Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the

fair value hierarchy levels as disclosed in Note 2, Summary of Significant Accounting Policies, as of June 30, 2024:


(Dollars in millions)	Level I	Level II	Level III	Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)	$—	$—	$420.0	$420.0
Bonds	—	—	489.5	489.5
Loans	—	—	7,024.0	7,024.0
	—	—	7,933.5	7,933.5
Investments in CLOs and other:
Investments in CLOs	—	—	494.6	494.6
Other investments(3)	41.6	43.1	108.6	193.3
	41.6	43.1	603.2	687.9
Corporate treasury investments:
Commercial paper and other	—	5.6	—	5.6
	—	5.6	—	5.6
Foreign currency forward contracts	—	4.5	—	4.5
Subtotal	$41.6	$53.2	$8,536.7	$8,631.5
Investments measured at net asset value				505.0
Total				$9,136.5
Liabilities
Loans payable of Consolidated Funds(4)(5)	$—	$—	$7,623.4	$7,623.4
Foreign currency forward contracts	—	0.5	—	0.5
Total	$—	$0.5	$7,623.4	$7,623.9

(1)This balance excludes $494.9 million of Investments of Consolidated Funds that are included in Investments measured at net asset

value, which relate to certain consolidated investment fund of funds in the Company’s Global Investment Solutions segment.

(2)This balance includes $361.5 million related to investments that have been bridged by the Company to investment funds and are

accounted for as consolidated VIEs as of June 30, 2024.

(3)The Level III balance excludes $55.6 million related to three corporate investments in equity securities which the Company has

elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to

ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is

excluded from the tabular Level III rollforward disclosures.

(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that

represent compensation for services.

(5)Loans payable of Consolidated Funds balance excludes a $177.7 million revolving credit balance.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the

above fair value hierarchy levels as of December 31, 2023:


(Dollars in millions)	Level I	Level II	Level III	Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)	$—	$—	$377.6	$377.6
Bonds	—	—	522.5	522.5
Loans	—	—	5,862.1	5,862.1
	—	—	6,762.2	6,762.2
Investments in CLOs and other:
Investments in CLOs	—	—	532.6	532.6
Other investments(3)	38.7	42.8	84.6	166.1
Subtotal	$38.7	$42.8	$7,379.4	$7,460.9
Investments measured at net asset value				502.0
Total				$7,962.9
Liabilities
Loans payable of Consolidated Funds(4)(5)	$—	$—	$6,298.6	$6,298.6
Total	$—	$—	$6,298.6	$6,298.6

(1)This balance excludes $490.9 million of Investments of Consolidated Funds that are included in Investments measured at net asset

value, which relate to certain consolidated investment fund of funds in the Company’s Global Investment Solutions segment.

(2)This balance includes $322.0 million related to investments that have been bridged by the Company to investment funds and are

accounted for as consolidated VIEs as of December 31, 2023.

(3)The Level III balance excludes $50.4 million related to two corporate investments in equity securities which the Company has

elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to

ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is

excluded from the tabular Level III rollforward disclosures.

(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that

represent compensation for services.

(5)Loans payable of Consolidated Funds balance excludes a $177.9 million revolving credit balance and $10.0 million of senior notes

and subordinated notes.

Schedule of Changes in Level III Financial Assets Measured at Fair Value

The changes in financial instruments measured at fair value for which the Company has used Level III inputs to

determine fair value are as follows (Dollars in millions):


	Financial Assets
	Three Months Ended June 30, 2024
	Investments of Consolidated Funds
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$387.3	$500.4	$6,064.9	$520.8	$93.2	$7,566.6
Purchases	38.2	71.7	2,279.7	—	7.2	2,396.8
Sales and distributions	(4.0)	(70.0)	(801.2)	(36.5)	—	(911.7)
Settlements	—	—	(520.7)	—	—	(520.7)
Realized and unrealized gains (losses), net
Included in earnings	(1.5)	(9.7)	20.7	10.7	8.2	28.4
Included in other comprehensive income	—	(2.9)	(19.4)	(0.4)	—	(22.7)
Balance, end of period	$420.0	$489.5	$7,024.0	$494.6	$108.6	$8,536.7
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(4.6)	$(6.5)	$20.9	$10.7	$8.2	$28.7
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$(2.6)	$(18.6)	$(0.4)	$—	$(21.6)

