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Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Partnership's Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table summarizes the Partnership’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of December 31, 2015:
 
(Dollars in millions)
Level I

Level II

Level III

Total
Assets
 
 
 
 
 
 
 
Investments of Consolidated Funds:
 
 
 
 
 
 
 
Equity securities
$
254.6

 
$
311.8

 
$
575.3

 
$
1,141.7

Bonds
—

 
—

 
1,180.9

 
1,180.9

Loans
—

 
—

 
15,686.7

 
15,686.7

Partnership and LLC interests(1)
—

 
—

 
3,143.3

 
3,143.3

Hedge funds
—

 
2,841.2

 
—

 
2,841.2

Other
—

 
—

 
5.0

 
5.0

 
254.6

 
3,153.0

 
20,591.2

 
23,998.8

Trading securities
—

 
—

 
1.4

 
1.4

Foreign currency forward contracts
—

 
1.7

 
—

 
1.7

Restricted securities of Consolidated Funds
7.9

 
—

 
8.7

 
16.6

Total
$
262.5

 
$
3,154.7

 
$
20,601.3

 
$
24,018.5

Liabilities
 
 
 
 
 
 
 
Loans payable of Consolidated Funds
$
—

 
$
—

 
$
17,046.7

 
$
17,046.7

Derivative instruments of the CLOs
—

 
—

 
29.1

 
29.1

Contingent consideration(2)
—

 
—

 
20.8

 
20.8

Loans payable of a consolidated real estate VIE
—

 
—

 
75.4

 
75.4

Interest rate swaps
—

 
0.9

 
—

 
0.9

Foreign currency forward contracts
—

 
2.8

 
—

 
2.8

Total
$
—

 
$
3.7

 
$
17,172.0

 
$
17,175.7

 
(1)
Balance represents Fund Investments that the Partnership consolidates one fiscal quarter in arrears.
(2)
Balance relates to contingent cash and equity consideration associated with the acquisitions of Claren Road, AlpInvest, ESG, Carlyle Commodity Management L.L.C. (“Carlyle Commodity Management”, formerly Vermillion) and Metropolitan, excluding employment-based contingent consideration (see Note 9).
 

The following table summarizes the Partnership’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of December 31, 2014:
 
(Dollars in millions)
Level I
 
Level II
 
Level III
 
Total
Assets
 
 
 
 
 
 
 
Investments of Consolidated Funds:
 
 
 
 
 
 
 
Equity securities
$
346.8

 
$
156.8

 
$
1,968.5

 
$
2,472.1

Bonds
—

 
—

 
1,235.8

 
1,235.8

Loans
—

 
—

 
15,084.9

 
15,084.9

Partnership and LLC interests(1)
—

 
—

 
3,481.0

 
3,481.0

Hedge funds
—

 
3,753.5

 
—

 
3,753.5

Other
—

 
—

 
1.5

 
1.5

 
346.8

 
3,910.3

 
21,771.7

 
26,028.8

Trading securities
—

 
—

 
3.3

 
3.3

Restricted securities of Consolidated Funds
4.0

 
—

 
8.6

 
12.6

Total
$
350.8

 
$
3,910.3

 
$
21,783.6

 
$
26,044.7

Liabilities
 
 
 
 
 
 
 
Loans payable of Consolidated Funds
$
—

 
$
—

 
$
16,052.2

 
$
16,052.2

Derivative instruments of the CLOs
—

 
—

 
17.2

 
17.2

Contingent consideration(2)
—

 
—

 
51.1

 
51.1

Loans payable of a consolidated real estate VIE
—

 
—

 
146.2

 
146.2

Interest rate swaps
—

 
3.2

 
—

 
3.2

Total
$
—

 
$
3.2

 
$
16,266.7

 
$
16,269.9

 
(1)
Balance represents Fund Investments that the Partnership consolidates one fiscal quarter in arrears.
(2)
Balance relates to contingent cash and equity consideration associated with the acquisitions of Claren Road, AlpInvest, ESG, Carlyle Commodity Management and Metropolitan, excluding employment-based contingent consideration (see Note 9).
Financial Instruments Measured at Fair Value
The changes in financial instruments measured at fair value for which the Partnership has used Level III inputs to determine fair value are as follows (Dollars in millions):
 
