UNITHOLDERS' CAPITAL

9 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

UNITHOLDERS' CAPITAL

UNITHOLDERS’ CAPITAL

The OCGH unitholders’ economic interest in the Oaktree Operating Group is reflected as OCGH non-controlling interest in consolidated subsidiaries and is determined at the Oaktree Operating Group level based on the proportionate share of Oaktree Operating Group units held by the OCGH unitholders. Certain expenses, such as income tax and related administrative expenses of Oaktree Capital Group, LLC and its Intermediate Holding Companies, are solely attributable to the Class A unitholders. As of September 30, 2013 and December 31, 2012, respectively, OCGH units represented 112,821,276 of the total 151,060,717 Oaktree Operating Group units and 120,267,503 units of the total 150,448,436 Oaktree Operating Group units. Based on total Oaktree Operating Group capital of $1,496,709 and $1,360,331 as of September 30, 2013 and December 31, 2012, respectively, the OCGH non-controlling interest was $1,117,830 and $1,087,491.

The following table sets forth a summary of the net income attributable to the OCGH non-controlling interest and to the Class A unitholders:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Weighted average Oaktree Operating Group units outstanding (in thousands):
OCGH non-controlling interest	112,791			120,283			117,103			123,070
Class A unitholders	38,239			30,181			33,845			27,494
Total weighted average units outstanding	151,030			150,464			150,948			150,564
Oaktree Operating Group net income:
Net income attributable to OCGH non-controlling interest	$	129,408		$	119,235		$	617,191		$	379,356
Net income attributable to Class A unitholders	43,875			29,920			172,631			84,444
Oaktree Operating Group net income	$	173,283		$	149,155		$	789,822		$	463,800
Net income attributable to Oaktree Capital Group, LLC:
Oaktree Operating Group net income attributable to Class A unitholders	$	43,875		$	29,920		$	172,631		$	84,444
Non-Operating Group other income	—			—			—			6,260
Non-Operating Group expenses	(271		)	(115		)	(947		)	(393		)
Income tax expense of Intermediate Holding Companies	(656		)	(4,593		)	(14,593		)	(21,772		)
Net income attributable to Oaktree Capital Group, LLC	$	42,948		$	25,212		$	157,091		$	68,539

Set forth below are the effects of changes in the Company’s ownership interest in the Oaktree Operating Group:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013		2012
Net income attributable to Oaktree Capital Group, LLC	$	42,948		$	25,212		$	157,091	$	68,539
Equity reallocation between controlling and non-controlling interests	(160		)	(74		)	76,685		69,101
Change from net income attributable to Oaktree Capital Group, LLC and transfers from (to) non-controlling interest	$	42,788		$	25,138		$	233,776	$	137,640

On May 29, 2013, the Company issued and sold 8,050,000 Class A units in a public offering at a price to the public of $53.50 per Class A unit (the “May 2013 Offering”), resulting in $419.9 million in net proceeds to the Company, after deducting underwriting discounts and commissions. The Company did not retain any proceeds from the sale of Class A units in the May 2013 Offering. The net proceeds from the May 2013 Offering were used to acquire interests in the Company's business from certain of the Company's directors, employees and other investors, including certain principals and other members of the Company's senior management.

Please see notes 9 and 10 for additional information regarding transactions that impacted unitholders' capital.