FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Fair Value, by Balance Sheet Grouping

The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below. Please see notes 10 and 18 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively.


	As of December 31, 2021								As of December 31, 2020
	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Assets
U.S. Treasury and other securities (1)	$	2,086	$	—	$	—	$	2,086	$	9,562	$	—	$	—	$	9,562
Corporate investments	62,124		7,316		1,714		71,154		—		4,575		27,045		31,620
Foreign-currency forward contracts (2)	—		11,213		—		11,213		—		459		—		459

Total assets	$	64,210	$	18,529	$	1,714	$	84,453	$	9,562	$	5,034	$	27,045	$	41,641

Liabilities

Foreign-currency forward contracts (3)	$	—	$	(536)	$	—	$	(536)	$	—	$	(20,051)	$	—	$	(20,051)

(1) For U.S. Treasury securities the carrying value approximates fair value due to their short-term nature and are classified as Level I investments within the fair value hierarchy detailed above.

(2) Amounts are included in other assets, except for $6,414 as of December 31, 2021, which is included within corporate investments in the consolidated statements of financial condition.

(3) Amounts are included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition, except for $494 and $16,191 as of December 31, 2021 and 2020, respectively, which are included within corporate investments in the consolidated statements of financial condition.

Schedule of Changes in Fair Value of Level III Investments

The table below sets forth a summary of changes in the fair value of Level III financial instruments:


	Year Ended December 31,
	2021		2020
	Corporate Investments			Corporate Investments
Corporate Investments:
Beginning balance	$	27,045		$	30,311
Contributions or additions	—			2,562
Distributions	(485)			(6,993)

Transfers into Level III	2,101			—
Transfers out of Level III	(27,045)			—
Net gain included in earnings	98			1,165
Ending balance	$	1,714		$	27,045

Net change in unrealized gains (losses) attributable to financial instruments still held at end of period	$	(189)		$	2,320

Schedule of Changes in Fair Value of Level III Investments

The table below sets forth a summary of changes in the fair value of Level III financial instruments:


	Year Ended December 31,
	2021		2020
	Corporate Investments			Corporate Investments
Corporate Investments:
Beginning balance	$	27,045		$	30,311
Contributions or additions	—			2,562
Distributions	(485)			(6,993)

Transfers into Level III	2,101			—
Transfers out of Level III	(27,045)			—
Net gain included in earnings	98			1,165
Ending balance	$	1,714		$	27,045

Net change in unrealized gains (losses) attributable to financial instruments still held at end of period	$	(189)		$	2,320

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


	Corporate Debt – Bank Debt		Corporate Debt – All Other		Equities – Common Stock		Equities – Preferred Stock		Real Estate		Total
2021
Beginning balance	$	255,282	$	79,085	$	187,370	$	23,219	$	—	$	544,956
Deconsolidation of funds	(3,065)		(12,598)		—		—		—		(15,663)
Transfers into Level III	69,877		2,960		209		—		—		73,046
Transfers out of Level III	(96,862)		(26,215)		—		(32,190)		—		(155,267)
Purchases	531,414		185,404		536,239		463,529		57,732		1,774,318
Sales	(150,525)		(4,919)		(105,609)		(17,771)		(22,233)		(301,057)
Realized gain (loss), net	4,222		450		(8,948)		3,122		(572)		(1,726)
Unrealized appreciation (depreciation), net	(13,155)		5,409		(27,513)		46,121		(1,093)		9,769
Ending balance	$	597,188	$	229,576	$	581,748	$	486,030	$	33,834	$	1,928,376
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(13,869)	$	4,956	$	37,345	$	46,122	$	(1,091)	$	73,463

2020
Beginning balance	$	149,642	$	31,266	$	130,437	$	657	$	230,741	$	542,743
Deconsolidation of funds	(150,358)		(14,601)		(264,513)		—		(269,404)		(698,876)
Transfers into Level III	164,888		60,315		26,192		—		—		251,395
Transfers out of Level III	(76,444)		(27,809)		(53,532)		—		—		(157,785)
Purchases	310,696		78,242		369,766		23,133		38,663		820,500
Sales	(122,416)		(39,784)		(110)		—		—		(162,310)
Realized loss, net	(8,966)		(366)		(13,115)		—		—		(22,447)
Unrealized depreciation, net	(11,760)		(8,178)		(7,755)		(571)		—		(28,264)
Ending balance	$	255,282	$	79,085	$	187,370	$	23,219	$	—	$	544,956
Net change in unrealized depreciation attributable to assets still held at end of period	$	(9,637)	$	(1,002)	$	(11,957)	$	(557)	$	—	$	(23,153)

