FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial Instruments Not Carried at Estimated Fair Value

As described above in Note 2 to these consolidated financial statements, as of the Effective Date, the Successor Company accounts for its investments, as well as its collateralized loan obligation secured notes at estimated fair value. Comparatively, the Predecessor Company accounted for certain of its corporate loans and its collateralized loan obligation secured notes at amortized cost.

The following table presents the carrying value and estimated fair value, as well as the respective hierarchy classifications, of the Company’s financial assets and liabilities that are not carried at estimated fair value on a recurring basis as of December 31, 2015 (amounts in thousands):



	Successor Company
	As of December 31, 2015				Fair Value Hierarchy
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash, restricted cash, and cash equivalents	$	807,496	$	807,496	$	807,496	$	—	$	—
Liabilities:
Senior notes	413,006		394,390		394,390		—		—
Junior subordinated notes	248,498		216,757		—		—		216,757



	Successor Company
	As of December 31, 2014				Fair Value Hierarchy
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash, restricted cash, and cash equivalents	$	610,912	$	610,912	$	610,912	$	—	$	—
Liabilities:
Senior notes	414,524		413,215		413,215		—		—
Junior subordinated notes	246,907		228,087		—		—		228,087

Fair Value Measurements

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (amounts in thousands):



	Successor Company
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2015
Assets:
Securities:
Corporate debt securities	$	—	$	172,912	$	194,986	$	367,898
Residential mortgage-backed securities	—		—		49,621		49,621
Total securities	—		172,912		244,607		417,519
Corporate loans	—		4,889,876		298,734		5,188,610
Equity investments, at estimated fair value	40,765		75,533		146,648		262,946
Interests in joint ventures and partnerships, at estimated fair value	—		—		888,408		888,408
Derivatives:
Foreign exchange forward contracts and options	—		37,120		3,637		40,757
Options	—		—		95		95
Total derivatives	—		37,120		3,732		40,852
Total	$	40,765	$	5,175,441	$	1,582,129	$	6,798,335
Liabilities:
Collateralized loan obligation secured notes	$	—	$	4,843,746	$	—	$	4,843,746
Derivatives:
Interest rate swaps	—		41,743		—		41,743
Foreign exchange forward contracts and options	—		1,399		750		2,149
Total derivatives	—		43,142		750		43,892
Total	$	—	$	4,886,888	$	750	$	4,887,638

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (amounts in thousands):



	Successor Company
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2014
Assets:
Securities:
Corporate debt securities	$	—	$	266,387	$	317,034	$	583,421
Residential mortgage-backed securities	—		—		55,184		55,184
Total securities	—		266,387		372,218		638,605
Corporate loans	—		6,159,487		347,077		6,506,564
Equity investments, at estimated fair value	25,692		73,967		81,719		181,378
Interests in joint ventures and partnerships, at estimated fair value	—		—		718,772		718,772
Other assets	—		4,645		—		4,645
Derivatives:
Foreign exchange forward contracts and options	—		28,354		—		28,354
Options	—		—		5,212		5,212
Total derivatives	—		28,354		5,212		33,566
Total	$	25,692	$	6,532,840	$	1,524,998	$	8,083,530
Liabilities:
Collateralized loan obligation secured notes	$	—	$	—	$	5,501,099	$	5,501,099
Derivatives:
Interest rate swaps	—		54,071		—		54,071
Foreign exchange forward contracts and options	—		926		—		926
Total rate of return swaps	—		130		—		130
Total derivatives	—		55,127		—		55,127
Total	$	—	$	55,127	$	5,501,099	$	5,556,226

Level 3 Fair Value Rollforward

The following table presents additional information about assets and liabilities, including derivatives, that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value, for the year ended December 31, 2015 (amounts in thousands):



	Successor Company
	Assets																							Liabilities
	Corporate Debt Securities			Residential Mortgage- Backed Securities			Corporate Loans			Equity Investments, at Estimated Fair Value			Interests in Joint Ventures and Partnerships			Foreign Exchange Options, Net		Warrants			Options			Collateralized Loan Obligation Secured Notes
Beginning balance as of January 1, 2015	$	317,034		$	55,184		$	347,077		$	81,719		$	718,772		$	—	$	—		$	5,212		$	5,501,099
Total gains or losses (for the period):
Included in earnings(1)	(37,716		)	8,398			(69,384		)	(42,472		)	(141,386		)	2,887		(2,412		)	(5,117		)	—
Transfers into Level 3	—			—			—			—			—			—		—			—			—
Transfers out of Level 3(2)	—			—			—			—			—			—		—			—			(5,501,099		)
Purchases	10,001			—			12,775			—			351,184			—		—			—			—
Sales	(98,539		)	—			(25,511		)	—			—			—		—			—			—
Settlements	4,206			(13,961		)	33,777			107,401			(40,162		)	—		2,412			—			—
Ending balance as of December 31, 2015	$	194,986		$	49,621		$	298,734		$	146,648		$	888,408		$	2,887	$	—		$	95		$	—
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period(1)	$	(45,488	)	$	2,273		$	(67,368	)	$	(41,776	)	$	(141,386	)	$	2,887	$	(2,412	)	$	(5,117	)	$	—


