XML 52 R12.htm IDEA: XBRL DOCUMENT

FAIR VALUE

6 Months Ended

Jun. 30, 2024

5. FAIR VALUE

Fair Value of Financial Instruments Held by the Company and Consolidated Funds

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, 2024:


Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Common stock and other equity securities	$	—	$	101,292	$	379,443	$	—	$	480,735
Collateralized loan obligations and fixed income securities	—		—		92,374		—		92,374
Partnership interests	—		—		—		2,341		2,341
Total investments, at fair value	—		101,292		471,817		2,341		575,450
Derivatives-foreign currency forward contracts	—		1,830		—		—		1,830
Total assets, at fair value	$	—	$	103,122	$	471,817	$	2,341	$	577,280
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(990)	$	—	$	—	$	(990)

Total liabilities, at fair value	$	—	$	(990)	$	—	$	—	$	(990)


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:
Loans and securitization vehicles	$	—	$	8,893,242	$	803,497	$	—	$	9,696,739
Money market funds and U.S. treasury securities	536,846		—		—		—		536,846
Bonds	—		464,120		—		—		464,120

Total fixed income investments	536,846		9,357,362		803,497		—		10,697,705
Partnership interests	—		—		—		1,895,160		1,895,160
Equity securities	33,006		2,255		1,586,854		—		1,622,115
Total investments, at fair value	569,852		9,359,617		2,390,351		1,895,160		14,214,980

Derivatives-foreign currency forward contracts	—		4,427		—		—		4,427


Total assets, at fair value	$	569,852	$	9,364,044	$	2,390,351	$	1,895,160	$	14,219,407
Liabilities, at fair value
Loan obligations of CLOs	$	—	$	(11,491,761)	$	—	$	—	$	(11,491,761)
Derivatives:

Foreign currency forward contracts	—		(4,430)		—		—		(4,430)
Asset swaps	—		—		(1,615)		—		(1,615)


Total derivative liabilities, at fair value	—		(4,430)		(1,615)		—		(6,045)
Total liabilities, at fair value	$	—	$	(11,496,191)	$	(1,615)	$	—	$	(11,497,806)

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, 2023:


Financial Instruments of the Company	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Common stock and other equity securities	$	—	$	86,572	$	412,491	$	—	$	499,063
Collateralized loan obligations and fixed income securities	—		—		126,294		—		126,294
Partnership interests	—		—		—		6,287		6,287
Total investments, at fair value	—		86,572		538,785		6,287		631,644
Derivatives-foreign currency forward contracts	—		1,129		—		—		1,129
Total assets, at fair value	$	—	$	87,701	$	538,785	$	6,287	$	632,773
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(2,645)	$	—	$	—	$	(2,645)

Total liabilities, at fair value	$	—	$	(2,645)	$	—	$	—	$	(2,645)


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:
Loans and securitization vehicles	$	—	$	9,879,915	$	736,543	$	—	$	10,616,458
Bonds	—		575,379		3,570		—		578,949
Money market funds and U.S. treasury securities	523,038		—		—		—		523,038
Total fixed income investments	523,038		10,455,294		740,113		—		11,718,445
Partnership interests	—		—		—		1,642,489		1,642,489
Equity securities	47,503		2,750		1,190,400		—		1,240,653
Total investments, at fair value	570,541		10,458,044		1,930,513		1,642,489		14,601,587

Derivatives-foreign currency forward contracts	—		9,126		—		—		9,126


Total assets, at fair value	$	570,541	$	10,467,170	$	1,930,513	$	1,642,489	$	14,610,713
Liabilities, at fair value
Loan obligations of CLOs	$	—	$	(12,345,657)	$	—	$	—	$	(12,345,657)
Derivatives:

Foreign currency forward contracts	—		(9,491)		—		—		(9,491)
Asset swaps	—		—		(1,291)		—		(1,291)
Total derivative liabilities, at fair value	—		(9,491)		(1,291)		—		(10,782)
Total liabilities, at fair value	$	—	$	(12,355,148)	$	(1,291)	$	—	$	(12,356,439)

The following tables set forth a summary of changes in the fair value of the Level III measurements:



Level III Assets of the Company	Equity Securities		Fixed Income		Total
Balance as of March 31, 2024	$	416,874	$	21,588	$	438,462

