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FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30, 2022:


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	$	—	$	—	$	46,356	$	—	$	46,356
Common stock and other equity securities	—		1,469		113,881		—		115,350
Partnership interests	—		—		2,575		5,800		8,375
Total investments, at fair value	—		1,469		162,812		5,800		170,081
Derivatives-foreign currency forward contracts	—		8,030		—		—		8,030
Total assets, at fair value	$	—	$	9,499	$	162,812	$	5,800	$	178,111
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(70)	$	—	$	—	$	(70)
Contingent consideration	—		—		(10,748)		—		(10,748)
Total liabilities, at fair value	$	—	$	(70)	$	(10,748)	$	—	$	(10,818)


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	$	—	$	496,798	$	288,287	$	—	$	785,085
Loans	136		8,465,388		787,967		—		9,253,491
U.S. Treasury securities	1,000,902		—		—		—		1,000,902

Total fixed income investments	1,001,038		8,962,186		1,076,254		—		11,039,478
Equity securities	—		—		480,914		—		480,914
Partnership interests	—		—		250,123		781,457		1,031,580





Total assets, at fair value	$	1,001,038	$	8,962,186	$	1,807,291	$	781,457	$	12,551,972
Liabilities, at fair value
Derivatives:
Warrants	$	(4,000)	$	—	$	—	$	—	$	(4,000)
Asset swaps	—		—		(3,035)		—		(3,035)
Total derivative liabilities, at fair value	(4,000)		—		(3,035)		—		(7,035)
Loan obligations of CLOs	—		(10,309,475)		—		—		(10,309,475)
Total liabilities, at fair value	$	(4,000)	$	(10,309,475)	$	(3,035)	$	—	$	(10,316,510)

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	—		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:
Derivatives-foreign exchange contracts	$	(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 set forth a summary of changes in the fair value of the Level III measurements for the three months ended June 30, 2022:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	114,499	$	51,458	$	2,575	$	(10,550)	$	157,982


Change in fair value	—		—		—		(198)		(198)
Sales/settlements(1)	(934)		(993)		—		—		(1,927)
Realized and unrealized appreciation(depreciation), net	316		(4,109)		—		—		(3,793)
Balance, end of period	$	113,881	$	46,356	$	2,575	$	(10,748)	$	152,064
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	316	$	(4,109)	$	—	$	(198)	$	(3,991)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	351,140	$	859,301	$	241,123	$	(3,162)	$	1,448,402

Transfer in	—		358,779		—		—		358,779
Transfer out	—		(152,750)		—		—		(152,750)
Purchases(2)	110,322		201,882		3,000		—		315,204
Sales/settlements(1)	(18,422)		(140,607)		(9,000)		—		(168,029)
Amortized discounts/premiums	—		177		—		—		177
Realized and unrealized appreciation(depreciation), net	37,874		(50,528)		15,000		127		2,473
Balance, end of period	$	480,914	$	1,076,254	$	250,123	$	(3,035)	$	1,804,256
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	25,622	$	(37,145)	$	15,000	$	(64)	$	3,413

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

(2)Purchases include paid-in-kind interest and securities 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 June 30, 2021:



Level III Assets of the Company	Equity Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	89,233	$	53,530	$	2,575	$	145,338
Transfer in due to changes in consolidation	—		7,623		—		7,623
Purchases(1)	19,278		981		—		20,259
Sales/settlements(2)	—		(7,678)		—		(7,678)
Realized and unrealized appreciation (depreciation), net	(1,271)		1,384		—		113
Balance, end of period	$	107,240	$	55,840	$	2,575	$	165,655
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,271)	$	852	$	—	$	(419)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	230,634	$	560,380	$	243,452	$	(2,101)	$	1,032,365
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	—		92,025		—		—		92,025
Transfer out	—		(231,320)		—		—		(231,320)
Purchases(1)	789		255,197		12,000		—		267,986
Sales/settlements(2)	(731)		(176,951)		(2,000)		(503)		(180,185)
Amortized discounts/premiums	1		397		—		—		398
Realized and unrealized appreciation (depreciation), net	(1,236)		5,024		1,826		946		6,560
Balance, end of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(1,199)	$	1,503	$	1,826	$	(1,073)	$	1,057

(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, Assets

The following tables set forth a summary of changes in the fair value of the Level III measurements for the six months ended June 30, 2022:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	108,949	$	52,397	$	2,575	$	(57,435)	$	106,486
Transfer in due to changes in consolidation	1,491		—		—		—		1,491


Sales/settlements(1)	(1,147)		(1,878)		—		47,873		44,848
Change in fair value	—		—		—		(1,186)		(1,186)
Realized and unrealized appreciation (depreciation), net	4,588		(4,163)		—		—		425
Balance, end of period	$	113,881	$	46,356	$	2,575	$	(10,748)	$	152,064
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	4,588	$	(4,163)	$	—	$	(1,186)	$	(761)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	339,183	$	742,952	$	238,673	$	(3,105)	$	1,317,703

Transfer in	—		338,080		—		—		338,080
Transfer out	—		(80,261)		—		—		(80,261)
Purchases(2)	117,642		367,274		27,000		—		511,916
Sales/settlements(1)	(28,611)		(226,660)		(30,500)		(2)		(285,773)
Amortized discounts/premiums	—		679		—		—		679
Realized and unrealized appreciation (depreciation), net	52,700		(65,810)		14,950		72		1,912
Balance, end of period	$	480,914	$	1,076,254	$	250,123	$	(3,035)	$	1,804,256
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	26,150	$	(61,044)	$	14,445	$	(175)	$	(20,624)

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

(2)Purchases include paid-in-kind interest and securities received in connection with restructurings.

