SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023
	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	422,662	$	55,518	$	95,239	$	41,785	$	6,548	$	621,752	$	—	$	621,752
Fee related performance revenues	222		—		334		298		—		854		—		854
Other fees	9,142		738		11,846		5		135		21,866		7,848		29,714
Compensation and benefits	(122,922)		(20,348)		(40,638)		(16,623)		(3,386)		(203,917)		(86,011)		(289,928)
General, administrative and other expenses	(23,443)		(7,734)		(10,863)		(4,151)		(588)		(46,779)		(49,467)		(96,246)
Fee related earnings	285,661		28,174		55,918		21,314		2,709		393,776		(127,630)		266,146
Performance income—realized	62,760		69,678		2,737		5,460		—		140,635		—		140,635
Performance related compensation—realized	(39,040)		(53,723)		(1,668)		(4,678)		—		(99,109)		—		(99,109)
Realized net performance income	23,720		15,955		1,069		782		—		41,526		—		41,526
Investment income (loss)—realized	17,565		2,084		(1,549)		—		—		18,100		—		18,100
Interest and other investment income—realized	5,672		1,863		2,393		182		1,839		11,949		328		12,277
Interest expense	(8,001)		(5,735)		(4,106)		(2,451)		(5,535)		(25,828)		(11)		(25,839)
Realized net investment income (loss)	15,236		(1,788)		(3,262)		(2,269)		(3,696)		4,221		317		4,538
Realized income	$	324,617	$	42,341	$	53,725	$	19,827	$	(987)	$	439,523	$	(127,313)	$	312,210

	Three months ended June 30, 2022
	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	338,134	$	47,396	$	90,733	$	46,201	$	2,417	$	524,881	$	—	$	524,881
Fee related performance revenues	275		—		965		—		—		1,240		—		1,240
Other fees	6,633		408		8,565		—		50		15,656		6,298		21,954
Compensation and benefits	(98,688)		(24,293)		(40,599)		(15,133)		(1,398)		(180,111)		(71,341)		(251,452)
General, administrative and other expenses	(19,445)		(7,880)		(10,639)		(2,957)		(698)		(41,619)		(35,225)		(76,844)
Fee related earnings	226,909		15,631		49,025		28,111		371		320,047		(100,268)		219,779
Performance income—realized	48,533		—		17,405		4,156		—		70,094		—		70,094
Performance related compensation—realized	(29,358)		—		(11,186)		(3,514)		—		(44,058)		—		(44,058)
Realized net performance income	19,175		—		6,219		642		—		26,036		—		26,036
Investment income (loss)—realized	1,607		672		432		—		(1)		2,710		—		2,710
Interest and other investment income (expense)—realized	6,682		195		2,640		2,200		5,219		16,936		(995)		15,941
Interest expense	(3,657)		(3,629)		(2,713)		(1,557)		(5,486)		(17,042)		(179)		(17,221)
Realized net investment income (loss)	4,632		(2,762)		359		643		(268)		2,604		(1,174)		1,430
Realized income	$	250,716	$	12,869	$	55,603	$	29,396	$	103	$	348,687	$	(101,442)	$	247,245


	Six months ended June 30, 2023
	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	828,312	$	110,175	$	192,709	$	81,648	$	11,527	$	1,224,371	$	—	$	1,224,371
Fee related performance revenues	822		—		334		3,569		—		4,725		—		4,725
Other fees	18,012		1,411		18,308		5		185		37,921		12,488		50,409
Compensation and benefits	(239,138)		(42,658)		(78,624)		(30,035)		(6,526)		(396,981)		(170,978)		(567,959)
General, administrative and other expenses	(45,038)		(17,300)		(23,147)		(8,443)		(1,196)		(95,124)		(95,639)		(190,763)
Fee related earnings	562,970		51,628		109,580		46,744		3,990		774,912		(254,129)		520,783
Performance income—realized	69,353		88,135		8,823		5,460		—		171,771		—		171,771
Performance related compensation—realized	(44,037)		(68,827)		(5,426)		(4,678)		—		(122,968)		—		(122,968)
Realized net performance income	25,316		19,308		3,397		782		—		48,803		—		48,803
Investment income (loss)—realized	18,071		2,963		(3,321)		—		170		17,883		—		17,883
Interest and other investment income—realized	12,090		3,724		4,214		1,407		8,187		29,622		236		29,858
Interest expense	(15,821)		(11,350)		(8,002)		(4,756)		(10,859)		(50,788)		(37)		(50,825)
Realized net investment income (loss)	14,340		(4,663)		(7,109)		(3,349)		(2,502)		(3,283)		199		(3,084)
Realized income	$	602,626	$	66,273	$	105,868	$	44,177	$	1,488	$	820,432	$	(253,930)	$	566,502

