Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 02, 2016 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | OAK | |
Entity Registrant Name | Oaktree Capital Group, LLC | |
Entity Central Index Key | 1,403,528 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 62,581,044 | |
Class B Units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 92,339,963 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash-equivalents | $ 403,417 | $ 480,590 |
U.S. Treasury securities | 684,224 | 661,116 |
Corporate investments (includes $100,616 and $67,626 measured at fair value as of June 30, 2016 and December 31,2015, respectively) | 1,036,238 | 213,988 |
Due from affiliates | 117,863 | 35,899 |
Deferred tax assets | 426,119 | 425,798 |
Investments, at fair value | 3,302,188 | 45,179,906 |
Derivative assets, at fair value | 5,069 | 204,226 |
Other assets | 186,826 | 254,267 |
Total assets | 6,624,875 | 51,762,731 |
Liabilities: | ||
Accrued compensation expense | 169,344 | 319,834 |
Accounts payable, accrued expenses and other liabilities | 141,361 | 121,934 |
Due to affiliates | 358,716 | 356,851 |
Debt obligations | 795,958 | 846,354 |
Derivative liabilities, at fair value | 17,003 | 304,437 |
Total liabilities | 4,631,192 | 11,781,512 |
Commitments and contingencies (Note 15) | ||
Non-controlling redeemable interests in consolidated funds | 249,257 | 38,173,125 |
Unitholders’ capital: | ||
Paid-in capital | 730,396 | 735,166 |
Retained earnings | 14,928 | 0 |
Accumulated other comprehensive income (loss) | 309 | (1,216) |
Class A unitholders’ capital | 745,633 | 733,950 |
Non-controlling interest in consolidated subsidiaries and funds | 969,872 | 1,043,930 |
Total unitholders’ capital | 1,744,426 | 1,808,094 |
Total liabilities and unitholders’ capital | 6,624,875 | 51,762,731 |
Class A Units | ||
Unitholders’ capital: | ||
Common stock | 0 | 0 |
Class B Units | ||
Unitholders’ capital: | ||
Common stock | 0 | 0 |
Consolidated Funds | ||
Assets | ||
Cash and cash-equivalents | 227,737 | 2,850,512 |
Investments, at fair value | 3,302,188 | 45,179,906 |
Dividends and interest receivable | 13,666 | 189,693 |
Due from brokers | 135,677 | 706,708 |
Receivable for securities sold | 88,815 | 163,799 |
Derivative assets, at fair value | 420 | 198,351 |
Other assets | 1,685 | 402,104 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 20,691 | 128,774 |
Debt obligations | 2,678,566 | 2,330,359 |
Payables for securities purchased | 331,841 | 478,437 |
Securities sold short, at fair value | 61,838 | 91,246 |
Derivative liabilities, at fair value | 1,375 | 300,208 |
Distributions payable | 5,802 | 364,773 |
Borrowings under credit facilities | 65,700 | 6,442,742 |
Non-controlling Interests in Consolidated Funds | ||
Unitholders’ capital: | ||
Non-controlling interest in consolidated subsidiaries and funds | $ 28,921 | $ 30,214 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Other investments, at fair value | $ 100,616 | $ 67,626 |
Class A Units | ||
Par Value (in dollars per share) | $ 0 | $ 0 |
Units Authorized (in shares) | Unlimited | Unlimited |
Issued (in shares) | 62,602,795 | 61,969,860 |
Outstanding (in shares) | 62,602,795 | 61,969,860 |
Class B Units | ||
Par Value (in dollars per share) | $ 0 | $ 0 |
Units Authorized (in shares) | Unlimited | Unlimited |
Issued (in shares) | 92,340,656 | 91,937,873 |
Outstanding (in shares) | 92,340,656 | 91,937,873 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Management fees | $ 195,015 | $ 50,923 | $ 393,568 | $ 101,742 |
Incentive income | 87,701 | 564 | 143,638 | 564 |
Total revenues | 282,716 | 51,487 | 537,206 | 102,306 |
Expenses: | ||||
Compensation and benefits | (103,002) | (107,750) | (211,407) | (217,893) |
Equity-based compensation | (14,726) | (16,083) | (28,622) | (27,789) |
Incentive income compensation | (35,461) | (35,211) | (45,268) | (102,103) |
Total compensation and benefits expense | (153,189) | (159,044) | (285,297) | (347,785) |
General and administrative | (32,949) | (33,488) | (80,780) | (40,068) |
Depreciation and amortization | (4,048) | (3,107) | (8,209) | (5,999) |
Consolidated fund expenses | (1,462) | (50,290) | (2,546) | (88,051) |
Total expenses | (191,648) | (245,929) | (376,832) | (481,903) |
Other income (loss): | ||||
Interest expense | (26,730) | (52,742) | (54,435) | (99,311) |
Net realized gain on consolidated funds’ investments | 6,682 | 857,548 | 10,083 | 1,332,378 |
Investment income | 70,447 | 28,376 | ||
Other income (expense), net | 5,548 | 2,863 | 11,349 | 7,557 |
Total other income (loss) | 58,337 | (116,711) | 84,879 | 1,359,338 |
Income (loss) before income taxes | 149,405 | (311,153) | 245,253 | 979,741 |
Income taxes | (8,571) | (5,485) | (21,251) | (13,360) |
Net income (loss) | 140,834 | (316,638) | 224,002 | 966,381 |
Less: | ||||
Net (income) loss attributable to non-controlling interests | (84,468) | (55,509) | (144,502) | (163,610) |
Net income attributable to Oaktree Capital Group, LLC | $ 49,047 | $ 19,814 | $ 77,125 | $ 58,067 |
Distributions declared per Class A unit (in dollars per share) | $ 0.55000 | $ 0.64000 | $ 1.02000 | $ 1.2000 |
Net income per unit (basic and diluted): | ||||
Net income per Class A unit (in dollars per share) | $ 0.78 | $ 0.41 | $ 1.24 | $ 1.24 |
Weighted average number of Class A units outstanding (in shares) | 62,617 | 48,372 | 62,256 | 46,727 |
Consolidated Funds | ||||
Other income (loss): | ||||
Interest and dividend income | $ 37,138 | $ 478,311 | $ 73,408 | $ 1,001,240 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | (5,301) | (1,418,385) | (25,973) | (910,902) |
Investment income | 41,000 | 15,694 | 70,447 | 28,376 |
Non-controlling Interests in Consolidated Funds | ||||
Less: | ||||
Net (income) loss attributable to non-controlling interests | $ (7,319) | $ 391,961 | $ (2,375) | $ (744,704) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 140,834 | $ (316,638) | $ 224,002 | $ 966,381 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 2,488 | 1,919 | 3,581 | (1,128) |
Unrealized gain on interest-rate swap designated as cash-flow hedge | 215 | 414 | 195 | 283 |
Other comprehensive income (loss), net of tax | 2,703 | 2,333 | 3,776 | (845) |
Total comprehensive income (loss) | 143,537 | (314,305) | 227,778 | 965,536 |
Less: Comprehensive income attributable to non-controlling interests | (93,399) | 334,852 | (149,128) | (907,672) |
Comprehensive income attributable to Oaktree Capital Group, LLC | 50,138 | 20,547 | 78,650 | 57,864 |
Oaktree Capital Group, LLC | ||||
Net income | 49,047 | 19,814 | 77,125 | 58,067 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 1,004 | 603 | 1,446 | (294) |
Unrealized gain on interest-rate swap designated as cash-flow hedge | 87 | 130 | 79 | 91 |
Other comprehensive income (loss), net of tax | 1,091 | 733 | 1,525 | (203) |
Total comprehensive income (loss) | 50,138 | 20,547 | 78,650 | 57,864 |
Comprehensive income attributable to Oaktree Capital Group, LLC | 50,138 | 20,547 | 78,650 | 57,864 |
Non-controlling Interests in Consolidated Subsidiaries | ||||
Net income | 84,468 | 55,509 | 144,502 | 163,610 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 1,484 | 1,316 | 2,135 | (834) |
Unrealized gain on interest-rate swap designated as cash-flow hedge | 128 | 284 | 116 | 192 |
Other comprehensive income (loss), net of tax | 1,612 | 1,600 | 2,251 | (642) |
Total comprehensive income (loss) | 86,080 | 57,109 | 146,753 | 162,968 |
Less: Comprehensive income attributable to non-controlling interests | (86,080) | (57,109) | (146,753) | (162,968) |
Non-controlling Interests in Consolidated Funds | ||||
Net income | 7,319 | (391,961) | 2,375 | 744,704 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Unrealized gain on interest-rate swap designated as cash-flow hedge | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) | 7,319 | (391,961) | 2,375 | 744,704 |
Less: Comprehensive income attributable to non-controlling interests | $ (7,319) | $ 391,961 | $ (2,375) | $ (744,704) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 224,002 | $ 966,381 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Investment income | (70,447) | (28,376) |
Depreciation and amortization | 8,209 | 5,999 |
Equity-based compensation | 28,622 | 27,789 |
Amortization (accretion) of original issue and market discount of consolidated funds’ investments, net | (4,860) | (10,122) |
Income distributions from corporate investments in funds and companies | 52,154 | 36,281 |
Amortization or write-down of debt issuance costs | 608 | 5,718 |
Cash flows due to changes in operating assets and liabilities: | ||
Decrease in other assets | 20,175 | 31,597 |
Increase in net due to affiliates | 116 | 4,727 |
Decrease in accrued compensation expense | (150,490) | (114,253) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 25,590 | (24,285) |
Purchases of securities | (37,228) | (40,398) |
Net cash used in operating activities | (240,507) | (1,273,994) |
Cash flows from investing activities: | ||
Purchases of U.S. Treasury securities | (473,115) | (265,722) |
Proceeds from maturities and sales of U.S. Treasury securities | 450,007 | 240,054 |
Distributions and proceeds from corporate investments in funds and companies | 132,159 | 43,778 |
Purchases of fixed assets | (4,159) | (16,991) |
Net cash provided by (used in) investing activities | 67,664 | (39,279) |
Cash flows from financing activities: | ||
Payment of debt issuance costs | (801) | 0 |
Repayment of debt obligations | (50,000) | 0 |
Purchase of OCGH units | 0 | (237,820) |
Repurchase and cancellation of units | (10,315) | (4,290) |
Distributions to Class A unitholders | (63,547) | (55,466) |
Distributions to OCGH unitholders | (116,193) | (155,391) |
Contributions from non-controlling interests | 0 | 4,000 |
Distributions to non-controlling interests | (3,515) | (3,096) |
Net cash provided by financing activities | 178,706 | 724,314 |
Effect of exchange rate changes on cash | 6,379 | (25,239) |
Net decrease in cash and cash-equivalents | 12,242 | (614,198) |
Cash and cash-equivalents, beginning balance | 3,331,102 | 3,348,494 |
Change in cash and cash-equivalents from adoption of accounting guidance | (2,712,190) | 0 |
Cash and cash-equivalents, ending balance | 631,154 | 2,734,296 |
Consolidated Funds | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||
Investment income | (70,447) | (28,376) |
Net realized and unrealized (gain) loss from consolidated funds’ investments | 15,890 | (421,476) |
Cash flows due to changes in operating assets and liabilities: | ||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 5,479 | 47,638 |
Increase in dividends and interest receivable | (1,622) | (2,412) |
(Increase) decrease in due from brokers | 20,693 | (257,939) |
Increase in receivables for securities sold | (75,113) | (190,740) |
Increase in other assets | (1,346) | (52,222) |
Increase in payables for securities purchased | 184,080 | 321,221 |
Purchases of securities | (1,570,440) | (9,840,256) |
Proceeds from maturities and sales of securities | 1,048,193 | 8,220,736 |
Cash flows from financing activities: | ||
Payment of debt issuance costs | (7,974) | (9,108) |
Contributions from non-controlling interests | 64,321 | 3,035,701 |
Distributions to non-controlling interests | (23,598) | (3,436,558) |
Proceeds from debt obligations issued by CLOs | 426,292 | 401,372 |
Borrowings on credit facilities | 129,885 | 3,527,603 |
Repayments on credit facilities | (165,849) | (2,580,453) |
Class A Units | ||
Cash flows from financing activities: | ||
Proceeds from issuance of Class A units | $ 0 | $ 237,820 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Unitholders' Capital - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, value | $ 1,808,094 | $ 1,840,130 | ||
Cumulative-effect adjustment from adoption of accounting guidance | (122,621) | |||
Issuance of units, value | 237,820 | |||
Purchase of OCGH units from OCGH unitholders | (237,820) | |||
Deferred tax effect resulting from the purchase of OCGH units | 11,025 | |||
Repurchase and cancellation of units | (10,315) | (4,290) | ||
Equity reallocation between controlling and non-controlling interests | $ (645) | $ 559 | (8,126) | (45,202) |
Capital contributions | 6,880 | |||
Capital increase related to equity-based compensation | 28,413 | 26,658 | ||
Distributions declared | (184,934) | (215,279) | ||
Net income | 222,013 | 223,773 | ||
Foreign currency translation adjustment, net of tax | 2,488 | 1,919 | 3,581 | (1,128) |
Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax | 195 | 283 | ||
Unitholders' capital, value | 1,744,426 | 1,888,052 | 1,744,426 | 1,888,052 |
Paid-in Capital | ||||
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, value | 735,166 | 536,431 | ||
Cumulative-effect adjustment from adoption of accounting guidance | (12,912) | |||
Issuance of units, value | 237,820 | |||
Purchase of OCGH units from OCGH unitholders | (237,820) | |||
Deferred tax effect resulting from the purchase of OCGH units | 11,025 | |||
Repurchase and cancellation of units | (10,089) | |||
Equity reallocation between controlling and non-controlling interests | 8,126 | 45,202 | ||
Capital increase related to equity-based compensation | 11,455 | 8,155 | ||
Distributions declared | (1,350) | |||
Unitholders' capital, value | 730,396 | 600,813 | 730,396 | 600,813 |
Retained Earnings | ||||
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, value | 0 | 11,378 | ||
Distributions declared | (62,197) | (55,466) | ||
Net income | 77,125 | 58,067 | ||
Unitholders' capital, value | 14,928 | 13,979 | 14,928 | 13,979 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, value | (1,216) | (1,070) | ||
Foreign currency translation adjustment, net of tax | 1,446 | (294) | ||
Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax | 79 | 91 | ||
Unitholders' capital, value | 309 | (1,273) | 309 | (1,273) |
Non-controlling Interests in Consolidated Subsidiaries | ||||
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, value | 1,043,930 | 1,265,961 | ||
Cumulative-effect adjustment from adoption of accounting guidance | (109,709) | |||
Repurchase and cancellation of units | (226) | (4,290) | ||
Equity reallocation between controlling and non-controlling interests | (8,126) | (45,202) | ||
Capital contributions | 4,000 | |||
Capital increase related to equity-based compensation | 16,958 | 18,503 | ||
Distributions declared | (119,708) | (158,487) | ||
Net income | 144,502 | 163,610 | ||
Foreign currency translation adjustment, net of tax | 1,484 | 1,316 | 2,135 | (834) |
Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax | 116 | 192 | ||
Unitholders' capital, value | 969,872 | 1,243,453 | 969,872 | 1,243,453 |
Non-controlling Interests in Consolidated Funds | ||||
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, value | 30,214 | 27,430 | ||
Capital contributions | 2,880 | |||
Distributions declared | (1,679) | (1,326) | ||
Net income | 386 | 2,096 | ||
Foreign currency translation adjustment, net of tax | 0 | 0 | 0 | 0 |
Unitholders' capital, value | $ 28,921 | $ 31,080 | $ 28,921 | $ 31,080 |
Class A Units | ||||
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, shares | 61,970 | 43,764 | ||
Issuance of units, shares | 897 | 4,608 | ||
Cancellation of units associated with forfeitures, shares | (41) | |||
Cancellation of units, shares | (223) | |||
Unitholders' capital, shares | 62,603 | 48,372 | 62,603 | 48,372 |
Class B Units | ||||
Increase (decrease) in Stockholders' Equity: | ||||
Unitholders' capital, shares | 91,938 | 109,089 | ||
Issuance of units, shares | 630 | 1,151 | ||
Cancellation of units associated with forfeitures, shares | (111) | (78) | ||
Cancellation of units, shares | (116) | (4,702) | ||
Unitholders' capital, shares | 92,341 | 105,460 | 92,341 | 105,460 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Oaktree Capital Group, LLC (together with its subsidiaries, “Oaktree” or the “Company”) is a leader among global investment managers specializing in alternative investments. Oaktree emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Funds managed by Oaktree (the “Oaktree funds”) include commingled funds, separate accounts and collateralized loan obligation vehicles (“CLOs”). Commingled funds include open-end and closed-end limited partnerships in which the Company makes an investment and for which it serves as the general partner. CLOs are structured finance vehicles in which the Company typically makes an investment and for which it serves as collateral manager. Oaktree Capital Group, LLC is a Delaware limited liability company that was formed on April 13, 2007. The Company is owned by its Class A and Class B unitholders. Oaktree Capital Group Holdings GP, LLC acts as the Company’s manager and is the general partner of Oaktree Capital Group Holdings, L.P. (“OCGH”), which owns 100% of the Company’s outstanding Class B units. OCGH is owned by the Company’s senior executives, current and former employees and certain other investors (collectively, the “OCGH unitholders”). The Company’s operations are conducted through a group of operating entities collectively referred to as the Oaktree Operating Group. OCGH has a direct economic interest in the Oaktree Operating Group and the Company has an indirect economic interest in the Oaktree Operating Group. The interests in the Oaktree Operating Group are referred to as the “Oaktree Operating Group units.” An Oaktree Operating Group unit is not a separate legal interest but represents one limited partnership interest in each of the Oaktree Operating Group entities. Class A units are entitled to one vote per unit. Class B units are entitled to ten votes per unit and do not represent an economic interest in the Company. The number of Class B units held by OCGH increases or decreases in response to corresponding changes in OCGH’s economic interest in the Oaktree Operating Group; consequently, the OCGH unitholders’ economic interest in the Oaktree Operating Group is reflected within non-controlling interests in consolidated subsidiaries in the accompanying condensed consolidated financial statements. Basis of Presentation The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. Certain of the Oaktree funds consolidated by the Company are investment companies that follow a specialized basis of accounting established by GAAP. All intercompany transactions and balances have been eliminated in consolidation. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on February 26, 2016. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies of the Company Consolidation In February 2015, the Financial Accounting Standards Board (“FASB”) amended its consolidation guidance which changed the way a reporting entity should evaluate limited partnerships and similar entities for consolidation, how a decision maker’s fees affect the consolidation analysis, and how interests held by related parties affect the consolidation analysis. The Company adopted this guidance as of January 1, 2016 under the modified retrospective approach, which did not require prior periods to be recast. In connection with the adoption, the Company reevaluated all of its investment vehicles and other legal entities for consolidation. As of January 1, 2016, the Company deconsolidated substantially all of its previously consolidated investment funds because those funds, which had previously been evaluated as voting interest entities, became variable interest entities (“VIEs”) under the new consolidation guidance, and the Company was not the primary beneficiary because its fee arrangements were no longer deemed to be variable interests and it did not hold any other interests in those funds that were considered to be more than insignificant. The adoption resulted in a reduction to total consolidated assets, liabilities, non-controlling redeemable interests in consolidated funds and unitholders' capital as of January 1, 2016 of $45.7 billion , $7.6 billion , $38.0 billion and $90.6 million , respectively. There was no impact on retained earnings or net income attributable to the Company. The Company consolidates entities in which it has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. A limited partnership or similar entity is a VIE if the unaffiliated limited partners do not have substantive kick-out or participating rights. Most of the Oaktree funds are VIEs because they have not granted unaffiliated limited partners substantive kick-out or participating rights. The Company consolidates all VIEs in which it is the primary beneficiary. An entity is deemed to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Company holds a variable interest is a VIE and (b) whether the Company’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (e.g., management and performance-related fees), would give it a controlling financial interest. A decision maker’s fee arrangement is not considered a variable interest if it is compensation for services provided, commensurate with the level of effort required to provide those services and part of a compensation arrangement that includes only terms, conditions or amounts that are customarily present in arrangements for similar services negotiated at arm’s length (“at-market”), and the decision maker does not hold any other variable interests that absorb more than an insignificant amount of the potential VIE’s expected residual returns. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Company, affiliates of the Company or third parties) or amendments to the governing documents of the respective Oaktree funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. Please see note 3 for more information regarding VIEs. For entities that are not VIEs, the Company evaluates those entities that it controls through a majority voting interest model. “Consolidated funds” refers to Oaktree-managed funds and CLOs that Oaktree is required to consolidate. When funds or CLOs are consolidated, the Company reflects the assets, liabilities, revenues, expenses and cash flows of the funds or CLOs on a gross basis, and the majority of the economic interests in those funds or CLOs, which are held by third-party investors, are reflected as non-controlling interests in consolidated funds or debt obligations of CLOs in the condensed consolidated financial statements. All of the revenues earned by the Company as investment manager of the consolidated funds are eliminated in consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the consolidation of a fund does not impact net income or loss attributable to the Company. Certain entities in which the Company has the ability to exert significant influence, including unconsolidated Oaktree funds for which the Company acts as general partner, are accounted for under the equity method of accounting. Non-controlling Redeemable Interests in Consolidated Funds The Company records non-controlling interests to reflect the economic interests of the unaffiliated limited partners. These interests are presented as non-controlling redeemable interests in consolidated funds within the condensed consolidated statements of financial condition, outside of the permanent capital section. Limited partners in open-end and evergreen funds generally have the right to withdraw their capital, subject to the terms of the respective limited partnership agreements, over periods ranging from one month to three years . While limited partners in consolidated closed-end funds generally have not been granted redemption rights, these limited partners do have withdrawal or redemption rights in certain limited circumstances that are beyond the control of the Company, such as instances in which retaining the limited partnership interest could cause the limited partner to violate a law, regulation or rule. The allocation of net income or loss to non-controlling redeemable interests in consolidated funds is based on the relative ownership interests of the unaffiliated limited partners after the consideration of contractual arrangements that govern allocations of income or loss. At the consolidated level, potential incentives are allocated to non-controlling redeemable interests in consolidated funds until such incentives become allocable to the Company under the substantive contractual terms of the limited partnership agreements of the funds. Non-controlling Interests in Consolidated Funds Non-controlling interests in consolidated funds represent the equity interests held by third-party investors in CLOs that had not yet priced as of the respective period end. All non-controlling interests in those CLOs are attributed a share of income or loss arising from the respective CLO based on the relative ownership interests of third-party investors after consideration of contractual arrangements that govern allocations of income or loss. Investors in those CLOs are generally unable to redeem their interests until the respective CLO liquidates, is called or otherwise terminates. Non-controlling Interests in Consolidated Subsidiaries Non-controlling interests in consolidated subsidiaries reflect the portion of unitholders’ capital attributable to OCGH unitholders (“OCGH non-controlling interest”) and third parties. All non-controlling interests in consolidated subsidiaries are attributed a share of income or loss in the respective consolidated subsidiary based on the relative economic interests of the OCGH unitholders or third parties after consideration of contractual arrangements that govern allocations of income or loss. Please see note 11 for more information. Goodwill and Intangibles Goodwill represents the excess of cost over the fair value of identifiable net assets of acquired businesses. Goodwill has an indefinite useful life and is not amortized, but instead is tested for impairment annually in the fourth quarter of each fiscal year, or more frequently when events or circumstances indicate that impairment may have occurred. The Company's identifiable intangible assets acquired in business combinations primarily relate to contractual rights to earn future management fees and incentive income. Finite-lived intangible assets are amortized over their estimated useful lives, which range from three to seven years, and are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial instruments at fair value into three levels based on their market observability. Market price observability is affected by a number of factors, such as the type of instrument and the characteristics specific to the instrument. Financial instruments with readily available quoted prices from an active market or for which fair value can be measured based on actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value. Financial assets and liabilities measured and reported at fair value are classified as follows: • Level I – Quoted unadjusted prices for identical instruments in active markets to which the Company has access at the date of measurement. The types of investments in Level I include exchange-traded equities, debt and derivatives with quoted prices. • Level II – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are directly or indirectly observable. Level II inputs include interest rates, yield curves, volatilities, prepayment risks, loss severities, credit risks and default rates. The types of investments in Level II generally include corporate bonds and loans, government and agency securities, less liquid and restricted equity investments, over-the-counter traded derivatives, and other investments where the fair value is based on observable inputs. • Level III – Valuations for which one or more significant inputs are unobservable. These inputs reflect the Company’s assessment of the assumptions that market participants use to value the investment based on the best available information. Level III inputs include prices of quoted securities in markets for which there are few transactions, less public information exists or prices vary among brokered market makers. The types of investments in Level III include non-publicly traded equity, debt, real estate and derivatives. In some instances, the inputs used to value an instrument may fall into multiple levels of the fair-value hierarchy. In such instances, the instrument’s level within the fair-value hierarchy is based on the lowest of the three levels (with Level III being the lowest) that is significant to the fair-value measurement. The Company’s assessment of the significance of an input requires judgment and considers factors specific to the instrument. Transfers of assets into or out of each fair value hierarchy level as a result of changes in the observability of the inputs used in measuring fair value are accounted for as of the beginning of the reporting period. Transfers resulting from a specific event, such as a reorganization or restructuring, are accounted for as of the date of the event that caused the transfer. In the absence of observable market prices, the Company values Level III investments using valuation methodologies applied on a consistent basis. The quarterly valuation process for Level III investments begins with each portfolio company, property or security being valued by the investment and/or valuation teams. With the exception of open-end funds, all unquoted Level III investment values are reviewed and approved by (i) the Company’s valuation officer, who is independent of the investment teams, (ii) a designated investment professional of each strategy and (iii) for a substantial majority of unquoted Level III holdings as measured by market value, a valuation committee of the respective strategy. For open-end funds, unquoted Level III investment values are reviewed and approved by the Company’s valuation officer. For certain investments, the valuation process also includes a review by independent valuation parties, at least annually, to determine whether the fair values determined by management are reasonable. Results of the valuation process are evaluated each quarter, including an assessment of whether the underlying calculations should be adjusted or recalibrated. In connection with this process, the Company periodically evaluates changes in fair-value measurements for reasonableness, considering items such as industry trends, general economic and market conditions, and factors specific to the investment. Certain assets are valued using prices obtained from brokers or pricing vendors. The Company obtains an average of one to two broker quotes. The Company seeks to obtain at least one quote directly from a broker making a market for the asset and one price from a pricing vendor for the specific or similar securities. These investments may be classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. The Company evaluates the prices obtained from brokers or pricing vendors based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. The Company also performs back-testing of valuation information obtained from brokers and pricing vendors against actual prices received in transactions. In addition to ongoing monitoring and back-testing, the Company performs due diligence procedures surrounding pricing vendors to understand their methodology and controls to support their use in the valuation process. The Company adopted the measurement alternative guidance for collateralized financing entities on a modified retrospective approach as of January 1, 2016. Upon adoption, the Company elected the fair value option for the financial liabilities of the consolidated CLOs and determined that the fair value of the CLO assets was more observable than the fair value of the CLO liabilities. Accordingly, the fair value of the CLO liabilities was measured as the fair value of CLO assets less the sum of (a) the fair value of any beneficial interests held by the Company and (b) the carrying value of any beneficial interests that represent compensation for services. Fair Value Option The Company has elected the fair value option for certain corporate investments that otherwise would not have reflected unrealized gains and losses in current-period earnings. Such election is irrevocable and is applied on an investment-by-investment basis at initial recognition. Unrealized gains and losses resulting from changes in fair value are reflected as a component of investment income in the condensed consolidated statements of operations. The Company’s accounting for those investments is similar to its accounting for investments held by the consolidated funds at fair value and the valuation methods used to determine the fair value of those investments. The Company has elected the fair value option for the financial assets and financial liabilities of its consolidated CLOs. The assets and liabilities of CLOs are primarily reflected within the investments, at fair value and within debt obligations of CLOs line items in the condensed consolidated statements of financial condition. The Company’s accounting for CLO assets is similar to its accounting for its funds with respect to both carrying investments held by CLOs at fair value and the valuation methods used to determine the fair value of those investments. CLO liabilities are measured based on the more observable fair value of CLO assets under the new CLO measurement alternative guidance, as discussed under “—Fair Value of Financial Instruments” above. Realized gains or losses and changes in the fair value of CLO assets, respectively, are included in net realized gain on consolidated funds’ investments and net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Interest income of CLOs is included in interest and dividend income, and interest expense and other expenses, respectively, are included in interest expense and consolidated fund expenses in the condensed consolidated statements of operations. Changes in the fair value of a CLO’s financial liabilities resulting from the measurement alternative guidance for collateralized financing entities are included in net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Please see notes 5 and 9 for more information. Accounting Policies of Consolidated Funds Investments, at Fair Value The consolidated funds include investment limited partnerships and CLOs that reflect their investments, including majority-owned and controlled investments, at fair value. The Company has retained the specialized investment company accounting guidance under GAAP for investment limited partnerships with respect to consolidated investments and has elected the fair value option for the financial assets of CLOs. Thus, the consolidated investments are reflected in the condensed consolidated statements of financial condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Non-publicly traded debt and equity securities and other securities or instruments for which reliable market quotations are not available are valued by management using valuation methodologies applied on a consistent basis. These securities may initially be valued at the acquisition price as the best indicator of fair value. The Company reviews the significant unobservable inputs, valuations of comparable investments and other similar transactions for investments valued at acquisition price to determine