	Financial Assets
	Six Months Ended June 30, 2024
	Investments of Consolidated Funds
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$377.6	$522.5	$5,862.1	$532.6	$84.6	$7,379.4
Purchases	63.0	118.1	3,677.1	1.0	7.2	3,866.4
Sales and distributions	(10.1)	(142.8)	(1,530.7)	(60.5)	(0.9)	(1,745.0)
Settlements	—	—	(985.4)	—	—	(985.4)
Realized and unrealized gains (losses), net
Included in earnings	(10.5)	5.9	93.5	25.9	17.7	132.5
Included in other comprehensive income	—	(14.2)	(92.6)	(4.4)	—	(111.2)
Balance, end of period	$420.0	$489.5	$7,024.0	$494.6	$108.6	$8,536.7
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(13.0)	$8.6	$85.6	$25.9	$16.8	$123.9
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$(11.2)	$(72.6)	$(4.4)	$—	$(88.2)


	Financial Assets
	Three Months Ended June 30, 2023
	Investments of Consolidated Funds
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$435.5	$593.2	$5,481.7	$544.8	$76.1	$7,131.3
Deconsolidation of funds(1)	(0.4)	—	(372.2)	—	—	(372.6)
Purchases	53.1	41.8	1,200.9	—	—	1,295.8
Sales and distributions	—	(81.3)	(265.3)	(12.8)	(0.8)	(360.2)
Settlements	—	(4.1)	(177.3)	—	—	(181.4)
Realized and unrealized gains (losses), net
Included in earnings	(0.6)	(3.3)	(22.7)	(3.2)	6.2	(23.6)
Included in other comprehensive income	—	2.1	13.3	9.3	—	24.7
Balance, end of period	$487.6	$548.4	$5,858.4	$538.1	$81.5	$7,514.0
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(0.6)	$(4.5)	$(13.1)	$(3.2)	$5.4	$(16.0)
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$2.2	$15.6	$9.3	$—	$27.1

	Financial Assets
	Six Months Ended June 30, 2023
	Investments of Consolidated Funds
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$430.6	$594.9	$5,352.9	$526.1	$79.4	$6,983.9
Deconsolidation of funds(1)	(0.4)	—	(372.2)	—	—	(372.6)
Purchases	58.5	71.6	1,438.2	—	—	1,568.3
Sales and distributions	—	(128.3)	(435.0)	(20.7)	(1.7)	(585.7)
Settlements	—	(8.2)	(278.9)	—	—	(287.1)
Realized and unrealized gains (losses), net
Included in earnings	(1.1)	8.1	93.3	15.9	3.8	120.0
Included in other comprehensive income	—	10.3	60.1	16.8	—	87.2
Balance, end of period	$487.6	$548.4	$5,858.4	$538.1	$81.5	$7,514.0
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(1.0)	$2.2	$94.0	$15.9	$2.1	$113.2
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$9.0	$57.5	$16.8	$—	$83.3

(1)As a result of the deconsolidation of one fund during the three and six months ended June 30, 2023.

Schedule of Changes in Level III Financial Liabilities Measured at Fair Value


	Financial Liabilities
	Loans Payable of Consolidated Funds
	Three Months Ended June 30,
	2024	2023
Balance, beginning of period	$6,352.3	$5,647.9
Borrowings	3,000.2	869.2
Paydowns	(258.7)	(46.9)
Sales	(1,453.2)	(82.5)
Realized and unrealized (gains) losses, net
Included in earnings	5.8	(19.7)
Included in other comprehensive income	(23.0)	15.9
Balance, end of period	$7,623.4	$6,383.9
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date	$7.1	$(18.1)
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date	$(27.1)	$16.1

	Financial Liabilities
	Loans Payable of Consolidated Funds
	Six Months Ended June 30,
	2024	2023
Balance, beginning of period	$6,298.6	$5,491.6
Borrowings	3,546.9	869.8
Paydowns	(466.4)	(49.0)
Sales	(1,741.9)	(120.6)
Realized and unrealized (gains) losses, net
Included in earnings	95.2	121.7
Included in other comprehensive income	(109.0)	70.4
Balance, end of period	$7,623.4	$6,383.9
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date	$101.7	$126.7
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date	$(123.6)	$68.3

Schedule of Quantitative Information About Level III Inputs

The following table summarizes quantitative information about the Company’s Level III inputs as of June 30, 2024:


	Fair Value at	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
(Dollars in millions)	June 30, 2024	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Assets
Investments of Consolidated Funds:
Equity securities	$2.3	Consensus Pricing	Indicative Quotes ($ per share)	0.00 - 191.10 (0.00)
	361.5	Discounted Cash Flow	Discount Rates	10% - 11% (11%)
			Terminal Growth Rate	0% - 7% (5%)
		Comparable Multiple	EBITDA Multiple	12.5x - 12.5x (12.5x)
			TCF Multiple	26.9x - 26.9x (26.9x)
	44.5	Discounted Cash Flow	Discount Rates	12% - 12% (12%)
			Terminal Growth Rate	6% - 6% (6%)
		Comparable Multiple	EBITDA Multiple	7.2x - 7.2x (7.2x)
	11.7	Other(1)	N/A	N/A

