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INVESTMENTS
 12 Months Ended
Dec. 31, 2024
Investments [Abstract]  
INVESTMENTS INVESTMENTS
Corporate Investments
Corporate investments consisted of the following:
As of December 31,
Corporate Investments20242023
Equity-method investments:
Funds
$317,256 $1,434,988 
Companies
1,203,004 11,901 
Other investments, at fair value— 85,319 
Total corporate investments$1,520,260 $1,532,208 
Equity-method Investments
The Company’s equity-method investments include its investments in funds and companies that are not consolidated, but for which the Company is deemed to have significant influence. The Company’s share of income or loss generated by these investments is recorded within investment income in the consolidated statements of operations. The Company’s equity-method investments in Oaktree funds principally reflect the Company’s general partner interests in those funds, which typically do not exceed 2.5% in each fund. The Oaktree funds are investment companies that follow a specialized basis of accounting established by GAAP. In connection with the 2024 Restructuring, the Company determined that it is no longer the primary beneficiary of Oaktree Capital I and deconsolidated the entity, which is accounted for as an equity method investment beginning with the third quarter of 2024.
On June 27, 2023, the Company entered into a contribution agreement with Brookfield Corporate Treasury Ltd. and acquired the equity ownership in certain entities which beneficially own shares in Brookfield Real Estate Income Trust. The Company accounted for the acquired interests as equity method investments with fair value election. The fair value option has been elected to simplify the accounting for the investment in NTR. Changes in the fair value and cash dividends received from the investment in NTR are included in investment income. During the year ended December 31, 2024, the Company recognized an equity investment loss of $9.5 million. Please refer to note 15 for the detailed description of the transaction.
Each reporting period, the Company evaluates each of its equity-method investments to determine if any are considered significant, as defined by the SEC. As of December 31, 2024, or for the six months ended December 31, 2024, the Company determined Oaktree Capital I met the significance criteria. No other individual equity-method investment met the significance criteria. Separate financial statements of Oaktree Capital I are included in Exhibit 99.1.
Summarized financial information of the Company’s remaining equity-method investments is set forth below.
As of December 31,
Statements of Financial Condition20242023
Assets:
Cash and cash-equivalents$25,489 $2,834,702 
Investments, at fair value1,886,579 67,471,007 
Other assets55,488 2,007,260 
Total assets
$1,967,556 $72,312,969 
Liabilities and Capital:
Debt obligations$1,074,156 $5,633,599 
Other liabilities102,707 3,722,872 
Total liabilities
1,176,863 9,356,471 
Total capital
790,693 62,956,498 
Total liabilities and capital
$1,967,556 $72,312,969 
Year Ended December 31,
202420232022
Statements of Operations
Revenues / investment income$2,362,833 $4,506,814 $3,460,281 
Interest expense(343,541)(565,810)(378,567)
Other expenses(682,302)(1,117,553)(905,289)
Net realized and unrealized gain on investments1,871,488 862,771 2,612,383 
Net income
$3,208,478 $3,686,222 $4,788,808 
Other Investments, at Fair Value
Other investments, at fair value has primarily consisted of (a) investments in certain Oaktree and non-Oaktree funds, (b) noninvestment grade debt securities, (c) equities received as part of our sponsorship of SPACs and (d) derivatives utilized to hedge the Company’s exposure to investment income earned from its funds.
The following table summarizes net gains (losses) attributable to the Company’s other investments at fair value:
Year Ended December 31,
202420232022
Realized gain (loss)$9,504 $4,475 $4,072 
Net change in unrealized gain (loss)2,159 9,393 3,153 
Total gain (loss)$11,663 $13,868 $7,225 
Investments of Consolidated Funds
Investments, at Fair Value
Investments held and securities sold short by the consolidated funds are summarized below:
Fair Value as of December 31,Fair Value as a Percentage of Investments of Consolidated Funds as of December 31,
Investments2024202320242023
United States:    
Debt securities:    
Communication services$171,325 $69,509 3.6 %1.4 %
Consumer discretionary134,403 202,355 2.7 3.9 
Consumer staples40,195 28,149 0.8 0.5 
Energy34,498 110,990 0.7 2.2 
Financials133,904 223,794 2.7 4.4 
Health care182,525 226,554 3.7 4.4 
Industrials180,469 379,538 3.6 7.5 
