UNITHOLDERS’ CAPITAL

Unitholders’ capital reflects the economic interests attributable to Class A unitholders, non-controlling interests in consolidated subsidiaries and non-controlling interests in consolidated funds. Non-controlling interests in consolidated subsidiaries represent the portion of unitholders’ capital attributable to the OCGH non-controlling interest and third parties. The OCGH non-controlling interest 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, 2017 and December 31, 2016, respectively, OCGH units represented 91,682,408 of the total 156,287,873 Oaktree Operating Group units and 91,758,067 of the total 154,790,343 Oaktree Operating Group units. Based on total allocable Oaktree Operating Group capital of $1,869,205 and $1,754,882 as of September 30, 2017 and December 31, 2016, respectively, the OCGH non-controlling interest was $1,096,523 and $1,040,274. As of September 30, 2017 and December 31, 2016, non-controlling interests attributable to third parties was $8,398 and $10,045, respectively.

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Weighted average Oaktree Operating Group units outstanding (in thousands):
OCGH non-controlling interest	91,864			92,190			91,750			92,181
Class A unitholders	64,394			62,755			63,875			62,424
Total weighted average units outstanding	156,258			154,945			155,625			154,605
Oaktree Operating Group net income:
Net income attributable to OCGH non-controlling interest	$	77,822		$	96,053		$	348,058		$	238,135
Net income attributable to Class A unitholders	54,552			65,384			242,479			161,396
Oaktree Operating Group net income ⁽¹⁾	$	132,374		$	161,437		$	590,537		$	399,531
Net income attributable to Oaktree Capital Group, LLC:
Oaktree Operating Group net income attributable to Class A unitholders	$	54,552		$	65,384		$	242,479		$	161,396
Non-Operating Group expenses	(62		)	(182		)	(549		)	(647		)
Income tax expense of Intermediate Holding Companies	(8,649		)	(6,905		)	(23,850		)	(25,327		)
Net income attributable to Oaktree Capital Group, LLC	$	45,841		$	58,297		$	218,080		$	135,422


(1)	Oaktree Operating Group net income does not include amounts attributable to other non-controlling interests, which amounted to $724 and $1,970 for the three and nine months ended September 30, 2017, respectively, and $1,230 and $3,650 for the three and nine months ended September 30, 2016, respectively.

The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016

Net income attributable to Oaktree Capital Group, LLC	$	45,841	$	58,297	$	218,080	$	135,422
Equity reallocation between controlling and non-controlling interests	5,082		3,766		14,581		11,892
Change from net income attributable to Oaktree Capital Group, LLC and transfers from non-controlling interests	$	50,923	$	62,063	$	232,661	$	147,314

Please see notes 12, 13 and 14 for additional information regarding transactions that impacted unitholders’ capital.