whether another valuation methodology should be utilized. Subsequent valuations will depend on the facts and circumstances known as of the valuation date and the application of valuation methodologies as further described below under “—Non-publicly Traded Equity and Real Estate Investments.” The fair value may also be based on a pending transaction expected to close after the valuation date. Exchange-traded Investments Securities listed on one or more national securities exchanges are valued at their last reported sales price on the date of valuation. If no sale occurred on the valuation date, the security is valued at the mean of the last “bid” and “ask” prices on the valuation date. Securities that are not readily marketable due to legal restrictions that may limit or restrict transferability are generally valued at a discount from quoted market prices. The discount would reflect the amount market participants would require due to the risk relating to the inability to access a public market for the security for the specified period and would vary depending on the nature and duration of the restriction and the perceived risk and volatility of the underlying securities. Securities with longer duration restrictions or higher volatility are generally valued at a higher discount. Such discounts are generally estimated based on put option models or an analysis of market studies. Instances where the Company has applied discounts to quoted prices of restricted listed securities have been infrequent. The impact of such discounts is not material to the Company’s condensed consolidated statements of financial condition and results of operations for all periods presented. Credit-oriented Investments (including Real Estate Loan Portfolios) Investments in corporate and government debt which are not listed or admitted to trading on any securities exchange are valued at the mean of the last bid and ask prices on the valuation date based on quotations supplied by recognized quotation services or by reputable broker-dealers. The market-yield approach is considered in the valuation of non-publicly traded debt securities, utilizing expected future cash flows and discounted using estimated current market rates. Discounted cash-flow calculations may be adjusted to reflect current market conditions and/or the perceived credit risk of the borrower. Consideration is also given to a borrower’s ability to meet principal and interest obligations; this may include an evaluation of collateral and/or the underlying value of the borrower utilizing techniques described below under “—Non-publicly Traded Equity and Real Estate Investments.” Non-publicly Traded Equity and Real Estate Investments The fair value of equity and real estate investments is determined using a cost, market or income approach. The cost approach is based on the current cost of reproducing a real estate investment less deterioration and functional and economic obsolescence. The market approach utilizes valuations of comparable public companies and transactions, and generally seeks to establish the enterprise value of the portfolio company or investment property using a market-multiple methodology. This approach takes into account the financial measure (such as EBITDA, adjusted EBITDA, free cash flow, net operating income, net income, book value or net asset value) believed to be most relevant for the given company or investment property. Consideration also may be given to factors such as acquisition price of the security or investment property, historical and projected operational and financial results for the portfolio company, the strengths and weaknesses of the portfolio company or investment property relative to its comparable companies or properties, industry trends, general economic and market conditions, and others deemed relevant. The income approach is typically a discounted cash-flow method that incorporates expected timing and level of cash flows. It incorporates assumptions in determining growth rates, income and expense projections, discount and capitalization rates, capital structure, terminal values, and other factors. The applicability and weight assigned to market and income approaches are determined based on the availability of reliable projections and comparable companies and transactions. The valuation of securities may be impacted by expectations of investors’ receptiveness to a public offering of the securities, the size of the holding of the securities and any associated control, information with respect to transactions or offers for the securities (including the transaction pursuant to which the investment was made and the elapsed time from the date of the investment to the valuation date), and applicable restrictions on the transferability of the securities. These valuation methodologies involve a significant degree of management judgment. Accordingly, valuations by the Company do not necessarily represent the amounts that eventually may be realized from sales or other dispositions of investments. Fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the condensed consolidated financial statements. Recent Accounting Developments In March 2016, the FASB issued guidance that affects several aspects of accounting for employee share-based payment awards. The amendments would impact the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In March 2016, the FASB issued guidance eliminating the requirement to retroactively apply the equity method of accounting when a reporting entity obtains significant influence over an investment (e.g., due to an increase in ownership) that previously had been accounted for under the cost basis or at fair value. Instead, the reporting entity would be required to apply the equity method of accounting prospectively from the date significant influence was obtained. The cost of the additional interest in the investee, if any, should be added to the current basis of the investment. The amendment also provides guidance for available-for-sale investments that become eligible for the equity method of accounting. In those cases, any unrealized gain or loss recorded within accumulated other comprehensive income should be recognized in earnings as of the date the investment initially qualifies for the use of the equity method. The guidance is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In February 2016, the FASB issued guidance that will require a lessee to recognize a lease asset and a lease liability for most of its operating leases. Under current GAAP, operating leases are not recognized by a lessee in its statements of financial position. In general, the new asset and liability will each equal the present value of lease payments. The guidance does not significantly change the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee. The guidance is effective for the Company in the first quarter of 2019 using a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented. Early adoption is permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In January 2016, the FASB issued guidance that changes the classification and measurement of financial instruments and amends certain disclosure requirements associated with the fair value of financial instruments. The amendments revise the accounting related to (a) the classification and measurement of investments in equity investments and (b) the presentation of certain fair value changes for financial liabilities measured at fair value. Specifically, the guidance generally requires equity investments to be carried at fair value with changes flowing through net income. This requirement does not apply to equity-method investments. For financial liabilities measured at fair value, the guidance requires fair value changes attributable to instrument-specific credit risk to be presented separately in other comprehensive income, as opposed to reflecting the entire fair-value change in net income. The guidance is effective for the Company in the first quarter of 2019, with early adoption permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In April 2015, the FASB issued guidance that changes the presentation of debt issuance costs in the statements of financial position. Previously, such costs were reflected in the statements of financial position as a deferred asset. The new guidance requires these costs to be presented as a direct deduction from the related debt liability and to be amortized as interest expense. The amendment does not affect the current guidance on the recognition and measurement of debt issuance costs. The Company adopted the guidance in the first quarter of 2016 on a retrospective basis. The adoption resulted in the reclassification of deferred debt issuance costs related to the Company and the consolidated funds, respectively, of $3.6 million and $44.7 million as of December 31, 2015, from other assets to debt obligations in the condensed consolidated statements of financial condition. In February 2015, the FASB amended its consolidation guidance to end the deferral granted to investment companies with respect to applying VIE guidance. The new guidance does not affect the five characteristics that determine if an entity is a VIE; rather, it focuses on the consolidation criteria used to evaluate whether certain legal entities should be consolidated. Additionally, the new guidance eliminates the presumption that a general partner should consolidate a limited partnership under the voting model. The amendment is intended to simplify the consolidation guidance by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a VIE and providing more clarity for reporting entities that typically make use of limited partnerships or VIEs. The Company adopted the guidance in the first quarter of 2016 on a modified retrospective basis as of January 1, 2016. As a result, prior periods were not recast; instead, a cumulative-effect adjustment to equity as of January 1, 2016 was recorded. The adoption resulted in a reduction to total consolidated assets, liabilities, non-controlling redeemable interests in consolidated funds and unitholders' capital as of January 1, 2016 of $45.7 billion , $7.6 billion , $38.0 billion and $90.6 million , respectively. There was no impact on retained earnings or net income attributable to the Company. In August 2014, the FASB issued guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements. Additionally, an entity must provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for the Company in the fourth quarter of 2016, with early adoption permitted. The Company does not expect that adoption of this guidance will have a material impact on its consolidated financial statements. In August 2014, the FASB issued guidance on measuring the financial assets and financial liabilities of a consolidated collateralized financing entity, such as a CLO. The guidance applies to reporting entities that are required to consolidate a collateralized financing entity under the VIE guidance when (a) the reporting entity measures all of the financial assets and financial liabilities of that consolidated financing entity at fair value in the consolidated financial statements and (b) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. The guidance provides an alternative for measuring the financial assets and financial liabilities of a consolidated collateralized financing entity to eliminate differences in the fair value of those financial assets and financial liabilities as determined under GAAP. The Company adopted the guidance in the first quarter of 2016 on a modified retrospective basis as of January 1, 2016. As a result, prior periods were not recast; instead, a cumulative-effect adjustment to equity as of January 1, 2016 was recorded. The adoption resulted in a reduction to unitholders' capital as of January 1, 2016 of $32.1 million . In May 2014, the FASB and International Accounting Standards Board issued converged gu |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company consolidates VIEs for which it 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 allocations. 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. As discussed in note 2, the Company adopted the new consolidation guidance in the first quarter of 2016 under the modified retrospective approach as of January 1, 2016, which did not require prior periods to be recast. The adoption resulted in the deconsolidation of substantially all of Oaktree’s investment funds as of January 1, 2016. Consolidated VIEs As of June 30, 2016, the Company consolidated 17 VIEs for which it was the primary beneficiary, including eight funds managed by Oaktree, eight CLOs for which Oaktree serves as collateral manager, and Oaktree AIF Holdings, Inc., which was formed to hold certain assets for regulatory and other purposes. Two of the CLOs had not priced as of June 30, 2016. As of December 31, 2015, the Company consolidated eight VIEs pursuant to the consolidation rules then in effect. As of June 30, 2016, the assets and liabilities of the 16 consolidated VIEs representing funds and CLOs amounted to $3.7 billion and $3.2 billion , respectively. The assets of these consolidated VIEs primarily consisted of investments in debt and equity securities, while their liabilities primarily represented debt obligations issued by CLOs. 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. In exchange for managing either the funds or CLOs’ collateral, the Company typically earns management fees and may earn performance fees, both of which are eliminated in consolidation. As of June 30, 2016, the Company’s investments in consolidated VIEs had a carrying value of $279.1 million , which represented its maximum risk of loss as of that date. The Company’s investments in CLOs are generally subordinated to other interests in the CLOs and entitle the Company to receive a pro-rata portion of the residual cash flows, if any, from the CLOs. Please see note 9 for more information on CLO debt obligations. Unconsolidated VIEs The Company holds 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. As of June 30, 2016, the assets and liabilities of VIEs that were not consolidated, and the Company’s investments in those VIEs, are shown below. As of December 31, 2015, there were no VIEs for which the Company was not the primary beneficiary pursuant to the consolidation rules then in effect. Carrying Value as of June 30, 2016 Assets of VIEs $ 48,148,869 Liabilities of VIEs $ 8,808,034 Corporate investments $ 1,008,016 Due from affiliates 39,515 Maximum exposure to loss $ 1,047,531 |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Corporate Investments Corporate investments consist of investments in funds and companies in which the Company does not have a controlling financial interest. Investments for which the Company is deemed to exert significant influence are accounted for using the equity method of accounting and reflect Oaktree’s ownership interest in each fund or company. In the case of investments for which the Company is not deemed to exert significant influence or control, the fair value option of accounting has been elected. Investment income represents the Company’s pro-rata share of income or loss from these funds or companies, or the change in fair value of the investment, as applicable. Oaktree’s general partnership interests are substantially illiquid. While investments in funds reflect each respective fund’s holdings at fair value, equity-method investments in DoubleLine Capital LP and its affiliates (collectively, “DoubleLine”) and other companies are not adjusted to reflect the fair value of the underlying company. The fair value of the underlying investments in Oaktree funds is based on the Company’s assessment, which takes into account expected cash flows, earnings multiples and/or comparisons to similar market transactions, among other factors. Valuation adjustments reflecting consideration of credit quality, concentration risk, sales restrictions and other liquidity factors are integral to valuing these instruments. The Company adopted the new consolidation guidance effective the first quarter of 2016, resulting in the deconsolidation of substantially all of Oaktree’s investment funds. Corporate investments consisted of the following: As of Corporate Investments: June 30, 2016 December 31, 2015 Equity-method Investments: Oaktree funds $ 915,942 $ 51,899 Non-Oaktree funds 59 65,901 Companies 19,621 28,562 Other investments, at fair value 100,616 67,626 Total corporate investments $ 1,036,238 $ 213,988 The components of investment income (loss) are set forth below: Three Months Ended June 30, Six Months Ended June 30, Investment Income (Loss): 2016 2015 2016 2015 Equity-method Investments: Oaktree funds $ 10,245 $ 1,075 $ 28,901 $ 327 Non-Oaktree funds 14 2,140 318 4,733 Companies 16,682 12,358 31,789 22,322 Other investments, at fair value 14,059 121 9,439 994 Total investment income $ 41,000 $ 15,694 $ 70,447 $ 28,376 Equity-method Investments The Company's equity-method investments include its investments in Oaktree funds for which it serves as general partner, and other third-party funds and companies that are not consolidated for which the Company is deemed to exert significant influence. The Company's share of income or loss generated by these investments is recorded within investment income in the condensed 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 does not exceed 2.5% in each fund. The Oaktree funds are investment companies that follow a specialized basis of accounting established by GAAP. Equity-method investments in companies include the Company’s one-fifth equity stake in DoubleLine. 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 or for the year ended December 31, 2015, no individual equity-method investment met the significance criteria. As a result, separate financial statements were not required for any of the Company’s equity-method investments. Summarized financial information of the Company’s equity-method investments is set forth below. Equity-method investments were not material for periods prior to adoption of the deconsolidation guidance in the first quarter of 2016, pursuant to the consolidation rules then in effect. Statement of Financial Condition : As of June 30, 2016 Assets: Cash and cash-equivalents $ 3,285,360 Investments, at fair value 40,995,952 Other assets 2,220,264 Total assets $ 46,501,576 Liabilities and Capital: Debt obligations $ 7,014,441 Other liabilities 2,285,463 Total liabilities 9,299,904 Total capital 37,201,672 Total liabilities and capital $ 46,501,576 Statements of Operations : Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Revenues / investment income $ 482,265 $ 1,025,099 Interest expense (41,640 ) (80,169 ) Other expenses (217,303 ) (437,739 ) Net realized and unrealized gain on investments 550,657 838,724 Net income $ 773,979 $ 1,345,915 Other Investments, at Fair Value Other investments, at fair value primarily consist of investments in certain Oaktree and non-Oaktree funds for which the fair value option of accounting has been elected, as well as derivatives utilized to hedge the Company’s exposure to investment income earned from unconsolidated funds. The following table summarizes net gains (losses) attributable to the Company's other investments: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Realized gain (loss) $ 105 $ 58 $ (2,389 ) $ 58 Net change in unrealized gain (loss) 13,954 63 11,828 936 Total $ 14,059 $ 121 $ 9,439 $ 994 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 Fair Value as a Percentage of Investments of Consolidated Funds as of Investments June 30, December 31, June 30, December 31, United States: Debt securities: Consumer discretionary $ 550,122 $ 3,387,072 16.7 % 7.5 % Consumer staples 153,994 686,071 4.7 1.5 Energy 50,760 854,220 1.5 1.9 Financials 124,291 1,293,508 3.8 2.9 Government — 95,508 — 0.2 Health care 292,452 1,135,799 8.9 2.5 Industrials 352,038 1,710,706 10.7 3.8 Information technology 251,870 1,293,815 7.6 2.9 Materials 197,230 1,393,521 6.0 3.1 Telecommunication services 65,559 471,711 2.0 1.0 Utilities 44,249 686,126 1.3 1.5 Total debt securities (cost: $2,130,737 and $15,304,870 as of June 30, 2016 and December 31, 2015, respectively) 2,082,565 13,008,057 63.2 28.8 Equity securities: Consumer discretionary 634 1,813,832 0.0 4.0 Consumer staples — 872,472 — 1.9 Energy — 1,810,290 — 4.0 Financials 3,018 7,639,790 0.1 16.9 Health care 112 92,866 0.0 0.2 Industrials — 1,728,086 — 3.8 Information technology — 67,253 — 0.2 Materials — 882,366 — 2.0 Telecommunication services — 16,471 — 0.0 Utilities — 156,865 — 0.3 Total equity securities (cost: $2,213 and $13,290,699 as of June 30, 2016 and December 31, 2015, respectively) 3,764 15,080,291 0.1 33.3 Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments June 30, December 31, June 30, December 31, Europe: Debt securities: Consumer discretionary $ 304,868 $ 1,329,387 9.2 % 2.9 % Consumer staples 81,685 222,789 2.5 0.5 Energy 13,712 144,742 0.4 0.3 Financials 16,367 808,568 0.5 1.8 Government 1,260 46,946 0.0 0.1 Health care 139,437 197,569 4.2 0.5 Industrials 56,557 291,950 1.7 0.7 Information technology 26,818 71,168 0.8 0.2 Materials 198,828 377,460 6.0 0.8 Telecommunication services 158,004 200,610 4.8 0.4 Utilities — 18,028 — 0.0 Total debt securities (cost: $1,008,521 and $4,207,531 as of June 30, 2016 and December 31, 2015, respectively) 997,536 3,709,217 30.1 8.2 Equity securities: Consumer discretionary 452 270,370 0.0 0.6 Consumer staples — 145,108 — 0.3 Energy — 21,791 — 0.0 Financials 245 6,239,424 0.0 13.8 Government — 40,290 — 0.1 Health care — 79,582 — 0.2 Industrials — 1,499,142 — 3.3 Information technology — 1,646 — 0.0 Materials — 475,306 — 1.1 Telecommunication services — 4,834 — 0.0 Utilities — 344,736 — 0.8 Total equity securities (cost: $701 and $7,627,245 as of June 30, 2016 and December 31, 2015, respectively) 697 9,122,229 0.0 20.2 Asia and other: Debt securities: Consumer discretionary 9,651 102,531 0.3 0.2 Consumer staples 12,851 33,061 0.4 0.1 Energy 11,755 193,645 0.4 0.4 Financials 1,087 27,413 0.0 0.1 Government 560 6,974 0.0 0.0 Health care 122 47,010 0.0 0.1 Industrials 2,867 268,710 0.1 0.6 Information technology 142 31,983 0.0 0.1 Materials 10,290 248,830 0.3 0.6 Utilities — 2,713 — 0.0 Total debt securities (cost: $55,151 and $1,090,867 as of June 30, 2016 and December 31, 2015, respectively) 49,325 962,870 1.5 2.2 Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments June 30, December 31, 2015 June 30, December 31, 2015 Asia and other: Equity securities: Consumer discretionary $ 25,043 $ 506,761 0.8 % 1.1 % Consumer staples 17,393 29,863 0.5 0.1 Energy 11,026 192,844 0.3 0.4 Financials 46,510 986,753 1.4 2.2 Health care 1,471 18,535 0.0 0.1 Industrials 25,865 1,032,225 0.8 2.3 Information technology 20,858 244,433 0.6 0.5 Materials 15,397 96,326 0.5 0.2 Telecommunication services 2,446 34,678 0.1 0.1 Utilities 2,292 154,824 0.1 0.3 Total equity securities (cost: $163,082 and $3,370,406 as of June 30, 2016 and December 31, 2015, respectively) 168,301 3,297,242 5.1 7.3 Total debt securities 3,129,426 17,680,144 94.8 39.2 Total equity securities 172,762 27,499,762 5.2 60.8 Total investments, at fair value $ 3,302,188 $ 45,179,906 100.0 % 100.0 % Securities Sold Short Equity securities (proceeds: $68,170 and $102,236 as of June 30, 2016 and December 31, 2015, respectively) $ (61,838 ) $ (91,246 ) As of June 30, 2016 and December 31, 2015, no single issuer or investment had a fair value that exceeded 5% of Oaktree’s total consolidated net assets. Net Gains (Losses) From Investment Activities of Consolidated Funds Net gains (losses) from investment activities in the condensed 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: Three Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Investments and other financial instruments $ 8,651 $ 17,740 $ 707,427 $ (1,018,970 ) Measurement alternative guidance for CLO liabilities (1) — (24,172 ) — — Foreign-currency forward contracts (2) (298 ) 849 175,334 (339,448 ) Total-return and interest-rate swaps (2) (907 ) 222 (2,248 ) (56,008 ) Options and futures (2) (764 ) 60 (21,778 ) (5,150 ) Swaptions (2)(3) — — (1,187 ) 1,191 Total $ 6,682 $ (5,301 ) $ 857,548 $ (1,418,385 ) Six Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Investments and other financial instruments $ 12,322 $ 27,423 $ 875,226 $ (461,655 ) Measurement alternative guidance for CLO liabilities (1) — (52,374 ) — — Foreign-currency forward contracts (2) (500 ) 457 471,310 (319,064 ) Total-return and interest-rate swaps (2) (890 ) (1,396 ) (7,174 ) (116,226 ) Options and futures (2) (849 ) (83 ) (3,977 ) (16,299 ) Swaptions (2)(3) — — (3,007 ) 2,342 Total $ 10,083 $ (25,973 ) $ 1,332,378 $ (910,902 ) (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 measurement alternative guidance for CLOs. Please see note 2 for more information. (2) Please see note 6 for additional information. (3) A swaption is an option granting the buyer the right but not the obligation to enter into a swap agreement on a specified future date. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair Value of Financial Assets and Liabilities The short-term nature of cash and cash-equivalents, receivables and accounts payable causes each of their carrying values to approximate fair value. The fair value of short-term investments included in cash and cash-equivalents is a Level I valuation. The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below. Please see notes 9 and 16 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively. As of June 30, 2016 As of December 31, 2015 Level I Level II Level III Total Level I Level II Level III Total Assets U.S. Treasury securities (1) $ 684,224 $ — $ — $ 684,224 $ 661,116 $ — $ — $ 661,116 Corporate investments — 74,035 26,581 100,616 — 41,876 25,750 67,626 Foreign-currency forward contracts (2) — 4,649 — 4,649 — 5,875 — 5,875 Total assets $ 684,224 $ 78,684 $ 26,581 $ 789,489 $ 661,116 $ 47,751 $ 25,750 $ 734,617 Liabilities Contingent consideration (3) $ — $ — $ (24,995 ) $ (24,995 ) $ — $ — $ (28,494 ) $ (28,494 ) Foreign-currency forward contracts (3) — (14,916 ) — (14,916 ) — (3,286 ) — (3,286 ) Interest-rate swaps (3) — (712 ) — (712 ) — (943 ) — (943 ) Total liabilities $ — $ (15,628 ) $ (24,995 ) $ (40,623 ) $ — $ (4,229 ) $ (28,494 ) $ (32,723 ) (1) Carrying value approximates fair value due to the short-term nature. (2) Amounts are included in other assets in the condensed consolidated statements of financial condition. (3) Amounts are included in accounts payable, accrued expenses and other liabilities in the condensed consolidated statements of financial condition. There were no transfers between Level I and Level II positions for the six months ended June 30, 2016 and 2015. The table below sets forth a summary of changes in the fair value of Level III financial instruments: Three Months Ended June 30, 2016 2015 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 25,624 $ (27,884 ) $ — $ (28,052 ) Net gain (loss) included in earnings 957 2,889 — (694 ) Ending balance $ 26,581 $ (24,995 ) $ — $ (28,746 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 957 $ 2,889 $ — $ (694 ) Six Months Ended June 30, 2016 2015 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 25,750 $ (28,494 ) $ — $ (27,245 ) Net gain (loss) included in earnings 831 3,499 — (1,501 ) Ending balance $ 26,581 $ (24,995 ) $ — $ (28,746 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 831 $ 3,499 $ — $ (1,501 ) The table below sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the Company’s Level III financial instruments: Fair Value as of Significant Unobservable Input Financial Instrument June 30, December 31, 2015 Valuation Technique Range Weighted Average Corporate investment – Limited partnership interests $ 26,581 $ 25,750 Market approach Not applicable Not applicable Not applicable Contingent consideration liability (24,995 ) (28,494 ) Discounted cash flow Assumed % of total potential contingent payments 0% – 100% 48% Fair Value of Financial Instruments Held By Consolidated Funds The short-term nature of cash and cash-equivalents held at the consolidated funds causes their carrying value to approximate fair value. The fair value of cash-equivalents is a Level I valuation. Derivatives may relate to a mix of Level I, II or III investments, and therefore their fair-value hierarchy level may not correspond to the fair-value hierarchy level of the economically hedged investment. The table below summarizes the investments and other financial instruments of the consolidated funds by fair-value hierarchy level: As of June 30, 2016 As of December 31, 2015 Level I Level II Level III Total Level I Level II Level III Total Assets Investments: Corporate debt – bank debt $ — $ 2,562,192 $ 189,909 $ 2,752,101 $ — $ 7,891,929 $ 1,871,375 $ 9,763,304 Corporate debt – all other — 375,435 1,890 377,325 5,450 4,902,226 3,009,164 7,916,840 Equities – common stock 149,658 17,361 3,991 171,010 4,836,422 256,604 8,729,202 13,822,228 Equities – preferred stock 1,752 — — 1,752 — — 1,363,542 1,363,542 Real estate — — — — 61,317 — 9,655,270 9,716,587 Real estate loan portfolios — — — — — — 2,597,405 2,597,405 Total investments 151,410 2,954,988 195,790 3,302,188 4,903,189 13,050,759 27,225,958 45,179,906 Derivatives: Foreign-currency forward contracts — 416 — 416 — 156,234 — 156,234 Swaps — — — — — 16,544 — 16,544 Options and futures 4 — — 4 — 25,559 — 25,559 Swaptions — — — — — 14 — 14 Total derivatives 4 416 — 420 — 198,351 — 198,351 Total assets $ 151,414 $ 2,955,404 $ 195,790 $ 3,302,608 $ 4,903,189 $ 13,249,110 $ 27,225,958 $ 45,378,257 Liabilities CLO debt obligations: Senior secured notes (1) $ — $ (2,594,841 ) $ — $ (2,594,841 ) $ — $ — $ — $ — Subordinated notes (1) — (83,725 ) — (83,725 ) — — — — Total CLO debt obligations — (2,678,566 ) — (2,678,566 ) — — — — Securities sold short: Equity securities (61,821 ) — (17 ) (61,838 ) (91,246 ) — — (91,246 ) Derivatives: Foreign-currency forward contracts — (11 ) — (11 ) — (64,364 ) — (64,364 ) Swaps — (921 ) — (921 ) — (223,359 ) (8,251 ) (231,610 ) Options and futures (443 ) — — (443 ) (88 ) (4,146 ) — (4,234 ) Total derivatives (443 ) (932 ) — (1,375 ) (88 ) (291,869 ) (8,251 ) (300,208 ) Total liabilities $ (62,264 ) $ (2,679,498 ) $ (17 ) $ (2,741,779 ) $ (91,334 ) $ (291,869 ) $ (8,251 ) $ (391,454 ) (1) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 9 for more information. The following tables set forth a summary of changes in the fair value of Level III investments: Corporate Debt – Bank Debt Corporate Debt – All Other Equities – Common Stock Equities – Preferred Stock Real Estate Real Estate Loan Portfolios Swaps Other Total Three Months Ended June 30, 2016 Beginning balance $ 200,811 $ 1,853 $ 4,326 $ — $ — $ — $ — $ — $ 206,990 Transfers into Level III — — — — — — — — — Transfers out of Level III (1,962 ) — — — — — — — (1,962 ) Purchases 2,239 1 157 — — — — — 2,397 Sales (10,886 ) — (525 ) — — — — — (11,411 ) Realized gains (losses), net 89 — — — — — — — 89 Unrealized appreciation (depreciation), net (382 ) 36 16 — — — — — (330 ) Ending balance $ 189,909 $ 1,890 $ 3,974 $ — $ — $ — $ — $ — $ 195,773 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (2,103 ) $ 36 $ 16 $ — $ — $ — $ — $ — $ (2,051 ) Three Months Ended June 30, 2015 Beginning balance $ 1,573,508 $ 2,772,859 $ 10,156,394 $ 1,381,135 $ 9,728,967 $ 2,406,252 $ (6,988 ) $ 3,576 $ 28,015,703 Transfers into Level III 9,598 17,208 50,976 11,199 — — — — 88,981 Transfers out of Level III (42,396 ) (78,250 ) (523,407 ) (20,382 ) — — — — (664,435 ) Purchases 42,721 314,898 341,691 147,396 658,056 476,637 — — 1,981,399 Sales (185,407 ) (84,407 ) (349,498 ) (2,760 ) (890,418 ) (213,495 ) — — (1,725,985 ) Realized gains (losses), net 10,604 (35,773 ) 73,211 (1,153 ) 432,658 67,817 — — 547,364 Unrealized appreciation (depreciation), net (9,351 ) 8,839 (46,358 ) 144,303 (356,361 ) 42,261 (1,656 ) 820 (217,503 ) Ending balance $ 1,399,277 $ 2,915,374 $ 9,703,009 $ 1,659,738 $ 9,572,902 $ 2,779,472 $ (8,644 ) $ 4,396 $ 28,025,524 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (12,235 ) $ (76,879 ) $ (12,504 ) $ 1,253 $ (335,645 ) $ 27,778 $ (225 ) $ 820 $ (407,637 ) Corporate Debt – Bank Debt Corporate Debt – All Other Equities – Common Stock Equities – Preferred Stock Real Estate Real Estate Loan Portfolios Swaps Other Total Six Months Ended June 30, 2016 Beginning balance $ 1,871,375 $ 3,009,164 $ 8,729,202 $ 1,363,542 $ 9,655,270 $ 2,597,405 $ (8,251 ) $ — $ 27,217,707 Cumulative-effect adjustment from adoption of accounting guidance (1,672,305 ) (3,007,287 ) (8,725,026 ) (1,363,542 ) (9,655,270 ) (2,597,405 ) 8,251 — (27,012,584 ) Transfers into Level III 37,535 — 398 — — — — — 37,933 Transfers out of Level III (42,670 ) — — — — — — — (42,670 ) Purchases 9,378 2 157 — — — — — 9,537 Sales (12,872 ) — (821 ) — — — — — (13,693 ) Realized gains (losses), net 115 — — — — — — — 115 Unrealized appreciation (depreciation), net (647 ) 11 64 — — — — — (572 ) Ending balance $ 189,909 $ 1,890 $ 3,974 $ — $ — $ — $ — $ — $ 195,773 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (647 ) $ 11 $ 64 $ — $ — $ — $ — $ — $ (572 ) Six Months Ended June 30, 2015 Beginning balance $ 1,555,656 $ 2,750,661 $ 9,056,579 $ 1,320,752 $ 9,216,056 $ 2,399,105 $ (10,687 ) $ 3,576 $ 26,291,698 Transfers into Level III 116,533 17,208 377,563 15,835 — — — — 527,139 Transfers out of Level III (145,998 ) (110,084 ) (523,423 ) (32,583 ) — — — — (812,088 ) Purchases 224,751 566,463 1,194,127 205,128 949,574 605,915 — — 3,745,958 Sales (340,767 ) (163,351 ) (442,219 ) (54,947 ) (985,355 ) (303,387 ) — — (2,290,026 ) Realized gains (losses), net 25,407 (32,499 ) (66,126 ) 37,384 479,057 98,628 — — 541,851 Unrealized appreciation (depreciation), net (36,305 ) (113,024 ) 106,508 168,169 (86,430 ) (20,789 ) 2,043 820 20,992 Ending balance $ 1,399,277 $ 2,915,374 $ 9,703,009 $ 1,659,738 $ 9,572,902 $ 2,779,472 $ (8,644 ) $ 4,396 $ 28,025,524 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (17,619 ) $ (43,928 ) $ 192,837 $ 109,462 $ 92,476 $ (35,272 ) $ 2,043 $ 820 $ 300,819 Total realized and unrealized gains and losses recorded for Level III investments are included in net realized gain on consolidated funds’ investments or net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. There were no transfers between Level I and Level II positions for the six months ended June 30, 2016 and 2015. Transfers out of Level III are generally attributable to certain investments that experienced a more significant level of market trading activity or completed an initial public offering during the respective period and thus were valued using observable inputs. Transfers into Level III typically reflect either investments that experienced a less significant level of market trading activity during the period or portfolio companies that undertook restructurings or bankruptcy proceedings and thus were valued in the absence of observable inputs. The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of June 30, 2016: Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (9)(10)(11) Range