(1)	Amounts are included in net realized and unrealized gain (loss) on investments or net realized and unrealized gain (loss) on derivatives and foreign exchange in the consolidated statements of operations.

(2)

CLO secured notes were transferred out of Level 3 due to the adoption of accounting guidance effective January 1, 2015, whereby the debt obligations of the Company's consolidated CLOs were measured on the basis of the estimated fair value of the financial assets of the CLOs. As such, as of December 31, 2015, these debt obligations were classified as Level 2. Refer to Note 2 to these consolidated financial statement for further discussion.

The following table presents additional information about assets, including derivatives, that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value, for the eight months ended December 31, 2014 (amounts in thousands):



	Successor Company
	Assets																					Liabilities
	Corporate Debt Securities			Residential Mortgage- Backed Securities			Corporate Loans, at Estimated Fair Value			Equity Investments, at Estimated Fair Value			Interests in Joint Ventures and Partnerships			Foreign Exchange Options, Net			Options			Collateralized Loan Obligations Secured Notes
Beginning balance as of May 1, 2014	$	156,500		$	59,623		$	294,218		$	157,765		$	472,467		$	8,854		$	6,684		$	5,663,665
Total gains or losses (for the period):
Included in earnings(1)	(16,973		)	4,981			(15,346		)	(2,005		)	(102,158		)	(8,854		)	(1,472		)	(4,123		)
Transfers into Level 3(2)	—			—			66,250			—			—			—			—			—
Transfers out of Level 3(3)	—			—			—			(1,230		)	—			—			—			—
Purchases	83,402			—			2,588			—			90,566			—			—			885,983
Sales	(26,433		)	—			(2,912		)	(17,535		)	(13,795		)	—			—			—
Settlements	120,538			(9,420		)	2,279			(55,276		)	271,692			—			—			(1,044,426		)
Ending balance as of December 31, 2014	$	317,034		$	55,184		$	347,077		$	81,719		$	718,772		$	—		$	5,212		$	5,501,099
Change in unrealized gains or losses for the eight months ended December 31, 2014 included in earnings for assets held at the end of the reporting period(1)	$	(16,787	)	$	386		$	(15,305	)	$	(791	)	$	(106,215	)	$	—		$	(1,472	)	$	(4,393	)

(1)

Amounts are included in net realized and unrealized gain (loss) on investments or net realized and unrealized gain (loss) on derivatives and foreign exchange in the consolidated statements of operations. Amounts for collateralized loan obligation secured notes, which represent liabilities measured at fair value, are included in net realized and unrealized gain (loss) on debt in the consolidated statements of operations.


(2)	Corporate loans were transferred into Level 3 because observable market data was no longer available.


(3)	Equity investments, at estimated fair value were transferred out of Level 3 because observable market data became available.

The following table presents additional information about assets, including derivatives, that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value, for the four months ended April 30, 2014 (amounts in thousands):



	Predecessor Company
	Securities Available- For-Sale			Other Securities, at Estimated Fair Value			Residential Mortgage- Backed Securities			Corporate Loans, at Estimated Fair Value			Equity Investments, at Estimated Fair Value			Interests in Joint Ventures and Partnerships			Foreign Exchange Options, Net			Options
Beginning balance as of January 1, 2014	$	23,401		$	107,530		$	76,004		$	152,800		$	138,059		$	415,247		$	8,941		$	6,794
Total gains or losses (for the period):
Included in earnings(1)	22			3,059			3,088			(5,123		)	9,076			22,377			(813		)	(302		)
Included in other comprehensive income	121			—			—			—			—			—			—			—
Transfers into Level 3	—			—			—			—			—			—			—			—
Transfers out of Level 3(3)	—			—			—			—			(8,751		)	—			—			—
Purchases	—			25,000			—			8,822			—			42,683			—			—
Sales	—			—			(17,810		)	—			—			—			—			—
Settlements	(16		)	(10,078		)	(2,529		)	(3,104		)	120,593			14,113			—			—
Ending balance as of March 31, 2014	23,528			125,511			58,753			153,395			258,977			494,420			8,128			6,492
Total gains or losses (for the period):
Included in earnings(1)	44			479			1,416			1,240			12,126			(24,158		)	726			192
Included in other comprehensive income	33			—			—			—			—			—			—			—
Transfers into Level 3(2)	6,937			—			—			—			—			—			—			—
Transfers out of Level 3(3)	—			—			—			—			(119,033		)	—			—			—
Purchases	—			—			—			—			—			1,615			—			—
Sales	—			—			—			—			—			—			—			—
Settlements	(32		)	—			(546		)	2,272			—			(1,184		)	—			—
Ending balance as of April 30, 2014	$	30,510		$	125,990		$	59,623		$	156,907		$	152,070		$	470,693		$	8,854		$	6,684
Change in unrealized gains or losses for the period included in earnings for the four months ended April 30, 2014 for assets held at the end of the reporting period(1)	$	66		$	2,683		$	5,242		$	4,445		$	20,499		$	(1,781	)	$	(87	)	$	(110	)


