INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2017

Corporate investments consisted of the following:



	As of
Corporate Investments:	September 30, 2017		December 31, 2016

Equity-method Investments:
Funds	$	910,454	$	981,209
Companies	24,242		34,932
Other investments, at fair value	120,291		107,591
Total corporate investments	$	1,054,987	$	1,123,732

Summarized financial information of the Company’s equity-method investments is set forth below.



	As of
Statement of Financial Condition:	September 30, 2017		December 31, 2016
Assets:
Cash and cash-equivalents	$	2,913,015	$	3,713,045
Investments, at fair value	42,048,647		43,084,842
Other assets	2,193,194		1,994,304
Total assets	$	47,154,856	$	48,792,191
Liabilities and Capital:
Debt obligations	$	8,445,799	$	7,372,063
Other liabilities	2,361,925		2,028,065
Total liabilities	10,807,724		9,400,128
Total capital	36,347,132		39,392,063
Total liabilities and capital	$	47,154,856	$	48,792,191



	Three Months Ended September 30,						Nine Months Ended September 30,
Statements of Operations:	2017			2016			2017			2016
Revenues / investment income	$	387,281		$	607,105		$	1,464,961		$	1,632,204
Interest expense	(62,636		)	(48,851		)	(167,507		)	(129,020		)
Other expenses	(205,998		)	(207,052		)	(618,255		)	(644,791		)
Net realized and unrealized gain on investments	1,066,616			1,771,018			2,933,914			2,609,742
Net income	$	1,185,263		$	2,122,220		$	3,613,113		$	3,468,135

Investment Income

The components of investment income are set forth below:



	Three Months Ended September 30,					Nine Months Ended September 30,
Investment Income:	2017			2016		2017			2016

Equity-method Investments:
Funds	$	34,733		$	47,323	$	104,216		$	76,542
Companies	17,441			17,767		52,164			49,556
Other investments, at fair value	(1,113		)	668		(5,762		)	10,107
Total investment income	$	51,061		$	65,758	$	150,618		$	136,205

Investments, at Fair Value

The following table summarizes net gains (losses) attributable to the Company’s other investments:



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

Realized gain (loss)	$	3,697		$	104	$	5,252		$	(2,285	)
Net change in unrealized gain (loss)	(4,810		)	564		(11,014		)	12,392
Total gain (loss)	$	(1,113	)	$	668	$	(5,762	)	$	10,107

Investments held and securities sold short by the consolidated funds are summarized below:



	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
United States:
Debt securities:
Consumer discretionary	$	742,463	$	628,621	14.3	%	16.5	%
Consumer staples	125,829		123,395		2.4		3.2
Energy	97,887		55,655		1.9		1.5
Financials	292,701		182,685		5.6		4.8
Government	1,516		5,234		0.0		0.1
Health care	445,347		337,138		8.6		8.9
Industrials	439,609		379,122		8.5		10.0
Information technology	445,148		272,637		8.6		7.2
Materials	358,342		237,417		6.9		6.2
Telecommunication services	154,516		93,893		3.0		2.5
Utilities	112,107		76,920		2.2		2.0
Total debt securities (cost: $3,214,637 and $2,378,759 as of September 30, 2017 and December 31, 2016, respectively)	3,215,465		2,392,717		62.0		62.9
Equity securities:
Consumer discretionary	2,032		711		0.0		0.0
Energy	1,865		2,002		0.0		0.1
Financials	7,912		3,977		0.2		0.1
Health care	320		343		0.0		0.0
Industrials	406		1		0.0		0.0
Materials	138		691		0.0		0.0
Telecommunication services	268		—		0.0		—
Total equity securities (cost: $9,327 and $5,462 as of September 30, 2017 and December 31, 2016, respectively)	12,941		7,725		0.2		0.2