Information technology45,702 87,355 0.9 1.7 
Materials32,448 333,459 0.7 6.5 
Real estate54,475 97,621 1.1 1.9 
Utilities19,707 19,954 0.4 0.4 
Other828,223 549,164 16.7 10.6 
Total debt securities (cost: $1,792,830 and $2,341,421 as of December 31, 2024 and 2023, respectively)
1,857,874 2,328,442 37.6 45.4 
Equity securities:    
Communication services59,897 79,522 1.2 1.5 
Consumer discretionary37,185 68,056 0.8 1.3 
Energy503,018 427,034 10.2 8.3 
Financials347,839 171,924 7.0 3.3 
Health care57,337 32,418 1.2 0.6 
Industrials532,096 369,019 10.8 7.2 
Information technology55,413 44,350 1.1 0.9 
Real Estate10,275 — 0.2 0.0 
Utilities7,367 89,427 0.1 1.7 
Total equity securities (cost: $1,362,953 and $1,095,721 as of December 31, 2024 and 2023, respectively)
1,610,427 1,281,750 32.6 24.8 
Real estate:
Real estate15,036 13,780 0.3 0.3 
Total real estate securities (cost: $26,966 and $22,716 as of December 31, 2024 and 2023, respectively)
15,036 13,780 0.3 0.3 
Fair Value as of December 31,Fair Value as a Percentage of Investments of Consolidated Funds as of December 31,
Investments2024202320242023
Europe:  
Debt securities:    
Communication services$7,018 $111,898 0.1 %2.1 %
Consumer discretionary— 18,560 — 0.4 
Consumer staples— 3,107 — 0.1 
Energy— 1,185 — — 
Financials— 18,381 — 0.4 
Health care76,817 12,136 1.6 0.2 
Industrials4,316 15,993 0.1 0.3 
Information technology— 5,402 0.0 0.1 
Materials4,335 13,487 0.1 0.3 
Real estate35,768 13,424 0.7 0.3 
Utilities— 5,417 0.0 0.1 
Other32,735 34,686 0.7 0.6 
Total debt securities (cost: $161,153 and $231,315 as of December 31, 2024 and 2023, respectively)
160,989 253,676 3.3 4.9 
Equity securities:
Communication Services81,124 — 1.6 0.0 
Consumer discretionary48,995 52,468 1.0 1.0 
Financials58,329 49,496 1.2 1.0 
Health care— 19 — — 
Industrials119,058 93,662 2.4 1.7 
Materials24,282 24,282 0.5 0.5 
 Real estate43,698 44,637 0.9 0.9 
Total equity securities (cost: $295,630 and $208,130 as of December 31, 2024 and 2023, respectively)
375,486 264,564 7.6 5.1 
Real estate:
Consumer Discretionary60,960 61,357 1.2 1.2 
Real estate130,185 100,216 2.6 1.9 
Total real estate securities (cost: $191,470 and $159,423 as of December 31, 2024 and 2023, respectively)
191,145 161,573 3.8 3.1 
Asia and other:    
Debt securities:    
Communication services— 803 — — 
Consumer discretionary45,686 17,195 0.9 0.3 
Consumer staples18,204 19,820 0.4 0.4 
Energy— 1,307 — — 
Financials— 8,192 — 0.2 
Health care— 402 — 0.0 
Industrials— 4,181 — 0.1 
Information technology— 5 — — 
Materials243,021 249,492 4.9 4.9 
Real estate357,934 435,799 7.2 8.5 
Utilities— 3,244 — 0.1 
Total debt securities (cost: $680,671 and $761,394 as of December 31, 2024 and 2023, respectively)
664,845 740,440 13.4 14.5 
Fair Value as of December 31,Fair Value as a Percentage of Investments of Consolidated Funds as of December 31,
Investments2024202320242023
Asia and other:
Equity securities:    
Industrials30,827 63,161 0.6 1.2 
Real estate32,916 32,916 0.7 0.6 
Utilities7,317 3,375 0.1 0.1 
Total equity securities (cost: $55,638 and $90,638 as of December 31, 2024 and 2023, respectively)
71,060 99,452 1.4 1.9 
Total debt securities2,683,708 3,322,558 54.3 64.8 
Total equity securities2,056,973 1,645,766 41.5 31.8 
Total real estate206,181 175,353 4.2 3.4 
Total investments, at fair value$4,946,862 $5,143,677 100.0 %100.0 %
As of December 31, 2024 and 2023, no single issuer or investment had a fair value that exceeded 5% of the Company’s total consolidated net assets.
Net Gains (Losses) From Investment Activities of Consolidated Funds
Net gains (losses) from investment activities in the consolidated statements of operations consist primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments. Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.
The following table summarizes net gains (losses) from investment activities:
Year Ended December 31,
 202420232022
Net Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on InvestmentsNet Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on InvestmentsNet Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on Investments
Investments and other financial instruments
$54,580 $131,725 $63,213 $27,890 $4,103 $99,199 
CLO liabilities (1)
185 1,597 — — (30,033)(99,550)
Foreign-currency forward contracts (2)
337 28,193 898 (14,909)43,145 (10,777)
Total-return and interest-rate swaps (2)
613 (19)(235)328 975 284 
Options and futures (2)
1,440 (2,176)4,382 (569)13,322 (223)
Commodity swaps (2)
8,489 (8,654)11,162 16,324 (44,626)(3,956)
Total$65,644 $150,666 $79,420 $29,064 $(13,114)$(15,023)
(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 7 for additional information.