(1)	Amounts are included in net realized and unrealized gain (loss) on investments or net realized and unrealized gain (loss) on derivatives and foreign exchange in the consolidated statements of operations.


(2)	Securities available-for-sale were transferred into Level 3 because observable market data was no longer available as a result of an asset-restructure.

(3) Equity investments, at estimated fair value were transferred out of Level 3 because observable market data became available as a result of asset-restructures.

Certain interests in joint ventures and partnerships were transferred from Level 1 to Level 2 during the eight months ended December 31, 2014 due to illiquid market conditions. There were no transfers between Level 1 and Level 2 for the Company’s financial assets and liabilities measured at fair value on a recurring and non-recurring basis for the year ended December 31, 2015 and four months ended April 30, 2014.

Valuation Techniques and Inputs for Level 3 Fair Value Measurements

The following table presents additional information about valuation techniques and inputs used for assets and liabilities, including derivatives, that are measured at fair value and categorized within Level 3 as of December 31, 2015 (dollar amounts in thousands):

Successor Company

Balance as of
December 31, 2015

Valuation

Techniques(1)

Unobservable

Inputs(2)

Weighted

Average(3)

Range

Impact to

Valuation

from an

Increase in

Input(4)

Assets:

Corporate debt securities

194,986

Yield analysis

Yield

23%

6% - 31%

Decrease

Net leverage

10x

10x-12x

Decrease

EBITDA multiple

7x - 10x

Increase

Discount margin

750

750bps

Decrease



Residential mortgage – backed securities	$	49,621	Discounted cash flows	Probability of default	1%	0% - 3%	Decrease
				Loss severity	40%	35% - 45%	Decrease
				Constant prepayment rate	15%	12% - 18%	(5	)
Corporate loans	$	298,734	Yield Analysis	Yield	11%	3% - 18%	Decrease
				Net leverage	7x	1x - 19x	Decrease
				EBITDA multiple	9x	6x - 15x	Increase
Equity investments, at estimated fair value(6)	$	146,648	Inputs to market comparables, discounted cash flow and broker quotes	Illiquidity discount	11%	0% - 15%	Decrease
				Weight ascribed to market comparables	52%	0% - 100%	(7	)
				Weight ascribed to discounted cash flows	42%	0% - 100%	(8	)
				Weight ascribed to broker quotes	6%	0% - 100%	(9	)
			Market comparables	LTM EBITDA multiple	8x	4x - 13x	Increase
				Forward EBITDA multiple	8x	3x - 11x	Increase
			Discounted cash flows	Weighted average cost of capital	9%	7% - 14%	Decrease
				LTM EBITDA exit multiple	8x	0x - 9x	Increase
			Broker quotes	Offered quotes	4	0 - 5	Increase
Interests in joint ventures and partnerships(10)	$	888,408	Inputs to both market comparables and discounted cash flow	Weight ascribed to market comparables	43%	0% - 100%	(7	)
				Weight ascribed to discounted cash flows	57%	0% - 100%	(8	)
			Market comparables	LTM EBITDA multiple	5x	1x - 9x	Decrease
			Discounted cash flows	Weighted average cost of capital	8%	6% - 20%	Decrease
				Average price per BOE(11)	$20.61	$14.33 - $23.22	Increase
			Yield analysis	Yield	16%	16%	Decrease
				Net leverage	2x	2x	Decrease
				EBITDA multiple	8x	8x	Increase
Foreign exchange options, net	$	2,887	Option pricing model	Forward and spot rates	11,500	6 -14,000	(12	)
Options(13)	$	95	Inputs to both market comparables and discounted cash flow	Illiquidity discount	10%	10%	Decrease
				Weight ascribed to market comparables	50%	50%	(7	)
				Weight ascribed to discounted cash flows	50%	50%	(8	)
	,		Market comparables	LTM EBITDA multiple	9x	9x	Increase
				Forward EBITDA multiple	8x	8x	Increase
			Discounted cash flows	Weighted average cost of capital	14%	14%	Decrease
				LTM EBITDA exit multiple	8x	8x	Increase

