VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

The Company consolidates VIEs for which Oaktree is the primary beneficiary. VIEs include funds managed by Oaktree and CLOs for which Oaktree acts as collateral manager. The purpose of these VIEs is to provide investment opportunities for investors in exchange for management fees and, in certain cases, performance-based fees. While the investment strategies of the funds and CLOs differ by product, in general the fundamental risks of the funds and CLOs have similar characteristics, including loss of invested capital and reduction or absence of management and performance-based fees. As general partner or collateral manager, respectively, Oaktree generally considers itself the sponsor of the applicable fund or CLO. The Company does not provide performance guarantees and, other than capital commitments, has no financial obligation to provide funding to VIEs.

Consolidated VIEs

As of December 31, 2024, the Company consolidated 2 VIEs through which interests are held in Oaktree Opportunities Fund XI, LP and Oaktree Opportunities Fund XII, L.P. as the Company was the primary beneficiary. As of December 31, 2023, the Company consolidated 9 VIEs.

As of December 31, 2024, the assets and liabilities of the 2 consolidated VIEs amounted to $5.5 billion and $1.6 billion, respectively. The assets of these consolidated VIEs primarily consisted of investments in debt and equity securities. The assets of these VIEs may be used only to settle obligations of the same VIE. In addition, there is no recourse to the Company for the VIEs’ liabilities. As of December 31, 2024, the Company’s investments in consolidated VIEs had a carrying value of $0.8 billion, which represented its maximum risk of loss as of that date.

Unconsolidated VIEs

The Company held variable interests in certain VIEs in the form of direct equity interests that are not consolidated because it is not the primary beneficiary, inasmuch as its fee arrangements are considered at-market and it does not hold interests in those entities that are considered more than insignificant.

The carrying value of the Company’s investments in VIEs that were not consolidated are shown below.

	As of December 31,
	2024		2023
Corporate investments	$	1,212,435	$	999,112
Due from affiliates	227		199,861
Maximum exposure to loss	$	1,212,662	$	1,198,973

The Company continues to consolidate the respective vehicles through which interests are held in Oaktree Opportunities Fund XI, L.P. and Oaktree Opportunities Fund XII, L.P. as the Company remains the primary beneficiary.

In connection with the 2024 Restructuring, the Company derecognized the assets and liabilities held by Oaktree Capital I at carrying value as the restructuring occurred between entities under common control of OCGH and no gain or loss was recorded.

Impacts of the deconsolidation of Oaktree Capital I due to the 2024 Restructuring are set forth below:

	As of July 1, 2024
Assets:
Cash and cash-equivalents	$	(8,805)
U.S. Treasury and government agency securities	(170,000)
Receivables and other assets	(58,517)
Due from affiliates	(8,543)
Assets of consolidated funds	(1,711,868)
Total assets	(1,957,733)
Liabilities and Capital:
Liabilities:
Accounts payable and accrued expenses	$	(49,176)
Due to affiliates	(50,014)
Debt obligations	(213,161)
Liabilities of consolidated funds	(1,021,629)
Total liabilities	(1,333,980)
Non-controlling redeemable interests in consolidated funds	(339,111)
Unitholders’ Capital:
Non-controlling interest in consolidated subsidiaries	(283,685)
Accumulated other comprehensive loss	(957)
Total unitholders’ capital	(284,642)
Total liabilities and capital	$	(1,957,733)