 
Financial Assets Year Ended December 31, 2015
Investments of Consolidated Funds
 
Trading
securities
and
other
 
Restricted
securities of
Consolidated
Funds
 
Total
Equity
securities
 
Bonds
 
Loans
 
Partnership
and LLC
interests
 
Other
 
Balance, beginning of period
$
1,968.5

 
$
1,235.8

 
$
15,084.9

 
$
3,481.0

 
$
1.5

 
$
3.3

 
$
8.6

 
$
21,783.6

Initial consolidation of funds
13.2

 
—

 
—

 
—

 
—

 
—

 
—

 
13.2

Transfers out (1)
(343.9
)
 
—

 
—

 
—

 
—

 
—

 
(3.9
)
 
(347.8
)
Purchases
75.6

 
500.4

 
7,950.7

 
488.2

 
—

 
—

 
3.9

 
9,018.8

Sales
(1,085.7
)
 
(442.5
)
 
(3,148.2
)
 
(1,191.8
)
 
—

 
—

 
—

 
(5,868.2
)
Settlements
—

 
—

 
(3,358.6
)
 
—

 
—

 
—

 
—

 
(3,358.6
)
Realized and unrealized gains (losses), net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
156.1

 
0.7

 
(357.9
)
 
765.3

 
3.5

 
(1.9
)
 
0.1

 
565.9

Included in other comprehensive income
(208.5
)
 
(113.5
)
 
(484.2
)
 
(399.4
)
 
—

 
—

 
—

 
(1,205.6
)
Balance, end of period
$
575.3

 
$
1,180.9

 
$
15,686.7

 
$
3,143.3

 
$
5.0

 
$
1.4

 
$
8.7

 
$
20,601.3

Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
$
(388.8
)
 
$
1.1

 
$
(386.7
)
 
$
143.6

 
$
3.8

 
$
(1.9
)
 
$
0.1

 
$
(628.8
)
 
 
Financial Assets Year Ended December 31, 2014
 
Investments of Consolidated Funds
 
Trading
securities
and
other
 
Restricted
securities of
Consolidated
Funds
 
Total
 
Equity
securities
 
Bonds
 
Loans
 
Partnership
and LLC
interests
 
Other
 
Balance, beginning of period
$
2,714.1

 
$
1,249.5

 
$
14,067.8

 
$
3,815.2

 
$
2.0

 
$
6.9

 
$
8.6

 
$
21,864.1

Transfers in (1)
4.5

 
—

 
—

 
—

 
—

 
—

 
—

 
4.5

Transfers out (1)
(273.6
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(273.6
)
Purchases
46.4

 
748.9

 
8,212.4

 
297.5

 
—

 
—

 
—

 
9,305.2

Sales
(618.0
)
 
(623.1
)
 
(2,431.9
)
 
(1,239.7
)
 
(0.5
)
 
(3.7
)
 
—

 
(4,916.9
)
Settlements
—

 
—

 
(3,979.6
)
 
—

 
—

 
—

 


 
(3,979.6
)
Realized and unrealized gains (losses), net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings
370.6

 
(9.2
)
 
(152.3
)
 
861.5

 
—

 
0.1

 
—

 
1,070.7

Included in other comprehensive
(275.5
)
 
(130.3
)
 
(631.5
)
 
(253.5
)
 
—

 
—

 
—

 
(1,290.8
)
Balance, end of period
$
1,968.5

 
$
1,235.8

 
$
15,084.9

 
$
3,481.0

 
$
1.5

 
$
3.3

 
$
8.6

 
$
21,783.6

Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
$
65.4

 
$
(11.7
)
 
$
(99.6
)
 
$
142.7

 
$
0.8

 
$
0.1

 
$
—

 
$
97.7

 
(1)
Transfers into and out of Level III financial assets were due to changes in the observability of market inputs used in the valuation of such assets. Transfers are measured as of the beginning of the period in which the transfer occurs.
Transfer Out of Level III of Financial Liabilities
 
Financial Liabilities Year Ended December 31, 2015
 
Loans Payable
of Consolidated
Funds
 
Derivative
Instruments of
Consolidated
Funds
 
Contingent
Consideration
 
Loans Payable of
a consolidated
real estate VIE
 
Total
Balance, beginning of period
$
16,052.2

 
$
17.2

 
$
51.1

 
$
146.2

 
$
16,266.7

Initial consolidation of funds
1,248.6

 
—

 
—

 
—

 
1,248.6

Borrowings
4,196.7

 
—

 
—

 
3.9

 
4,200.6

Paydowns
(3,465.4
)
 
—

 
(22.6
)
 
(69.2
)
 
(3,557.2
)
Sales
—

 
(7.4
)
 
—

 
—

 
(7.4
)
Realized and unrealized (gains) losses, net
 
 
 
 
 
 
 
 
 
Included in earnings
(436.5
)
 
20.9

 
(7.4
)
 
