XML 73 R29.htm IDEA: XBRL DOCUMENT

FAIR VALUE (Tables)

9 Months Ended

Sep. 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 September 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	$	—	$	—	$	45,825	$	—	$	45,825
Common stock and other equity securities	—		77,014		117,272		—		194,286
Partnership interests	—		—		2,575		5,652		8,227
Total investments, at fair value	—		77,014		165,672		5,652		248,338
Derivatives-foreign currency forward contracts	—		9,247		—		—		9,247
Total assets, at fair value	$	—	$	86,261	$	165,672	$	5,652	$	257,585
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(6,581)	$	—	$	—	$	(6,581)
Contingent consideration	—		—		(11,000)		—		(11,000)
Total liabilities, at fair value	$	—	$	(6,581)	$	(11,000)	$	—	$	(17,581)


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	$	—	$	495,501	$	255,884	$	—	$	751,385
Loans	—		8,321,661		664,725		—		8,986,386
U.S. Treasury securities	1,005,094		—		—		—		1,005,094

Total fixed income investments	1,005,094		8,817,162		920,609		—		10,742,865
Equity securities	646		—		526,051		171,539		698,236
Partnership interests	—		—		252,634		880,550		1,133,184
Total investments, at fair value	1,005,740		8,817,162		1,699,294		1,052,089		12,574,285
Derivatives:
Derivatives-foreign exchange contracts	—		536		—		—		536

Total derivative assets, at fair value	—		536		—		—		536
Total assets, at fair value	$	1,005,740	$	8,817,698	$	1,699,294	$	1,052,089	$	12,574,821
Liabilities, at fair value
Derivatives:
Warrants	$	(2,000)	$	—	$	—	$	—	$	(2,000)
Forward foreign currency contracts	—		(496)		—		—		(496)
Asset swaps	—		—		(3,353)		—		(3,353)
Total derivative liabilities, at fair value	(2,000)		(496)		(3,353)		—		(5,849)
Loan obligations of CLOs	—		(10,313,881)		—		—		(10,313,881)
Total liabilities, at fair value	$	(2,000)	$	(10,314,377)	$	(3,353)	$	—	$	(10,319,730)

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 September 30, 2022:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	113,881	$	46,356	$	2,575	$	(10,748)	$	152,064

Purchases(1)	894		—		—		—		894
Change in fair value	—		—		—		(252)		(252)
Sales/settlements(2)	(1,179)		(505)		—		—		(1,684)
Realized and unrealized appreciation(depreciation), net	3,676		(26)		—		—		3,650
Balance, end of period	$	117,272	$	45,825	$	2,575	$	(11,000)	$	154,672
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	7,111	$	(26)	$	—	$	(252)	$	6,833


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	480,914	$	1,076,254	$	250,123	$	(3,035)	$	1,804,256

Transfer in	—		171,687		—		—		171,687
Transfer out	—		(350,079)		—		—		(350,079)
Purchases(1)	49,024		173,253		31,258		—		253,535
Sales/settlements(2)	(64)		(132,226)		(22,328)		—		(154,618)
Amortized discounts/premiums	—		521		—		—		521
Realized and unrealized appreciation(depreciation), net	(3,823)		(18,801)		(6,419)		(318)		(29,361)
Balance, end of period	$	526,051	$	920,609	$	252,634	$	(3,353)	$	1,695,941
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	(3,836)	$	(9,067)	$	5,421	$	(447)	$	(7,929)

(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 September 30, 2021:



Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Partnership Interests		Contingent Consideration		Total
Balance, beginning of period	$	107,240	$	55,840	$	2,575	$	—	$	165,655

Established in connection with acquisition	—		—		—		(34,200)		(34,200)
Purchases(1)	—		708		—		—		708
Sales/settlements(2)	—		(2,904)		—		—		(2,904)
Realized and unrealized appreciation (depreciation), net	1,157		663		—		(7,213)		(5,393)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	1,157	$	675	$	—	$	(7,213)	$	(5,381)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance, beginning of period	$	229,300	$	455,426	$	255,278	$	(1,658)	$	938,346

Transfer in	—		18,792		—		—		18,792
Transfer out	—		(209,282)		—		—		(209,282)
Purchases(1)	27,346		219,180		—		—		246,526
Sales/settlements(2)	(313)		(88,584)		(30,000)		625		(118,272)
Amortized discounts/premiums	—		394		—		—		394
Realized and unrealized appreciation (depreciation), net	2,913		6,750		12,280		(155)		21,788
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	2,912	$	1,607	$	12,280	$	(63)	$	16,736

(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 nine months ended September 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
Purchases(1)	894		—		—		—		894

Sales/settlements(2)	(2,326)		(2,383)		—		47,873		43,164
Change in fair value	—		—		—		(1,438)		(1,438)
Realized and unrealized appreciation (depreciation), net	8,264		(4,189)		—		—		4,075
Balance, end of period	$	117,272	$	45,825	$	2,575	$	(11,000)	$	154,672
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	10,330	$	(4,189)	$	—	$	(1,438)	$	4,703