(1)

For the assets that have more than one valuation technique, the Company may rely on the techniques individually or in aggregate based on a weight ascribed to each one ranging from 0-100%. When determining the weighting ascribed to each valuation methodology, the Company considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis and the expected hold period and manner of realization for the investment. These factors can result in different weightings among the investments and in certain instances, may result in up to a 100%weighting to a single methodology. Broker quotes obtained for valuation purposes are reviewed by the Company through other valuation techniques.


(2)	In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments; market valuations of comparable companies; and company specific developments including exit strategies and realization opportunities.


(3)	Weighted average amounts are based on the estimated fair values.


(4)	Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.


(5)	The impact of changes in prepayment speeds may have differing impacts depending on the seniority of the instrument. Generally, an increase in the constant prepayment speed will positively impact the overall valuation of traditional mortgage assets. In contrast, an increase in the constant prepayment rate will negatively impact the overall valuation of interest-only strips.

(6)

When determining the illiquidity discount to be applied to equity investments, at estimated fair value, the Company seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments carried at estimated fair value. The Company then evaluates such investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include the salability of the investment, whether the issuer is undergoing significant restructuring activity or similar factors, as well as characteristics about the issuer including its size and/or whether it is experiencing, or expected to experience, a significant decline in earnings. Depending on the applicability of these factors, the Company determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time the Company holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by the Company in its valuations. Of the total equity investments, at estimated fair value, $6.4 million was valued solely using broker quotes, while $11.3 million was valued solely using a market comparables technique.

(7)

The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level 3 investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and broker quotes, if applicable. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and broker quotes, if applicable.

(8)

The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level 3 investments if the discounted cash flow approach results in a higher valuation than the market comparables approach and broker quotes, if applicable. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach and broker quotes, if applicable.

(9)

The directional change from an increase in the weight ascribed to broker quotes would increase the fair value of the Level 3 investments if the broker quotes results in a higher valuation than the market comparables and discounted cash flow approaches, if applicable. The opposite would be true if the broker quotes results in a lower valuation than the market comparables and discounted cash flow approaches, if applicable.


(10)	Inputs exclude an asset that was valued using an independent third party valuation firm. Of the total interest in joint ventures and partnerships, $164.4 million was valued solely using a discounted cash flow technique, while $98.9 million was valued solely using a market comparables technique and $17.5 million was valued solely using a yield analysis.

(11)

Natural resources assets with an estimated fair value of $114.1 million as of December 31, 2015 were valued using commodity prices. Commodity prices may be measured using a common volumetric equivalent where one barrel of oil equivalent (‘‘BOE’’) is determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids. The price per BOE is provided to show the aggregate of all price inputs for these investments over a common volumetric equivalent although the valuations for specific investments may use price inputs specific to the asset for purposes of our valuations. The discounted cash flows include forecasted production of liquids (oil, condensate, and natural gas liquids) and natural gas with a forecasted revenue ratio of approximately 25% liquids and 75% natural gas.


(12)	Inputs include forward rates for investments in Chinese Yuan and Indian Rupees.


(13)	The total options were valued using 50% a discount cash flow technique and 50% a market comparables technique.

The following table presents additional information about valuation techniques and inputs used for assets, including derivatives, that are measured at fair value and categorized within Level 3 as of December 31, 2014 (dollar amounts in thousands):

Successor Company

Balance as of

December 31,

2014

Valuation

Techniques(1)

Unobservable

Inputs(2)

Weighted

Average(3)

Range

Impact to

Valuation

from an

Increase in

Input(4)

Assets:

Corporate debt securities

317,034

Yield analysis

Yield

17%

3% - 19%

Decrease

Net leverage

5x - 12x

Decrease

EBITDA multiple

4x - 11x

Increase

Discount margin

905bps

625bps - 1100bps

Decrease

Broker quotes

Offered quotes

101

Increase

Residential mortgage-backed securities

55,184

Discounted cash flows

Probability of defaults

0% - 21%

Decrease

Loss severity

26%

12% - 45%

Decrease

Constant prepayment rate

12%

4% - 19%

)