46.6

 
(376.4
)
Included in other comprehensive income
(548.9
)
 
(1.6
)
 
(0.3
)
 
(52.1
)
 
(602.9
)
Balance, end of period
$
17,046.7

 
$
29.1

 
$
20.8

 
$
75.4

 
$
17,172.0

Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date
$
(489.1
)
 
$
(16.5
)
 
$
(8.2
)
 
$
46.6

 
$
(467.2
)
 
 
Financial Liabilities Year Ended December 31, 2014
 
Loans Payable
of Consolidated
Funds
 
Derivative
Instruments of
Consolidated
Funds
 
Contingent
Consideration
 
Loans Payable of
a consolidated
real estate VIE
 
Total
Balance, beginning of period
$
15,220.7

 
$
13.1

 
$
178.8

 
$
122.1

 
$
15,534.7

Initial consolidation of funds
2,656.9

 
—

 
—

 
—

 
2,656.9

Borrowings
2,251.2

 
—

 
—

 
53.4

 
2,304.6

Paydowns
(3,286.5
)
 
—

 
(97.9
)
 
(87.8
)
 
(3,472.2
)
Issuances of equity
—

 
—

 
(1.8
)
 
—

 
(1.8
)
Sales
—

 
(4.4
)
 
—

 
—

 
(4.4
)
Realized and unrealized losses, net
 
 
 
 
 
 
 
 
 
Included in earnings
(8.5
)
 
10.6

 
(27.4
)
 
37.6

 
12.3

Included in other comprehensive income
(781.6
)
 
(2.1
)
 
(0.6
)
 
20.9

 
(763.4
)
Balance, end of period
$
16,052.2

 
$
17.2

 
$
51.1

 
$
146.2

 
$
16,266.7

Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date
$
(101.8
)
 
$
(7.4
)
 
$
(8.4
)
 
$
37.6

 
$
(80.0
)
Quantitative Information about Partnership's Level III Inputs
The following table summarizes quantitative information about the Partnership’s Level III inputs as of December 31, 2015:
 
 
Fair Value at
 
 
 
 
 
Range
(Weighted
Average)
(Dollars in millions)
December 31, 2015
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Assets
 
 
 
 
 
 
 
Investments of Consolidated Funds:
 
 
 
 
 
 
 
Equity securities
$
556.0

 
Comparable Multiple
 
LTM EBITDA Multiple
 
1.0x - 20.4x (11.4x)
 
8.0

 
Discounted Cash Flow
 
Discount Rates
 
10% - 10% (10%)
 
5.2

 
Other
 
N/A
 
N/A
 
6.1

 
Consensus Pricing
 
Indicative Quotes
($ per share)
 
$0 - $647 ($0)
 
 
 
 
 
 
 
 
Bonds
1,180.9

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
30 - 112 (97)
Loans
15,673.3

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
28 - 102 (96)
 
13.4

 
Market Yield Analysis
 
Market Yield
 
5% - 16% (10%)
Partnership and LLC interests
3,083.7

 
NAV of Underlying Fund(1)
 
N/A
 
N/A
 
59.6

 
Discounted Cash Flow
 
Discount Rates
 
8% - 10% (9%)
 
 
 
 
 
Exit Cap Rate
 
5%-6% (5%)
Other
5.0

 
Counterparty Pricing
 
Indicative Quotes
(% of Notional Amount)
 
1 - 22 (7)
 
20,591.2

 
 
 
 
 
 
Trading securities and other
1.4

 
Comparable Multiple
 
LTM EBITDA Multiple
 
5.8x - 5.8x (5.8x)
Restricted securities of Consolidated Funds
8.7

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
88 - 88 (88)
Total
$
20,601.3

 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Loans payable of Consolidated Funds:
 
 
 
 
 
 
 
Senior secured notes
$
15,915.5

 
Discounted Cash Flow with Consensus Pricing
 
Discount Rates
 
 1% - 12% (3%)
 
 
 
 
 
Default Rates
 
 1% - 5% (3%)
 
 
 
 
 
Recovery Rates
 
55% - 80% (63%)
 
 
 
 
 
Indicative Quotes (% of Par)
 
38 - 102 (98)
Subordinated notes and preferred shares
1,112.4

 
Discounted Cash Flow with Consensus Pricing
 
Discount Rates
 
9% - 16% (12%)
 
 
 
 
 
Default Rates
 
 1% - 5% (3%)
 
 
 
 
 
Recovery Rates
 
 55% - 80% (64%)
 
 
 
 
 
Indicative Quotes (% of Par)
 