Schedule of Valuation Techniques and Quantitative Information

The significant valuation inputs, including the input range and weighted average rate, are as follows:


Valuation Input	Low	High	Weighted Average Rate

Discount rates	8.0%	20.0%	13.4%
Constant default rates	2.0%	2.0%	2.0%
Recovery rates	60.0%	60.0%	60.0%

The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of December 31, 2021:

Investment Type

Fair Value

Valuation Technique

Significant Unobservable
Inputs (1)(2)

Range

Weighted Average (3)

Credit-oriented investments:

Consumer discretionary:

20,954

Recent transaction price (4)

Quoted prices

Not applicable

12,677

Recent market information (5)

Quoted prices

Not applicable

6,864

Discounted cash flow (6)

Discount rate

9% – 11%

10%

Communication services:

60,384

Market approach (comparable companies) (7)

Revenue multiple (8)

2x - 4x

38,352

Recent market information (5)

Quoted prices

Not applicable

3,402

Recent transaction price (4)

Quoted prices

Not applicable

Energy:

51,012

Discounted cash flow (6)

Discount rate

12% – 13%

12%

33,987

Recent transaction price (4)

Quoted prices

Not applicable

13,640

Recent market information (5)

Quoted prices

Not applicable

Financials:

29,519

Discounted cash flow (6)

Discount rate

10% – 12%

11%

23,129

Recent market information (5)

Quoted prices

Not applicable

13,187

Recent transaction price (4)

Quoted prices

Not applicable

Industrials:

87,727

Discounted cash flow (6)

Discount rate

8% – 13%

10%

1,852

Recent market information (5)

Quoted prices

Not applicable

Materials:

136,117

Discounted cash flow (6)

Discount rate

8% – 14%

24,420

Recent transaction price (4)

Quoted prices

Not applicable

6,674

Recent market information (5)

Quoted prices

Not applicable

Real estate:

76,503

Recent transaction price (4)

Quoted prices

Not applicable

60,643

Market approach (comparable companies) (7)

Multiple of underlying assets (9)

0.7x - 0.9x

0.8x

27,235

Recent market information (5)

Quoted prices

Not applicable

Other:

78,631

Recent market information (5)

Quoted prices

Not applicable

11,425

Recent transaction price (4)

Quoted prices

Not applicable

8,430

Market approach (comparable companies) (7)

Multiple of underlying assets (9)

0.9x - 1.1x

1.0x

Equity investments:

411,574

Recent transaction price (4)

Quoted prices

Not applicable

364,851

Market approach (comparable companies) (7)

Multiple of underlying assets (9)

0.9x - 1.0x

1.0x

110,973

Market approach (comparable companies) (7)

Earnings multiple (10)

6x - 16x

11x

83,999

Discounted cash flow (6)

Discount rate

7% – 16%

16%

59,805

Market approach (comparable companies) (7)

Revenue multiple (8)

3x - 11x

36,576

Recent market information (5)

Quoted prices

Not applicable

Real estate-oriented:

18,526

Recent transaction price (4)

Quoted prices

Not applicable

15,308

Discounted cash flow (6)

Discount rate

24% – 26%

25%

Total Level III
investments

1,928,376

Investment Type

Fair Value

Valuation Technique

Significant Unobservable
Inputs (1)(2)

Range

Weighted Average (3)

Credit-oriented investments:

Energy:

14,318

Discounted cash flow (6)

Discount rate

7% - 9%

10,431

Recent market information (5)

Quoted prices

Not applicable

Financials:

24,301

Recent market information (5)

Quoted prices

Not applicable

Health care:

20,447

Recent market information (5)

Quoted prices

Not applicable

Industrials:

50,263

Recent market information (5)

Quoted prices

Not applicable

12,298

Recent transaction price (4)

Quoted prices

Not applicable

Materials:

59,615

Recent transaction price (4)

Quoted prices

Not applicable

Real estate:

78,635

Recent transaction price (4)

Quoted prices

Not applicable

18,177

Recent market information (5)

Quoted prices

Not applicable

Other:

38,932

Recent market information (5)

Quoted prices

Not applicable

6,951

Discounted cash flow (6)

Discount rate

6% - 8%

Equity investments:

133,779

Recent transaction price (4)

Quoted prices

Not applicable

76,809

Discounted cash flow (6)

Discount rate

6% – 8%

Total Level III
investments

544,956

(1) The discount rate is the significant unobservable input used in the fair-value measurement of performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments and real estate loan portfolios. An increase (decrease) in the discount rate would result in a lower (higher) fair-value measurement.