Weighted Average (12) Credit-oriented investments: Consumer discretionary: $ 2,564 Discounted cash flow (1) Discount rate 12% – 15% 13% 36,217 Recent market information (6) Quoted prices Not applicable Not applicable Financials: 2,503 Discounted cash flow (1) Discount rate 15% - 17% 16% 21,341 Recent market information (6) Quoted prices Not applicable Not applicable Industrials: 30,458 Discounted cash flow (1) Discount rate 5% – 16% 7% 38,727 Recent market information (6) Quoted prices Not applicable Not applicable Consumer Staples: 6,221 Discounted cash flow (1) Discount rate 5% – 7% 6% 19,042 Recent market information (6) Quoted prices Not applicable Not applicable Other: 11,913 Discounted cash flow (1) Discount rate 9% – 27% 12% 2,771 Market approach (2) Earnings multiple (3) 7x - 9x 8x 20,042 Recent market information (6) Quoted prices Not applicable Not applicable Equity investments: 601 Market approach (2) Earnings multiple (3) 4x – 13x 5x 3,373 Recent market information (6) Quoted prices Not applicable Not applicable Total Level III $ 195,773 The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of December 31, 2015: Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (9)(10)(11) Range Weighted Average (12) Credit-oriented investments: Consumer $ 289,107 Discounted cash flow (1) Discount rate 5% – 15% 12% 451,584 Market approach (2) Earnings multiple (3) 3x – 10x 6x 232,995 Recent transaction price (5) Not applicable Not applicable Not applicable 156,160 Recent market information (6) Quoted prices / discount Not applicable Not applicable Financials: 595,066 Discounted cash flow (1) Discount rate 6% – 14% 11% 259,669 Market approach (2)(4) Underlying asset multiple 1.1x – 1.5x 1.2x 232,958 Recent transaction price (5) Not applicable Not applicable Not applicable 241,667 Recent market information (6) Quoted prices / discount Not applicable Not applicable Industrials: 135,808 Discounted cash flow (1) Discount rate 5% – 15% 13% 55,310 Discounted cash flow (1) / (8) Discount rate / Market transactions 9% – 11% 10% 7,549 Market approach (2) Earnings multiple (3) 5x – 9x 7x 219,121 Market approach (2)(4) Underlying asset multiple 0.7x – 1.0x 0.9x 45,647 Recent transaction price (5) Not applicable Not applicable Not applicable 24,247 Recent market information (6) Quoted prices / discount Not applicable Not applicable Materials: 417,749 Discounted cash flow (1) Discount rate 11% – 14% 14% 128,230 Market approach (2) Earnings multiple (3) 7x – 9x 8x 3,938 Recent transaction price (5) Not applicable Not applicable Not applicable 71,174 Recent market information (6) Quoted prices / discount Not applicable Not applicable Information 199,841 Discounted cash flow (1) Discount rate 6% – 13% 12% 143,596 Market approach (2) Earnings multiple (3) 6x – 8x 7x 63,594 Recent transaction price (5) Not applicable Not applicable Not applicable 62,353 Recent market information (6) Quoted prices / discount Not applicable Not applicable Other: 442,797 Discounted cash flow (1) Discount rate 5% – 20% 12% 60,643 Recent transaction price (5) Not applicable Not applicable Not applicable 331,485 Recent market information (6) Quoted prices / discount Not applicable Not applicable Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (9)(10)(11) Range Weighted Average (12) Equity investments: Financials: 58,352 Discounted cash flow (1) Discount rate 14% – 16% 15% 1,029,904 Market approach (2)(4) Underlying asset multiple 1.0x – 1.5x 1.4x 189,714 Recent transaction price (5) Not applicable Not applicable Not applicable Industrials: 37,130 Discounted cash flow (1) Discount rate 10% – 12% 11% 2,385,995 Market approach (2) Earnings multiple (3) 5x – 18x 9x 1,287,791 Market approach (2)(4) Underlying asset multiple 0.9x – 1.0x 1.0x 248,894 Recent transaction price (5) Not applicable Not applicable Not applicable 53,005 Recent market information (6) Quoted prices / discount Not applicable Not applicable Materials: 1,238,760 Market approach (2) Earnings multiple (3) 7x – 9x 8x 25,133 Recent transaction price (5) Not applicable Not applicable Not applicable Utilities 616,596 Market approach (2) Earnings multiple (3) 8x – 11x 9x 266,185 Other Not applicable Not applicable Not applicable 200,112 Recent transaction price (5) Not applicable Not applicable Not applicable Other: 1,898,334 Market approach (2) Earnings multiple (3) 6x – 18x 10x 164,026 Market approach (2)(4) Underlying asset multiple 1.1x – 1.3x 1.2x 221,350 Recent transaction price (5) Not applicable Not applicable Not applicable 171,463 Recent market information (6) Quoted prices / discount Not applicable Not applicable Real estate-oriented investments: 3,863,639 Discounted cash flow (1)(7) Discount rate 6% – 44% 13% Terminal capitalization rate 5% – 10% 7% Direct capitalization rate 5% – 10% 7% Net operating income growth rate 0% – 38% 10% Absorption rate 25% – 44% 30% 132,640 Discounted cash flow (1) / (8) Discount rate / Market transactions 6% – 8% 7% 218,817 Market approach (2) Earnings multiple (3) 9x – 11x 11x 992,695 Market approach (2)(4) Underlying asset multiple 1x – 1.8x 1.6x 512,120 Recent transaction price (5) Not applicable Not applicable Not applicable 2,385,895 Recent market information (6) Quoted prices / discount 0% – 5% 3% 1,385,418 Sales approach (8) Market transactions Not applicable Not applicable 164,046 Other Not applicable Not applicable Not applicable Real estate loan portfolios: 2,101,463 Discounted cash flow (1)(7) Discount rate 7% – 23% 13% 495,942 Recent transaction price (5) Not applicable Not applicable Not applicable Total Level III $ 27,217,707 (1) A discounted cash-flow method is generally used to value performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments, real estate-oriented investments and real estate loan portfolios. (2) A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying issuer. (3) Earnings multiples are based on comparable public companies and transactions with comparable companies. The Company typically utilizes multiples of EBITDA; however, in certain cases the Company may use other earnings multiples believed to be most relevant to the investment. The Company typically applies the multiple to trailing twelve-months’ EBITDA. However, in certain cases other earnings measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant. (4) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company. The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors. The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets. (5) Certain investments are valued based on recent transactions, generally defined as investments purchased or sold within six months of the valuation date. The fair value may also be based on a pending transaction expected to close after the valuation date. (6) Certain investments are valued using quoted prices for the subject or similar securities. Generally, investments valued in this manner are classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. (7) The discounted cash flow model for certain real estate-oriented investments and certain real estate loan portfolios contains a sell-out analysis. In these cases, the discounted cash flow is based on the expected timing and prices of sales of the underlying properties. The Company’s determination of the sales prices of these properties typically includes consideration of prices and other relevant information from market transactions involving comparable properties. (8) The sales approach uses prices and other relevant information generated by market transactions involving comparable assets. The significant unobservable inputs used in the sales approach generally include adjustments to transactions involving comparable assets or properties, adjustments to external or internal appraised values, and the Company’s assumptions regarding market trends or other relevant factors. (9) The discount rate is the significant unobservable input used in the fair-value measurement of performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments and real estate loan portfolios. An increase (decrease) in the discount rate would result in a lower (higher) fair-value measurement. (10) Multiple of either earnings or underlying assets is the significant unobservable input used in the market approach for the fair-value measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling interest in the underlying issuer, equity investments and certain real estate-oriented investments. An increase (decrease) in the multiple would result in a higher (lower) fair-value measurement. (11) The significant unobservable inputs used in the fair-value measurement of real estate investments utilizing a discounted cash flow analysis can include one or more of the following: discount rate, terminal capitalization rate, direct capitalization rate, net operating income growth rate or absorption rate. An increase (decrease) in a discount rate, terminal capitalization rate or direct capitalization rate would result in a lower (higher) fair-value measurement. An increase (decrease) in a net operating income growth rate or absorption rate would result in a higher (lower) fair-value measurement. Generally, a change in a net operating income growth rate or absorption rate would be accompanied by a directionally similar change in the discount rate. (12) The weighted average is based on the fair value of the investments included in the range. A significant amount of judgment may be required when using unobservable inputs, including assessing the accuracy of source data and the results of pricing models. The Company assesses the accuracy and reliability of the sources it uses to develop unobservable inputs. These sources may include third-party vendors that the Company believes are reliable and commonly utilized by other marketplace participants. As described in note 2, other factors beyond the unobservable inputs described above may have a significant impact on investment valuations. During the six months ended June 30, 2016, the valuation technique for one Level III credit-oriented investment changed from a discounted cash flow to a market approach based on comparable companies due to the anticipated restructuring of the portfolio company. During the six months ended June 30, 2015, the valuation technique for eight Level III investments changed, as follows: (a) three credit-oriented investments and one equity investment changed from a market approach based on comparable companies to a market approach based on the value of underlying assets as a result of an increased focus on the value of the company’s physical assets, (b) one credit-oriented investment changed from a market approach based on comparable companies to a valuation based on recent market information due to increased availability of broker quotations, (c) one credit-oriented investment changed from a valuation technique that used both a discounted cash flow and sales approach to an approach based solely on a discounted cash flow technique due to a decreased focus on the value of the issuer’s assets, (d) one real estate-oriented investment changed from a valuation based on a market approach to a discounted cash flow as a result of the stabilization of the underlying property and (e) one real estate-oriented investment changed from a valuation based on a discounted cash flow to a sales approach as a result of receiving offers from potential buyers. |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING The Company enters into derivatives as part of its overall risk management strategy or to facilitate its investment management activities. Risks associated with fluctuations in interest rates and foreign-currency exchange rates in the normal course of business are addressed as part of the Company’s overall risk management strategy that may include the use of derivatives to economically hedge or reduce these exposures. From time to time, the Company may enter into (a) foreign-currency option and forward contracts to reduce earnings and cash-flow volatility associated with changes in foreign-currency exchange rates, and (b) interest-rate swaps to manage all or a portion of the interest-rate risk associated with its variable-rate borrowings. As a result of the use of these or other derivative contracts, the Company is exposed to the risk that counterparties will fail to fulfill their contractual obligations. The Company attempts to mitigate this counterparty risk by entering into derivative contracts only with major financial institutions that have investment-grade credit ratings. Counterparty credit risk is evaluated in determining the fair value of derivatives. As of June 30, 2016, the Company had one interest-rate swap outstanding, expiring in January 2017, that was designated to hedge the interest-rate risk covering up to $162.5 million of the $250.0 million variable-rate bank term loan. As of June 30, 2016, the hedge continued to be effective. As of December 31, 2015, the Company had an additional interest-rate swap that expired in January 2016 and was designated to hedge the interest-rate risk covering up to $150.0 million of the same bank term loan. Freestanding derivatives are financial instruments that the Company enters into as part of its overall risk management strategy but does not designate as hedging instruments for accounting purposes. These financial instruments may include foreign-currency exchange contracts, interest-rate swaps and other derivative contracts. The fair value of foreign-currency forward sell contracts consisted of the following: As of June 30, 2016 Contract Amount in Local Currency Contract Amount in U.S. Dollars Market Value in U.S. Dollars Net Unrealized Appreciation (Depreciation) Euro, expiring 7/8/16-9/29/17 273,050 $ 307,020 $ 304,905 $ 2,115 USD (buy GBP), expiring 7/29/16-7/31/17 92,963 92,963 102,697 (9,734 ) Japanese Yen, expiring 9/30/16 6,051,400 56,130 58,778 (2,648 ) Total $ 456,113 $ 466,380 $ (10,267 ) As of December 31, 2015 Euro, expiring 1/8/16-12/30/16 246,850 $ 274,135 $ 269,603 $ 4,532 USD (buy GBP), expiring 1/8/16-10/31/16 70,594 70,594 72,476 (1,882 ) Japanese Yen, expiring 1/29/16-9/30/16 5,840,300 48,631 48,692 (61 ) Total $ 393,360 $ 390,771 $ 2,589 Realized and unrealized gains and losses arising from freestanding derivative instruments were recorded in the condensed consolidated statements of operations as follows: Three Months Ended June 30, Six Months Ended June 30, Foreign-currency Forward Contracts 2016 2015 2016 2015 Investment income $ 6,530 $ — $ (2,371 ) $ — General and administrative expense (1) (8,221 ) (1,114 ) (18,112 ) 22,841 Total $ (1,691 ) $ (1,114 ) $ (20,483 ) $ 22,841 (1) To the extent that the Company’s freestanding derivatives are utilized to hedge its foreign-currency exposure to investment income and management fees earned from consolidated funds, the related hedged items are eliminated in consolidation, with the derivative impact (a positive number reflects a reduction in expenses) reflected in consolidated general and administrative expense. As of June 30, 2016 and December 31, 2015, the Company had not designated any derivatives as fair-value hedges or hedges of net investments in foreign operations. Derivatives Held By Consolidated Funds Certain consolidated funds utilize derivatives in their ongoing investment operations. These derivatives primarily consist of foreign-currency forward contracts and options utilized to manage currency risk, interest-rate swaps to hedge interest-rate risk, options and futures used to hedge certain exposures for specific securities, and total-return swaps utilized mainly to obtain exposure to leveraged loans or to participate in foreign markets not readily accessible. The primary risk exposure for options and futures is price, while the primary risk exposure for total-return swaps is credit. None of the derivative instruments is accounted for as a hedging instrument utilizing hedge accounting. The impact of derivatives held by the consolidated funds in the condensed consolidated statements of operations was as follows: Three Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Foreign-currency forward contracts $ (298 ) $ 849 $ 175,334 $ (339,448 ) Total-return and interest-rate swaps (907 ) 222 (2,248 ) (56,008 ) Options and futures (764 ) 60 (21,778 ) (5,150 ) Swaptions — — (1,187 ) 1,191 Total $ (1,969 ) $ 1,131 $ 150,121 $ (399,415 ) Six Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Foreign-currency forward contracts $ (500 ) $ 457 $ 471,310 $ (319,064 ) Total-return and interest-rate swaps (890 ) (1,396 ) (7,174 ) (116,226 ) Options and futures (849 ) (83 ) (3,977 ) (16,299 ) Swaptions — — (3,007 ) 2,342 Total $ (2,239 ) $ (1,022 ) $ 457,152 $ (449,247 ) Balance Sheet Offsetting The Company recognizes all derivatives as assets or liabilities at fair value in its condensed consolidated statements of financial condition. In connection with its derivative activities, the Company generally enters into agreements subject to enforceable master netting arrangements that allow the Company to offset derivative assets and liabilities in the same currency by specific derivative type or, in the event of default by the counterparty, to offset derivative assets and liabilities with the same counterparty. While these derivatives are eligible to be offset in accordance with applicable accounting guidance, the Company has elected to present derivative assets and liabilities based on gross fair value in its condensed consolidated statements of financial condition. The table below sets forth the setoff rights and related arrangements associated with derivatives held by the Company. The “gross amounts not offset in statements of financial condition” columns represent derivatives that management has elected not to offset in the consolidated statements of financial condition even though they are eligible to be offset in accordance with applicable accounting guidance. Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of June 30, 2016 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 4,649 $ 4,289 $ — $ 360 Derivative assets of consolidated funds: Foreign-currency forward contracts 416 11 — 405 Options and futures 4 — — 4 Subtotal 420 11 — 409 Total $ 5,069 $ 4,300 $ — $ 769 Derivative Liabilities: Foreign-currency forward contracts $ (14,916 ) $ (4,289 ) $ — $ (10,627 ) Interest-rate swaps (712 ) — — (712 ) Subtotal (15,628 ) (4,289 ) — (11,339 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (11 ) (11 ) — — Total-return and interest-rate swaps (921 ) — (921 ) — Options and futures (443 ) — (443 ) — Subtotal (1,375 ) (11 ) (1,364 ) — Total $ (17,003 ) $ (4,300 ) $ (1,364 ) $ (11,339 ) Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2015 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 5,875 $ 2,047 $ — $ 3,828 Derivative assets of consolidated funds: Foreign-currency forward contracts 156,234 38,033 — 118,201 Total-return and interest-rate swaps 16,544 4,526 — 12,018 Options and futures 25,559 5,665 — 19,894 Swaptions 14 14 — — Subtotal 198,351 48,238 — 150,113 Total $ 204,226 $ 50,285 $ — $ 153,941 Derivative Liabilities: Foreign-currency forward contracts $ (3,286 ) $ (2,047 ) $ — $ (1,239 ) Interest-rate swaps (943 ) — — (943 ) Subtotal (4,229 ) (2,047 ) — (2,182 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (64,364 ) (38,788 ) — (25,576 ) Total-return and interest-rate swaps (231,610 ) (5,304 ) (202,677 ) (23,629 ) Options and futures (4,234 ) (4,146 ) (88 ) — Subtotal (300,208 ) (48,238 ) (202,765 ) (49,205 ) Total $ (304,437 ) $ (50,285 ) $ (202,765 ) $ (51,387 ) |
FIXED ASSETS
FIXED ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | FIXED ASSETS Fixed assets, which consist of furniture and equipment, capitalized software, office leasehold improvements, a company-owned airplane and acquired intangibles, are included in other assets in the condensed consolidated statements of financial position. The following table sets forth the Company’s fixed assets, net of accumulated depreciation: As of June 30, 2016 December 31, 2015 Furniture, equipment and capitalized software $ 18,055 $ 16,820 Leasehold improvements 45,478 43,107 Corporate airplane 12,439 12,439 Other 3,373 3,295 Fixed assets 79,345 75,661 Accumulated depreciation (42,127 ) (36,394 ) Fixed assets, net $ 37,218 $ 39,267 |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES Goodwill represents the excess of cost over the fair value of identifiable net assets of acquired businesses. Goodwill has an indefinite useful life and is not amortized, but instead is tested for impairment annually in the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that impairment may have occurred. As of both June 30, 2016 and December 31, 2015, the Company had $69.3 million of goodwill. The following table summarizes the carrying amount of intangible assets: As of June 30, 2016 December 31, 2015 Contractual rights $ 28,017 $ 28,017 Accumulated amortization (7,672 ) (5,671 ) Intangible assets, net $ 20,345 $ 22,346 Amortization expense associated with the Company's intangible assets was $1.0 million for both the three months ended June 30, 2016 and 2015, and $2.0 million for both the six months ended June 30, 2016 and 2015. Amortization expense for the remaining six months of 2016 and each of the years ended December 31, 2017–2020, is estimated to be $2.0 million and $4.0 million per annum, respectively. Goodwill and intangible assets are included in other assets in the condensed consolidated statements of financial position. |
DEBT OBLIGATIONS AND CREDIT FAC
DEBT OBLIGATIONS AND CREDIT FACILITIES | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS AND CREDIT FACILITIES | DEBT OBLIGATIONS AND CREDIT FACILITIES The Company’s debt obligations are set forth below: As of June 30, December 31, $50,000, 6.09%, issued in June 2006, payable on June 6, 2016 $ — $ 50,000 $50,000, 5.82%, issued in November 2006, payable on November 8, 2016 50,000 50,000 $250,000, 6.75%, issued in November 2009, payable on December 2, 2019 250,000 250,000 $250,000, rate as described below, term loan issued in March 2014, payable on March 31, 2021 250,000 250,000 $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 50,000 50,000 $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 100,000 100,000 $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 100,000 100,000 Total remaining principal 800,000 850,000 Less: Debt issuance costs (4,042 ) (3,646 ) Debt obligations $ 795,958 $ 846,354 In June 2016, the Company paid the full maturing principal balance of $50.0 million on its 6.09% senior notes. As of June 30, 2016, future scheduled principal payments of debt obligations were as follows: Last six months of 2016 $ 50,000 2017 — 2018 — 2019 250,000 2020 — Thereafter 500,000 Total $ 800,000 The Company was in compliance with all financial maintenance covenants associated with its senior notes and bank credit facility as of June 30, 2016 and December 31, 2015. The fair value of the Company’s debt obligations, which are carried at amortized cost, is a Level III valuation that is estimated based on a discounted cash-flow calculation using estimated rates that would be offered to Oaktree for debt of similar terms and maturities. The fair value of these debt obligations, gross of debt issuance costs, was $812.5 million and $855.3 million as of June 30, 2016 and December 31, 2015, respectively, utilizing an average borrowing rate of 3.4% and 3.7% , respectively. As of June 30, 2016, a 10% increase in the assumed average borrowing rate would lower the estimated fair value to $798.0 million , whereas a 10% decrease would increase the estimated fair value to $827.6 million . In April 2016, the Company received commitments from certain accredited investors (collectively, the “Investors”) to purchase $100 million of 3.69% senior notes (the “Notes”) to be issued by our indirect subsidiary, Oaktree Capital Management, L.P. (the “Issuer”), and guaranteed by our indirect subsidiaries, Oaktree Capital I, L.P., Oaktree Capital II, L.P. and Oaktree AIF Investments, L.P. (the “Guarantors” and together with the Issuer, the “Obligors”), with a maturity of 15 years . On July 12, 2016, the Company issued and sold the Notes, maturing on July 12, 2031, to the Investors. The Company used the proceeds from the sale of the Notes to simultaneously repay $100 million of its $250 million term loan due March 31, 2021. The Notes are senior unsecured obligations of the Issuer, jointly and severally guaranteed by the Guarantors. In March 2016, Oaktree Capital Management, L.P., Oaktree Capital II, L.P., Oaktree AIF Investments, L.P., and Oaktree Capital I, L.P. (collectively, the “Borrowers”) entered into the Second Amendment to Credit Agreement (the “Second Amendment”), which amended the credit agreement dated as of March 31, 2014 (as amended through and including the Second Amendment, the “Credit Agreement”). The Credit Agreement consists of a $250 million fully-funded term loan (the “Term Loan”) and a $500 million revolving credit facility (the “Revolver”). The Second Amendment extended the maturity date of the Credit Agreement from March 31, 2019 to March 31, 2021, at which time the entire principal amount of $250 million is due, and provides the Borrowers with the option to extend the new maturity date by one year if the lenders holding at least 50% of the aggregate amount of the term loan and the revolving loan commitment thereunder on the date of the Borrowers’ extension request consent to such extension. Borrowings under the Credit Agreement generally bear interest at a spread to either LIBOR or an alternative base rate. Based on the current credit ratings of Oaktree Capital Management, L.P., the interest rate on borrowings is LIBOR plus 1.00% per annum and the commitment fee on the unused portions of the Revolver is 0.125% per annum. Utilizing interest-rate swaps, the majority of the Term Loan’s annual interest rate is fixed at 2.22% through January 2017, based on our current credit ratings. The Credit Agreement contains customary financial covenants and restrictions, including ones regarding a maximum leverage ratio of 3.0 -to-1.0 and a minimum required level of assets under management (as defined in the credit agreement). The Second Amendment increased the minimum level of assets under management to $60 billion and made certain other amendments to the provisions of the Credit Agreement. As of June 30, 2016, the Company had no outstanding borrowings under its $500 million revolving credit facility and was able to draw the full amount available without violating any financial maintenance covenants. Credit Facilities of the Consolidated Funds Certain consolidated funds may maintain revolving credit facilities to fund investments between, or in advance of, capital drawdowns. These facilities generally (a) are collateralized by the unfunded capital commitments of the consolidated funds’ limited partners, (b) are subject to an annual commitment fee based on unfunded commitments, and (c) contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments, and portfolio asset dispositions. Additionally, certain consolidated funds may have issued senior variable rate notes to fund investments on a longer term basis, generally up to ten years. The obligations of the consolidated funds are nonrecourse to the Company. The Company adopted the new consolidation guidance as of January 1, 2016, resulting in the deconsolidation of substantially all of Oaktree’s investment funds as of that date. As of June 30, 2016, the consolidated funds had one credit facility with an outstanding balance of $65.7 million . Prior to adoption, as of December 31, 2015, the consolidated funds had credit facilities and senior variable rate notes with an aggregate outstanding balance of $6.5 billion . The fair value of the revolving credit facilities is a Level III valuation and approximated carrying value due to their short-term nature. The fair value of the credit facilities and senior variable rate notes is a Level III valuation and aggregated $3.7 billion as of December 31, 2015, using prices obtained from pricing vendors. The fair value of the credit facility as of June 30, 2016 approximated carrying value due to its recent issuance date. Financial instruments that are valued using quoted prices for the security or similar securities are generally classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. The consolidated funds had the following revolving credit facilities and term loans outstanding: Outstanding Amount as of Facility Capacity LIBOR Margin (1) Maturity Commitment Fee Rate L/C Fee Credit Agreement June 30, 2016 December 31, 2015 Credit facilities $ 65,700 (2) $ 2,381,324 $ 450,000 1.25% 4/19/2019 N/A N/A Revolving credit facilities — 2,718,394 N/A N/A N/A N/A N/A Senior variable rate notes — 1,363,044 N/A N/A N/A N/A N/A Total debt obligations 65,700 6,462,762 Less: Debt issuance costs — (20,020 ) Total debt obligations, net $ 65,700 $ 6,442,742 (1) The facility bears interest at an annual rate of LIBOR plus the applicable margin. (2) The credit facility is collateralized by the portfolio investments and cash and cash-equivalents of the borrower. Debt Obligations of CLOs Debt obligations of CLOs represent amounts due to holders of debt securities issued by the CLOs, including term loans that had not priced as of period end. The table below sets forth the outstanding debt obligations of CLOs as of the date indicated. As of June 30, 2016 As of December 31, 2015 Carrying Value (1) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Carrying Value Fair Value (2) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Senior secured notes (3) $ 455,509 2.63% 8.8 $ 457,196 $ 447,460 2.37% 9.3 Senior secured notes (4) 456,770 2.81% 10.5 454,423 446,558 2.52% 11.0 Senior secured notes (5) 73,833 2.97% 2.5 79,914 78,632 2.96% 3.0 Senior secured notes (6) 372,735 2.26% 11.2 363,709 357,626 2.26% 11.7 Senior secured notes (7) 457,846 2.72% 11.5 455,295 448,933 2.54% 12.0 Senior secured notes (8) 373,649 2.29% 11.8 361,142 359,914 2.29% 12.3 Senior secured notes (9) 404,499 2.28% 12.9 — — — — Subordinated note (10) 10,758 N/A 10.5 25,500 16,400 N/A 11.0 Subordinated note (10) 17,896 N/A 11.2 21,183 15,876 N/A 11.7 Subordinated note (10) 18,125 N/A 11.5 25,500 18,337 N/A 12.0 Subordinated note (10) 14,766 N/A 11.8 17,924 11,928 N/A 12.3 Subordinated note (10) 22,180 N/A 12.9 12,036 12,036 N/A 1.6 Term loan — — — 81,238 81,238 1.20% 1.6 Total CLO debt obligations 2,678,566 2,355,060 $ 2,294,938 Less: Debt issuance costs — (24,701 ) Total CLO debt obligations, net $ 2,678,566 $ 2,330,359 (1) The Company adopted the measurement alternative guidance for collateralized financing entities on a modified retrospective approach as of January 1, 2016. Upon adoption, the Company elected the fair value option for the financial liabilities of the consolidated CLOs and determined that the fair value of the CLO assets was more observable than the fair value of the CLO liabilities. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (a) the fair value of any beneficial interests held by the Company and (b) the carrying value of any beneficial interests that represent compensation for services. Please see notes 2 and 5 for more information. (2) The debt obligations of the CLOs are Level III valuations and were valued using prices obtained from pricing vendors or recent transactions. Financial instruments that are valued using quoted prices for the subject or similar securities are generally classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. Financial instruments that are valued based on recent transactions are generally defined as securities purchased or sold within six months of the valuation date. The fair value may also be based on a pending transaction expected to close after the valuation date. For certain recently issued debt obligations, the carrying value approximates fair value. (3) The weighted average interest rate is based on LIBOR plus 2.01% . (4) The weighted average interest rate is based on LIBOR plus 2.17% . (5) The interest rate was LIBOR plus a margin determined based on a formula as defined in the respective borrowing agreements, which incorporate different borrowing values based on the characteristics of collateral investments purchased. The weighted average unused commitment fee rate ranged from 0% to 2.0% . (6) The weighted average interest rate is based on EURIBOR (subject to a zero floor) plus 2.26% . (7) The weighted average interest rate is based on LIBOR plus 2.09% . (8) The weighted average interest rate is based on EURIBOR (subject to a zero floor) plus 2.29% . (9) The weighted average interest rate is based on EURIBOR (subject to a zero floor) plus 2.28% . (10) The subordinated notes do not have a contractual interest rate; instead, they receive distributions from the excess cash flows generated by the CLO. The debt obligations of CLOs are nonrecourse to the Company and are backed by the investments held by the respective CLO. Assets of one CLO may not be used to satisfy the liabilities of another. As of June 30, 2016 and December 31, 2015, the fair value of CLO assets was $3.1 billion and $2.6 billion , respectively, and consisted of cash, corporate loans, corporate bonds and other securities. As of June 30, 2016, future scheduled principal payments with respect to the debt obligations of CLOs were as follows: Last six months of 2016 $ — 2017 — 2018 73,833 2019 — 2020 — Thereafter 2,652,551 Total $ 2,726,384 |
NON-CONTROLLING REDEEMABLE INTE
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS | 6 Months Ended |
Jun. 30, 2016 | |
Non-Controlling Redeemable Interests in Consolidated Funds [Abstract] | |
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS | NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS The following table sets forth a summary of changes in the non-controlling redeemable interests in the consolidated funds. Dividends reinvested and in-kind contributions or distributions are non-cash in nature and have been presented on a gross basis in the table below. Six Months Ended June 30, 2016 2015 Beginning balance $ 38,173,125 $ 41,681,155 Cumulative-effect adjustment from adoption of accounting guidance (37,969,042 ) — Contributions 64,321 3,309,316 Distributions (21,919 ) (3,711,727 ) Net income 1,989 742,608 Change in distributions payable (822 ) 544,060 Change in accrued or deferred contributions — 12,267 Foreign currency translation and other 1,605 (364,239 ) Ending balance $ 249,257 $ 42,213,440 |
UNITHOLDERS' CAPITAL
UNITHOLDERS' CAPITAL | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