1 - 101 (55)
Combination notes
18.8

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
88 - 96 (94)
Loans payable of a consolidated real estate VIE
75.4

 
Discounted Cash Flow
 
Discount to Expected Payment
 
10% - 52% (35%)
 
 
 
 
 
Discount Rate
 
20% - 30% (23%)
Derivative instruments of Consolidated Funds
29.1

 
Counterparty Pricing
 
Indicative Quotes
(% of Notional Amount)
 
3 - 34 (22)
Contingent cash consideration(2)
20.8

 
Discounted Cash Flow
 
Assumed % of Total Potential Contingent Payments
 
0% - 100% (8%)
 
 
 
 
 
Discount Rate
 
4% - 22% (9%)
Total
$
17,172.0

 
 
 
 
 
 

(1)
Represents the Partnership’s investments in funds that are valued using the NAV of the underlying fund.
(2)
Relates to contingent cash consideration associated with the acquisitions of Claren Road, AlpInvest, ESG, Carlyle Commodity Management and Metropolitan (see Note 9).


    
    

The following table summarizes quantitative information about the Partnership’s Level III inputs as of December 31, 2014:
(Dollars in millions)
Fair Value at
December 31, 2014
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
(Weighted
Average)
Assets
 
 
 
 
 
 
 
Investments of Consolidated Funds:
 
 
 
 
 
 
 
Equity securities
$
1,783.7

 
Comparable Multiple
 
LTM EBITDA Multiple
 
4.8x - 16.2x (12.1x)
 
168.7

 
Comparable Multiple
 
Forward EBITDA Multiple
 
8.4x - 8.4x (8.4x)
 
16.1

 
Consensus Pricing
 
Indicative Quotes ($ per share)
 
$0 - $246 ($0)
 
 
 
 
 
 
 
 
Bonds
1,235.8

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
1 - 115 (98)
Loans
14,873.4

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
0 - 103 (98)
 
211.5

 
Market Yield Analysis
 
Market Yield
 
5% - 17% (11%)
Partnership and LLC interests
3,481.0

 
NAV of Underlying Fund(1)
 
N/A
 
N/A
Other
1.5

 
Counterparty Pricing
 
Indicative Quotes (% of Notional Amount)
 
0-6 (3)
 
21,771.7

 
 
 
 
 
 
Trading securities and other
3.0

 
Comparable Multiple
 
LTM EBITDA Multiple
 
5.8x - 5.8x (5.8x)
 
0.3

 
Discounted Cash Flow
 
Discount Rate
 
10% - 10% (10%)
Restricted securities of Consolidated Funds
8.6

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
87 - 87 (87)
Total
$
21,783.6

 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Loans payable of Consolidated Funds:
 
 
 
 
 
 
 
Senior secured notes
$
14,757.5

 
Discounted Cash Flow with Consensus Pricing
 
Discount Rates
 
1% - 11% (3%)
 
 
 
 
 
Default Rates
 
1% - 3% (2%)
 
 
 
 
 
Recovery Rates
 
63% - 75% (68%)
 
 
 
 
 
Indicative Quotes (% of Par)
 
35 - 100 (98)
Subordinated notes and preferred shares
1,278.8

 
Discounted Cash Flow with Consensus Pricing
 
Discount Rates
 
8% - 15% (10%)
 
 
 
 
 
Default Rates
 
1% - 3% (2%)
 
 
 
 
 
Recovery Rates
 
63% - 75% (68%)
 
 
 
 
 
Indicative Quotes (% of Par)
 
1 - 132 (63)
Combination notes
15.9

 
Consensus Pricing
 
Indicative Quotes (% of Par)
 
97 - 98 (98)
Loans payable of a consolidated real estate VIE
146.2

 
Discounted Cash Flow
 
Discount to Expected Payment
 
0% - 100% (36%)
 
 
 
 
 
Discount Rate
 
23% - 33% (26%)
Derivative instruments of the CLOs
17.2

 
Counterparty Pricing
 
Indicative Quotes (% of
Notional Amount)
 
2 - 22 (11)
Contingent consideration(2)
51.1

 
Discounted Cash Flow
 
Assumed % of Total Potential
Contingent Payments
 
0% - 100% (20%)
 
 
 
 
 
Discount Rate
 
5% - 18% (13%)
Total
$
16,266.7

 
 
 
 
 
 
 
(1)
Represents the Partnership’s investments in funds that are valued using the NAV of the underlying fund.
(2)
Related to contingent cash consideration associated with the acquisitions of Claren Road, AlpInvest, ESG, Carlyle Commodity Management and Metropolitan (see Note 9).