	Six months ended June 30, 2022
	Credit Group		Private Equity Group		Real Assets Group		Secondaries Group		Other		Total Segments		OMG		Total
Management fees	$	655,623	$	93,353	$	163,220	$	90,705	$	4,901	$	1,007,802	$	—	$	1,007,802
Fee related performance revenues	12,628		—		1,323		—		—		13,951		—		13,951
Other fees	12,399		705		16,431		—		100		29,635		12,174		41,809
Compensation and benefits	(209,399)		(43,859)		(74,236)		(26,773)		(3,784)		(358,051)		(135,408)		(493,459)
General, administrative and other expenses	(37,638)		(14,168)		(18,276)		(6,035)		(928)		(77,045)		(67,609)		(144,654)
Fee related earnings	433,613		36,031		88,462		57,897		289		616,292		(190,843)		425,449
Performance income—realized	55,896		2,212		51,698		4,156		—		113,962		—		113,962
Performance related compensation—realized	(33,938)		(1,786)		(33,395)		(3,514)		—		(72,633)		—		(72,633)
Realized net performance income	21,958		426		18,303		642		—		41,329		—		41,329
Investment income—realized	2,022		2,275		3,885		—		860		9,042		—		9,042
Interest and other investment income (expense)—realized	12,410		1,697		5,417		2,844		5,220		27,588		(1,279)		26,309
Interest expense	(7,125)		(7,002)		(5,102)		(2,022)		(11,270)		(32,521)		(346)		(32,867)
Realized net investment income (loss)	7,307		(3,030)		4,200		822		(5,190)		4,109		(1,625)		2,484
Realized income	$	462,878	$	33,427	$	110,965	$	59,361	$	(4,901)	$	661,730	$	(192,468)	$	469,262

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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Segment revenues
Management fees	$	621,752	$	524,881	$	1,224,371	$	1,007,802
Fee related performance revenues	854		1,240		4,725		13,951
Other fees	21,866		15,656		37,921		29,635
Performance income—realized	140,635		70,094		171,771		113,962
Total segment revenues	$	785,107	$	611,871	$	1,438,788	$	1,165,350
Segment expenses
Compensation and benefits	$	203,917	$	180,111	$	396,981	$	358,051
General, administrative and other expenses	46,779		41,619		95,124		77,045
Performance related compensation—realized	99,109		44,058		122,968		72,633
Total segment expenses	$	349,805	$	265,788	$	615,073	$	507,729
Segment realized net investment income (expense)
Investment income—realized	$	18,100	$	2,710	$	17,883	$	9,042
Interest and other investment income —realized	11,949		16,936		29,622		27,588
Interest expense	(25,828)		(17,042)		(50,788)		(32,521)
Total segment realized net investment income (expense)	$	4,221	$	2,604	$	(3,283)	$	4,109

Schedule of Segment Revenues Components

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


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Total consolidated revenue	$	1,093,286	$	601,430	$	1,906,648	$	1,316,429
Performance (income) loss—unrealized	(288,220)		24,149		(415,933)		(109,383)
Management fees of Consolidated Funds eliminated in consolidation	12,005		11,362		23,606		22,841
Performance income of Consolidated Funds eliminated in consolidation	3,946		—		7,491		34
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	2,135		4,315		6,978		9,084
Administrative fees(1)	(16,888)		(15,373)		(30,538)		(34,848)
OMG revenue	(7,848)		(6,417)		(12,488)		(12,293)