UNITHOLDERS' CAPITAL | UNITHOLDERS’ CAPITAL Unitholders’ capital reflects the economic interests attributable to Class A unitholders, non-controlling interests in consolidated subsidiaries and non-controlling interests in consolidated funds. Non-controlling interests in consolidated subsidiaries represent the portion of unitholders’ capital attributable to the OCGH non-controlling interest and third parties. The OCGH non-controlling interest is determined at the Oaktree Operating Group level based on the proportionate share of Oaktree Operating Group units held by the OCGH unitholders. Certain expenses, such as income tax and related administrative expenses of Oaktree Capital Group, LLC and its Intermediate Holding Companies, are solely attributable to the Class A unitholders. As of June 30, 2016 and December 31, 2015, respectively, OCGH units represented 92,340,656 of the total 154,943,451 Oaktree Operating Group units and 91,937,873 of the total 153,907,733 Oaktree Operating Group units. Based on total allocable Oaktree Operating Group capital of $1,608,709 and $1,575,504 as of June 30, 2016 and December 31, 2015, respectively, the OCGH non-controlling interest was $958,732 and $941,141 . As of June 30, 2016 and December 31, 2015, non-controlling interests attributable to related parties and third parties was $11,140 and $102,789 , respectively. The following table sets forth a summary of net income attributable to the OCGH unitholders' non-controlling interest and to Class A unitholders: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average Oaktree Operating Group units outstanding (in thousands): OCGH non-controlling interest 92,440 105,467 92,177 106,813 Class A unitholders 62,617 48,372 62,256 46,727 Total weighted average units outstanding 155,057 153,839 154,433 153,540 Oaktree Operating Group net income: Net income attributable to OCGH non-controlling interest $ 83,256 $ 54,240 $ 142,082 $ 163,006 Net income attributable to Class A unitholders 56,397 24,878 96,012 70,188 Oaktree Operating Group net income (1) $ 139,653 $ 79,118 $ 238,094 $ 233,194 Net income attributable to Oaktree Capital Group, LLC: Oaktree Operating Group net income attributable to Class A unitholders $ 56,397 $ 24,878 $ 96,012 $ 70,188 Non-Operating Group expenses (201 ) (626 ) (465 ) (960 ) Income tax expense of Intermediate Holding Companies (7,149 ) (4,438 ) (18,422 ) (11,161 ) Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 (1) Oaktree Operating Group net income does not include amounts attributable to other non-controlling interests, which amounted to $1,212 and $1,269 for the three months ended June 30, 2016 and 2015, respectively, and $2,420 and $604 for the six months ended June 30, 2016, respectively. The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 Equity reallocation between controlling and non-controlling interests 645 (559 ) 8,126 45,202 Change from net income attributable to Oaktree Capital Group, LLC and transfers from non-controlling interests $ 49,692 $ 19,255 $ 85,251 $ 103,269 Please see notes 12, 13 and 14 for additional information regarding transactions that impacted unitholders’ capital. |
EARNINGS PER UNIT
EARNINGS PER UNIT | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER UNIT | EARNINGS PER UNIT The computation of net income per Class A unit is set forth below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income per Class A unit (basic and diluted): (in thousands, except per unit amounts) Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 Weighted average number of Class A units outstanding (basic and diluted) 62,617 48,372 62,256 46,727 Basic and diluted net income per Class A unit $ 0.78 $ 0.41 $ 1.24 $ 1.24 OCGH units may be exchanged on a one -for- one basis into Class A units, subject to certain restrictions. As of June 30, 2016, there were 92,340,656 OCGH units outstanding, which are vested or will vest through March 1, 2026, that ultimately may be exchanged into 92,340,656 Class A units. The exchange of these units would proportionally increase the Company’s interest in the Oaktree Operating Group. However, as the restrictions set forth in the exchange agreement were in place at the end of each respective reporting period, those units were not included in the computation of diluted earnings per unit for the three and six months ended June 30, 2016 and 2015. In connection with the 2014 Highstar acquisition, the Company has a contingent consideration liability that is payable in a combination of cash and fully-vested OCGH units. The amount of contingent consideration, if any, is based on the achievement of certain performance targets over a period of up to seven years from the acquisition date. As of June 30, 2016, no OCGH units were considered issuable under the terms of the contingent consideration arrangement; consequently, no contingently issuable units were included in the computation of diluted earnings per unit for the three and six months ended June 30, 2016 and 2015. Please see note 15 for more information. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Class A and OCGH Unit Awards During the six months ended June 30, 2016, the Company granted 787,103 Class A units and 629,667 restricted OCGH units to its employees and directors, subject to annual vesting over a weighted average period of approximately 4.2 years . The grant date fair value of OCGH units awarded during the six months ended June 30, 2016 was determined by applying a 20% discount to the Class A unit trading price on the New York Stock Exchange as of the grant date. The calculation of compensation expense for all OCGH units awarded in 2016 assumed a forfeiture rate, based on expected employee turnover, of up to 3.0% annually. As of June 30, 2016, the Company expected to recognize compensation expense on its unvested Class A and OCGH unit awards of $164.9 million over a weighted average period of 4.2 years. A summary of the status of the Company’s unvested Class A and OCGH unit awards and a summary of changes for the period presented are set forth below (actual dollars per unit): Class A Units OCGH Units Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Balance, December 31, 2015 2,376,340 $ 38.18 2,265,967 $ 40.70 Granted 787,103 46.93 629,667 37.56 Vested (922,746 ) 37.45 (312,663 ) 39.10 Forfeited (41,301 ) 37.66 (110,932 ) 39.93 Balance, June 30, 2016 2,199,396 $ 41.63 2,472,039 $ 40.14 Equity Value Units OCGH equity value units (“EVUs”) represent special limited partnership units in OCGH that entitle the holder the right to receive a one-time special distribution that will be settled in OCGH units, based on value created during a specified period (“Term”) in excess of a fixed “Base Value.” The value created will be measured on a per unit basis, based on Class A unit trading prices and certain components of quarterly distributions with respect to interim periods during the Term. EVUs also give the holder the right, subject to service vesting and Oaktree performance relative to the accreting Base Value, to receive certain quarterly distributions from OCGH. EVUs do not entitle the holder to any voting rights. Certain EVUs provide the holder with certain liquidity rights in respect of the one-time special distribution that will be settled in OCGH units. The Company accounts for those EVUs subject to such liquidity rights as liability-classified awards. As of June 30, 2016, there were 1,000,000 equity-classified EVUs and 1,000,000 liability-classified EVUs outstanding. As of June 30, 2016, the Company expected to recognize $7.6 million of compensation expense on its unvested EVUs over the next 3.5 years . Equity-classified EVUs that require future service are expensed on a straight-line basis over the requisite service period. Liability-classified EVUs are remeasured at the end of each quarter. The fair value of EVUs was determined using a Monte Carlo simulation model at the grant date for equity-classified EVUs and as of the period end date for liability-classified EVUs. The fair value is affected by the Class A unit trading price and assumptions regarding certain complex and subjective variables, including the expected Class A unit trading price volatility, distributions and exercise timing, and the risk-free interest rate. The fair value of equity-classified EVUs reflected a 20% lack of marketability discount for the OCGH units that will be issued upon vesting, and an assumed forfeiture rate of zero . |
INCOME TAXES AND RELATED PAYMEN
INCOME TAXES AND RELATED PAYMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES AND RELATED PAYMENTS | INCOME TAXES AND RELATED PAYMENTS Oaktree is a publicly traded partnership and Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc., two of its Intermediate Holding Companies, are wholly-owned corporate subsidiaries. Income earned by these corporate subsidiaries is subject to U.S. federal and state income taxation and taxed at prevailing rates. Income earned by non-corporate subsidiaries is not subject to U.S. federal corporate income tax and is allocated to the Oaktree Operating Group’s unitholders. The Company’s effective tax rate is dependent on many factors, including the estimated nature of many amounts and the mix of revenues and expenses between the subsidiaries that are or are not subject to income tax; consequently, from period to period the effective tax rate is subject to significant variation. The Company’s effective tax rate used for interim periods is based on the estimated full-year income tax rate. Certain future items that cannot be reliably estimated, such as incentive income, are excluded from the estimated annual effective tax rate. The tax expense or benefit stemming from these items is recognized in the same period as the underlying income or expense. Tax authorities currently are examining certain income tax returns of Oaktree, with certain of these examinations at an advanced stage. During the four quarters ending June 30, 2017, the Company believes that it is reasonably possible that one outcome of these current examinations and expiring statutes of limitation on other items may be the release of up to approximately $3.8 million of previously accrued Operating Group income taxes. The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to its tax examinations and that any settlements related thereto will not have a material adverse effect on the Company’s consolidated financial statements; however, there can be no assurances as to the ultimate outcomes. Tax Receivable Agreement Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. have entered into a tax receivable agreement with OCGH unitholders that, as amended, provides for the payment to an exchanging or selling OCGH unitholder of 85% of the amount of cash savings, if any, in U.S. federal, state, local and foreign income taxes that they actually realize (or are deemed to realize in the case of an early termination payment by Oaktree Holdings, Inc. or Oaktree AIF Holdings, Inc., or a change of control) as a result of an increase in the tax basis of the assets owned by the Oaktree Operating Group. When an exchange of OCGH units results in an increase to the tax basis of the assets owned by the Oaktree Operating Group, a deferred tax asset and an associated liability for payments to OCGH unitholders under the tax receivable agreement are recorded, subject to realizability considerations. The establishment of a deferred tax asset increases additional paid-in capital because the transactions are between Oaktree and its unitholders. No amounts were paid under the tax receivable agreement during the six months ended June 30, 2016. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the normal course of business, Oaktree enters into contracts that contain certain representations, warranties and indemnifications. The Company’s exposure under these arrangements would involve future claims that have not yet been asserted. Inasmuch as no such claims currently exist or are expected to arise, the Company has not accrued any liability in connection with these indemnifications. Legal Actions Oaktree, its affiliates, investment professionals, and portfolio companies are routinely involved in litigation and other legal actions in the ordinary course of their business and investing activities. In addition, Oaktree is subject to the authority of a number of U.S. and non-U.S. regulators, including the SEC and the Financial Industry Regulatory Authority, and those authorities periodically conduct examinations of Oaktree and make other inquiries that may result in the commencement of regulatory proceedings against Oaktree and its personnel. Oaktree is currently not subject to any pending actions or regulatory proceedings that either individually or in the aggregate are expected to have a material impact on its consolidated financial statements. Incentive Income In addition to the incentive income recognized by the Company, certain of its funds have amounts recorded as potentially allocable to the Company as its share of potential future incentive income, based on each fund’s net asset value. Inasmuch as this incentive income is contingent upon future investment activity and other factors, it is not recognized by the Company until it is fixed or determinable. As of June 30, 2016 and December 31, 2015, the aggregate of such amounts recorded at the fund level in excess of incentive income recognized by the Company was $1,520,994 and $1,540,469 , respectively, for which related direct incentive income compensation expense was estimated to be $751,874 and $750,077 , respectively. Contingent Consideration The Company has a contingent consideration obligation of up to $60.0 million related to the 2014 Highstar acquisition, payable in cash and fully-vested OCGH units. The amount of contingent consideration is based on the achievement of certain performance targets over a period of up to seven years from the acquisition date. As of June 30, 2016 and December 31, 2015, respectively, the fair value of the contingent consideration liability was $25.0 million and $28.5 million . Changes in this liability resulted in income of $2.9 million and $3.5 million for the three and six months ended June 30, 2016, respectively, and expenses of $0.7 million and $1.5 million for the three and six months ended June 30, 2015, respectively. The fair value of the contingent consideration liability is a Level III valuation, which uses a discounted cash-flow analysis based on a probability-weighted average estimate of certain performance targets, including fundraising and revenue levels. The assumptions used in the analysis are inherently subjective, and thus the ultimate amount of the contingent consideration liability may differ materially from the current estimate. The contingent consideration liability is included in accounts payable, accrued expenses and other liabilities in the condensed consolidated statements of financial condition. Changes in the liability are recorded in general and administrative expense in the condensed consolidated statements of operations. Commitments to Funds As of June 30, 2016 and December 31, 2015, the Company, generally in its capacity as general partner, had undrawn capital commitments of $516.6 million and $469.4 million , respectively, including commitments to both unconsolidated and consolidated funds. Investment Commitments of Consolidated Funds Certain of the consolidated funds are parties to credit arrangements that provide for the issuance of letters of credit and/or revolving loans, which may require the particular consolidated fund to extend loans to investee companies. The consolidated funds use the same investment criteria in making these commitments as they do for investments that are included in the condensed consolidated statements of financial condition. The unfunded liability associated with these credit arrangements is equal to the amount by which the contractual loan commitment exceeds the sum of funded debt and cash held in escrow, if any. As of June 30, 2016 and December 31, 2015, the consolidated funds had potential aggregate commitments of $2.9 million and $1.3 billion , respectively. These commitments will be funded by the funds’ cash balances, proceeds from asset sales or drawdowns against existing capital commitments. A consolidated fund may agree to guarantee the repayment obligations of certain investee companies. As of June 30, 2016 and December 31, 2015, the aggregate amounts guaranteed were zero and $142.4 million , respectively. Certain consolidated funds are investment companies that are required to disclose financial support provided or contractually required to be provided to any of their portfolio companies. During the six months ended June 30, 2016, the consolidated funds did not provide any financial support to portfolio companies. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s business is comprised of one segment, the investment management segment. As a global investment manager, the Company provides investment management services through funds and separate accounts. Management makes operating decisions and assesses business performance based on financial and operating metrics and data that are presented without the consolidation of any funds. The Company conducts its investment management business primarily in the United States, where substantially all of its revenues are generated. Adjusted Net Income The Company’s chief operating decision maker uses adjusted net income (“ANI”) as a tool to help evaluate the financial performance of, and make resource allocations and other operating decisions for, the investment management segment. The components of revenues and expenses used in the determination of ANI do not give effect to the consolidation of the funds that the Company manages. Segment revenues include investment income (loss) that is classified in other income (loss) in the GAAP-basis statements of operations. Segment revenues and expenses also reflect Oaktree’s proportionate economic interest in Highstar, whereby amounts received for contractually reimbursable costs are classified for segment reporting as expenses and under GAAP as other income. In addition, ANI excludes the effect of (a) non-cash equity-based compensation expense related to unit grants made before our initial public offering, (b) acquisition-related items, including amortization of intangibles and changes in the contingent consideration liability, (c) differences arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (d) income taxes, (e) other income or expenses applicable to OCG or its Intermediate Holding Companies, and (f) the adjustment for non-controlling interests. Beginning with the fourth quarter of 2015, the definition of ANI was modified to reflect differences with respect to (a) third-party placement costs associated with closed-end funds, which under GAAP are expensed as incurred, but for ANI are capitalized and amortized as general and administrative expense in proportion to the associated management fee stream, and (b) gains and losses resulting from foreign-currency transactions and hedging activities, which under GAAP are recognized as general and administrative expense whether realized or unrealized in the current period, but for ANI unrealized gains and losses from foreign-currency hedging activities are deferred until realized, at which time they are included in the same revenue or expense line item as the underlying exposure that was hedged. Foreign-currency transaction gains and losses are included in other income (expense), net. Prior periods have not been recast for the change related to third-party placement costs, but have been recast to retroactively reflect the change related to foreign-currency hedging. Incentive income and incentive income compensation expense are included in ANI when the underlying fund distributions are known or knowable as of the respective quarter end, which may be later than the time at which the same revenue or expense is included in the GAAP-basis statements of operations, for which the revenue standard is fixed or determinable and the expense standard is probable and reasonably estimable. CLO investments are carried at fair value for GAAP reporting, whereas for segment reporting they are carried at amortized cost, subject to any impairment charges. Investment income on CLO investments is recognized in adjusted net income when cash distributions are received. Cash distributions are allocated between income and return of capital based on the effective yield method. ANI is calculated at the Operating Group level. ANI (1) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues: Management fees $ 197,450 $ 190,197 $ 398,720 $ 380,292 Incentive income 87,647 61,148 184,235 214,027 Investment income 47,725 23,365 62,802 76,823 Total revenues 332,822 274,710 645,757 671,142 Expenses: Compensation and benefits (99,173 ) (104,767 ) (203,443 ) (213,648 ) Equity-based compensation (12,445 ) (11,901 ) (23,148 ) (18,924 ) Incentive income compensation (35,407 ) (29,554 ) (85,156 ) (119,656 ) General and administrative (30,600 ) (30,335 ) (62,081 ) (59,902 ) Depreciation and amortization (3,048 ) (2,105 ) (6,208 ) (3,996 ) Total expenses (180,673 ) (178,662 ) (380,036 ) (416,126 ) Adjusted net income before interest and other income (expense) 152,149 96,048 265,721 255,016 Interest expense, net of interest income (2) (7,977 ) (8,782 ) (16,659 ) (17,715 ) Other income (expense), net (1,527 ) (1,987 ) (1,392 ) (1,996 ) Adjusted net income $ 142,645 $ 85,279 $ 247,670 $ 235,305 (1) In the fourth quarter of 2015, the definition of adjusted net income was modified to reflect differences with respect to (a) third-party placement costs associated with closed-end funds, which under GAAP are expensed as incurred, but for adjusted net income are capitalized and amortized as general and administrative expense in proportion to the associated management fee stream, and (b) gains and losses resulting from foreign-currency transactions and hedging activities, which under GAAP are recognized as general and administrative expense whether realized or unrealized in the current period, whereas for adjusted net income unrealized gains and losses from foreign-currency hedging activities are deferred until realized, at which time they are included in the same revenue or expense line item as the underlying exposure that was hedged. Foreign-currency transaction gains and losses are included in other income (expense), net. Prior periods have not been recast for the change related to third-party placement costs, but have been recast to retroactively reflect the change related to foreign-currency hedging. Placement costs associated with closed-end funds amounted to $2.8 million and $3.7 million for the three and six months ended June 30, 2015, respectively, and remain expensed as incurred in those periods for both GAAP and ANI purposes. (2) Interest income was $1.6 million and $1.2 million for the three months ended June 30, 2016 and 2015, respectively, and $2.9 million and $2.2 million for the six months ended June 30, 2016 and 2015, respectively. A reconciliation of net income attributable to Oaktree Capital Group, LLC to adjusted net income of the investment management segment is presented below. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 Incentive income (1) (54 ) (5,805 ) 39,888 11,573 Incentive income compensation (1) 54 5,657 (39,888 ) (17,553 ) Investment income (2) (3,149 ) — (13,578 ) — Equity-based compensation (3) 2,281 4,182 5,473 8,865 Placement costs (4) 1,210 — 7,914 — Foreign-currency hedging (5) 3,665 (67 ) 9,531 (5,379 ) Acquisition-related items (6) (1,889 ) 1,695 (1,498 ) 3,502 Income taxes (7) 8,571 5,485 21,251 13,360 Non-Operating Group expenses (8) 201 626 465 960 Non-controlling interests (8) 82,708 53,692 140,987 161,910 Adjusted net income $ 142,645 $ 85,279 $ 247,670 $ 235,305 (1) This adjustment adds back the effect of timing differences associated with the recognition of incentive income and incentive income compensation expense between adjusted net income and net income attributable to OCG. (2) This adjustment adds back the effect of differences in the recognition of investment income related to corporate investments in CLOs which under GAAP are marked-to-market but for segment reporting are accounted for at amortized cost, subject to impairment between adjusted net income and net income attributable to OCG. (3) This adjustment adds back the effect of (a) equity-based compensation expense related to unit grants made before the Company’s initial public offering, which is excluded from adjusted net income because it is a non-cash charge that does not affect the Company’s financial position, and (b) differences arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting. (4) This adjustment adds back the effect of timing differences with respect to the recognition of third-party placement costs associated with closed-end funds between adjusted net income and net income attributable to OCG. (5) This adjustment adds back the effect of timing differences associated with the recognition of unrealized gains and losses related to foreign-currency hedging between adjusted net income and net income attributable to OCG. (6) This adjustment adds back the effect of acquisition-related items associated with the amortization of intangibles and changes in the contingent consideration liability. (7) Because adjusted net income is a pre-tax measure, this adjustment adds back the effect of income tax expense. (8) Because adjusted net income is calculated at the Operating Group level, this adjustment adds back the effect of items applicable to OCG, its Intermediate Holding Companies or non-controlling inter ests. The following tables reconcile the Company’s segment information to the condensed consolidated financial statements: As of or for the Three Months Ended June 30, 2016 Segment Adjustments Consolidated Management fees (1) $ 197,450 $ (2,435 ) $ 195,015 Incentive income (1) 87,647 54 87,701 Investment income (1) 47,725 (6,725 ) 41,000 Total expenses (2) (180,673 ) (10,975 ) (191,648 ) Interest expense, net (3) (7,977 ) (18,753 ) (26,730 ) Other income (expense), net (4) (1,527 ) 7,075 5,548 Other income of consolidated funds (5) — 38,519 38,519 Income taxes — (8,571 ) (8,571 ) Net loss attributable to non-controlling interests in consolidated funds — (7,319 ) (7,319 ) Net income attributable to non-controlling interests in consolidated subsidiaries — (84,468 ) (84,468 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 142,645 $ (93,598 ) $ 49,047 Corporate investments (6) $ 1,371,978 $ (335,740 ) $ 1,036,238 Total assets (7) $ 3,160,373 $ 3,464,502 $ 6,624,875 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds, (b) for management fees, the reclassification of $27 of net gains related to foreign-currency hedging activities to general and administrative expense, and (c) for investment income, differences of $3,149 related to corporate investments in CLOs which under GAAP are marked-to-market but for segment reporting accounted for at amortized cost, subject to impairment. (2) The expense adjustment consists of (a) equity-based compensation expense of $2,821 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $1,635 , (c) expenses incurred by the Intermediate Holding Companies of $241 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $54 , (e) acquisition-related items of $1,889 , (f) adjustments of $5,545 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $540 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $1,210 related to third-party placement costs, and (i) $5,168 of net losses related to foreign-currency hedging activities. (3) The interest expense adjustment represents the inclusion of interest expense attributable to third-party investors in CLOs, non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $5,545 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $1,530 in net losses related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to third-party investors in CLOs and non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.4 billion of corporate investments included $1.1 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. As of or for the Three Months Ended June 30, 2015 Segment Adjustments Consolidated Management fees (1) $ 190,197 $ (139,274 ) $ 50,923 Incentive income (1) 61,148 (60,584 ) 564 Investment income (1) 23,365 (7,671 ) 15,694 Total expenses (2) (178,662 ) (67,267 ) (245,929 ) Interest expense, net (3) (8,782 ) (43,960 ) (52,742 ) Other income (expense), net (4) (1,987 ) 4,850 2,863 Other income (loss) of consolidated funds (5) — (82,526 ) (82,526 ) Income taxes — (5,485 ) (5,485 ) Net loss attributable to non-controlling interests in consolidated funds — 391,961 391,961 Net income attributable to non-controlling interests in consolidated subsidiaries — (55,509 ) (55,509 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 85,279 $ (65,465 ) $ 19,814 Corporate investments (6) $ 1,560,235 $ (1,383,557 ) $ 176,678 Total assets (7) $ 3,245,460 $ 51,941,170 $ 55,186,630 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds and (b) for management fees, the reclassification of $4,639 of net gains related to foreign-currency hedging activities to general and administrative expense. (2) The expense adjustment consists of (a) equity-based compensation expense of $4,010 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $54,920 , (c) expenses incurred by the Intermediate Holding Companies of $652 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $5,657 , (e) acquisition-related items of $1,695 , (f) adjustments of $5,513 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $173 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $5,369 of net gains related to foreign-currency hedging activities, and (i) other expenses of $16 . (3) The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $5,513 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $663 of net gains related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income (loss) attributable to non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.6 billion of corporate investments included $1.3 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. As of or for the Six Months Ended June 30, 2016 Segment Adjustments Consolidated Management fees (1) $ 398,720 $ (5,152 ) $ 393,568 Incentive income (1) 184,235 (40,597 ) 143,638 Investment income (1) 62,802 7,645 70,447 Total expenses (2) (380,036 ) 3,204 (376,832 ) Interest expense, net (3) (16,659 ) (37,776 ) (54,435 ) Other income (expense), net (4) (1,392 ) 12,741 11,349 Other income of consolidated funds (5) — 57,518 57,518 Income taxes — (21,251 ) (21,251 ) Net loss attributable to non-controlling interests in consolidated funds — (2,375 ) (2,375 ) Net income attributable to non-controlling interests in consolidated subsidiaries — (144,502 ) (144,502 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 247,670 $ (170,545 ) $ 77,125 Corporate investments (6) $ 1,371,978 $ (335,740 ) $ 1,036,238 Total assets (7) $ 3,160,373 $ 3,464,502 $ 6,624,875 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds, (b) for management fees, the reclassification of $689 of net gains related to foreign-currency hedging activities to general and administrative expense, and (c) for investment income, differences of $13,578 related to corporate investments in CLOs which under GAAP are marked-to-market but for segment reporting accounted for at amortized cost, subject to impairment. (2) The expense adjustment consists of (a) equity-based compensation expense of $6,066 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $2,676 , (c) expenses incurred by the Intermediate Holding Companies of $536 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $39,888 , (e) acquisition-related items of $1,498 , (f) adjustments of $11,346 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $593 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $7,914 related to third-party placement costs, and (i) $10,237 of net losses related to foreign-currency hedging activities. (3) The interest expense adjustment represents the inclusion of interest expense attributable to third-party investors in CLOs, non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $11,346 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $1,395 in net losses related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to third-party investors in CLOs and non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.4 billion of corporate investments included $1.1 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. As of or for the Six Months Ended June 30, 2015 Segment Adjustments Consolidated Management fees (1) $ 380,292 $ (278,550 ) $ 101,742 Incentive income (1) 214,027 (213,463 ) 564 Investment income (1) 76,823 (48,447 ) 28,376 Total expenses (2) (416,126 ) (65,777 ) (481,903 ) Interest expense, net (3) (17,715 ) (81,596 ) (99,311 ) Other income (expense), net (4) (1,996 ) 9,553 7,557 Other income of consolidated funds (5) — 1,422,716 1,422,716 Income taxes — (13,360 ) (13,360 ) Net income attributable to non-controlling interests in consolidated funds — (744,704 ) (744,704 ) Net income attributable to non-controlling interests in consolidated subsidiaries — (163,610 ) (163,610 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 235,305 $ (177,238 ) $ 58,067 Corporate investments (6) $ 1,560,235 $ (1,383,557 ) $ 176,678 Total assets (7) $ 3,245,460 $ 51,941,170 $ 55,186,630 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds and (b) for management fees, the reclassification of $6,684 of net gains related to foreign-currency hedging activities to general and administrative expense. (2) The expense adjustment consists of (a) equity-based compensation expense of $8,605 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $72,430 , (c) expenses incurred by the Intermediate Holding Companies of $987 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $17,553 , (e) acquisition-related items of $3,502 , (f) adjustments of $11,103 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $261 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $13,613 of net gains related to foreign-currency hedging activities, and (i) other expenses of $55 . (3) The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $11,103 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $1,550 of net gains related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.6 billion of corporate investments included $1.3 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS The Company considers its senior executives, employees and unconsolidated Oaktree funds to be affiliates (as defined in the FASB ASC Master Glossary). Amounts due from and to affiliates are set forth below. The fair value of amounts due from and to affiliates is a Level III valuation and was valued based on a discounted cash-flow analysis. The carrying value of amounts due from affiliates approximated fair value due to their short-term nature or because their average interest rate, which ranged from 2.0% to 3.0% , approximated the Company’s cost of debt. The fair value of amounts due to affiliates approximated $170,651 and $160,952 as of June 30, 2016 and December 31, 2015, respectively, based on a discount rate of 10.0% . As of June 30, 2016 December 31, 2015 Due from affiliates: Loans $ 23,902 $ 29,718 Amounts due from unconsolidated funds 40,395 777 Management fees and incentive income due from unconsolidated funds 48,811 — Payments made on behalf of unconsolidated entities 3,710 3,788 Non-interest bearing advances made to certain non-controlling interest holders and employees 1,045 1,616 Total due from affiliates $ 117,863 $ 35,899 Due to affiliates: Due to OCGH unitholders in connection with the tax receivable agreement (please see note 14) $ 356,851 $ 356,851 Amounts due to senior executives, certain non-controlling interest holders and employees 1,865 — Total due to affiliates $ 358,716 $ 356,851 Loans Loans primarily consist of interest-bearing advances made to certain non-controlling interest holders, primarily employees, to meet tax obligations related to vesting of equity awards. The notes, which are generally recourse to the borrower or secured by vested equity and other collateral, typically bear interest at the Company’s cost of debt and generated interest income of $246 and $450 for the three and six months ended June 30, 2016, and $543 and $913 for the three and six months ended June 30, 2015, respectively. Due From Oaktree Funds and Portfolio Companies In the normal course of business, the Company advances certain expenses on behalf of Oaktree funds. Amounts advanced on behalf of consolidated funds are eliminated in consolidation. Certain expenses paid by the Company, which typically are employee travel and other costs associated with particular portfolio company holdings, are reimbursed to the Company by the portfolio companies. In January 2016, the Company extended a short-term loan to one of the investment funds that it manages. The loan and accrued interest were fully repaid as of June 30, 2016. Revenues Earned From Oaktree Funds Management fees and incentive income earned from unconsolidated Oaktree funds totaled $255.4 million and $482.4 million for the three and six months ended June 30, 2016, respectively, and $18.7 million and $37.9 million for the three and six months ended June 30 2015, respectively. Other Investment Transactions The Company’s senior executives, directors and senior professionals are permitted to invest their own capital (or the capital of family trusts or other estate planning vehicles they control) in Oaktree funds, for which they pay the particular fund’s full management fee but not its incentive allocation. To facilitate the funding of capital calls by funds in which employees are invested, the Company periodically advances on a short-term basis the capital calls on certain employees’ behalf. These advances are reimbursed generally toward the end of the calendar quarter in which the capital calls occurred. Amounts advanced by the Company are included in non-interest bearing advances made to certain non-controlling interest holders and employees. Aircraft Services In March 2015, the Company exercised a purchase option on an airplane lease for $12.5 million . Howard Marks, the Company’s co-chairman, may use this aircraft for personal travel, in which case he reimburses the Company, pursuant to Company policy. Additionally, the Company occasionally makes use of an airplane owned by one of its senior executives for business purposes at a price to the Company that is based on market rates. Special Allocations Certain senior executives receive special allocations based on a percentage of profits of the Oaktree Operating Group. These special allocations, which are recorded as compensation expense, are made on a current basis for so long as they remain senior executives of the Company, with limited exceptions. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 12, 2016, the Company issued and sold to certain accredited investors $100 million in aggregate principal amount of 3.69% senior notes due July 12, 2031. The Company used the proceeds from the sale of the notes to simultaneously repay $100 million of its $250 million term loan due March 31, 2021. On July 28, 2016, the Company declared a distribution of $0.58 per Class A unit. This distribution, which is related to the second quarter of 2016, will be paid on August 12, 2016 to Class A unitholders of record at the close of business on August 8, 2016. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation In February 2015, the Financial Accounting Standards Board (“FASB”) amended its consolidation guidance which changed the way a reporting entity should evaluate limited partnerships and similar entities for consolidation, how a decision maker’s fees affect the consolidation analysis, and how interests held by related parties affect the consolidation analysis. The Company adopted this guidance as of January 1, 2016 under the modified retrospective approach, which did not require prior periods to be recast. In connection with the adoption, the Company reevaluated all of its investment vehicles and other legal entities for consolidation. As of January 1, 2016, the Company deconsolidated substantially all of its previously consolidated investment funds because those funds, which had previously been evaluated as voting interest entities, became variable interest entities (“VIEs”) under the new consolidation guidance, and the Company was not the primary beneficiary because its fee arrangements were no longer deemed to be variable interests and it did not hold any other interests in those funds that were considered to be more than insignificant. The adoption resulted in a reduction to total consolidated assets, liabilities, non-controlling redeemable interests in consolidated funds and unitholders' capital as of January 1, 2016 of $45.7 billion , $7.6 billion , $38.0 billion and $90.6 million , respectively. There was no impact on retained earnings or net income attributable to the Company. |
Variable Interest Model | The Company consolidates entities in which it has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. A limited partnership or similar entity is a VIE if the unaffiliated limited partners do not have substantive kick-out or participating rights. Most of the Oaktree funds are VIEs because they have not granted unaffiliated limited partners substantive kick-out or participating rights. The Company consolidates all VIEs in which it is the primary beneficiary. An entity is deemed to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Company holds a variable interest is a VIE and (b) whether the Company’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (e.g., management and performance-related fees), would give it a controlling financial interest. A decision maker’s fee arrangement is not considered a variable interest if it is compensation for services provided, commensurate with the level of effort required to provide those services and part of a compensation arrangement that includes only terms, conditions or amounts that are customarily present in arrangements for similar services negotiated at arm’s length (“at-market”), and the decision maker does not hold any other variable interests that absorb more than an insignificant amount of the potential VIE’s expected residual returns. The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion at each reporting date. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Company, affiliates of the Company or third parties) or amendments to the governing documents of the respective Oaktree funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. Please see note 3 for more information regarding VIEs. For entities that are not VIEs, the Company evaluates those entities that it controls through a majority voting interest model. “Consolidated funds” refers to Oaktree-managed funds and CLOs that Oaktree is required to consolidate. When funds or CLOs are consolidated, the Company reflects the assets, liabilities, revenues, expenses and cash flows of the funds or CLOs on a gross basis, and the majority of the economic interests in those funds or CLOs, which are held by third-party investors, are reflected as non-controlling interests in consolidated funds or debt obligations of CLOs in the condensed consolidated financial statements. All of the revenues earned by the Company as investment manager of the consolidated funds are eliminated in consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the consolidation of a fund does not impact net income or loss attributable to the Company. Certain entities in which the Company has the ability to exert significant influence, including unconsolidated Oaktree funds for which the Company acts as general partner, are accounted for under the equity method of accounting. |
Non-controlling Interests in Consolidated Funds and Subsidiaries | Non-controlling Redeemable Interests in Consolidated Funds The Company records non-controlling interests to reflect the economic interests of the unaffiliated limited partners. These interests are presented as non-controlling redeemable interests in consolidated funds within the condensed consolidated statements of financial condition, outside of the permanent capital section. Limited partners in open-end and evergreen funds generally have the right to withdraw their capital, subject to the terms of the respective limited partnership agreements, over periods ranging from one month to three years . While limited partners in consolidated closed-end funds generally have not been granted redemption rights, these limited partners do have withdrawal or redemption rights in certain limited circumstances that are beyond the control of the Company, such as instances in which retaining the limited partnership interest could cause the limited partner to violate a law, regulation or rule. The allocation of net income or loss to non-controlling redeemable interests in consolidated funds is based on the relative ownership interests of the unaffiliated limited partners after the consideration of contractual arrangements that govern allocations of income or loss. At the consolidated level, potential incentives are allocated to non-controlling redeemable interests in consolidated funds until such incentives become allocable to the Company under the substantive contractual terms of the limited partnership agreements of the funds. Non-controlling Interests in Consolidated Funds Non-controlling interests in consolidated funds represent the equity interests held by third-party investors in CLOs that had not yet priced as of the respective period end. All non-controlling interests in those CLOs are attributed a share of income or loss arising from the respective CLO based on the relative ownership interests of third-party investors after consideration of contractual arrangements that govern allocations of income or loss. Investors in those CLOs are generally unable to redeem their interests until the respective CLO liquidates, is called or otherwise terminates. Non-controlling Interests in Consolidated Subsidiaries Non-controlling interests in consolidated subsidiaries reflect the portion of unitholders’ capital attributable to OCGH unitholders (“OCGH non-controlling interest”) and third parties. All non-controlling interests in consolidated subsidiaries are attributed a share of income or loss in the respective consolidated subsidiary based on the relative economic interests of the OCGH unitholders or third parties after consideration of contractual arrangements that govern allocations of income or loss. Please see note 11 for more information. |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill represents the excess of cost over the fair value of identifiable net assets of acquired businesses. Goodwill has an indefinite useful life and is not amortized, but instead is tested for impairment annually in the fourth quarter of each fiscal year, or more frequently when events or circumstances indicate that impairment may have occurred. The Company's identifiable intangible assets acquired in business combinations primarily relate to contractual rights to earn future management fees and incentive income. Finite-lived intangible assets are amortized over their estimated useful lives, which range from three to seven years, and are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial instruments at fair value into three levels based on their market observability. Market price observability is affected by a number of factors, such as the type of instrument and the characteristics specific to the instrument. Financial instruments with readily available quoted prices from an active market or for which fair value can be measured based on actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment inherent in measuring fair value. Financial assets and liabilities measured and reported at fair value are classified as follows: • Level I – Quoted unadjusted prices for identical instruments in active markets to which the Company has access at the date of measurement. The types of investments in Level I include exchange-traded equities, debt and derivatives with quoted prices. • Level II – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are directly or indirectly observable. Level II inputs include interest rates, yield curves, volatilities, prepayment risks, loss severities, credit risks and default rates. The types of investments in Level II generally include corporate bonds and loans, government and agency securities, less liquid and restricted equity investments, over-the-counter traded derivatives, and other investments where the fair value is based on observable inputs. • Level III – Valuations for which one or more significant inputs are unobservable. These inputs reflect the Company’s assessment of the assumptions that market participants use to value the investment based on the best available information. Level III inputs include prices of quoted securities in markets for which there are few transactions, less public information exists or prices vary among brokered market makers. The types of investments in Level III include non-publicly traded equity, debt, real estate and derivatives. In some instances, the inputs used to value an instrument may fall into multiple levels of the fair-value hierarchy. In such instances, the instrument’s level within the fair-value hierarchy is based on the lowest of the three levels (with Level III being the lowest) that is significant to the fair-value measurement. The Company’s assessment of the significance of an input requires judgment and considers factors specific to the instrument. Transfers of assets into or out of each fair value hierarchy level as a result of changes in the observability of the inputs used in measuring fair value are accounted for as of the beginning of the reporting period. Transfers resulting from a specific event, such as a reorganization or restructuring, are accounted for as of the date of the event that caused the transfer. In the absence of observable market prices, the Company values Level III investments using valuation methodologies applied on a consistent basis. The quarterly valuation process for Level III investments begins with each portfolio company, property or security being valued by the investment and/or valuation teams. With the exception of open-end funds, all unquoted Level III investment values are reviewed and approved by (i) the Company’s valuation officer, who is independent of the investment teams, (ii) a designated investment professional of each strategy and (iii) for a substantial majority of unquoted Level III holdings as measured by market value, a valuation committee of the respective strategy. For open-end funds, unquoted Level III investment values are reviewed and approved by the Company’s valuation officer. For certain investments, the valuation process also includes a review by independent valuation parties, at least annually, to determine whether the fair values determined by management are reasonable. Results of the valuation process are evaluated each quarter, including an assessment of whether the underlying calculations should be adjusted or recalibrated. In connection with this process, the Company periodically evaluates changes in fair-value measurements for reasonableness, considering items such as industry trends, general economic and market conditions, and factors specific to the investment. Certain assets are valued using prices obtained from brokers or pricing vendors. The Company obtains an average of one to two broker quotes. The Company seeks to obtain at least one quote directly from a broker making a market for the asset and one price from a pricing vendor for the specific or similar securities. These investments may be classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. The Company evaluates the prices obtained from brokers or pricing vendors based on available market information, including trading activity of the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are reasonably estimated. The Company also performs back-testing of valuation information obtained from brokers and pricing vendors against actual prices received in transactions. In addition to ongoing monitoring and back-testing, the Company performs due diligence procedures surrounding pricing vendors to understand their methodology and controls to support their use in the valuation process. The Company adopted the measurement alternative guidance for collateralized financing entities on a modified retrospective approach as of January 1, 2016. Upon adoption, the Company elected the fair value option for the financial liabilities of the consolidated CLOs and determined that the fair value of the CLO assets was more observable than the fair value of the CLO liabilities. Accordingly, the fair value of the CLO liabilities was measured as the fair value of CLO assets less the sum of (a) the fair value of any beneficial interests held by the Company and (b) the carrying value of any beneficial interests that represent compensation for services. Fair Value Option The Company has elected the fair value option for certain corporate investments that otherwise would not have reflected unrealized gains and losses in current-period earnings. Such election is irrevocable and is applied on an investment-by-investment basis at initial recognition. Unrealized gains and losses resulting from changes in fair value are reflected as a component of investment income in the condensed consolidated statements of operations. The Company’s accounting for those investments is similar to its accounting for investments held by the consolidated funds at fair value and the valuation methods used to determine the fair value of those investments. The Company has elected the fair value option for the financial assets and financial liabilities of its consolidated CLOs. The assets and liabilities of CLOs are primarily reflected within the investments, at fair value and within debt obligations of CLOs line items in the condensed consolidated statements of financial condition. The Company’s accounting for CLO assets is similar to its accounting for its funds with respect to both carrying investments held by CLOs at fair value and the valuation methods used to determine the fair value of those investments. CLO liabilities are measured based on the more observable fair value of CLO assets under the new CLO measurement alternative guidance, as discussed under “—Fair Value of Financial Instruments” above. Realized gains or losses and changes in the fair value of CLO assets, respectively, are included in net realized gain on consolidated funds’ investments and net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Interest income of CLOs is included in interest and dividend income, and interest expense and other expenses, respectively, are included in interest expense and consolidated fund expenses in the condensed consolidated statements of operations. Changes in the fair value of a CLO’s financial liabilities resulting from the measurement alternative guidance for collateralized financing entities are included in net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Please see notes 5 and 9 for more information. |
Investments, at Fair Value | Investments, at Fair Value The consolidated funds include investment limited partnerships and CLOs that reflect their investments, including majority-owned and controlled investments, at fair value. The Company has retained the specialized investment company accounting guidance under GAAP for investment limited partnerships with respect to consolidated investments and has elected the fair value option for the financial assets of CLOs. Thus, the consolidated investments are reflected in the condensed consolidated statements of financial condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Non-publicly traded debt and equity securities and other securities or instruments for which reliable market quotations are not available are valued by management using valuation methodologies applied on a consistent basis. These securities may initially be valued at the acquisition price as the best indicator of fair value. The Company reviews the significant unobservable inputs, valuations of comparable investments and other similar transactions for investments valued at acquisition price to determine whether another valuation methodology should be utilized. Subsequent valuations will depend on the facts and circumstances known as of the valuation date and the application of valuation methodologies as further described below under “—Non-publicly Traded Equity and Real Estate Investments.” The fair value may also be based on a pending transaction expected to close after the valuation date. Exchange-traded Investments Securities listed on one or more national securities exchanges are valued at their last reported sales price on the date of valuation. If no sale occurred on the valuation date, the security is valued at the mean of the last “bid” and “ask” prices on the valuation date. Securities that are not readily marketable due to legal restrictions that may limit or restrict transferability are generally valued at a discount from quoted market prices. The discount would reflect the amount market participants would require due to the risk relating to the inability to access a public market for the security for the specified period and would vary depending on the nature and duration of the restriction and the perceived risk and volatility of the underlying securities. Securities with longer duration restrictions or higher volatility are generally valued at a higher discount. Such discounts are generally estimated based on put option models or an analysis of market studies. Instances where the Company has applied discounts to quoted prices of restricted listed securities have been infrequent. The impact of such discounts is not material to the Company’s condensed consolidated statements of financial condition and results of operations for all periods presented. Credit-oriented Investments (including Real Estate Loan Portfolios) Investments in corporate and government debt which are not listed or admitted to trading on any securities exchange are valued at the mean of the last bid and ask prices on the valuation date based on quotations supplied by recognized quotation services or by reputable broker-dealers. The market-yield approach is considered in the valuation of non-publicly traded debt securities, utilizing expected future cash flows and discounted using estimated current market rates. Discounted cash-flow calculations may be adjusted to reflect current market conditions and/or the perceived credit risk of the borrower. Consideration is also given to a borrower’s ability to meet principal and interest obligations; this may include an evaluation of collateral and/or the underlying value of the borrower utilizing techniques described below under “—Non-publicly Traded Equity and Real Estate Investments.” Non-publicly Traded Equity and Real Estate Investments The fair value of equity and real estate investments is determined using a cost, market or income approach. The cost approach is based on the current cost of reproducing a real estate investment less deterioration and functional and economic obsolescence. The market approach utilizes valuations of comparable public companies and transactions, and generally seeks to establish the enterprise value of the portfolio company or investment property using a market-multiple methodology. This approach takes into account the financial measure (such as EBITDA, adjusted EBITDA, free cash flow, net operating income, net income, book value or net asset value) believed to be most relevant for the given company or investment property. Consideration also may be given to factors such as acquisition price of the security or investment property, historical and projected operational and financial results for the portfolio company, the strengths and weaknesses of the portfolio company or investment property relative to its comparable companies or properties, industry trends, general economic and market conditions, and others deemed relevant. The income approach is typically a discounted cash-flow method that incorporates expected timing and level of cash flows. It incorporates assumptions in determining growth rates, income and expense projections, discount and capitalization rates, capital structure, terminal values, and other factors. The applicability and weight assigned to market and income approaches are determined based on the availability of reliable projections and comparable companies and transactions. The valuation of securities may be impacted by expectations of investors’ receptiveness to a public offering of the securities, the size of the holding of the securities and any associated control, information with respect to transactions or offers for the securities (including the transaction pursuant to which the investment was made and the elapsed time from the date of the investment to the valuation date), and applicable restrictions on the transferability of the securities. These valuation methodologies involve a significant degree of management judgment. Accordingly, valuations by the Company do not necessarily represent the amounts that eventually may be realized from sales or other dispositions of investments. Fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the condensed consolidated financial statements. |
Recent Accounting Developments | Recent Accounting Developments In March 2016, the FASB issued guidance that affects several aspects of accounting for employee share-based payment awards. The amendments would impact the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In March 2016, the FASB issued guidance eliminating the requirement to retroactively apply the equity method of accounting when a reporting entity obtains significant influence over an investment (e.g., due to an increase in ownership) that previously had been accounted for under the cost basis or at fair value. Instead, the reporting entity would be required to apply the equity method of accounting prospectively from the date significant influence was obtained. The cost of the additional interest in the investee, if any, should be added to the current basis of the investment. The amendment also provides guidance for available-for-sale investments that become eligible for the equity method of accounting. In those cases, any unrealized gain or loss recorded within accumulated other comprehensive income should be recognized in earnings as of the date the investment initially qualifies for the use of the equity method. The guidance is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In February 2016, the FASB issued guidance that will require a lessee to recognize a lease asset and a lease liability for most of its operating leases. Under current GAAP, operating leases are not recognized by a lessee in its statements of financial position. In general, the new asset and liability will each equal the present value of lease payments. The guidance does not significantly change the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee. The guidance is effective for the Company in the first quarter of 2019 using a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented. Early adoption is permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In January 2016, the FASB issued guidance that changes the classification and measurement of financial instruments and amends certain disclosure requirements associated with the fair value of financial instruments. The amendments revise the accounting related to (a) the classification and measurement of investments in equity investments and (b) the presentation of certain fair value changes for financial liabilities measured at fair value. Specifically, the guidance generally requires equity investments to be carried at fair value with changes flowing through net income. This requirement does not apply to equity-method investments. For financial liabilities measured at fair value, the guidance requires fair value changes attributable to instrument-specific credit risk to be presented separately in other comprehensive income, as opposed to reflecting the entire fair-value change in net income. The guidance is effective for the Company in the first quarter of 2019, with early adoption permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. In April 2015, the FASB issued guidance that changes the presentation of debt issuance costs in the statements of financial position. Previously, such costs were reflected in the statements of financial position as a deferred asset. The new guidance requires these costs to be presented as a direct deduction from the related debt liability and to be amortized as interest expense. The amendment does not affect the current guidance on the recognition and measurement of debt issuance costs. The Company adopted the guidance in the first quarter of 2016 on a retrospective basis. The adoption resulted in the reclassification of deferred debt issuance costs related to the Company and the consolidated funds, respectively, of $3.6 million and $44.7 million as of December 31, 2015, from other assets to debt obligations in the condensed consolidated statements of financial condition. In February 2015, the FASB amended its consolidation guidance to end the deferral granted to investment companies with respect to applying VIE guidance. The new guidance does not affect the five characteristics that determine if an entity is a VIE; rather, it focuses on the consolidation criteria used to evaluate whether certain legal entities should be consolidated. Additionally, the new guidance eliminates the presumption that a general partner should consolidate a limited partnership under the voting model. The amendment is intended to simplify the consolidation guidance by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a VIE and providing more clarity for reporting entities that typically make use of limited partnerships or VIEs. The Company adopted the guidance in the first quarter of 2016 on a modified retrospective basis as of January 1, 2016. As a result, prior periods were not recast; instead, a cumulative-effect adjustment to equity as of January 1, 2016 was recorded. The adoption resulted in a reduction to total consolidated assets, liabilities, non-controlling redeemable interests in consolidated funds and unitholders' capital as of January 1, 2016 of $45.7 billion , $7.6 billion , $38.0 billion and $90.6 million , respectively. There was no impact on retained earnings or net income attributable to the Company. In August 2014, the FASB issued guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements. Additionally, an entity must provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for the Company in the fourth quarter of 2016, with early adoption permitted. The Company does not expect that adoption of this guidance will have a material impact on its consolidated financial statements. In August 2014, the FASB issued guidance on measuring the financial assets and financial liabilities of a consolidated collateralized financing entity, such as a CLO. The guidance applies to reporting entities that are required to consolidate a collateralized financing entity under the VIE guidance when (a) the reporting entity measures all of the financial assets and financial liabilities of that consolidated financing entity at fair value in the consolidated financial statements and (b) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. The guidance provides an alternative for measuring the financial assets and financial liabilities of a consolidated collateralized financing entity to eliminate differences in the fair value of those financial assets and financial liabilities as determined under GAAP. The Company adopted the guidance in the first quarter of 2016 on a modified retrospective basis as of January 1, 2016. As a result, prior periods were not recast; instead, a cumulative-effect adjustment to equity as of January 1, 2016 was recorded. The adoption resulted in a reduction to unitholders' capital as of January 1, 2016 of $32.1 million . In May 2014, the FASB and International Accounting Standards Board issued converged guidance on revenue recognition, which outlined a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded most current revenue recognition guidance, including industry-specific guidance. The guidance provides a largely principles-based framework for addressing revenue recognition issues on a comprehensive basis, eliminates an entity’s ability to recognize revenue if there is risk of significant reversal, and requires enhanced disclosures to provide greater insight into both revenue that has been recognized and revenue that is expected to be recognized in the future from existing contracts, including quantitative and qualitative information about significant judgments and changes in those judgments made by management in recognizing revenue. In April and May 2016, the FASB amended certain aspects of the new revenue recognition guidance, including performance obligations, licensing, collectability, noncash consideration and contract modifications. The guidance will be effective for the Company in the first quarter of 2018 on either a full or modified retrospective basis, with early adoption permitted. The Company is currently evaluating the effect that adoption will have on its consolidated financial statements. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | As of June 30, 2016, the assets and liabilities of VIEs that were not consolidated, and the Company’s investments in those VIEs, are shown below. As of December 31, 2015, there were no VIEs for which the Company was not the primary beneficiary pursuant to the consolidation rules then in effect. Carrying Value as of June 30, 2016 Assets of VIEs $ 48,148,869 Liabilities of VIEs $ 8,808,034 Corporate investments $ 1,008,016 Due from affiliates 39,515 Maximum exposure to loss $ 1,047,531 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Investment | The components of investment income (loss) are set forth below: Three Months Ended June 30, Six Months Ended June 30, Investment Income (Loss): 2016 2015 2016 2015 Equity-method Investments: Oaktree funds $ 10,245 $ 1,075 $ 28,901 $ 327 Non-Oaktree funds 14 2,140 318 4,733 Companies 16,682 12,358 31,789 22,322 Other investments, at fair value 14,059 121 9,439 994 Total investment income $ 41,000 $ 15,694 $ 70,447 $ 28,376 |
