SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Financial Results for Company's Operating Segments and OMG

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







































	Three months ended March 31, 2023
	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	405,650	$	54,657	$	97,470	$	39,863	$	4,979	$	602,619	$	—	$	602,619
Fee related performance revenues	600		—		—		3,271		—		3,871		—		3,871
Other fees	8,870		673		6,462		—		50		16,055		4,640		20,695
Compensation and benefits	(116,216)		(22,310)		(37,986)		(13,412)		(3,140)		(193,064)		(84,967)		(278,031)
General, administrative and other expenses	(21,595)		(9,566)		(12,284)		(4,292)		(608)		(48,345)		(46,172)		(94,517)
Fee related earnings	277,309		23,454		53,662		25,430		1,281		381,136		(126,499)		254,637
Performance income—realized	6,593		18,457		6,086		—		—		31,136		—		31,136
Performance related compensation—realized	(4,997)		(15,104)		(3,758)		—		—		(23,859)		—		(23,859)
Realized net performance income	1,596		3,353		2,328		—		—		7,277		—		7,277
Investment income (loss)—realized	506		879		(1,772)		—		170		(217)		—		(217)
Interest and other investment income (expense)—realized	6,418		1,861		1,821		1,225		6,348		17,673		(92)		17,581
Interest expense	(7,820)		(5,615)		(3,896)		(2,305)		(5,324)		(24,960)		(26)		(24,986)
Realized net investment income (loss)	(896)		(2,875)		(3,847)		(1,080)		1,194		(7,504)		(118)		(7,622)
Realized income	$	278,009	$	23,932	$	52,143	$	24,350	$	2,475	$	380,909	$	(126,617)	$	254,292

	Three months ended March 31, 2022
	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	317,489	$	45,957	$	72,487	$	44,504	$	2,484	$	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	(110,711)		(19,566)		(33,637)		(11,640)		(2,386)		(177,940)		(64,067)		(242,007)
General, administrative and other expenses	(18,193)		(6,288)		(7,637)		(3,078)		(230)		(35,426)		(32,384)		(67,810)
Fee related earnings	206,704		20,400		39,437		29,786		(82)		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	5,728		1,502		2,777		644		1		10,652		(284)		10,368
Interest expense	(3,468)		(3,373)		(2,389)		(465)		(5,784)		(15,479)		(167)		(15,646)
Realized net investment income (loss)	2,675		(268)		3,841		179		(4,922)		1,505		(451)		1,054
Realized income	$	212,162	$	20,558	$	55,362	$	29,965	$	(5,004)	$	313,043	$	(91,026)	$	222,017

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,
	2023		2022
Segment revenues
Management fees	$	602,619	$	482,921
Fee related performance revenues	3,871		12,711
Other fees	16,055		13,979
Performance income—realized	31,136		43,868
Total segment revenues	$	653,681	$	553,479
Segment expenses
Compensation and benefits	$	193,064	$	177,940
General, administrative and other expenses	48,345		35,426
Performance related compensation—realized	23,859		28,575
Total segment expenses	$	265,268	$	241,941
Segment realized net investment income (expense)
Investment income (loss)—realized	$	(217)	$	6,332
Interest and other investment income —realized	17,673		10,652
Interest expense	(24,960)		(15,479)
Total segment realized net investment income (expense)	$	(7,504)	$	1,505

Schedule of Segment Revenues Components

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


	Three months ended March 31,
	2023		2022
Total consolidated revenue	$	813,362	$	714,999
Performance income—unrealized	(127,713)		(133,532)
Management fees of Consolidated Funds eliminated in consolidation	11,601		11,479
Carried interest allocation of Consolidated Funds eliminated in consolidation	3,407		—
Incentive fees of Consolidated Funds eliminated in consolidation	138		34
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	4,843		4,769
Administrative fees(1)	(13,650)		(19,475)
OMG revenue	(4,640)		(5,876)


Principal investment income, net of eliminations	(22,758)		(8,326)
Net revenue of non-controlling interests in consolidated subsidiaries	(10,909)		(10,593)
Total consolidation adjustments and reconciling items	(159,681)		(161,520)
Total segment revenue	$	653,681	$	553,479

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

Schedule of Segment Expenses Components

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


	Three months ended March 31,
	2023		2022
Total consolidated expenses	$	628,636	$	611,684
Performance related compensation-unrealized	(85,150)		(91,198)
Expenses of Consolidated Funds added in consolidation	(19,641)		(16,077)
Expenses of Consolidated Funds eliminated in consolidation	12,132		11,564
Administrative fees(1)	(13,277)		(18,890)
OMG expenses	(131,139)		(96,451)
Acquisition and merger-related expense	(4,955)		(9,042)
Equity compensation expense	(69,077)		(53,602)
Acquisition-related compensation expense(2)	(642)		(48,001)
Placement fee adjustment	3,232		693
Depreciation and amortization expense	(45,659)		(38,126)

Expense of non-controlling interests in consolidated subsidiaries	(9,192)		(10,613)
Total consolidation adjustments and reconciling items	(363,368)		(369,743)
Total segment expenses	$	265,268	$	241,941

(2)Represents contingent obligations resulting from the acquisition of Landmark Partners, LLC (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 within 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,
	2023		2022
Total consolidated other income	$	56,396	$	57,994
Investment (income) loss—unrealized	(28,985)		7,854
Interest and other investment (income) loss—unrealized	208		(6,032)
Other income from Consolidated Funds added in consolidation, net	(62,917)		(66,848)
Other expense from Consolidated Funds eliminated in consolidation, net	(4,451)		(7,518)
OMG other expense	651		4,593

Principal investment income	35,457		14,490
Other expense, net	91		1,981
Other income of non-controlling interests in consolidated subsidiaries	(3,954)		(5,009)
Total consolidation adjustments and reconciling items	(63,900)		(56,489)
Total segment realized net investment income (expense)	$	(7,504)	$	1,505

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,
	2023		2022
Income before taxes	$	241,122	$	161,309
Adjustments:
Depreciation and amortization expense	45,659		38,126
Equity compensation expense	68,704		53,017
Acquisition-related compensation expense(1)	642		48,001

Acquisition and merger-related expense	4,955		9,042
Placement fee adjustment	(3,232)		(693)
OMG expense, net	127,150		95,168
Other expense, net	91		1,981
Net income of non-controlling interests in consolidated subsidiaries	(5,671)		(4,989)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(27,171)		(47,407)
Total performance income—unrealized	(127,713)		(133,532)
Total performance related compensation—unrealized	85,150		91,198
Total investment (income) loss—unrealized	(28,777)		1,822
Realized income	380,909		313,043
Total performance income—realized	(31,136)		(43,868)
Total performance related compensation—realized	23,859		28,575
Total investment income—realized	7,504		(1,505)
Fee related earnings	$	381,136	$	296,245

(1)Represents 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 within the Company’s Condensed Consolidated Statements of Operations.