenses of Consolidated Funds eliminated in consolidation		11,564		13,265
Administrative fees(1)		(18,890)		(9,808)
OMG expenses		(96,451)		(63,063)
Acquisition and merger-related expense		(9,042)		(8,590)
Equity compensation expense		(53,602)		(55,649)
Acquisition-related compensation expense(2)		(48,001)		—
Placement fees		693		(297)
Depreciation and amortization expense		(38,126)		(14,100)

Expense of non-controlling interests in consolidated subsidiaries		(10,613)		(5,260)
Total consolidation adjustments and reconciling items		(369,743)		(321,275)
Total segment expenses		$	241,941	$	203,834

(2)Represents components of the purchase agreements associated with contingent obligations resulting from the Landmark Acquisition, the Black Creek Acquisition and the Infrastructure Debt Acquisition that are recorded as compensation expense and are presented within 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 March 31,
		2022		2021
Total consolidated other income		$	57,994	$	56,785
Investment (income) loss—unrealized		7,854		(22,168)
Interest and other investment (income) loss—unrealized		(6,032)		3,950
Other income from Consolidated Funds added in consolidation, net		(66,848)		(67,316)
Other expense from Consolidated Funds eliminated in consolidation, net		(7,518)		(4,112)
OMG other expense		4,593		333
Performance (income) loss reclass(1)		14		(55)
Principal investment income		14,490		25,095
Other (income) expense, net		1,981		(473)
Other (income) loss of non-controlling interests in consolidated subsidiaries		(5,023)		138
Total consolidation adjustments and reconciling items		(56,489)		(64,608)
Total segment realized net investment income (expense)		$	1,505	$	(7,823)

(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 March 31,
		2022		2021
Income before taxes		$	161,309	$	190,064
Adjustments:
Depreciation and amortization expense		38,126		14,100
Equity compensation expense		53,017		55,649
Acquisition-related compensation expense(1)		48,001		—

Acquisition and merger-related expense		9,042		8,590
Placement fees		(693)		297
OMG expense, net		95,168		63,396
Other (income) expense, net		1,981		(473)
Net (income) expense of non-controlling interests in consolidated subsidiaries		(4,989)		689
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations		(47,407)		(49,886)
Total performance income—unrealized		(133,532)		(224,954)
Total performance related compensation—unrealized		91,198		160,337
Total investment (income) loss—unrealized		1,822		(18,218)
Realized income		313,043		199,591
Total performance income—realized		(43,868)		(74,945)
Total performance related compensation—realized		28,575		59,857
Total investment income—realized		(1,505)		7,823
Fee related earnings		$	296,245	$	192,326

(1)Represents components of the purchase agreements associated with contingent obligations resulting from the Landmark Acquisition, the Black Creek Acquisition and the Infrastructure Debt Acquisition that are recorded as compensation expense and are presented within compensation and benefits in the Company’s Condensed Consolidated Statements of Operations.