Equity Method Investments | Summarized financial information of the Company’s equity-method investments is set forth below. Equity-method investments were not material for periods prior to adoption of the deconsolidation guidance in the first quarter of 2016, pursuant to the consolidation rules then in effect. Statement of Financial Condition : As of June 30, 2016 Assets: Cash and cash-equivalents $ 3,285,360 Investments, at fair value 40,995,952 Other assets 2,220,264 Total assets $ 46,501,576 Liabilities and Capital: Debt obligations $ 7,014,441 Other liabilities 2,285,463 Total liabilities 9,299,904 Total capital 37,201,672 Total liabilities and capital $ 46,501,576 Statements of Operations : Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Revenues / investment income $ 482,265 $ 1,025,099 Interest expense (41,640 ) (80,169 ) Other expenses (217,303 ) (437,739 ) Net realized and unrealized gain on investments 550,657 838,724 Net income $ 773,979 $ 1,345,915 Corporate investments consisted of the following: As of Corporate Investments: June 30, 2016 December 31, 2015 Equity-method Investments: Oaktree funds $ 915,942 $ 51,899 Non-Oaktree funds 59 65,901 Companies 19,621 28,562 Other investments, at fair value 100,616 67,626 Total corporate investments $ 1,036,238 $ 213,988 |
Investments, at Fair Value | The following table summarizes net gains (losses) attributable to the Company's other investments: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Realized gain (loss) $ 105 $ 58 $ (2,389 ) $ 58 Net change in unrealized gain (loss) 13,954 63 11,828 936 Total $ 14,059 $ 121 $ 9,439 $ 994 Investments held and securities sold short by the consolidated funds are summarized below: Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments June 30, December 31, June 30, December 31, United States: Debt securities: Consumer discretionary $ 550,122 $ 3,387,072 16.7 % 7.5 % Consumer staples 153,994 686,071 4.7 1.5 Energy 50,760 854,220 1.5 1.9 Financials 124,291 1,293,508 3.8 2.9 Government — 95,508 — 0.2 Health care 292,452 1,135,799 8.9 2.5 Industrials 352,038 1,710,706 10.7 3.8 Information technology 251,870 1,293,815 7.6 2.9 Materials 197,230 1,393,521 6.0 3.1 Telecommunication services 65,559 471,711 2.0 1.0 Utilities 44,249 686,126 1.3 1.5 Total debt securities (cost: $2,130,737 and $15,304,870 as of June 30, 2016 and December 31, 2015, respectively) 2,082,565 13,008,057 63.2 28.8 Equity securities: Consumer discretionary 634 1,813,832 0.0 4.0 Consumer staples — 872,472 — 1.9 Energy — 1,810,290 — 4.0 Financials 3,018 7,639,790 0.1 16.9 Health care 112 92,866 0.0 0.2 Industrials — 1,728,086 — 3.8 Information technology — 67,253 — 0.2 Materials — 882,366 — 2.0 Telecommunication services — 16,471 — 0.0 Utilities — 156,865 — 0.3 Total equity securities (cost: $2,213 and $13,290,699 as of June 30, 2016 and December 31, 2015, respectively) 3,764 15,080,291 0.1 33.3 Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments June 30, December 31, June 30, December 31, Europe: Debt securities: Consumer discretionary $ 304,868 $ 1,329,387 9.2 % 2.9 % Consumer staples 81,685 222,789 2.5 0.5 Energy 13,712 144,742 0.4 0.3 Financials 16,367 808,568 0.5 1.8 Government 1,260 46,946 0.0 0.1 Health care 139,437 197,569 4.2 0.5 Industrials 56,557 291,950 1.7 0.7 Information technology 26,818 71,168 0.8 0.2 Materials 198,828 377,460 6.0 0.8 Telecommunication services 158,004 200,610 4.8 0.4 Utilities — 18,028 — 0.0 Total debt securities (cost: $1,008,521 and $4,207,531 as of June 30, 2016 and December 31, 2015, respectively) 997,536 3,709,217 30.1 8.2 Equity securities: Consumer discretionary 452 270,370 0.0 0.6 Consumer staples — 145,108 — 0.3 Energy — 21,791 — 0.0 Financials 245 6,239,424 0.0 13.8 Government — 40,290 — 0.1 Health care — 79,582 — 0.2 Industrials — 1,499,142 — 3.3 Information technology — 1,646 — 0.0 Materials — 475,306 — 1.1 Telecommunication services — 4,834 — 0.0 Utilities — 344,736 — 0.8 Total equity securities (cost: $701 and $7,627,245 as of June 30, 2016 and December 31, 2015, respectively) 697 9,122,229 0.0 20.2 Asia and other: Debt securities: Consumer discretionary 9,651 102,531 0.3 0.2 Consumer staples 12,851 33,061 0.4 0.1 Energy 11,755 193,645 0.4 0.4 Financials 1,087 27,413 0.0 0.1 Government 560 6,974 0.0 0.0 Health care 122 47,010 0.0 0.1 Industrials 2,867 268,710 0.1 0.6 Information technology 142 31,983 0.0 0.1 Materials 10,290 248,830 0.3 0.6 Utilities — 2,713 — 0.0 Total debt securities (cost: $55,151 and $1,090,867 as of June 30, 2016 and December 31, 2015, respectively) 49,325 962,870 1.5 2.2 Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments June 30, December 31, 2015 June 30, December 31, 2015 Asia and other: Equity securities: Consumer discretionary $ 25,043 $ 506,761 0.8 % 1.1 % Consumer staples 17,393 29,863 0.5 0.1 Energy 11,026 192,844 0.3 0.4 Financials 46,510 986,753 1.4 2.2 Health care 1,471 18,535 0.0 0.1 Industrials 25,865 1,032,225 0.8 2.3 Information technology 20,858 244,433 0.6 0.5 Materials 15,397 96,326 0.5 0.2 Telecommunication services 2,446 34,678 0.1 0.1 Utilities 2,292 154,824 0.1 0.3 Total equity securities (cost: $163,082 and $3,370,406 as of June 30, 2016 and December 31, 2015, respectively) 168,301 3,297,242 5.1 7.3 Total debt securities 3,129,426 17,680,144 94.8 39.2 Total equity securities 172,762 27,499,762 5.2 60.8 Total investments, at fair value $ 3,302,188 $ 45,179,906 100.0 % 100.0 % Securities Sold Short Equity securities (proceeds: $68,170 and $102,236 as of June 30, 2016 and December 31, 2015, respectively) $ (61,838 ) $ (91,246 ) |
Net Gains (Losses) from Investment Activities of Consolidated Funds | The following table summarizes net gains (losses) from investment activities: Three Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Investments and other financial instruments $ 8,651 $ 17,740 $ 707,427 $ (1,018,970 ) Measurement alternative guidance for CLO liabilities (1) — (24,172 ) — — Foreign-currency forward contracts (2) (298 ) 849 175,334 (339,448 ) Total-return and interest-rate swaps (2) (907 ) 222 (2,248 ) (56,008 ) Options and futures (2) (764 ) 60 (21,778 ) (5,150 ) Swaptions (2)(3) — — (1,187 ) 1,191 Total $ 6,682 $ (5,301 ) $ 857,548 $ (1,418,385 ) Six Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Investments and other financial instruments $ 12,322 $ 27,423 $ 875,226 $ (461,655 ) Measurement alternative guidance for CLO liabilities (1) — (52,374 ) — — Foreign-currency forward contracts (2) (500 ) 457 471,310 (319,064 ) Total-return and interest-rate swaps (2) (890 ) (1,396 ) (7,174 ) (116,226 ) Options and futures (2) (849 ) (83 ) (3,977 ) (16,299 ) Swaptions (2)(3) — — (3,007 ) 2,342 Total $ 10,083 $ (25,973 ) $ 1,332,378 $ (910,902 ) (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 measurement alternative guidance for CLOs. Please see note 2 for more information. (2) Please see note 6 for additional information. (3) A swaption is an option granting the buyer the right but not the obligation to enter into a swap agreement on a specified future date. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below. Please see notes 9 and 16 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively. As of June 30, 2016 As of December 31, 2015 Level I Level II Level III Total Level I Level II Level III Total Assets U.S. Treasury securities (1) $ 684,224 $ — $ — $ 684,224 $ 661,116 $ — $ — $ 661,116 Corporate investments — 74,035 26,581 100,616 — 41,876 25,750 67,626 Foreign-currency forward contracts (2) — 4,649 — 4,649 — 5,875 — 5,875 Total assets $ 684,224 $ 78,684 $ 26,581 $ 789,489 $ 661,116 $ 47,751 $ 25,750 $ 734,617 Liabilities Contingent consideration (3) $ — $ — $ (24,995 ) $ (24,995 ) $ — $ — $ (28,494 ) $ (28,494 ) Foreign-currency forward contracts (3) — (14,916 ) — (14,916 ) — (3,286 ) — (3,286 ) Interest-rate swaps (3) — (712 ) — (712 ) — (943 ) — (943 ) Total liabilities $ — $ (15,628 ) $ (24,995 ) $ (40,623 ) $ — $ (4,229 ) $ (28,494 ) $ (32,723 ) (1) Carrying value approximates fair value due to the short-term nature. (2) Amounts are included in other assets in the condensed consolidated statements of financial condition. (3) Amounts are included in accounts payable, accrued expenses and other liabilities in the condensed consolidated statements of financial condition. |
Valuation of Investments and Other Financial Instruments | The table below summarizes the investments and other financial instruments of the consolidated funds by fair-value hierarchy level: As of June 30, 2016 As of December 31, 2015 Level I Level II Level III Total Level I Level II Level III Total Assets Investments: Corporate debt – bank debt $ — $ 2,562,192 $ 189,909 $ 2,752,101 $ — $ 7,891,929 $ 1,871,375 $ 9,763,304 Corporate debt – all other — 375,435 1,890 377,325 5,450 4,902,226 3,009,164 7,916,840 Equities – common stock 149,658 17,361 3,991 171,010 4,836,422 256,604 8,729,202 13,822,228 Equities – preferred stock 1,752 — — 1,752 — — 1,363,542 1,363,542 Real estate — — — — 61,317 — 9,655,270 9,716,587 Real estate loan portfolios — — — — — — 2,597,405 2,597,405 Total investments 151,410 2,954,988 195,790 3,302,188 4,903,189 13,050,759 27,225,958 45,179,906 Derivatives: Foreign-currency forward contracts — 416 — 416 — 156,234 — 156,234 Swaps — — — — — 16,544 — 16,544 Options and futures 4 — — 4 — 25,559 — 25,559 Swaptions — — — — — 14 — 14 Total derivatives 4 416 — 420 — 198,351 — 198,351 Total assets $ 151,414 $ 2,955,404 $ 195,790 $ 3,302,608 $ 4,903,189 $ 13,249,110 $ 27,225,958 $ 45,378,257 Liabilities CLO debt obligations: Senior secured notes (1) $ — $ (2,594,841 ) $ — $ (2,594,841 ) $ — $ — $ — $ — Subordinated notes (1) — (83,725 ) — (83,725 ) — — — — Total CLO debt obligations — (2,678,566 ) — (2,678,566 ) — — — — Securities sold short: Equity securities (61,821 ) — (17 ) (61,838 ) (91,246 ) — — (91,246 ) Derivatives: Foreign-currency forward contracts — (11 ) — (11 ) — (64,364 ) — (64,364 ) Swaps — (921 ) — (921 ) — (223,359 ) (8,251 ) (231,610 ) Options and futures (443 ) — — (443 ) (88 ) (4,146 ) — (4,234 ) Total derivatives (443 ) (932 ) — (1,375 ) (88 ) (291,869 ) (8,251 ) (300,208 ) Total liabilities $ (62,264 ) $ (2,679,498 ) $ (17 ) $ (2,741,779 ) $ (91,334 ) $ (291,869 ) $ (8,251 ) $ (391,454 ) (1) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 9 for more information. |
Summary of Changes in Fair Value of Level III Investments | The table below sets forth a summary of changes in the fair value of Level III financial instruments: Three Months Ended June 30, 2016 2015 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 25,624 $ (27,884 ) $ — $ (28,052 ) Net gain (loss) included in earnings 957 2,889 — (694 ) Ending balance $ 26,581 $ (24,995 ) $ — $ (28,746 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 957 $ 2,889 $ — $ (694 ) Six Months Ended June 30, 2016 2015 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 25,750 $ (28,494 ) $ — $ (27,245 ) Net gain (loss) included in earnings 831 3,499 — (1,501 ) Ending balance $ 26,581 $ (24,995 ) $ — $ (28,746 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 831 $ 3,499 $ — $ (1,501 ) The following tables set forth a summary of changes in the fair value of Level III investments: Corporate Debt – Bank Debt Corporate Debt – All Other Equities – Common Stock Equities – Preferred Stock Real Estate Real Estate Loan Portfolios Swaps Other Total Three Months Ended June 30, 2016 Beginning balance $ 200,811 $ 1,853 $ 4,326 $ — $ — $ — $ — $ — $ 206,990 Transfers into Level III — — — — — — — — — Transfers out of Level III (1,962 ) — — — — — — — (1,962 ) Purchases 2,239 1 157 — — — — — 2,397 Sales (10,886 ) — (525 ) — — — — — (11,411 ) Realized gains (losses), net 89 — — — — — — — 89 Unrealized appreciation (depreciation), net (382 ) 36 16 — — — — — (330 ) Ending balance $ 189,909 $ 1,890 $ 3,974 $ — $ — $ — $ — $ — $ 195,773 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (2,103 ) $ 36 $ 16 $ — $ — $ — $ — $ — $ (2,051 ) Three Months Ended June 30, 2015 Beginning balance $ 1,573,508 $ 2,772,859 $ 10,156,394 $ 1,381,135 $ 9,728,967 $ 2,406,252 $ (6,988 ) $ 3,576 $ 28,015,703 Transfers into Level III 9,598 17,208 50,976 11,199 — — — — 88,981 Transfers out of Level III (42,396 ) (78,250 ) (523,407 ) (20,382 ) — — — — (664,435 ) Purchases 42,721 314,898 341,691 147,396 658,056 476,637 — — 1,981,399 Sales (185,407 ) (84,407 ) (349,498 ) (2,760 ) (890,418 ) (213,495 ) — — (1,725,985 ) Realized gains (losses), net 10,604 (35,773 ) 73,211 (1,153 ) 432,658 67,817 — — 547,364 Unrealized appreciation (depreciation), net (9,351 ) 8,839 (46,358 ) 144,303 (356,361 ) 42,261 (1,656 ) 820 (217,503 ) Ending balance $ 1,399,277 $ 2,915,374 $ 9,703,009 $ 1,659,738 $ 9,572,902 $ 2,779,472 $ (8,644 ) $ 4,396 $ 28,025,524 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (12,235 ) $ (76,879 ) $ (12,504 ) $ 1,253 $ (335,645 ) $ 27,778 $ (225 ) $ 820 $ (407,637 ) Corporate Debt – Bank Debt Corporate Debt – All Other Equities – Common Stock Equities – Preferred Stock Real Estate Real Estate Loan Portfolios Swaps Other Total Six Months Ended June 30, 2016 Beginning balance $ 1,871,375 $ 3,009,164 $ 8,729,202 $ 1,363,542 $ 9,655,270 $ 2,597,405 $ (8,251 ) $ — $ 27,217,707 Cumulative-effect adjustment from adoption of accounting guidance (1,672,305 ) (3,007,287 ) (8,725,026 ) (1,363,542 ) (9,655,270 ) (2,597,405 ) 8,251 — (27,012,584 ) Transfers into Level III 37,535 — 398 — — — — — 37,933 Transfers out of Level III (42,670 ) — — — — — — — (42,670 ) Purchases 9,378 2 157 — — — — — 9,537 Sales (12,872 ) — (821 ) — — — — — (13,693 ) Realized gains (losses), net 115 — — — — — — — 115 Unrealized appreciation (depreciation), net (647 ) 11 64 — — — — — (572 ) Ending balance $ 189,909 $ 1,890 $ 3,974 $ — $ — $ — $ — $ — $ 195,773 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (647 ) $ 11 $ 64 $ — $ — $ — $ — $ — $ (572 ) Six Months Ended June 30, 2015 Beginning balance $ 1,555,656 $ 2,750,661 $ 9,056,579 $ 1,320,752 $ 9,216,056 $ 2,399,105 $ (10,687 ) $ 3,576 $ 26,291,698 Transfers into Level III 116,533 17,208 377,563 15,835 — — — — 527,139 Transfers out of Level III (145,998 ) (110,084 ) (523,423 ) (32,583 ) — — — — (812,088 ) Purchases 224,751 566,463 1,194,127 205,128 949,574 605,915 — — 3,745,958 Sales (340,767 ) (163,351 ) (442,219 ) (54,947 ) (985,355 ) (303,387 ) — — (2,290,026 ) Realized gains (losses), net 25,407 (32,499 ) (66,126 ) 37,384 479,057 98,628 — — 541,851 Unrealized appreciation (depreciation), net (36,305 ) (113,024 ) 106,508 168,169 (86,430 ) (20,789 ) 2,043 820 20,992 Ending balance $ 1,399,277 $ 2,915,374 $ 9,703,009 $ 1,659,738 $ 9,572,902 $ 2,779,472 $ (8,644 ) $ 4,396 $ 28,025,524 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (17,619 ) $ (43,928 ) $ 192,837 $ 109,462 $ 92,476 $ (35,272 ) $ 2,043 $ 820 $ 300,819 |
Summary of Changes in Fair Value of Level III Investments | The table below sets forth a summary of changes in the fair value of Level III financial instruments: Three Months Ended June 30, 2016 2015 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 25,624 $ (27,884 ) $ — $ (28,052 ) Net gain (loss) included in earnings 957 2,889 — (694 ) Ending balance $ 26,581 $ (24,995 ) $ — $ (28,746 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 957 $ 2,889 $ — $ (694 ) Six Months Ended June 30, 2016 2015 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 25,750 $ (28,494 ) $ — $ (27,245 ) Net gain (loss) included in earnings 831 3,499 — (1,501 ) Ending balance $ 26,581 $ (24,995 ) $ — $ (28,746 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 831 $ 3,499 $ — $ (1,501 ) |
Summary of Valuation Techniques and Quantitative Information | The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of June 30, 2016: Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (9)(10)(11) Range Weighted Average (12) Credit-oriented investments: Consumer discretionary: $ 2,564 Discounted cash flow (1) Discount rate 12% – 15% 13% 36,217 Recent market information (6) Quoted prices Not applicable Not applicable Financials: 2,503 Discounted cash flow (1) Discount rate 15% - 17% 16% 21,341 Recent market information (6) Quoted prices Not applicable Not applicable Industrials: 30,458 Discounted cash flow (1) Discount rate 5% – 16% 7% 38,727 Recent market information (6) Quoted prices Not applicable Not applicable Consumer Staples: 6,221 Discounted cash flow (1) Discount rate 5% – 7% 6% 19,042 Recent market information (6) Quoted prices Not applicable Not applicable Other: 11,913 Discounted cash flow (1) Discount rate 9% – 27% 12% 2,771 Market approach (2) Earnings multiple (3) 7x - 9x 8x 20,042 Recent market information (6) Quoted prices Not applicable Not applicable Equity investments: 601 Market approach (2) Earnings multiple (3) 4x – 13x 5x 3,373 Recent market information (6) Quoted prices Not applicable Not applicable Total Level III $ 195,773 The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of December 31, 2015: Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (9)(10)(11) Range Weighted Average (12) Credit-oriented investments: Consumer $ 289,107 Discounted cash flow (1) Discount rate 5% – 15% 12% 451,584 Market approach (2) Earnings multiple (3) 3x – 10x 6x 232,995 Recent transaction price (5) Not applicable Not applicable Not applicable 156,160 Recent market information (6) Quoted prices / discount Not applicable Not applicable Financials: 595,066 Discounted cash flow (1) Discount rate 6% – 14% 11% 259,669 Market approach (2)(4) Underlying asset multiple 1.1x – 1.5x 1.2x 232,958 Recent transaction price (5) Not applicable Not applicable Not applicable 241,667 Recent market information (6) Quoted prices / discount Not applicable Not applicable Industrials: 135,808 Discounted cash flow (1) Discount rate 5% – 15% 13% 55,310 Discounted cash flow (1) / (8) Discount rate / Market transactions 9% – 11% 10% 7,549 Market approach (2) Earnings multiple (3) 5x – 9x 7x 219,121 Market approach (2)(4) Underlying asset multiple 0.7x – 1.0x 0.9x 45,647 Recent transaction price (5) Not applicable Not applicable Not applicable 24,247 Recent market information (6) Quoted prices / discount Not applicable Not applicable Materials: 417,749 Discounted cash flow (1) Discount rate 11% – 14% 14% 128,230 Market approach (2) Earnings multiple (3) 7x – 9x 8x 3,938 Recent transaction price (5) Not applicable Not applicable Not applicable 71,174 Recent market information (6) Quoted prices / discount Not applicable Not applicable Information 199,841 Discounted cash flow (1) Discount rate 6% – 13% 12% 143,596 Market approach (2) Earnings multiple (3) 6x – 8x 7x 63,594 Recent transaction price (5) Not applicable Not applicable Not applicable 62,353 Recent market information (6) Quoted prices / discount Not applicable Not applicable Other: 442,797 Discounted cash flow (1) Discount rate 5% – 20% 12% 60,643 Recent transaction price (5) Not applicable Not applicable Not applicable 331,485 Recent market information (6) Quoted prices / discount Not applicable Not applicable Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (9)(10)(11) Range Weighted Average (12) Equity investments: Financials: 58,352 Discounted cash flow (1) Discount rate 14% – 16% 15% 1,029,904 Market approach (2)(4) Underlying asset multiple 1.0x – 1.5x 1.4x 189,714 Recent transaction price (5) Not applicable Not applicable Not applicable Industrials: 37,130 Discounted cash flow (1) Discount rate 10% – 12% 11% 2,385,995 Market approach (2) Earnings multiple (3) 5x – 18x 9x 1,287,791 Market approach (2)(4) Underlying asset multiple 0.9x – 1.0x 1.0x 248,894 Recent transaction price (5) Not applicable Not applicable Not applicable 53,005 Recent market information (6) Quoted prices / discount Not applicable Not applicable Materials: 1,238,760 Market approach (2) Earnings multiple (3) 7x – 9x 8x 25,133 Recent transaction price (5) Not applicable Not applicable Not applicable Utilities 616,596 Market approach (2) Earnings multiple (3) 8x – 11x 9x 266,185 Other Not applicable Not applicable Not applicable 200,112 Recent transaction price (5) Not applicable Not applicable Not applicable Other: 1,898,334 Market approach (2) Earnings multiple (3) 6x – 18x 10x 164,026 Market approach (2)(4) Underlying asset multiple 1.1x – 1.3x 1.2x 221,350 Recent transaction price (5) Not applicable Not applicable Not applicable 171,463 Recent market information (6) Quoted prices / discount Not applicable Not applicable Real estate-oriented investments: 3,863,639 Discounted cash flow (1)(7) Discount rate 6% – 44% 13% Terminal capitalization rate 5% – 10% 7% Direct capitalization rate 5% – 10% 7% Net operating income growth rate 0% – 38% 10% Absorption rate 25% – 44% 30% 132,640 Discounted cash flow (1) / (8) Discount rate / Market transactions 6% – 8% 7% 218,817 Market approach (2) Earnings multiple (3) 9x – 11x 11x 992,695 Market approach (2)(4) Underlying asset multiple 1x – 1.8x 1.6x 512,120 Recent transaction price (5) Not applicable Not applicable Not applicable 2,385,895 Recent market information (6) Quoted prices / discount 0% – 5% 3% 1,385,418 Sales approach (8) Market transactions Not applicable Not applicable 164,046 Other Not applicable Not applicable Not applicable Real estate loan portfolios: 2,101,463 Discounted cash flow (1)(7) Discount rate 7% – 23% 13% 495,942 Recent transaction price (5) Not applicable Not applicable Not applicable Total Level III $ 27,217,707 (1) A discounted cash-flow method is generally used to value performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments, real estate-oriented investments and real estate loan portfolios. (2) A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying issuer. (3) Earnings multiples are based on comparable public companies and transactions with comparable companies. The Company typically utilizes multiples of EBITDA; however, in certain cases the Company may use other earnings multiples believed to be most relevant to the investment. The Company typically applies the multiple to trailing twelve-months’ EBITDA. However, in certain cases other earnings measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant. (4) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company. The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors. The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets. (5) Certain investments are valued based on recent transactions, generally defined as investments purchased or sold within six months of the valuation date. The fair value may also be based on a pending transaction expected to close after the valuation date. (6) Certain investments are valued using quoted prices for the subject or similar securities. Generally, investments valued in this manner are classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. (7) The discounted cash flow model for certain real estate-oriented investments and certain real estate loan portfolios contains a sell-out analysis. In these cases, the discounted cash flow is based on the expected timing and prices of sales of the underlying properties. The Company’s determination of the sales prices of these properties typically includes consideration of prices and other relevant information from market transactions involving comparable properties. (8) The sales approach uses prices and other relevant information generated by market transactions involving comparable assets. The significant unobservable inputs used in the sales approach generally include adjustments to transactions involving comparable assets or properties, adjustments to external or internal appraised values, and the Company’s assumptions regarding market trends or other relevant factors. (9) The discount rate is the significant unobservable input used in the fair-value measurement of performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments and real estate loan portfolios. An increase (decrease) in the discount rate would result in a lower (higher) fair-value measurement. (10) Multiple of either earnings or underlying assets is the significant unobservable input used in the market approach for the fair-value measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling interest in the underlying issuer, equity investments and certain real estate-oriented investments. An increase (decrease) in the multiple would result in a higher (lower) fair-value measurement. (11) The significant unobservable inputs used in the fair-value measurement of real estate investments utilizing a discounted cash flow analysis can include one or more of the following: discount rate, terminal capitalization rate, direct capitalization rate, net operating income growth rate or absorption rate. An increase (decrease) in a discount rate, terminal capitalization rate or direct capitalization rate would result in a lower (higher) fair-value measurement. An increase (decrease) in a net operating income growth rate or absorption rate would result in a higher (lower) fair-value measurement. Generally, a change in a net operating income growth rate or absorption rate would be accompanied by a directionally similar change in the discount rate. (12) The weighted average is based on the fair value of the investments included in the range. The table below sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the Company’s Level III financial instruments: Fair Value as of Significant Unobservable Input Financial Instrument June 30, December 31, 2015 Valuation Technique Range Weighted Average Corporate investment – Limited partnership interests $ 26,581 $ 25,750 Market approach Not applicable Not applicable Not applicable Contingent consideration liability (24,995 ) (28,494 ) Discounted cash flow Assumed % of total potential contingent payments 0% – 100% 48% |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Net Forward Currency Sell Contracts Under Freestanding Derivatives | The fair value of foreign-currency forward sell contracts consisted of the following: As of June 30, 2016 Contract Amount in Local Currency Contract Amount in U.S. Dollars Market Value in U.S. Dollars Net Unrealized Appreciation (Depreciation) Euro, expiring 7/8/16-9/29/17 273,050 $ 307,020 $ 304,905 $ 2,115 USD (buy GBP), expiring 7/29/16-7/31/17 92,963 92,963 102,697 (9,734 ) Japanese Yen, expiring 9/30/16 6,051,400 56,130 58,778 (2,648 ) Total $ 456,113 $ 466,380 $ (10,267 ) As of December 31, 2015 Euro, expiring 1/8/16-12/30/16 246,850 $ 274,135 $ 269,603 $ 4,532 USD (buy GBP), expiring 1/8/16-10/31/16 70,594 70,594 72,476 (1,882 ) Japanese Yen, expiring 1/29/16-9/30/16 5,840,300 48,631 48,692 (61 ) Total $ 393,360 $ 390,771 $ 2,589 |
Summary of Impact of Freestanding Derivative Instruments on Condensed Consolidated Statement of Operations | Realized and unrealized gains and losses arising from freestanding derivative instruments were recorded in the condensed consolidated statements of operations as follows: Three Months Ended June 30, Six Months Ended June 30, Foreign-currency Forward Contracts 2016 2015 2016 2015 Investment income $ 6,530 $ — $ (2,371 ) $ — General and administrative expense (1) (8,221 ) (1,114 ) (18,112 ) 22,841 Total $ (1,691 ) $ (1,114 ) $ (20,483 ) $ 22,841 (1) To the extent that the Company’s freestanding derivatives are utilized to hedge its foreign-currency exposure to investment income and management fees earned from consolidated funds, the related hedged items are eliminated in consolidation, with the derivative impact (a positive number reflects a reduction in expenses) reflected in consolidated general and administrative expense. The impact of derivatives held by the consolidated funds in the condensed consolidated statements of operations was as follows: Three Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Foreign-currency forward contracts $ (298 ) $ 849 $ 175,334 $ (339,448 ) Total-return and interest-rate swaps (907 ) 222 (2,248 ) (56,008 ) Options and futures (764 ) 60 (21,778 ) (5,150 ) Swaptions — — (1,187 ) 1,191 Total $ (1,969 ) $ 1,131 $ 150,121 $ (399,415 ) Six Months Ended June 30, 2016 2015 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Foreign-currency forward contracts $ (500 ) $ 457 $ 471,310 $ (319,064 ) Total-return and interest-rate swaps (890 ) (1,396 ) (7,174 ) (116,226 ) Options and futures (849 ) (83 ) (3,977 ) (16,299 ) Swaptions — — (3,007 ) 2,342 Total $ (2,239 ) $ (1,022 ) $ 457,152 $ (449,247 ) |
Balance Sheet Offsetting Assets | Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of June 30, 2016 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 4,649 $ 4,289 $ — $ 360 Derivative assets of consolidated funds: Foreign-currency forward contracts 416 11 — 405 Options and futures 4 — — 4 Subtotal 420 11 — 409 Total $ 5,069 $ 4,300 $ — $ 769 Derivative Liabilities: Foreign-currency forward contracts $ (14,916 ) $ (4,289 ) $ — $ (10,627 ) Interest-rate swaps (712 ) — — (712 ) Subtotal (15,628 ) (4,289 ) — (11,339 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (11 ) (11 ) — — Total-return and interest-rate swaps (921 ) — (921 ) — Options and futures (443 ) — (443 ) — Subtotal (1,375 ) (11 ) (1,364 ) — Total $ (17,003 ) $ (4,300 ) $ (1,364 ) $ (11,339 ) Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2015 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 5,875 $ 2,047 $ — $ 3,828 Derivative assets of consolidated funds: Foreign-currency forward contracts 156,234 38,033 — 118,201 Total-return and interest-rate swaps 16,544 4,526 — 12,018 Options and futures 25,559 5,665 — 19,894 Swaptions 14 14 — — Subtotal 198,351 48,238 — 150,113 Total $ 204,226 $ 50,285 $ — $ 153,941 Derivative Liabilities: Foreign-currency forward contracts $ (3,286 ) $ (2,047 ) $ — $ (1,239 ) Interest-rate swaps (943 ) — — (943 ) Subtotal (4,229 ) (2,047 ) — (2,182 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (64,364 ) (38,788 ) — (25,576 ) Total-return and interest-rate swaps (231,610 ) (5,304 ) (202,677 ) (23,629 ) Options and futures (4,234 ) (4,146 ) (88 ) — Subtotal (300,208 ) (48,238 ) (202,765 ) (49,205 ) Total $ (304,437 ) $ (50,285 ) $ (202,765 ) $ (51,387 ) |
Balance Sheet Offsetting Liabilities | Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of June 30, 2016 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 4,649 $ 4,289 $ — $ 360 Derivative assets of consolidated funds: Foreign-currency forward contracts 416 11 — 405 Options and futures 4 — — 4 Subtotal 420 11 — 409 Total $ 5,069 $ 4,300 $ — $ 769 Derivative Liabilities: Foreign-currency forward contracts $ (14,916 ) $ (4,289 ) $ — $ (10,627 ) Interest-rate swaps (712 ) — — (712 ) Subtotal (15,628 ) (4,289 ) — (11,339 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (11 ) (11 ) — — Total-return and interest-rate swaps (921 ) — (921 ) — Options and futures (443 ) — (443 ) — Subtotal (1,375 ) (11 ) (1,364 ) — Total $ (17,003 ) $ (4,300 ) $ (1,364 ) $ (11,339 ) Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2015 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 5,875 $ 2,047 $ — $ 3,828 Derivative assets of consolidated funds: Foreign-currency forward contracts 156,234 38,033 — 118,201 Total-return and interest-rate swaps 16,544 4,526 — 12,018 Options and futures 25,559 5,665 — 19,894 Swaptions 14 14 — — Subtotal 198,351 48,238 — 150,113 Total $ 204,226 $ 50,285 $ — $ 153,941 Derivative Liabilities: Foreign-currency forward contracts $ (3,286 ) $ (2,047 ) $ — $ (1,239 ) Interest-rate swaps (943 ) — — (943 ) Subtotal (4,229 ) (2,047 ) — (2,182 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (64,364 ) (38,788 ) — (25,576 ) Total-return and interest-rate swaps (231,610 ) (5,304 ) (202,677 ) (23,629 ) Options and futures (4,234 ) (4,146 ) (88 ) — Subtotal (300,208 ) (48,238 ) (202,765 ) (49,205 ) Total $ (304,437 ) $ (50,285 ) $ (202,765 ) $ (51,387 ) |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | The following table sets forth the Company’s fixed assets, net of accumulated depreciation: As of June 30, 2016 December 31, 2015 Furniture, equipment and capitalized software $ 18,055 $ 16,820 Leasehold improvements 45,478 43,107 Corporate airplane 12,439 12,439 Other 3,373 3,295 Fixed assets 79,345 75,661 Accumulated depreciation (42,127 ) (36,394 ) Fixed assets, net $ 37,218 $ 39,267 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | The following table summarizes the carrying amount of intangible assets: As of June 30, 2016 December 31, 2015 Contractual rights $ 28,017 $ 28,017 Accumulated amortization (7,672 ) (5,671 ) Intangible assets, net $ 20,345 $ 22,346 |
DEBT OBLIGATIONS AND CREDIT F33
DEBT OBLIGATIONS AND CREDIT FACILITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | The Company’s debt obligations are set forth below: As of June 30, December 31, $50,000, 6.09%, issued in June 2006, payable on June 6, 2016 $ — $ 50,000 $50,000, 5.82%, issued in November 2006, payable on November 8, 2016 50,000 50,000 $250,000, 6.75%, issued in November 2009, payable on December 2, 2019 250,000 250,000 $250,000, rate as described below, term loan issued in March 2014, payable on March 31, 2021 250,000 250,000 $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 50,000 50,000 $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 100,000 100,000 $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 100,000 100,000 Total remaining principal 800,000 850,000 Less: Debt issuance costs (4,042 ) (3,646 ) Debt obligations $ 795,958 $ 846,354 |
Future Principal Payments of Debt Obligations | future scheduled principal payments of debt obligations were as follows: Last six months of 2016 $ 50,000 2017 — 2018 — 2019 250,000 2020 — Thereafter 500,000 Total $ 800,000 As of June 30, 2016, future scheduled principal payments with respect to the debt obligations of CLOs were as follows: Last six months of 2016 $ — 2017 — 2018 73,833 2019 — 2020 — Thereafter 2,652,551 Total $ 2,726,384 |