Transfer in	—		60,917		60,917
Transfer out	(37,587)		—		(37,587)
Purchases(1)	1,650		263,407		265,057

Sales/settlements(2)	(1,790)		(251,374)		(253,164)
Realized and unrealized appreciation (depreciation), net	296		(2,164)		(1,868)
Balance as of June 30, 2024	$	379,443	$	92,374	$	471,817
Change in net unrealized depreciation included in earnings related to financial assets still held at the reporting date	$	(1,354)	$	(1,556)	$	(2,910)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of March 31, 2024	$	1,366,464	$	639,318	$	(1,574)	$	2,004,208

Transfer in	413		212,632		—		213,045
Transfer out	—		(203,255)		—		(203,255)
Purchases(1)	191,639		355,692		67		547,398
Sales/settlements(2)	—		(199,490)		—		(199,490)
Realized and unrealized appreciation (depreciation), net	28,338		(1,400)		(108)		26,830
Balance as of June 30, 2024	$	1,586,854	$	803,497	$	(1,615)	$	2,388,736
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	30,259	$	(1,868)	$	(169)	$	28,222

(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.


Level III Assets and Liabilities of the Company	Equity Securities		Fixed Income		Total
Balance as of March 31, 2023	$	125,073	$	75,169	$	200,242

Purchases(1)	38,208		771		38,979
Sales/settlements(2)	(881)		(841)		(1,722)

Realized and unrealized appreciation (depreciation), net	2,971		(1,322)		1,649
Balance as of June 30, 2023	$	165,371	$	73,777	$	239,148
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	2,971	$	(1,322)	$	1,649


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance as of March 31, 2023	$	932,635	$	732,804	$	374,049	$	(1,698)	$	2,037,790
Transfer out due to changes in consolidation	(2,076)		(4,563)		(374,049)		—		(380,688)
Transfer in	—		57,540		—		—		57,540
Transfer out	—		(214,205)		—		—		(214,205)
Purchases(1)	48,645		250,912		—		—		299,557
Sales/settlements(2)	(4)		(177,095)		—		(149)		(177,248)

Realized and unrealized appreciation (depreciation), net	86,865		2,738		—		(846)		88,757
Balance as of June 30, 2023	$	1,066,065	$	648,131	$	—	$	(2,693)	$	1,711,503
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	86,879	$	(27,469)	$	—	$	(1,055)	$	58,355

(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.


Level III Assets of the Company	Equity Securities		Fixed Income		Total
Balance as of December 31, 2023	$	412,491	$	126,294	$	538,785


Transfer in	—		60,917		60,917
Transfer out	(37,587)		—		(37,587)
Purchases(1)	1,680		265,673		267,353
Sales/settlements(2)	(2,572)		(359,734)		(362,306)

Realized and unrealized appreciation (depreciation), net	5,431		(776)		4,655
Balance as of June 30, 2024	$	379,443	$	92,374	$	471,817
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	3,780	$	(167)	$	3,613


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of December 31, 2023	$	1,190,400	$	740,113	$	(1,291)	$	1,929,222

Transfer in	475		148,817		—		149,292
Transfer out	—		(298,030)		—		(298,030)
Purchases(1)	346,112		634,880		113		981,105
Sales/settlements(2)	—		(424,037)		—		(424,037)

Realized and unrealized appreciation (depreciation), net	49,867		1,754		(437)		51,184
Balance as of June 30, 2024	$	1,586,854	$	803,497	$	(1,615)	$	2,388,736
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	51,952	$	1,028	$	(442)	$	52,538

(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.



Level III Assets of the Company	Equity Securities		Fixed Income		Total
Balance as of December 31, 2022	$	121,785	$	76,934	$	198,719


Purchases(1)	38,260		1,966		40,226
Sales/settlements(2)	(836)		(2,377)		(3,213)

Realized and unrealized appreciation (depreciation), net	6,162		(2,746)		3,416
Balance as of June 30, 2023	$	165,371	$	73,777	$	239,148
Change in net unrealized appreciation/depreciation included in earnings related to financial assets still held at the reporting date	$	5,949	$	(2,533)	$	3,416


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Partnership Interests		Derivatives, Net		Total
Balance as of December 31, 2022	$	730,880	$	869,668	$	368,655	$	(3,556)	$	1,965,647
Transfer out due to changes in consolidation	(2,076)		(4,563)		(374,049)		—		(380,688)
Transfer in	—		195,575		—		—		195,575
Transfer out	—		(489,165)		—		—		(489,165)
Purchases(1)	229,016		391,086		49,000		—		669,102
Sales/settlements(2)	(126)		(325,968)		(48,889)		(149)		(375,132)

Realized and unrealized appreciation, net	108,371		11,498		5,283		1,012		126,164
Balance as of June 30, 2023	$	1,066,065	$	648,131	$	—	$	(2,693)	$	1,711,503
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	108,324	$	(20,381)	$	—	$	814	$	88,757

(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.