	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
Europe:
Debt securities:
Consumer discretionary	$	494,501	$	374,627	9.5	%	9.8	%
Consumer staples	102,862		92,750		2.0		2.4
Energy	6,314		13,274		0.1		0.3
Financials	28,858		13,822		0.6		0.4
Government	—		1,996		—		0.1
Health care	319,397		210,078		6.1		5.5
Industrials	145,796		54,578		2.8		1.4
Information technology	57,092		23,832		1.1		0.6
Materials	282,079		226,961		5.4		6.0
Telecommunication services	234,445		214,182		4.5		5.6
Utilities	1,540		—		0.0		—
Total debt securities (cost: $1,663,145 and $1,214,068 as of September 30, 2017 and December 31, 2016, respectively)	1,672,884		1,226,100		32.1		32.1
Equity securities:
Energy	3,032		—		0.1	%	—
Financials	4,081		1,605		0.1		0.0
Health care	635		—		0.0		—
Materials	4,067		—		0.1		—
Total equity securities (cost: $9,278 and $1,494 as of September 30, 2017 and December 31, 2016, respectively)	11,815		1,605		0.3		0.0
Asia and other:
Debt securities:
Consumer discretionary	2,720		3,145		0.1		0.1
Consumer staples	2,238		5,994		0.0		0.2
Energy	5,022		9,570		0.1		0.3
Financials	4,305		—		0.1		—
Government	—		1,506		—		0.0
Health care	1,185		1,245		0.0		0.0
Industrials	18,119		15,450		0.3		0.4
Information technology	447		409		0.0		0.0
Materials	8,013		10,245		0.2		0.3
Telecommunication services	15,571		4,809		0.3		0.1
Utilities	—		928		—		0.0
Total debt securities (cost: $59,156 and $57,400 as of September 30, 2017 and December 31, 2016, respectively)	57,620		53,301		1.1		1.4



	Fair Value as of						Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	September 30, 2017			December 31, 2016			September 30, 2017		December 31, 2016
Asia and other:
Equity securities:
Consumer discretionary	$	17,337		$	7,639		0.3	%	0.2	%
Consumer staples	6,837			3,786			0.1		0.1
Energy	5,731			6,978			0.1		0.2
Financials	104,569			44,328			2.0		1.2
Industrials	45,173			21,564			0.9		0.6
Information technology	20,948			16,642			0.4		0.4
Materials	17,744			19,697			0.3		0.5
Telecommunication services	3,316			4,296			0.1		0.1
Utilities	3,145			1,856			0.1		0.1
Total equity securities (cost: $203,465 and $118,292 as of September 30, 2017 and December 31, 2016, respectively)	224,800			126,786			4.3		3.4
Total debt securities	4,945,969			3,672,118			95.2		96.4
Total equity securities	249,556			136,116			4.8		3.6
Total investments, at fair value	$	5,195,525		$	3,808,234		100.0	%	100.0	%
Securities Sold Short
Equity securities (proceeds: $71,554 and $41,541 as of September 30, 2017 and December 31, 2016, respectively)	$	(74,228	)	$	(41,016	)

Net Gains (Losses) from Investment Activities of Consolidated Funds

The following table summarizes net gains (losses) from investment activities:



	Three Months Ended September 30,
	2017						2016
	Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments			Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments

Investments and other financial instruments	$	3,839		$	2,012		$	1,267		$	56,490
CLO liabilities ⁽¹⁾	—			1,595			—			(46,553		)
Foreign-currency forward contracts ⁽²⁾	(555		)	200			368			(465		)
Total-return and interest-rate swaps ⁽²⁾	70			(185		)	(2,395		)	683
Options and futures ⁽²⁾	38			40			(676		)	76
Total	$	3,392		$	3,662		$	(1,436	)	$	10,231



	Nine Months Ended September 30,
	2017						2016
	Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments			Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments

Investments and other financial instruments	$	6,075		$	10,941		$	13,589		$	83,913
CLO liabilities ⁽¹⁾	—			44,943			—			(98,927		)
Foreign-currency forward contracts ⁽²⁾	(945		)	(210		)	(132		)	(8		)
Total-return and interest-rate swaps ⁽²⁾	(1,398		)	813			(3,285		)	(713		)
Options and futures ⁽²⁾	(1,977		)	306			(1,525		)	(7		)
Total	$	1,755		$	56,793		$	8,647		$	(15,742	)


(1)	Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under the CLO measurement guidance. Please see note 2 for more information.


(2)	Please see note 6 for additional information.

- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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