Corporate loans, at estimated fair value

347,077

Yield Analysis

Yield

12%

3% - 21%

Decrease

Net leverage

1x - 13x

Decrease

EBITDA multiple

5x - 12x

Increase

Equity investments, at estimated fair value(6)

81,719

Inputs to both market comparables and discounted cash flow

Weight ascribed to market comparables

97%

0% - 100%

)

Weight ascribed to discounted cash flows

83%

0% - 100%

)

Market comparables

LTM EBITDA multiple

1x - 12x

Increase

Forward EBITDA multiple

4x - 11x

Increase

Discounted cash flows

Weighted average cost of capital

13%

9% - 16%

Decrease

LTM EBITDA exit multiple

5x - 10x

Increase

Interests in joint ventures and partnerships(9)

718,772

Inputs to both market comparables and discounted cash flow

Weight ascribed to market comparables

54%

0% - 100%

)

Weight ascribed to discounted cash flows

79%

0% - 100%

)

Market comparables

Current capitalization rate

4% - 15%

Decrease

LTM EBITDA multiple

11x

10x - 13x

Increase

Control Premium

15%

Increase

Discounted cash flows

Weighted average cost of capital

12%

7% - 20%

Decrease

Average Price per BOE(10)

$30.16

$21.46 - $35.67

Increase

Options(11)

5,212

Inputs to both market comparables and discounted cash flow

Weight ascribed to market comparables

50%

)

Weight ascribed to discounted cash flows

50%

)

Market comparables

LTM EBITDA multiple

Increase

Discounted cash flows

Weighted average cost of capital

14%

Decrease

LTM EBITDA exit multiple

11x

Increase

Liabilities:

Collateralized loan obligation secured notes

5,501,099

Yield analysis

Discount margin

255bps

95bps - 1000bps

Decrease

Discounted cash flows

Probability of default

2% - 3%

Decrease

Loss Severity

32%

30% - 37%

Decrease

(1)

For the assets that have more than one valuation technique, the Company may rely on the techniques individually or in aggregate based on a weight ascribed to each one ranging from 0-100%. When determining the weighting ascribed to each valuation methodology, the Company considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis and the expected hold period and manner of realization for the investment. These factors can result in different weightings among the investments and in certain instances, may result in up to a 100% weighting to a single methodology. Broker quotes obtained for valuation purposes are reviewed by the Company through other valuation techniques.


(2)	In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments; market valuations of comparable companies; and company specific developments including exit strategies and realization opportunities.


(3)	Weighted average amounts are based on the estimated fair values.


(4)	Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.


(5)	The impact of changes in prepayment speeds may have differing impacts depending on the seniority of the instrument. Generally, an increase in the constant prepayment speed will positively impact the overall valuation of traditional mortgage assets. In contrast, an increase in the constant prepayment rate will negatively impact the overall valuation of interest-only strips.

(6)

When determining the illiquidity discount to be applied to equity investments, at estimated fair value, the Company seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments carried at estimated fair value. The Company then evaluates such investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include the salability of the investment, whether the issuer is undergoing significant restructuring activity or similar factors, as well as characteristics about the issuer including its size and/or whether it is experiencing, or expected to experience, a significant decline in earnings. Depending on the applicability of these factors, the Company determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time the Company holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by the Company in its valuations. Of the total equity investments, at estimated fair value, $9.5 million was valued solely using a discounted cash flow technique, while $67.4 million was valued solely using a market comparables technique.


(7)	The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level 3 investments if the market comparables approach results in a higher valuation than the discounted cash flow approach. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach.


(8)	The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level 3 investments if the discounted cash flow approach results in a higher valuation than the market comparables approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach.


(9)	Inputs exclude an asset that was valued using an independent third party valuation firm. Of the total interests in joint ventures and partnerships, $207.6 million was valued solely using a discounted cash flow technique, while $20.4 million was valued solely using a market comparables technique.

(10)

Natural resources assets with an estimated fair value of $176.4 million as of December 31, 2014 were valued using commodity prices. Commodity prices may be measured using a common volumetric equivalent where one BOE is determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids. The price per BOE is provided to show the aggregate of all price inputs for these investments over a common volumetric equivalent although the valuations for specific investments may use price inputs specific to the asset for purposes of our valuations. The discounted cash flows include forecasted production of liquids (oil, condensate, and natural gas liquids) and natural gas with a forecasted revenue ratio of approximately 23% liquids and 77% natural gas.


(11)	The total options were valued using 50% a discount cash flow technique and 50% a market comparables technique.