Transfers out of Level III were generally attributable to certain investments that experienced a more significant level of market activity during the period and thus were valued using observable inputs either from independent pricing services or multiple brokers. Transfers into Level III were generally attributable to certain investments that experienced a less significant level of market activity during the period and thus were only able to obtain one or fewer quotes from a broker or independent pricing service.

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, 2024:

Level III Measurements of the Company

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

125,238

Discounted cash flow

Discount rate

18.5% - 30.0%

25.0%

115,858

Market approach

Multiple of book value

1.2x - 1.4x

1.3x

100,000

Market yield analysis

Market interest rate

8.0%

6,750

Market approach

Enterprise value / Earnings multiple

15.4x

31,597

Other

N/A

Fixed income investments

71,111

Market yield analysis

Market interest rate

10.0% - 12.0%

11.0%

20,413

Broker quotes and/or 3rd party pricing services

N/A

850

Other

N/A

Total assets

471,817

Level III Measurements of the Consolidated Funds

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

875,073

Discounted cash flow

Discount rate

10.0% - 18.7%

13.0%

704,180

Market approach

Multiple of book value

1.0x - 1.7x

1.3x

6,116

Market approach

EBITDA multiple(1)

5.2x - 28.5x

6.1x

871

Transaction price(2)

N/A

614

Other

N/A

Fixed income investments

593,596

Broker quotes and/or 3rd party pricing services

N/A

206,062

Market approach

Yield

7.9% - 24.0%

11.4%

3,654

Discounted cash flow

Discount rate

12.3% - 12.7%

12.7%

185

Transaction price(2)

N/A

Total assets

2,390,351

Liabilities

Derivative instruments

(1,615)

Broker quotes and/or 3rd party pricing services

N/A

Total liabilities

(1,615)

(1)“EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization.

(2)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.

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, 2023:

Level III Measurements of the Company

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

154,460

Discounted cash flow

Discount rate

20.0% - 30.0%

25.0%

118,846

Market approach

Multiple of book value

1.3x - 1.6x

1.5x

100,000

Transaction price(1)

N/A

6,447

Market approach

Enterprise value / Earnings multiple

15.4x

32,738

Other

N/A

Fixed income investments

83,000

Transaction price(1)

N/A

20,799

Broker quotes and/or 3rd party pricing services

N/A

22,495

Other

N/A

Total assets

538,785

Level III Measurements of the Consolidated Funds

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Range

Weighted Average

Assets

Equity securities

648,581

Discounted cash flow

Discount rate

10.0% - 16.0%

13.0%

537,733

Market approach

Multiple of book value

1.0x - 1.7x

1.3x

3,909

Market approach

EBITDA multiple(2)

4.5x - 32.4x

8.9x

177

Other

N/A

Fixed income investments

548,264

Broker quotes and/or 3rd party pricing services

N/A

188,322

Market approach

Yield

8.3% - 24.1%

12.2%

2,974

Market approach

EBITDA multiple(2)

4.5x - 32.4x

9.0x

104

Discounted cash flow

Discount rate

12.3%

449

Other

N/A

Total assets

1,930,513

Liabilities

Derivative instruments

(1,291)

Broker quotes and/or 3rd party pricing services

N/A

Total liabilities

(1,291)

(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.

The Consolidated Funds have limited partnership interests in private equity funds managed by the Company that are valued using net asset value (“NAV”) per share. The terms and conditions of these funds do not allow for redemptions without certain events or approvals that are outside the Company’s control.

The following table summarizes the investments held at fair value and unfunded commitments of the Consolidated Funds interests valued using NAV per share:




	As of June 30, 2024		As of December 31, 2023
Investments (held at fair value)	$	1,895,160	$	1,642,489
Unfunded commitments	988,337		738,621

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details