CONSOLIDATED INVESTMENT PRODUCTS

6 Months Ended

Jun. 30, 2023

Consolidated Investment Products [Abstract]

The balances related to CIP are identified on the Consolidated Balance Sheets. At June 30, 2023, the company’s net investment in and net receivables from CIP were $465.4 million (December 31, 2022: $386.6 million). The consolidation of investment products had no impact on net income attributable to the company during the three months and six months ended June 30, 2023.

The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of June 30, 2023 and December 31, 2022:


	As of June 30, 2023
$ in millions	Fair Value Measurements	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Investments Measured at NAV as a practical expedient
Assets:

Bank loans	6,571.1	—	6,187.2	383.9	—
Bonds	727.3	14.0	713.3	—	—
Equity securities	226.4	88.3	38.8	99.3	—


Equity and fixed income mutual funds	171.4	25.8	145.6	—	—

Investments in other private equity funds	412.5	—	—	7.6	404.9

Real estate investments	502.6	—	—	—	502.6


Total assets at fair value	8,611.3	128.1	7,084.9	490.8	907.5


	As of December 31, 2022
$ in millions	Fair Value Measurements	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Investments Measured at NAV as a practical expedient
Assets:

Bank loans	6,315.1	—	6,069.8	245.3	—
Bonds	697.5	8.8	688.2	0.5	—
Equity securities	274.9	129.9	29.8	115.2	—


Equity and fixed income mutual funds	230.7	38.8	191.9	—	—

Investments in other private equity funds	461.2	—	—	7.6	453.6

Real estate investments	552.0	—	—	—	552.0


Total assets at fair value	8,531.4	177.5	6,979.7	368.6	1,005.6

The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs:


	For the three months ended June 30,
	2023	2022
$ in millions	Level 3 Assets	Level 3 Assets


Beginning Balance as of April 1	351.3	255.3






Purchases	210.4	0.1



Sales	(28.7)	(2.0)
Deconsolidation of CIP	—	—
Gains and losses included in the Consolidated Statements of Income	6.4	(1.5)
Transfers from Level 3 into Levels 1 or 2	(112.3)	(61.6)
Transfers into Level 3 from Levels 1 or 2	63.7	138.3
Foreign exchange	—	(0.3)
Ending Balance as of June 30	490.8	328.3


	For the six months ended June 30,
	2023	2022
$ in millions	Level 3 Assets	Level 3 Assets


Beginning Balance as of January 1	368.6	239.5






Purchases	210.5	0.1



Sales	(42.1)	(8.5)
Deconsolidation of CIP	(0.6)	—
Gains and losses included in the Consolidated Statements of Income	(1.3)	(2.2)
Transfers from Level 3 into Levels 1 or 2	(242.5)	(93.4)
Transfers into Level 3 from Levels 1 or 2	195.9	193.4
Foreign exchange	2.3	(0.6)
Ending Balance as of June 30	490.8	328.3

Non-consolidated Variable interest entities (VIEs)

At June 30, 2023, the company's risk of loss with respect to VIEs in which the company is not the primary beneficiary included our investment carrying value of $129.7 million (December 31, 2022: $111.5 million) and unfunded capital commitments of $92.3 million (December 31, 2022: $99.0 million).

See the company’s most recently filed Form 10-K for additional disclosures on valuation methodology and fair value.