Schedule of Collateralized Loan Obligation | The table below sets forth the outstanding debt obligations of CLOs as of the date indicated. As of June 30, 2016 As of December 31, 2015 Carrying Value (1) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Carrying Value Fair Value (2) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Senior secured notes (3) $ 455,509 2.63% 8.8 $ 457,196 $ 447,460 2.37% 9.3 Senior secured notes (4) 456,770 2.81% 10.5 454,423 446,558 2.52% 11.0 Senior secured notes (5) 73,833 2.97% 2.5 79,914 78,632 2.96% 3.0 Senior secured notes (6) 372,735 2.26% 11.2 363,709 357,626 2.26% 11.7 Senior secured notes (7) 457,846 2.72% 11.5 455,295 448,933 2.54% 12.0 Senior secured notes (8) 373,649 2.29% 11.8 361,142 359,914 2.29% 12.3 Senior secured notes (9) 404,499 2.28% 12.9 — — — — Subordinated note (10) 10,758 N/A 10.5 25,500 16,400 N/A 11.0 Subordinated note (10) 17,896 N/A 11.2 21,183 15,876 N/A 11.7 Subordinated note (10) 18,125 N/A 11.5 25,500 18,337 N/A 12.0 Subordinated note (10) 14,766 N/A 11.8 17,924 11,928 N/A 12.3 Subordinated note (10) 22,180 N/A 12.9 12,036 12,036 N/A 1.6 Term loan — — — 81,238 81,238 1.20% 1.6 Total CLO debt obligations 2,678,566 2,355,060 $ 2,294,938 Less: Debt issuance costs — (24,701 ) Total CLO debt obligations, net $ 2,678,566 $ 2,330,359 (1) The Company adopted the measurement alternative guidance for collateralized financing entities on a modified retrospective approach as of January 1, 2016. Upon adoption, the Company elected the fair value option for the financial liabilities of the consolidated CLOs and determined that the fair value of the CLO assets was more observable than the fair value of the CLO liabilities. Accordingly, the fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (a) the fair value of any beneficial interests held by the Company and (b) the carrying value of any beneficial interests that represent compensation for services. Please see notes 2 and 5 for more information. (2) The debt obligations of the CLOs are Level III valuations and were valued using prices obtained from pricing vendors or recent transactions. Financial instruments that are valued using quoted prices for the subject or similar securities are generally classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. Financial instruments that are valued based on recent transactions are generally defined as securities purchased or sold within six months of the valuation date. The fair value may also be based on a pending transaction expected to close after the valuation date. For certain recently issued debt obligations, the carrying value approximates fair value. (3) The weighted average interest rate is based on LIBOR plus 2.01% . (4) The weighted average interest rate is based on LIBOR plus 2.17% . (5) The interest rate was LIBOR plus a margin determined based on a formula as defined in the respective borrowing agreements, which incorporate different borrowing values based on the characteristics of collateral investments purchased. The weighted average unused commitment fee rate ranged from 0% to 2.0% . (6) The weighted average interest rate is based on EURIBOR (subject to a zero floor) plus 2.26% . (7) The weighted average interest rate is based on LIBOR plus 2.09% . (8) The weighted average interest rate is based on EURIBOR (subject to a zero floor) plus 2.29% . (9) The weighted average interest rate is based on EURIBOR (subject to a zero floor) plus 2.28% . (10) The subordinated notes do not have a contractual interest rate; instead, they receive distributions from the excess cash flows generated by the CLO. The consolidated funds had the following revolving credit facilities and term loans outstanding: Outstanding Amount as of Facility Capacity LIBOR Margin (1) Maturity Commitment Fee Rate L/C Fee Credit Agreement June 30, 2016 December 31, 2015 Credit facilities $ 65,700 (2) $ 2,381,324 $ 450,000 1.25% 4/19/2019 N/A N/A Revolving credit facilities — 2,718,394 N/A N/A N/A N/A N/A Senior variable rate notes — 1,363,044 N/A N/A N/A N/A N/A Total debt obligations 65,700 6,462,762 Less: Debt issuance costs — (20,020 ) Total debt obligations, net $ 65,700 $ 6,442,742 (1) The facility bears interest at an annual rate of LIBOR plus the applicable margin. (2) The credit facility is collateralized by the portfolio investments and cash and cash-equivalents of the borrower. |
NON-CONTROLLING REDEEMABLE IN34
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Non-Controlling Redeemable Interests in Consolidated Funds [Abstract] | |
Summary of Changes in Non-controlling Redeemable Interests in Consolidated Funds | The following table sets forth a summary of changes in the non-controlling redeemable interests in the consolidated funds. Dividends reinvested and in-kind contributions or distributions are non-cash in nature and have been presented on a gross basis in the table below. Six Months Ended June 30, 2016 2015 Beginning balance $ 38,173,125 $ 41,681,155 Cumulative-effect adjustment from adoption of accounting guidance (37,969,042 ) — Contributions 64,321 3,309,316 Distributions (21,919 ) (3,711,727 ) Net income 1,989 742,608 Change in distributions payable (822 ) 544,060 Change in accrued or deferred contributions — 12,267 Foreign currency translation and other 1,605 (364,239 ) Ending balance $ 249,257 $ 42,213,440 |
UNITHOLDERS' CAPITAL (Tables)
UNITHOLDERS' CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Summary of Net Income (Loss) | The following table sets forth a summary of net income attributable to the OCGH unitholders' non-controlling interest and to Class A unitholders: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average Oaktree Operating Group units outstanding (in thousands): OCGH non-controlling interest 92,440 105,467 92,177 106,813 Class A unitholders 62,617 48,372 62,256 46,727 Total weighted average units outstanding 155,057 153,839 154,433 153,540 Oaktree Operating Group net income: Net income attributable to OCGH non-controlling interest $ 83,256 $ 54,240 $ 142,082 $ 163,006 Net income attributable to Class A unitholders 56,397 24,878 96,012 70,188 Oaktree Operating Group net income (1) $ 139,653 $ 79,118 $ 238,094 $ 233,194 Net income attributable to Oaktree Capital Group, LLC: Oaktree Operating Group net income attributable to Class A unitholders $ 56,397 $ 24,878 $ 96,012 $ 70,188 Non-Operating Group expenses (201 ) (626 ) (465 ) (960 ) Income tax expense of Intermediate Holding Companies (7,149 ) (4,438 ) (18,422 ) (11,161 ) Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 (1) Oaktree Operating Group net income does not include amounts attributable to other non-controlling interests, which amounted to $1,212 and $1,269 for the three months ended June 30, 2016 and 2015, respectively, and $2,420 and $604 for the six months ended June 30, 2016, respectively. |
Changes in Company Ownership Interest | The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 Equity reallocation between controlling and non-controlling interests 645 (559 ) 8,126 45,202 Change from net income attributable to Oaktree Capital Group, LLC and transfers from non-controlling interests $ 49,692 $ 19,255 $ 85,251 $ 103,269 |
EARNINGS PER UNIT (Tables)
EARNINGS PER UNIT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computations of Net Income (Loss) Per Unit | The computation of net income per Class A unit is set forth below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income per Class A unit (basic and diluted): (in thousands, except per unit amounts) Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 Weighted average number of Class A units outstanding (basic and diluted) 62,617 48,372 62,256 46,727 Basic and diluted net income per Class A unit $ 0.78 $ 0.41 $ 1.24 $ 1.24 |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Summary of Unvested Equity-Based Awards and Changes | A summary of the status of the Company’s unvested Class A and OCGH unit awards and a summary of changes for the period presented are set forth below (actual dollars per unit): Class A Units OCGH Units Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Balance, December 31, 2015 2,376,340 $ 38.18 2,265,967 $ 40.70 Granted 787,103 46.93 629,667 37.56 Vested (922,746 ) 37.45 (312,663 ) 39.10 Forfeited (41,301 ) 37.66 (110,932 ) 39.93 Balance, June 30, 2016 2,199,396 $ 41.63 2,472,039 $ 40.14 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Adjusted Net Income | ANI (1) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues: Management fees $ 197,450 $ 190,197 $ 398,720 $ 380,292 Incentive income 87,647 61,148 184,235 214,027 Investment income 47,725 23,365 62,802 76,823 Total revenues 332,822 274,710 645,757 671,142 Expenses: Compensation and benefits (99,173 ) (104,767 ) (203,443 ) (213,648 ) Equity-based compensation (12,445 ) (11,901 ) (23,148 ) (18,924 ) Incentive income compensation (35,407 ) (29,554 ) (85,156 ) (119,656 ) General and administrative (30,600 ) (30,335 ) (62,081 ) (59,902 ) Depreciation and amortization (3,048 ) (2,105 ) (6,208 ) (3,996 ) Total expenses (180,673 ) (178,662 ) (380,036 ) (416,126 ) Adjusted net income before interest and other income (expense) 152,149 96,048 265,721 255,016 Interest expense, net of interest income (2) (7,977 ) (8,782 ) (16,659 ) (17,715 ) Other income (expense), net (1,527 ) (1,987 ) (1,392 ) (1,996 ) Adjusted net income $ 142,645 $ 85,279 $ 247,670 $ 235,305 (1) In the fourth quarter of 2015, the definition of adjusted net income was modified to reflect differences with respect to (a) third-party placement costs associated with closed-end funds, which under GAAP are expensed as incurred, but for adjusted net income are capitalized and amortized as general and administrative expense in proportion to the associated management fee stream, and (b) gains and losses resulting from foreign-currency transactions and hedging activities, which under GAAP are recognized as general and administrative expense whether realized or unrealized in the current period, whereas for adjusted net income unrealized gains and losses from foreign-currency hedging activities are deferred until realized, at which time they are included in the same revenue or expense line item as the underlying exposure that was hedged. Foreign-currency transaction gains and losses are included in other income (expense), net. Prior periods have not been recast for the change related to third-party placement costs, but have been recast to retroactively reflect the change related to foreign-currency hedging. Placement costs associated with closed-end funds amounted to $2.8 million and $3.7 million for the three and six months ended June 30, 2015, respectively, and remain expensed as incurred in those periods for both GAAP and ANI purposes. (2) Interest income was $1.6 million and $1.2 million for the three months ended June 30, 2016 and 2015, respectively, and $2.9 million and $2.2 million for the six months ended June 30, 2016 and 2015, respectively. |
Reconciliation of Net Income (Loss) Attributable to Oaktree Capital Group, LLC to Adjusted Net Income | A reconciliation of net income attributable to Oaktree Capital Group, LLC to adjusted net income of the investment management segment is presented below. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income attributable to Oaktree Capital Group, LLC $ 49,047 $ 19,814 $ 77,125 $ 58,067 Incentive income (1) (54 ) (5,805 ) 39,888 11,573 Incentive income compensation (1) 54 5,657 (39,888 ) (17,553 ) Investment income (2) (3,149 ) — (13,578 ) — Equity-based compensation (3) 2,281 4,182 5,473 8,865 Placement costs (4) 1,210 — 7,914 — Foreign-currency hedging (5) 3,665 (67 ) 9,531 (5,379 ) Acquisition-related items (6) (1,889 ) 1,695 (1,498 ) 3,502 Income taxes (7) 8,571 5,485 21,251 13,360 Non-Operating Group expenses (8) 201 626 465 960 Non-controlling interests (8) 82,708 53,692 140,987 161,910 Adjusted net income $ 142,645 $ 85,279 $ 247,670 $ 235,305 (1) This adjustment adds back the effect of timing differences associated with the recognition of incentive income and incentive income compensation expense between adjusted net income and net income attributable to OCG. (2) This adjustment adds back the effect of differences in the recognition of investment income related to corporate investments in CLOs which under GAAP are marked-to-market but for segment reporting are accounted for at amortized cost, subject to impairment between adjusted net income and net income attributable to OCG. (3) This adjustment adds back the effect of (a) equity-based compensation expense related to unit grants made before the Company’s initial public offering, which is excluded from adjusted net income because it is a non-cash charge that does not affect the Company’s financial position, and (b) differences arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting. (4) This adjustment adds back the effect of timing differences with respect to the recognition of third-party placement costs associated with closed-end funds between adjusted net income and net income attributable to OCG. (5) This adjustment adds back the effect of timing differences associated with the recognition of unrealized gains and losses related to foreign-currency hedging between adjusted net income and net income attributable to OCG. (6) This adjustment adds back the effect of acquisition-related items associated with the amortization of intangibles and changes in the contingent consideration liability. (7) Because adjusted net income is a pre-tax measure, this adjustment adds back the effect of income tax expense. (8) Because adjusted net income is calculated at the Operating Group level, this adjustment adds back the effect of items applicable to OCG, its Intermediate Holding Companies or non-controlling inter ests. |
Schedule of Reconciliation of Total Segments to Income Loss Attributable to Oaktree Capital Group, LLC and Total Assets | The following tables reconcile the Company’s segment information to the condensed consolidated financial statements: As of or for the Three Months Ended June 30, 2016 Segment Adjustments Consolidated Management fees (1) $ 197,450 $ (2,435 ) $ 195,015 Incentive income (1) 87,647 54 87,701 Investment income (1) 47,725 (6,725 ) 41,000 Total expenses (2) (180,673 ) (10,975 ) (191,648 ) Interest expense, net (3) (7,977 ) (18,753 ) (26,730 ) Other income (expense), net (4) (1,527 ) 7,075 5,548 Other income of consolidated funds (5) — 38,519 38,519 Income taxes — (8,571 ) (8,571 ) Net loss attributable to non-controlling interests in consolidated funds — (7,319 ) (7,319 ) Net income attributable to non-controlling interests in consolidated subsidiaries — (84,468 ) (84,468 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 142,645 $ (93,598 ) $ 49,047 Corporate investments (6) $ 1,371,978 $ (335,740 ) $ 1,036,238 Total assets (7) $ 3,160,373 $ 3,464,502 $ 6,624,875 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds, (b) for management fees, the reclassification of $27 of net gains related to foreign-currency hedging activities to general and administrative expense, and (c) for investment income, differences of $3,149 related to corporate investments in CLOs which under GAAP are marked-to-market but for segment reporting accounted for at amortized cost, subject to impairment. (2) The expense adjustment consists of (a) equity-based compensation expense of $2,821 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $1,635 , (c) expenses incurred by the Intermediate Holding Companies of $241 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $54 , (e) acquisition-related items of $1,889 , (f) adjustments of $5,545 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $540 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $1,210 related to third-party placement costs, and (i) $5,168 of net losses related to foreign-currency hedging activities. (3) The interest expense adjustment represents the inclusion of interest expense attributable to third-party investors in CLOs, non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $5,545 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $1,530 in net losses related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to third-party investors in CLOs and non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.4 billion of corporate investments included $1.1 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. As of or for the Three Months Ended June 30, 2015 Segment Adjustments Consolidated Management fees (1) $ 190,197 $ (139,274 ) $ 50,923 Incentive income (1) 61,148 (60,584 ) 564 Investment income (1) 23,365 (7,671 ) 15,694 Total expenses (2) (178,662 ) (67,267 ) (245,929 ) Interest expense, net (3) (8,782 ) (43,960 ) (52,742 ) Other income (expense), net (4) (1,987 ) 4,850 2,863 Other income (loss) of consolidated funds (5) — (82,526 ) (82,526 ) Income taxes — (5,485 ) (5,485 ) Net loss attributable to non-controlling interests in consolidated funds — 391,961 391,961 Net income attributable to non-controlling interests in consolidated subsidiaries — (55,509 ) (55,509 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 85,279 $ (65,465 ) $ 19,814 Corporate investments (6) $ 1,560,235 $ (1,383,557 ) $ 176,678 Total assets (7) $ 3,245,460 $ 51,941,170 $ 55,186,630 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds and (b) for management fees, the reclassification of $4,639 of net gains related to foreign-currency hedging activities to general and administrative expense. (2) The expense adjustment consists of (a) equity-based compensation expense of $4,010 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $54,920 , (c) expenses incurred by the Intermediate Holding Companies of $652 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $5,657 , (e) acquisition-related items of $1,695 , (f) adjustments of $5,513 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $173 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $5,369 of net gains related to foreign-currency hedging activities, and (i) other expenses of $16 . (3) The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $5,513 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $663 of net gains related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income (loss) attributable to non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.6 billion of corporate investments included $1.3 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. As of or for the Six Months Ended June 30, 2016 Segment Adjustments Consolidated Management fees (1) $ 398,720 $ (5,152 ) $ 393,568 Incentive income (1) 184,235 (40,597 ) 143,638 Investment income (1) 62,802 7,645 70,447 Total expenses (2) (380,036 ) 3,204 (376,832 ) Interest expense, net (3) (16,659 ) (37,776 ) (54,435 ) Other income (expense), net (4) (1,392 ) 12,741 11,349 Other income of consolidated funds (5) — 57,518 57,518 Income taxes — (21,251 ) (21,251 ) Net loss attributable to non-controlling interests in consolidated funds — (2,375 ) (2,375 ) Net income attributable to non-controlling interests in consolidated subsidiaries — (144,502 ) (144,502 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 247,670 $ (170,545 ) $ 77,125 Corporate investments (6) $ 1,371,978 $ (335,740 ) $ 1,036,238 Total assets (7) $ 3,160,373 $ 3,464,502 $ 6,624,875 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds, (b) for management fees, the reclassification of $689 of net gains related to foreign-currency hedging activities to general and administrative expense, and (c) for investment income, differences of $13,578 related to corporate investments in CLOs which under GAAP are marked-to-market but for segment reporting accounted for at amortized cost, subject to impairment. (2) The expense adjustment consists of (a) equity-based compensation expense of $6,066 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $2,676 , (c) expenses incurred by the Intermediate Holding Companies of $536 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $39,888 , (e) acquisition-related items of $1,498 , (f) adjustments of $11,346 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $593 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $7,914 related to third-party placement costs, and (i) $10,237 of net losses related to foreign-currency hedging activities. (3) The interest expense adjustment represents the inclusion of interest expense attributable to third-party investors in CLOs, non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $11,346 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $1,395 in net losses related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to third-party investors in CLOs and non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.4 billion of corporate investments included $1.1 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. As of or for the Six Months Ended June 30, 2015 Segment Adjustments Consolidated Management fees (1) $ 380,292 $ (278,550 ) $ 101,742 Incentive income (1) 214,027 (213,463 ) 564 Investment income (1) 76,823 (48,447 ) 28,376 Total expenses (2) (416,126 ) (65,777 ) (481,903 ) Interest expense, net (3) (17,715 ) (81,596 ) (99,311 ) Other income (expense), net (4) (1,996 ) 9,553 7,557 Other income of consolidated funds (5) — 1,422,716 1,422,716 Income taxes — (13,360 ) (13,360 ) Net income attributable to non-controlling interests in consolidated funds — (744,704 ) (744,704 ) Net income attributable to non-controlling interests in consolidated subsidiaries — (163,610 ) (163,610 ) Adjusted net income/net income attributable to Oaktree Capital Group, LLC $ 235,305 $ (177,238 ) $ 58,067 Corporate investments (6) $ 1,560,235 $ (1,383,557 ) $ 176,678 Total assets (7) $ 3,245,460 $ 51,941,170 $ 55,186,630 (1) The adjustment represents (a) the elimination of amounts earned from the consolidated funds and (b) for management fees, the reclassification of $6,684 of net gains related to foreign-currency hedging activities to general and administrative expense. (2) The expense adjustment consists of (a) equity-based compensation expense of $8,605 related to unit grants made before the Company’s initial public offering, (b) consolidated fund expenses of $72,430 , (c) expenses incurred by the Intermediate Holding Companies of $987 , (d) the effect of timing differences in the recognition of incentive income compensation expense between adjusted net income and net income attributable to OCG of $17,553 , (e) acquisition-related items of $3,502 , (f) adjustments of $11,103 related to amounts received for contractually reimbursable costs that are classified as expenses for segment reporting and as other income under GAAP, (g) differences of $261 arising from EVUs that are classified as liability awards under GAAP but as equity awards for segment reporting, (h) $13,613 of net gains related to foreign-currency hedging activities, and (i) other expenses of $55 . (3) The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income. (4) The adjustment to other income (expense), net represents adjustments related to (a) amounts received for contractually reimbursable costs of $11,103 that are classified as expenses for segment reporting and as other income under GAAP, and (b) the reclassification of $1,550 of net gains related to foreign-currency hedging activities to general and administrative expense. (5) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds. (6) The adjustment to corporate investments is to remove from segment assets the Company’s investments in the consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. The $1.6 billion of corporate investments included $1.3 billion of equity-method investments. (7) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income receivable. |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Amounts Due from and Due to Affiliates | The fair value of amounts due to affiliates approximated $170,651 and $160,952 as of June 30, 2016 and December 31, 2015, respectively, based on a discount rate of 10.0% . As of June 30, 2016 December 31, 2015 Due from affiliates: Loans $ 23,902 $ 29,718 Amounts due from unconsolidated funds 40,395 777 Management fees and incentive income due from unconsolidated funds 48,811 — Payments made on behalf of unconsolidated entities 3,710 3,788 Non-interest bearing advances made to certain non-controlling interest holders and employees 1,045 1,616 Total due from affiliates $ 117,863 $ 35,899 Due to affiliates: Due to OCGH unitholders in connection with the tax receivable agreement (please see note 14) $ 356,851 $ 356,851 Amounts due to senior executives, certain non-controlling interest holders and employees 1,865 — Total due to affiliates $ 358,716 $ 356,851 |
ORGANIZATION AND BASIS OF PRE40
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 6 Months Ended |
Jun. 30, 2016partnership_interestvote | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Limited Liability Company (LLC) ownership interest (as a percent) | 100.00% |
Number of partnership interests | partnership_interest | 1 |
Number of votes per Class B Unit | 10 |
Number of votes Per Class A Unit | 1 |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2016USD ($)quote | Jan. 01, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Assets | $ (6,624,875) | $ (51,762,731) | $ (55,186,630) | ||
Total liabilities | (4,631,192) | (11,781,512) | |||
Non-controlling redeemable interests in consolidated funds | (249,257) | (38,173,125) | (42,213,440) | $ (41,681,155) | |
Total unitholders’ capital | (1,744,426) | (1,808,094) | $ (1,888,052) | $ (1,840,130) | |
Debt issuance costs | $ 4,042 | 3,646 | |||
Variable Interest Entity [Line Items] | |||||
Number of broker quotes | quote | 1 | ||||
Accounting Standards Update 2015-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Assets | $ 45,700,000 | ||||
Total liabilities | 7,600,000 | ||||
Non-controlling redeemable interests in consolidated funds | 38,000,000 | ||||
Total unitholders’ capital | 90,600 | ||||
Accounting Standards Update 2014-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total unitholders’ capital | $ 32,100 | ||||
Long-term Debt | Accounting Standards Update 2015-03 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt issuance costs | 3,600 | ||||
Other Assets | Accounting Standards Update 2015-03 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt issuance costs | (3,600) | ||||
Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Withdrawal period | 1 month | ||||
Number of broker quotes | quote | 1 | ||||
Minimum | Contractual Rights to Earn Future Fee Income | |||||
Variable Interest Entity [Line Items] | |||||
Estimated useful lives in years | 3 years | ||||
Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Withdrawal period | 3 years | ||||
Number of broker quotes | quote | 2 | ||||
Maximum | Contractual Rights to Earn Future Fee Income | |||||
Variable Interest Entity [Line Items] | |||||
Estimated useful lives in years | 7 years | ||||
Consolidated Funds | Long-term Debt | Accounting Standards Update 2015-03 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt issuance costs | 44,700 | ||||
Consolidated Funds | Other Assets | Accounting Standards Update 2015-03 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt issuance costs | $ (44,700) |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - Variable Interest Entity, Primary Beneficiary $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)entity | Dec. 31, 2015entity | |
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated | 17 | 8 |
VIE consolidated assets | $ | $ 3,700 | |
VIE consolidated liabilities | $ | 3,200 | |
Maximum loss exposure | $ | $ 279.1 | |
Remaining Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated | 16 | |
Funds Managed By Oaktree | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated | 8 | |
CLO's For Which Oaktree Acts As Collateral Manager | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated | 8 | |
CLO not Priced | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated | 2 |
VARIABLE INTEREST ENTITIES - VI
VARIABLE INTEREST ENTITIES - VIEs Not Consolidated (Details) - Variable Interest Entity, Not Primary Beneficiary $ in Thousands | Jun. 30, 2016USD ($) |
Variable Interest Entity [Line Items] | |
Assets of VIEs | $ 48,148,869 |
Liabilities of VIEs | 8,808,034 |
Maximum exposure to loss | 1,047,531 |
Corporate investments | |
Variable Interest Entity [Line Items] | |
Assets and liabilities, net | 1,008,016 |
Due from affiliates | |
Variable Interest Entity [Line Items] | |
Assets and liabilities, net | $ 39,515 |
INVESTMENTS - Corporate investm
INVESTMENTS - Corporate investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Investment [Line Items] | |||
Other investments, at fair value | $ 100,616 | $ 67,626 | |
Total corporate investments | 1,036,238 | 213,988 | $ 176,678 |
Oaktree funds | |||
Investment [Line Items] | |||
Equity-method investments | 915,942 | 51,899 | |
Non-Oaktree funds | |||
Investment [Line Items] | |||
Equity-method investments | 59 | 65,901 | |
Other investments, at fair value | |||
Investment [Line Items] | |||
Equity-method investments | $ 19,621 | $ 28,562 |
INVESTMENTS - Investment income
INVESTMENTS - Investment income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Other investments, at fair value | $ 14,059 | $ 121 | $ 9,439 | $ 994 |
Total investment income | 41,000 | 15,694 | 70,447 | 28,376 |
Oaktree funds | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments investment income (loss) | 10,245 | 1,075 | 28,901 | 327 |
Non-Oaktree funds | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments investment income (loss) | 14 | 2,140 | 318 | 4,733 |
Other investments, at fair value | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-method investments investment income (loss) | $ 16,682 | $ 12,358 | $ 31,789 | $ 22,322 |
INVESTMENTS - Equity-method Inv
INVESTMENTS - Equity-method Investments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
Assets: | ||
Cash and cash-equivalents | $ 3,285,360 | $ 3,285,360 |
Investments, at fair value | 40,995,952 | 40,995,952 |
Other assets | 2,220,264 | 2,220,264 |
Total assets | 46,501,576 | 46,501,576 |
Liabilities and Capital: | ||
Debt obligations | 7,014,441 | 7,014,441 |
Other liabilities | 2,285,463 | 2,285,463 |
Total liabilities | 9,299,904 | 9,299,904 |
Total capital | 37,201,672 | 37,201,672 |
Total liabilities and capital | 46,501,576 | 46,501,576 |
Statements of Operations: | ||
Revenues / investment income | 482,265 | 1,025,099 |
Interest expense | (41,640) | (80,169) |
Other expenses | (217,303) | (437,739) |
Net realized and unrealized gain on investments | 550,657 | 838,724 |
Net income | $ 773,979 | $ 1,345,915 |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investment [Line Items] | ||||
Net realized gain on consolidated funds’ investments | $ 6,682 | $ 857,548 | $ 10,083 | $ 1,332,378 |
Non-Oaktree funds | ||||
Investment [Line Items] | ||||
Net realized gain on consolidated funds’ investments | 105 | 58 | (2,389) | 58 |
Net change in unrealized gain (loss) | 13,954 | 63 | 11,828 | 936 |
Total | $ 14,059 | $ 121 | $ 9,439 | $ 994 |
INVESTMENTS - Investments, at F
INVESTMENTS - Investments, at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule Of Investments In Marketable Securities [Line Items] | ||
Total investments, at fair value | $ 3,302,188 | $ 45,179,906 |
Total investments, at fair value, Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 100.00% | 100.00% |
Debt securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 3,129,426 | $ 17,680,144 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 94.80% | 39.20% |
Equity securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 172,762 | $ 27,499,762 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 5.20% | 60.80% |
Total securities sold short, at fair value | $ (61,838) | $ (91,246) |
United States: | Debt securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 2,082,565 | $ 13,008,057 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 63.20% | 28.80% |
United States: | Debt securities: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 550,122 | $ 3,387,072 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 16.70% | 7.50% |
United States: | Debt securities: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 153,994 | $ 686,071 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 4.70% | 1.50% |
United States: | Debt securities: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 50,760 | $ 854,220 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 1.50% | 1.90% |
United States: | Debt securities: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 124,291 | $ 1,293,508 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 3.80% | 2.90% |
United States: | Debt securities: | Government | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 0 | $ 95,508 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.20% |
United States: | Debt securities: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 292,452 | $ 1,135,799 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 8.90% | 2.50% |
United States: | Debt securities: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 352,038 | $ 1,710,706 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 10.70% | 3.80% |
United States: | Debt securities: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 251,870 | $ 1,293,815 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 7.60% | 2.90% |
United States: | Debt securities: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 197,230 | $ 1,393,521 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 6.00% | 3.10% |
United States: | Debt securities: | Telecommunication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 65,559 | $ 471,711 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 2.00% | 1.00% |
United States: | Debt securities: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 44,249 | $ 686,126 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 1.30% | 1.50% |
United States: | Equity securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 3,764 | $ 15,080,291 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.10% | 33.30% |
United States: | Equity securities: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 634 | $ 1,813,832 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 4.00% |
United States: | Equity securities: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 872,472 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 1.90% |
United States: | Equity securities: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 1,810,290 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 4.00% |
United States: | Equity securities: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 3,018 | $ 7,639,790 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.10% | 16.90% |
United States: | Equity securities: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 112 | $ 92,866 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.20% |
United States: | Equity securities: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 1,728,086 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 3.80% |
United States: | Equity securities: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 67,253 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.20% |
United States: | Equity securities: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 882,366 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 2.00% |
United States: | Equity securities: | Telecommunication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 16,471 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.00% |
United States: | Equity securities: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 156,865 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.30% |
Europe: | Debt securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 997,536 | $ 3,709,217 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 30.10% | 8.20% |
Europe: | Debt securities: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 304,868 | $ 1,329,387 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 9.20% | 2.90% |
Europe: | Debt securities: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 81,685 | $ 222,789 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 2.50% | 0.50% |
Europe: | Debt securities: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 13,712 | $ 144,742 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.40% | 0.30% |
Europe: | Debt securities: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 16,367 | $ 808,568 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.50% | 1.80% |