Bonds	489.5	Consensus Pricing	Indicative Quotes (% of Par)	27 - 103 (91)
Loans	7,000.1	Consensus Pricing	Indicative Quotes (% of Par)	0 - 104 (98)
	10.8	Discounted Cash Flow	Discount Rates	11% - 20% (19%)
	7.8	Discounted Cash Flow	Discount Rates	17% - 17% (17%)
			Constant Prepayment Rate	8% - 14% (11%)
			Constant Default Rate	1% - 1% (1%)
	5.3	Other(1)	N/A	N/A
	7,933.5
Investments in CLOs:
Senior secured notes	434.9	Consensus Pricing with Discounted Cash Flow	Indicative Quotes (% of Par)	78 - 101 (99)
			Discount Margins (Basis Points)	109 - 1,500 (238)
			Default Rates	2% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
Subordinated notes and preferred shares	59.7	Consensus Pricing with Discounted Cash Flow	Indicative Quotes (% of Par)	4 - 91 (41)
			Discount Rates	9% - 35% (20%)
			Default Rates	1% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
Other investments:
BDC preferred shares	98.8	Market Yield Analysis	Market Yields	11% - 11% (11%)
Aviation subordinated notes	2.8	Discounted Cash Flow	Discount Rates	21% - 21% (21%)
Loans	7.0	Discounted Cash Flow	Discount Rates	12% - 16% (14%)
Total	$8,536.7
Liabilities
Loans payable of Consolidated Funds:
Senior secured notes	$7,378.8	Other(2)	N/A	N/A
Subordinated notes and preferred shares	202.4	Consensus Pricing with Discounted Cash Flow	Indicative Quotes (% of Par)	14 - 99 (59)
			Discount Rates	7% - 35% (16%)
			Default Rates	1% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
	42.2	Other(1)	N/A	N/A
Total	$7,623.4

(1)Fair value approximates transaction price that was in close proximity to the reporting date.

(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,

less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent

compensation for services.

The following table summarizes quantitative information about the Company’s Level III inputs as of December 31, 2023:


	Fair Value at	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
(Dollars in millions)	December 31, 2023	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Assets
Investments of Consolidated Funds:
Equity securities	$3.3	Consensus Pricing	Indicative Quotes ($ per share)	0.00 - 208.38 (0.11)
	366.5	Discounted Cash Flow	Discount Rates	10% - 11% (10%)
			Terminal Growth Rate	0% - 7% (5%)
		Comparable Multiple	EBITDA Multiple	12.7x - 12.7x (12.7x)
			TCF Multiple	24.3x - 24.3x (24.3x)
	7.8	Other(1)	N/A	N/A

Bonds	522.5	Consensus Pricing	Indicative Quotes (% of Par)	30 - 105 (90)
Loans	5,829.3	Consensus Pricing	Indicative Quotes (% of Par)	0 - 102 (95)
	11.0	Discounted Cash Flow	Discount Rates	7% - 16% (15%)
	9.4	Discounted Cash Flow	Discount Rates	17% - 17% (17%)
			Constant Prepayment Rate	8% - 8% (8%)
			Constant Default Rate	1% - 1% (1%)
			Recovery Rate	0% - 0% (0%)
Other	12.4	Other(1)	N/A	N/A
	6,762.2
Investments in CLOs
Senior secured notes	472.2	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	72 - 101 (96)
			Discount Margins (Basis Points)	139 - 1,600 (319)
			Default Rates	2% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
Subordinated notes and preferred shares	59.4	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	6 - 90 (40)
			Discount Rate	11% - 40% (21%)
			Default Rates	1% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
	1.0	Other(1)	N/A	N/A
Other investments:
BDC preferred shares	81.7	Market Yield Analysis	Market Yields	11% - 11% (11%)
Aviation subordinated notes	2.9	Discounted Cash Flow	Discount Rates	21% - 21% (21%)
Total	$7,379.4
Liabilities
Loans payable of Consolidated Funds:
Senior secured notes	$6,090.1	Other(2)	N/A	N/A
Subordinated notes and preferred shares	190.0	Discounted Cash Flow with Consensus Pricing	Indicative Quotes (% of Par)	16 - 103 (41)
			Discount Rates	14% - 30% (21%)
			Default Rates	2% - 2% (2%)
			Recovery Rates	60% - 60% (60%)
	18.5	Other(1)	N/A	N/A
Total	$6,298.6

(1)Fair value approximates transaction price that was in close proximity to the reporting date.

(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,

less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent

compensation for services.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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