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	—		321,939		—		—		321,939
Transfer out	—		(213,658)		—		—		(213,658)
Purchases(1)	166,667		551,408		58,258		—		776,333
Sales/settlements(2)	(28,444)		(405,904)		(52,828)		—		(487,176)
Amortized discounts/premiums	—		1,274		—		—		1,274
Realized and unrealized appreciation (depreciation), net	48,645		(77,402)		8,531		(248)		(20,474)
Balance, end of period	$	526,051	$	920,609	$	252,634	$	(3,353)	$	1,695,941
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	22,304	$	(69,982)	$	344	$	(643)	$	(47,977)

(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 nine months ended September 30, 2021:



Level III Assets 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)	—		(12,120)		—		—		(12,120)
Realized and unrealized appreciation (depreciation), net	707		3,766		—		(7,213)		(2,740)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	707	$	2,315	$	—	$	(7,213)	$	(4,191)


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		47,818		—		—		50,013
Transfer out	(33)		(216,177)		—		—		(216,210)
Purchases(1)	36,201		437,426		13,000		—		486,627
Sales/settlements(2)	(876)		(371,006)		(32,000)		301		(403,581)
Amortized discounts/premiums	1		1,464		—		—		1,465
Realized and unrealized appreciation (depreciation), net	872		10,172		24,701		(2,549)		33,196
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	790	$	2,700	$	24,701	$	(1,670)	$	26,521

(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 nine months ended September 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
Purchases(1)	894		—		—		—		894

Sales/settlements(2)	(2,326)		(2,383)		—		47,873		43,164
Change in fair value	—		—		—		(1,438)		(1,438)
Realized and unrealized appreciation (depreciation), net	8,264		(4,189)		—		—		4,075
Balance, end of period	$	117,272	$	45,825	$	2,575	$	(11,000)	$	154,672
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	10,330	$	(4,189)	$	—	$	(1,438)	$	4,703


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	—		321,939		—		—		321,939
Transfer out	—		(213,658)		—		—		(213,658)
Purchases(1)	166,667		551,408		58,258		—		776,333
Sales/settlements(2)	(28,444)		(405,904)		(52,828)		—		(487,176)
Amortized discounts/premiums	—		1,274		—		—		1,274
Realized and unrealized appreciation (depreciation), net	48,645		(77,402)		8,531		(248)		(20,474)
Balance, end of period	$	526,051	$	920,609	$	252,634	$	(3,353)	$	1,695,941
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	22,304	$	(69,982)	$	344	$	(643)	$	(47,977)

(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 nine months ended September 30, 2021:



Level III Assets 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)	—		(12,120)		—		—		(12,120)
Realized and unrealized appreciation (depreciation), net	707		3,766		—		(7,213)		(2,740)
Balance, end of period	$	108,397	$	54,307	$	2,575	$	(41,413)	$	123,866
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	707	$	2,315	$	—	$	(7,213)	$	(4,191)


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		47,818		—		—		50,013
Transfer out	(33)		(216,177)		—		—		(216,210)
Purchases(1)	36,201		437,426		13,000		—		486,627
Sales/settlements(2)	(876)		(371,006)		(32,000)		301		(403,581)
Amortized discounts/premiums	1		1,464		—		—		1,465
Realized and unrealized appreciation (depreciation), net	872		10,172		24,701		(2,549)		33,196
Balance, end of period	$	259,246	$	402,676	$	237,558	$	(1,188)	$	898,292
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	790	$	2,700	$	24,701	$	(1,670)	$	26,521

(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 September 30, 2022:

Level III Measurements of the Company

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

15,504

Transaction price(1)

N/A

56,154

Discounted cash flow

Discount rate

16.0%

45,614

Market approach

Multiple of book value

1.4x

Partnership interests

2,575

Other

N/A

Collateralized loan obligations

24,243

Broker quotes and/or 3rd party pricing services

N/A

Other fixed income

21,582

Other

N/A

Total assets

165,672

Liabilities

Contingent consideration

(11,000)

Other

N/A

Total liabilities

(11,000)

Level III Measurements of the Consolidated Funds

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

2,168

Market approach

EBITDA multiples(2)

9.3x - 55.9x

12.8x

216,820

Market approach

Multiple of book values

1.0x - 27.5x

5.5x

199,536

Discounted cash flow

Discount rate

20.0%

551

Other

N/A

Yield analysis

Yields

12.5% - 15.2%

12.9%

Broker quotes and/or 3rd party pricing services

N/A

106,883

Transaction price(1)

N/A

Partnership interest

252,634

Discounted cash flow

Discount rate

23.4%

Fixed income securities

799,759

Broker quotes and/or 3rd party pricing services

N/A

107,133

Yield analysis

Yields

5.6% - 23.0%

10.8%

12,394

Transaction price

N/A

1,323

Other

N/A

Total assets

1,699,294

Liabilities

Derivative instruments

(3,353)

Broker quotes and/or 3rd party pricing services

N/A

Total liabilities

(3,353)

(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