Principal investment (income) loss, net of eliminations	(6,888)		4,387		(29,646)		(3,939)
Net revenue of non-controlling interests in consolidated subsidiaries	(6,421)		(11,982)		(17,330)		(22,575)
Total consolidation adjustments and reconciling items	(308,179)		10,441		(467,860)		(151,079)
Total segment revenue	$	785,107	$	611,871	$	1,438,788	$	1,165,350

(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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Total consolidated expenses	$	837,738	$	552,868	$	1,466,374	$	1,164,552
Performance related compensation-unrealized	(215,496)		8,549		(300,646)		(82,649)
Expenses of Consolidated Funds added in consolidation	(25,395)		(24,865)		(45,036)		(40,942)
Expenses of Consolidated Funds eliminated in consolidation	12,171		11,638		24,303		23,202
Administrative fees(1)	(16,890)		(15,958)		(30,167)		(34,848)
OMG expenses	(135,478)		(106,566)		(266,617)		(203,017)
Acquisition and merger-related expense	(2,757)		(1,152)		(7,712)		(10,194)
Equity compensation expense	(62,282)		(49,559)		(131,359)		(103,161)
Acquisition-related compensation expense(2)	(600)		(59,491)		(1,242)		(107,492)
Placement fee adjustment	3,744		1,425		6,976		2,118
Depreciation and amortization expense	(42,991)		(40,330)		(88,650)		(78,456)

Expense of non-controlling interests in consolidated subsidiaries	(1,959)		(10,771)		(11,151)		(21,384)
Total consolidation adjustments and reconciling items	(487,933)		(287,080)		(851,301)		(656,823)
Total segment expenses	$	349,805	$	265,788	$	615,073	$	507,729

(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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Total consolidated other income	$	126,421	$	18,504	$	182,817	$	76,498
Investment (income) loss—unrealized	(43,939)		2,084		(72,924)		9,938
Interest and other investment (income) loss—unrealized	4,310		(6,029)		4,518		(12,061)
Other income from Consolidated Funds added in consolidation, net	(146,934)		(27,570)		(209,851)		(94,418)
Other expense from Consolidated Funds eliminated in consolidation, net	(10,492)		(4,215)		(14,943)		(11,733)
OMG other expense	1,153		1,091		1,804		5,684

Principal investment income	65,242		13,493		100,699		27,983
Other expense, net	212		13		303		1,994
Other loss of non-controlling interests in consolidated subsidiaries	8,248		5,233		4,294		224
Total consolidation adjustments and reconciling items	(122,200)		(15,900)		(186,100)		(72,389)
Total segment realized net investment income (expense)	$	4,221	$	2,604	$	(3,283)	$	4,109

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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Income before taxes	$	381,969	$	67,066	$	623,091	$	228,375
Adjustments:
Depreciation and amortization expense	42,991		40,330		88,650		78,456
Equity compensation expense	62,284		50,144		130,988		103,161
Acquisition-related compensation expense(1)	600		59,491		1,242		107,492

Acquisition and merger-related expense	2,757		1,152		7,712		10,194
Placement fee adjustment	(3,744)		(1,425)		(6,976)		(2,118)
OMG expense, net	128,783		101,241		255,933		196,409
Other expense, net	212		12		303		1,993
(Income) loss before taxes of non-controlling interests in consolidated subsidiaries	3,786		4,022		(1,885)		(967)
(Income) loss before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(67,762)		14,999		(94,933)		(32,408)
Total performance (income) loss—unrealized	(288,220)		24,149		(415,933)		(109,383)
Total performance related compensation—unrealized	215,496		(8,549)		300,646		82,649
Total investment income—unrealized	(39,629)		(3,945)		(68,406)		(2,123)
Realized income	439,523		348,687		820,432		661,730
Total performance income—realized	(140,635)		(70,094)		(171,771)		(113,962)
Total performance related compensation—realized	99,109		44,058		122,968		72,633
Total investment (income) loss—realized	(4,221)		(2,604)		3,283		(4,109)
Fee related earnings	$	393,776	$	320,047	$	774,912	$	616,292

(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.