The following tables set forth a summary of changes in the fair value of the Level III measurements for the six months ended June 30, 2021:



Level III Assets of the Company	Equity Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		7,623
Purchases(1)	19,278		981		—		20,259
Sales/settlements(2)	—		(9,216)		—		(9,216)
Realized and unrealized appreciation (depreciation), net	(450)		3,103		—		2,653
Balance, end of period	$	107,240	$	55,840	$	2,575	$	165,655
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(450)	$	1,617	$	—	$	1,167


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,305	$	231,857	$	1,060	$	996,265
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		123,431		—		—		125,626
Transfer out	(33)		(232,019)		—		—		(232,052)
Purchases(1)	8,855		349,478		13,000		—		371,333
Sales/settlements(2)	(563)		(285,642)		(2,000)		(384)		(288,589)
Amortized discounts/premiums	1		1,157		—		—		1,158
Realized and unrealized appreciation (depreciation), net	(2,041)		6,042		12,421		(2,334)		14,088
Balance, end of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(2,116)	$	2,678	$	12,421	$	(1,727)	$	11,256

(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 six months ended June 30, 2022:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	108,949	$	52,397	$	2,575	$	(57,435)	$	106,486
Transfer in due to changes in consolidation	1,491		—		—		—		1,491


Sales/settlements(1)	(1,147)		(1,878)		—		47,873		44,848
Change in fair value	—		—		—		(1,186)		(1,186)
Realized and unrealized appreciation (depreciation), net	4,588		(4,163)		—		—		425
Balance, end of period	$	113,881	$	46,356	$	2,575	$	(10,748)	$	152,064
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	4,588	$	(4,163)	$	—	$	(1,186)	$	(761)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	339,183	$	742,952	$	238,673	$	(3,105)	$	1,317,703

Transfer in	—		338,080		—		—		338,080
Transfer out	—		(80,261)		—		—		(80,261)
Purchases(2)	117,642		367,274		27,000		—		511,916
Sales/settlements(1)	(28,611)		(226,660)		(30,500)		(2)		(285,773)
Amortized discounts/premiums	—		679		—		—		679
Realized and unrealized appreciation (depreciation), net	52,700		(65,810)		14,950		72		1,912
Balance, end of period	$	480,914	$	1,076,254	$	250,123	$	(3,035)	$	1,804,256
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	26,150	$	(61,044)	$	14,445	$	(175)	$	(20,624)

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

(2)Purchases include paid-in-kind interest and securities received in connection with restructurings.

The following tables set forth a summary of changes in the fair value of the Level III measurements for the six months ended June 30, 2021:



Level III Assets of the Company	Equity Securities		Fixed Income		Partnership Interests		Total
Balance, beginning of period	$	88,412	$	53,349	$	2,575	$	144,336
Transfer in due to changes in consolidation	—		7,623		—		7,623
Purchases(1)	19,278		981		—		20,259
Sales/settlements(2)	—		(9,216)		—		(9,216)
Realized and unrealized appreciation (depreciation), net	(450)		3,103		—		2,653
Balance, end of period	$	107,240	$	55,840	$	2,575	$	165,655
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(450)	$	1,617	$	—	$	1,167


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	221,043	$	542,305	$	231,857	$	1,060	$	996,265
Transfer out due to changes in consolidation	(157)		(49,326)		—		—		(49,483)
Transfer in	2,195		123,431		—		—		125,626
Transfer out	(33)		(232,019)		—		—		(232,052)
Purchases(1)	8,855		349,478		13,000		—		371,333
Sales/settlements(2)	(563)		(285,642)		(2,000)		(384)		(288,589)
Amortized discounts/premiums	1		1,157		—		—		1,158
Realized and unrealized appreciation (depreciation), net	(2,041)		6,042		12,421		(2,334)		14,088
Balance, end of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(2,116)	$	2,678	$	12,421	$	(1,727)	$	11,256

(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 June 30, 2022:

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

52,400

Discounted cash flow

Discount rates

14.0% - 20.0%

14.3%

46,871

Market approach

Multiple of book value

1.4x

Partnership interests

2,575

Other

N/A

Collateralized loan obligations

24,774

Broker quotes and/or 3rd party pricing services

N/A

Other fixed income

21,582

Other

N/A

Total assets

162,812

Liabilities

Contingent consideration

(10,748)

Monte Carlo simulation

Discount rate

8.5%

Volatility

18.0%

Total liabilities

(10,748)

Level III Measurements of the Consolidated Funds

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

1,076

Market approach

EBITDA multiples(2)

7.5x - 63.4x

17.8x

162,414

Market approach

Multiple of book values

1.0x - 1.2x

1.1x

198,778

Discounted cash flow

Discount rate

20.0%

332

Other

N/A

Broker quotes and/or 3rd party pricing services

N/A

118,240

Transaction price(1)

N/A

Partnership interest

250,123

Discounted cash flow

Discount rate

22.6%

Fixed income securities

893,063

Broker quotes and/or 3rd party pricing services

N/A

174,346

Income approach

Yields

5.5% -22.0%

7.9%

6,441

Transaction price(1)

N/A

2,404

Other

N/A

Total assets

1,807,291

Liabilities

Derivative instruments

(3,035)

Broker quotes and/or 3rd party pricing services

N/A

Total liabilities

(3,035)

(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, 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 rate

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 multiples(2)

1.0x - 64.4x

17.5x

140,185

Market approach

Multiple of book values

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 interests

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

Yields

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 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