(2) Multiple of either earnings or underlying assets is the significant unobservable input used in the market approach for the fair-value measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling interest in the underlying issuer, equity investments and certain real estate-oriented investments. An increase (decrease) in the multiple would result in a higher (lower) fair-value measurement.

(3) The weighted average is based on the fair value of the investments included in the range.

(4) Certain investments are valued based on recent transactions, generally defined as investments purchased or sold within six months of the valuation date. The fair value may also be based on a pending transaction expected to close after the valuation date.

(5) Certain investments are valued using vendor prices or broker quotes for the subject or similar securities. Generally, investments valued in this manner are classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions.

(6) A discounted cash-flow method is generally used to value performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments, real estate-oriented investments and real estate loan portfolios.

(7) A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying.

(8) Revenue multiples are based on comparable public companies and transactions with comparable companies. The Company typically applies the multiple to trailing twelve-months’ revenue. However, in certain cases other revenue measures, such as pro forma revenue, may be utilized if deemed to be more relevant.

(9) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company. The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors. The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets.

(10) Earnings multiples are based on comparable public companies and transactions with comparable companies. The Company typically utilizes multiples of EBITDA; however, in certain cases the Company may use other earnings multiples believed to be most relevant to the investment. The Company typically applies the multiple to trailing twelve-months’ EBITDA. However, in certain cases other earnings measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant.

Schedule of Valuation of Investments and Other Financial Instruments

The table below summarizes the investments and other financial instruments of the consolidated funds by fair-value hierarchy level:


	As of December 31, 2021								As of December 31, 2020
	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Assets
Investments:
Corporate debt – bank debt	$	—	$	7,867,741	$	597,188	$	8,464,929	$	—	$	6,363,403	$	255,282	$	6,618,685
Corporate debt – all other	—		1,300,595		229,576		1,530,171		—		881,018		79,085		960,103
Equities – common stock	206,133		76,751		581,748		864,632		3,052		1		187,370		190,423
Equities – preferred stock	77,299		—		486,030		563,329		—		—		23,219		23,219
Real estate	—		—		33,834		33,834		—		6,879		—		6,879
Total investments	283,432		9,245,087		1,928,376		11,456,895		3,052		7,251,301		544,956		7,799,309
Derivatives:
Foreign-currency forward contracts	—		5,062		—		5,062		—		482		—		482
Swaps	—		1,162		—		1,162		—		—		—		—
Options and futures	509		—		—		509		26		—		—		26
Total derivatives (1)	509		6,224		—		6,733		26		482		—		508
Total assets	$	283,941	$	9,251,311	$	1,928,376	$	11,463,628	$	3,078	$	7,251,783	$	544,956	$	7,799,817

Liabilities
CLO debt obligations:
Senior secured notes	$	—	$	(7,472,521)	$	—	$	(7,472,521)	$	—	$	(6,321,580)	$	—	$	(6,321,580)
Subordinated notes	—		(333,742)		—		(333,742)		—		(215,278)		—		(215,278)
Total CLO debt obligations (2)	—		(7,806,263)		—		(7,806,263)		—		(6,536,858)		—		(6,536,858)


Derivatives:
Foreign-currency forward contracts	—		(886)		—		(886)		—		(933)		—		(933)
Swaps	(4,100)		(235)		—		(4,335)		—		—		—		—

Warrants	—		(6,626)		—		(6,626)		—		—		—		—
Total derivatives (3)	(4,100)		(7,747)		—		(11,847)		—		(933)		—		(933)
Total liabilities	$	(4,100)	$	(7,814,010)	$	—	$	(7,818,110)	$	—	$	(6,537,791)	$	—	$	(6,537,791)

(1) Amounts are included in other assets under “assets of consolidated funds” in the consolidated statements of financial condition.

(2) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 10 for more information.

(3) Amounts are included in accounts payable, accrued expenses and other liabilities under “liabilities of consolidated funds” in the consolidated statements of financial condition.