Europe: | Debt securities: | Government | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 1,260 | $ 46,946 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.10% |
Europe: | Debt securities: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 139,437 | $ 197,569 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 4.20% | 0.50% |
Europe: | Debt securities: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 56,557 | $ 291,950 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 1.70% | 0.70% |
Europe: | Debt securities: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 26,818 | $ 71,168 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.80% | 0.20% |
Europe: | Debt securities: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 198,828 | $ 377,460 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 6.00% | 0.80% |
Europe: | Debt securities: | Telecommunication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 158,004 | $ 200,610 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 4.80% | 0.40% |
Europe: | Debt securities: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 0 | $ 18,028 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.00% |
Europe: | Equity securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 697 | $ 9,122,229 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 20.20% |
Europe: | Equity securities: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 452 | $ 270,370 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.60% |
Europe: | Equity securities: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 145,108 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.30% |
Europe: | Equity securities: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 21,791 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.00% |
Europe: | Equity securities: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 245 | $ 6,239,424 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 13.80% |
Europe: | Equity securities: | Government | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 40,290 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.10% |
Europe: | Equity securities: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 79,582 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.20% |
Europe: | Equity securities: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 1,499,142 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 3.30% |
Europe: | Equity securities: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 1,646 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.00% |
Europe: | Equity securities: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 475,306 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 1.10% |
Europe: | Equity securities: | Telecommunication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 4,834 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.00% |
Europe: | Equity securities: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 0 | $ 344,736 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.80% |
Asia and other: | Debt securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 49,325 | $ 962,870 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 1.50% | 2.20% |
Asia and other: | Debt securities: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 9,651 | $ 102,531 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.30% | 0.20% |
Asia and other: | Debt securities: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 12,851 | $ 33,061 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.40% | 0.10% |
Asia and other: | Debt securities: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 11,755 | $ 193,645 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.40% | 0.40% |
Asia and other: | Debt securities: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 1,087 | $ 27,413 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.10% |
Asia and other: | Debt securities: | Government | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 560 | $ 6,974 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.00% |
Asia and other: | Debt securities: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 122 | $ 47,010 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.10% |
Asia and other: | Debt securities: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 2,867 | $ 268,710 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.10% | 0.60% |
Asia and other: | Debt securities: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 142 | $ 31,983 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.10% |
Asia and other: | Debt securities: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 10,290 | $ 248,830 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.30% | 0.60% |
Asia and other: | Debt securities: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities: | $ 0 | $ 2,713 |
Fixed income Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.00% |
Asia and other: | Equity securities: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 168,301 | $ 3,297,242 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 5.10% | 7.30% |
Asia and other: | Equity securities: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 25,043 | $ 506,761 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.80% | 1.10% |
Asia and other: | Equity securities: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 17,393 | $ 29,863 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.50% | 0.10% |
Asia and other: | Equity securities: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 11,026 | $ 192,844 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.30% | 0.40% |
Asia and other: | Equity securities: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 46,510 | $ 986,753 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 1.40% | 2.20% |
Asia and other: | Equity securities: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 1,471 | $ 18,535 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.00% | 0.10% |
Asia and other: | Equity securities: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 25,865 | $ 1,032,225 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.80% | 2.30% |
Asia and other: | Equity securities: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 20,858 | $ 244,433 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.60% | 0.50% |
Asia and other: | Equity securities: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 15,397 | $ 96,326 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.50% | 0.20% |
Asia and other: | Equity securities: | Telecommunication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 2,446 | $ 34,678 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.10% | 0.10% |
Asia and other: | Equity securities: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities: | $ 2,292 | $ 154,824 |
Equity Securities: Fair Value as a Percentage of Investments of Consolidated Funds (as a percent) | 0.10% | 0.30% |
INVESTMENTS - Investments, at49
INVESTMENTS - Investments, at Fair Value, Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule Of Investments In Marketable Securities [Line Items] | ||
Securities sold short, proceeds | $ 68,170 | $ 102,236 |
United States: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Total debt securities, cost | 2,130,737 | 15,304,870 |
Total equity securities, cost | 2,213 | 13,290,699 |
Europe: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Total debt securities, cost | 1,008,521 | 4,207,531 |
Total equity securities, cost | 701 | 7,627,245 |
Asia and other: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Total debt securities, cost | 55,151 | 1,090,867 |
Total equity securities, cost | $ 163,082 | $ 3,370,406 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Detail) - issuer | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Number of issuers | 0 | 0 |
Percentage exceeded consolidated net assets (as a percent) | 5.00% | 5.00% |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 2.50% | |
DoubleLine | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 20.00% |
INVESTMENTS - Net Gains (Losses
INVESTMENTS - Net Gains (Losses) from Investment Activities of Consolidated Funds (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | $ 6,682 | $ 857,548 | $ 10,083 | $ 1,332,378 |
Consolidated Funds | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | (5,301) | (1,418,385) | (25,973) | (910,902) |
Consolidated Funds | Not Designated as Hedging Instrument | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | 6,682 | 857,548 | 10,083 | 1,332,378 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | (5,301) | (1,418,385) | (25,973) | (910,902) |
Consolidated Funds | Investments and other financial instruments | Not Designated as Hedging Instrument | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | 8,651 | 707,427 | 12,322 | 875,226 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 17,740 | (1,018,970) | 27,423 | (461,655) |
Consolidated Funds | Measurement alternative guidance for CLOs | Not Designated as Hedging Instrument | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | 0 | 0 | 0 | 0 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | (24,172) | 0 | (52,374) | 0 |
Consolidated Funds | Foreign-currency forward contracts | Not Designated as Hedging Instrument | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | (298) | 175,334 | (500) | 471,310 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 849 | (339,448) | 457 | (319,064) |
Consolidated Funds | Total-return and interest-rate swaps | Not Designated as Hedging Instrument | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | (907) | (2,248) | (890) | (7,174) |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 222 | (56,008) | (1,396) | (116,226) |
Consolidated Funds | Options and futures | Not Designated as Hedging Instrument | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | (764) | (21,778) | (849) | (3,977) |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 60 | (5,150) | (83) | (16,299) |
Consolidated Funds | Swaptions | Not Designated as Hedging Instrument | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized gain on consolidated funds’ investments | 0 | (1,187) | 0 | (3,007) |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | $ 0 | $ 1,191 | $ 0 | $ 2,342 |
FAIR VALUE - Financial Instrume
FAIR VALUE - Financial Instruments by Fair-value Hierarchy Level (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
U.S. Treasury and government-agency securities | $ 684,224,000 | $ 661,116,000 | |
Corporate investments (includes $100,616 and $67,626 measured at fair value as of June 30, 2016 and December 31,2015, respectively) | 1,036,238,000 | $ 176,678,000 | 213,988,000 |
Derivative asset | 5,069,000 | 204,226,000 | |
Derivative liabilities | (17,003,000) | (304,437,000) | |
Transfers between level II and I | 0 | $ 0 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 789,489,000 | 734,617,000 | |
Total liabilities | (40,623,000) | (32,723,000) | |
Fair Value, Measurements, Recurring | U.S. Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
U.S. Treasury and government-agency securities | 684,224,000 | 661,116,000 | |
Fair Value, Measurements, Recurring | Corporate investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Corporate investments (includes $100,616 and $67,626 measured at fair value as of June 30, 2016 and December 31,2015, respectively) | 100,616,000 | 67,626,000 | |
Fair Value, Measurements, Recurring | Foreign-currency forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative asset | 4,649,000 | 5,875,000 | |
Derivative liabilities | (14,916,000) | (3,286,000) | |
Fair Value, Measurements, Recurring | Contingent consideration liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | (24,995,000) | (28,494,000) | |
Fair Value, Measurements, Recurring | Interest-rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | (712,000) | (943,000) | |
Fair Value, Measurements, Recurring | Level I | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 684,224,000 | 661,116,000 | |
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level I | U.S. Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
U.S. Treasury and government-agency securities | 684,224,000 | 661,116,000 | |
Fair Value, Measurements, Recurring | Level I | Corporate investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Corporate investments (includes $100,616 and $67,626 measured at fair value as of June 30, 2016 and December 31,2015, respectively) | 0 | 0 | |
Fair Value, Measurements, Recurring | Level I | Foreign-currency forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative asset | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level I | Contingent consideration liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | 0 | 0 | |
Fair Value, Measurements, Recurring | Level I | Interest-rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level II | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 78,684,000 | 47,751,000 | |
Total liabilities | (15,628,000) | (4,229,000) | |
Fair Value, Measurements, Recurring | Level II | U.S. Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
U.S. Treasury and government-agency securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level II | Corporate investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Corporate investments (includes $100,616 and $67,626 measured at fair value as of June 30, 2016 and December 31,2015, respectively) | 74,035,000 | 41,876,000 | |
Fair Value, Measurements, Recurring | Level II | Foreign-currency forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative asset | 4,649,000 | 5,875,000 | |
Derivative liabilities | (14,916,000) | (3,286,000) | |
Fair Value, Measurements, Recurring | Level II | Contingent consideration liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | 0 | 0 | |
Fair Value, Measurements, Recurring | Level II | Interest-rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | (712,000) | (943,000) | |
Fair Value, Measurements, Recurring | Level III | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 26,581,000 | 25,750,000 | |
Total liabilities | (24,995,000) | (28,494,000) | |
Fair Value, Measurements, Recurring | Level III | U.S. Treasury securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
U.S. Treasury and government-agency securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level III | Corporate investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Corporate investments (includes $100,616 and $67,626 measured at fair value as of June 30, 2016 and December 31,2015, respectively) | 26,581,000 | 25,750,000 | |
Fair Value, Measurements, Recurring | Level III | Foreign-currency forward contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative asset | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level III | Contingent consideration liability | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | (24,995,000) | (28,494,000) | |
Fair Value, Measurements, Recurring | Level III | Interest-rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE - Changes in Fair Va
FAIR VALUE - Changes in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 25,624 | $ 0 | $ 25,750 | $ 0 |
Net gain (loss) included in earnings | 957 | 0 | 831 | 0 |
Ending balance | 26,581 | 0 | 26,581 | 0 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 957 | 0 | 831 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | (27,884) | (28,052) | (28,494) | (27,245) |
Net gain (loss) included in earnings | 2,889 | (694) | 3,499 | (1,501) |
Ending balance | (24,995) | (28,746) | (24,995) | (28,746) |
Net change in unrealized gains (losses) attributable to financial instruments still held at end of period | $ 2,889 | $ (694) | $ 3,499 | $ (1,501) |
FAIR VALUE - Valuation Techniqu
FAIR VALUE - Valuation Techniques (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | $ 3,302,188 | $ 45,179,906 |
Corporate investment – Limited partnership interests | Market approach (value of underlying assets) | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 26,581 | 25,750 |
Contingent consideration liability | Discounted cash flow | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Contingent consideration liability | $ (24,995) | $ (28,494) |
Minimum | Contingent consideration liability | Discounted cash flow | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate (as a percent) | 0.00% | |
Maximum | Contingent consideration liability | Discounted cash flow | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate (as a percent) | 100.00% | |
Weighted Average | Contingent consideration liability | Discounted cash flow | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate (as a percent) | 48.00% |
FAIR VALUE - Consolidated Funds
FAIR VALUE - Consolidated Funds Valuation of Investments and Other Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | $ 3,302,188 | $ 45,179,906 |
Total derivatives | 5,069 | 204,226 |
Total derivatives | (17,003) | (304,437) |
Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (812,500) | (855,300) |
Consolidated Funds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 3,302,188 | 45,179,906 |
Total derivatives | 420 | 198,351 |
Equity securities | (61,838) | (91,246) |
Total derivatives | (1,375) | (300,208) |
Consolidated Funds | Options and futures | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 4 | 25,559 |
Total derivatives | (443) | (4,234) |
Consolidated Funds | Swaptions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 14 | |
Consolidated Funds | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 195,773 | 27,217,707 |
Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets | 789,489 | 734,617 |
Total liabilities | (40,623) | (32,723) |
Fair Value, Measurements, Recurring | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 4,649 | 5,875 |
Total derivatives | (14,916) | (3,286) |
Fair Value, Measurements, Recurring | Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets | 684,224 | 661,116 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets | 78,684 | 47,751 |
Total liabilities | (15,628) | (4,229) |
Fair Value, Measurements, Recurring | Level II | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 4,649 | 5,875 |
Total derivatives | (14,916) | (3,286) |
Fair Value, Measurements, Recurring | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets | 26,581 | 25,750 |
Total liabilities | (24,995) | (28,494) |
Fair Value, Measurements, Recurring | Level III | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 3,302,188 | 45,179,906 |
Total derivatives | 420 | 198,351 |
Total assets | 3,302,608 | 45,378,257 |
Total derivatives | (1,375) | (300,208) |
Total liabilities | (2,741,779) | (391,454) |
Fair Value, Measurements, Recurring | Consolidated Funds | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 416 | 156,234 |
Total derivatives | (11) | (64,364) |
Fair Value, Measurements, Recurring | Consolidated Funds | Swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 16,544 |
Total derivatives | (921) | (231,610) |
Fair Value, Measurements, Recurring | Consolidated Funds | Options and futures | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 4 | 25,559 |
Total derivatives | (443) | (4,234) |
Fair Value, Measurements, Recurring | Consolidated Funds | Swaptions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 14 |
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate debt – bank debt | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 2,752,101 | 9,763,304 |
Fair Value, Measurements, Recurring | Consolidated Funds | Corporate debt – all other | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 377,325 | 7,916,840 |
Fair Value, Measurements, Recurring | Consolidated Funds | Equities – common stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 171,010 | 13,822,228 |
Fair Value, Measurements, Recurring | Consolidated Funds | Equities – preferred stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 1,752 | 1,363,542 |
Fair Value, Measurements, Recurring | Consolidated Funds | Real estate | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 9,716,587 |
Fair Value, Measurements, Recurring | Consolidated Funds | Real estate loan portfolios | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 2,597,405 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 151,410 | 4,903,189 |
Total derivatives | 4 | 0 |
Total assets | 151,414 | 4,903,189 |
Total derivatives | (443) | (88) |
Total liabilities | (62,264) | (91,334) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Options and futures | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 4 | 0 |
Total derivatives | (443) | (88) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Swaptions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Corporate debt – bank debt | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Corporate debt – all other | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 5,450 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Equities – common stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 149,658 | 4,836,422 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Equities – preferred stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 1,752 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Real estate | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 61,317 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level I | Real estate loan portfolios | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 2,954,988 | 13,050,759 |
Total derivatives | 416 | 198,351 |
Total assets | 2,955,404 | 13,249,110 |
Total derivatives | (932) | (291,869) |
Total liabilities | (2,679,498) | (291,869) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 416 | 156,234 |
Total derivatives | (11) | (64,364) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 16,544 |
Total derivatives | (921) | (223,359) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Options and futures | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 25,559 |
Total derivatives | 0 | (4,146) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Swaptions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 14 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Corporate debt – bank debt | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 2,562,192 | 7,891,929 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Corporate debt – all other | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 375,435 | 4,902,226 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Equities – common stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 17,361 | 256,604 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Equities – preferred stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Real estate | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level II | Real estate loan portfolios | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 195,790 | 27,225,958 |
Total derivatives | 0 | 0 |
Total assets | 195,790 | 27,225,958 |
Total derivatives | 0 | (8,251) |
Total liabilities | (17) | (8,251) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Foreign-currency forward contracts | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Swaps | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Total derivatives | 0 | (8,251) |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Options and futures | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Swaptions | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Corporate debt – bank debt | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 189,909 | 1,871,375 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Corporate debt – all other | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 1,890 | 3,009,164 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Equities – common stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 3,991 | 8,729,202 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Equities – preferred stock | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 1,363,542 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Real estate | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 9,655,270 |
Fair Value, Measurements, Recurring | Consolidated Funds | Level III | Real estate loan portfolios | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total investments | 0 | 2,597,405 |
Equity securities: | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Equity securities | (61,838) | (91,246) |
Equity securities: | Fair Value, Measurements, Recurring | Consolidated Funds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Equity securities | (61,838) | (91,246) |
Equity securities: | Fair Value, Measurements, Recurring | Consolidated Funds | Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Equity securities | (61,821) | (91,246) |
Equity securities: | Fair Value, Measurements, Recurring | Consolidated Funds | Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Equity securities | 0 | 0 |
Equity securities: | Fair Value, Measurements, Recurring | Consolidated Funds | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Equity securities | (17) | 0 |
CLO Debt Obligations | Fair Value, Measurements, Recurring | Consolidated Funds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (2,678,566) | 0 |
CLO Debt Obligations | Fair Value, Measurements, Recurring | Consolidated Funds | Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
CLO Debt Obligations | Fair Value, Measurements, Recurring | Consolidated Funds | Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (2,678,566) | 0 |
CLO Debt Obligations | Fair Value, Measurements, Recurring | Consolidated Funds | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
CLO Debt Obligations | Senior Notes | Fair Value, Measurements, Recurring | Consolidated Funds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (2,594,841) | 0 |
CLO Debt Obligations | Senior Notes | Fair Value, Measurements, Recurring | Consolidated Funds | Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
CLO Debt Obligations | Senior Notes | Fair Value, Measurements, Recurring | Consolidated Funds | Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (2,594,841) | 0 |
CLO Debt Obligations | Senior Notes | Fair Value, Measurements, Recurring | Consolidated Funds | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
CLO Debt Obligations | Subordinated Debt | Fair Value, Measurements, Recurring | Consolidated Funds | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (83,725) | 0 |
CLO Debt Obligations | Subordinated Debt | Fair Value, Measurements, Recurring | Consolidated Funds | Level I | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
CLO Debt Obligations | Subordinated Debt | Fair Value, Measurements, Recurring | Consolidated Funds | Level II | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (83,725) | 0 |
CLO Debt Obligations | Subordinated Debt | Fair Value, Measurements, Recurring | Consolidated Funds | Level III | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total CLO debt obligations | $ 0 | $ 0 |
FAIR VALUE - Consolidated Fun56
FAIR VALUE - Consolidated Funds Summary of Changes in Fair Value of Level III Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 25,624 | $ 0 | $ 25,750 | $ 0 |
Ending balance | 26,581 | 0 | 26,581 | 0 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 957 | 0 | 831 | 0 |
Consolidated Funds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 206,990 | 28,015,703 | 27,217,707 | 26,291,698 |
Cumulative-effect adjustment from adoption of accounting guidance | (27,012,584) | |||
Transfers into Level III | 0 | 88,981 | 37,933 | 527,139 |
Transfers out of Level III | (1,962) | (664,435) | (42,670) | (812,088) |
Purchases | 2,397 | 1,981,399 | 9,537 | 3,745,958 |
Sales | (11,411) | (1,725,985) | (13,693) | (2,290,026) |
Realized gains (losses), net | 89 | 547,364 | 115 | 541,851 |
Unrealized appreciation (depreciation), net | (330) | (217,503) | (572) | 20,992 |
Ending balance | 195,773 | 28,025,524 | 195,773 | 28,025,524 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | (2,051) | (407,637) | (572) | 300,819 |
Consolidated Funds | Corporate debt – bank debt | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 200,811 | 1,573,508 | 1,871,375 | 1,555,656 |
Cumulative-effect adjustment from adoption of accounting guidance | (1,672,305) | |||
Transfers into Level III | 0 | 9,598 | 37,535 | 116,533 |
Transfers out of Level III | (1,962) | (42,396) | (42,670) | (145,998) |
Purchases | 2,239 | 42,721 | 9,378 | 224,751 |
Sales | (10,886) | (185,407) | (12,872) | (340,767) |
Realized gains (losses), net | 89 | 10,604 | 115 | 25,407 |
Unrealized appreciation (depreciation), net | (382) | (9,351) | (647) | (36,305) |
Ending balance | 189,909 | 1,399,277 | 189,909 | 1,399,277 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | (2,103) | (12,235) | (647) | (17,619) |
Consolidated Funds | Corporate debt – all other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,853 | 2,772,859 | 3,009,164 | 2,750,661 |
Cumulative-effect adjustment from adoption of accounting guidance | (3,007,287) | |||
Transfers into Level III | 0 | 17,208 | 0 | 17,208 |
Transfers out of Level III | (78,250) | 0 | (110,084) | |
Purchases | 1 | 314,898 | 2 | 566,463 |
Sales | (84,407) | 0 | (163,351) | |
Realized gains (losses), net | (35,773) | 0 | (32,499) | |
Unrealized appreciation (depreciation), net | 36 | 8,839 | 11 | (113,024) |
Ending balance | 1,890 | 2,915,374 | 1,890 | 2,915,374 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 36 | (76,879) | 11 | (43,928) |
Consolidated Funds | Equities – common stock | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 4,326 | 10,156,394 | 8,729,202 | 9,056,579 |
Cumulative-effect adjustment from adoption of accounting guidance | (8,725,026) | |||
Transfers into Level III | 0 | 50,976 | 398 | 377,563 |
Transfers out of Level III | (523,407) | 0 | (523,423) | |
Purchases | 157 | 341,691 | 157 | 1,194,127 |
Sales | (525) | (349,498) | (821) | (442,219) |
Realized gains (losses), net | 73,211 | 0 | (66,126) | |
Unrealized appreciation (depreciation), net | 16 | (46,358) | 64 | 106,508 |
Ending balance | 3,974 | 9,703,009 | 3,974 | 9,703,009 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 16 | (12,504) | 64 | 192,837 |
Consolidated Funds | Equities – preferred stock | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 1,381,135 | 1,363,542 | 1,320,752 |
Cumulative-effect adjustment from adoption of accounting guidance | (1,363,542) | |||
Transfers into Level III | 0 | 11,199 | 0 | 15,835 |
Transfers out of Level III | (20,382) | 0 | (32,583) | |
Purchases | 147,396 | 0 | 205,128 | |
Sales | (2,760) | 0 | (54,947) | |
Realized gains (losses), net | (1,153) | 0 | 37,384 | |
Unrealized appreciation (depreciation), net | 144,303 | 0 | 168,169 | |
Ending balance | 0 | 1,659,738 | 0 | 1,659,738 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 0 | 1,253 | 0 | 109,462 |
Consolidated Funds | Real estate | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 9,728,967 | 9,655,270 | 9,216,056 |
Cumulative-effect adjustment from adoption of accounting guidance | (9,655,270) | |||
Transfers into Level III | 0 | 0 | 0 | 0 |
Transfers out of Level III | 0 | 0 | 0 | |
Purchases | 658,056 | 0 | 949,574 | |
Sales | (890,418) | 0 | (985,355) | |
Realized gains (losses), net | 432,658 | 0 | 479,057 | |
Unrealized appreciation (depreciation), net | (356,361) | 0 | (86,430) | |
Ending balance | 0 | 9,572,902 | 0 | 9,572,902 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 0 | (335,645) | 0 | 92,476 |
Consolidated Funds | Real estate loan portfolios | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 2,406,252 | 2,597,405 | 2,399,105 |
Cumulative-effect adjustment from adoption of accounting guidance | (2,597,405) | |||
Transfers into Level III | 0 | 0 | 0 | 0 |
Transfers out of Level III | 0 | 0 | 0 | |
Purchases | 476,637 | 0 | 605,915 | |
Sales | (213,495) | 0 | (303,387) | |
Realized gains (losses), net | 67,817 | 0 | 98,628 | |
Unrealized appreciation (depreciation), net | 42,261 | 0 | (20,789) | |
Ending balance | 0 | 2,779,472 | 0 | 2,779,472 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 0 | 27,778 | 0 | (35,272) |
Consolidated Funds | Swaps | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | (6,988) | (8,251) | (10,687) |
Cumulative-effect adjustment from adoption of accounting guidance | 8,251 | |||
Transfers into Level III | 0 | 0 | 0 | 0 |
Transfers out of Level III | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Realized gains (losses), net | 0 | 0 | 0 | |
Unrealized appreciation (depreciation), net | (1,656) | 0 | 2,043 | |
Ending balance | 0 | (8,644) | 0 | (8,644) |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 0 | (225) | 0 | 2,043 |
Consolidated Funds | Other: | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 3,576 | 0 | 3,576 |
Cumulative-effect adjustment from adoption of accounting guidance | 0 | |||
Transfers into Level III | 0 | 0 | 0 | 0 |
Transfers out of Level III | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Realized gains (losses), net | 0 | 0 | 0 | |
Unrealized appreciation (depreciation), net | 820 | 0 | 820 | |
Ending balance | 0 | 4,396 | 0 | 4,396 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | $ 0 | $ 820 | $ 0 | $ 820 |
FAIR VALUE - Consolidated Fun57
FAIR VALUE - Consolidated Funds Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between level II and I | $ 0 | $ 0 | |
Consolidated Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between level II and I | $ 0 | $ 0 | $ 0 |
FAIR VALUE - Consolidated Fun58
FAIR VALUE - Consolidated Funds Summary of Valuation Techniques and Quantitative Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($)investment | Jun. 30, 2015investment | Dec. 31, 2015USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 3,302,188 | $ 45,179,906 | |
Number of investments that changed valuation technique | investment | 8 | ||
Credit-oriented investments: | Market approach (comparable companies) | Value Of Company's Underlying Assets | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Number of investments that changed valuation technique | investment | 1 | 3 | |
Credit-oriented investments: | Market approach (comparable companies) | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Number of investments that changed valuation technique | investment | 1 | ||
Credit-oriented investments: | Discounted cash flow / Sales approach | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Number of investments that changed valuation technique | investment | 1 | ||
Equity securities: | Market approach (comparable companies) | Value Of Company's Underlying Assets | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Number of investments that changed valuation technique | investment | 1 | ||
Real estate-oriented investments: | Discounted cash flow | Offers From Potential Buyers | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Number of investments that changed valuation technique | investment | 1 | ||
Real estate-oriented investments: | Market approach (comparable companies) | Stabilization of Underlying Investments | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Number of investments that changed valuation technique | investment | 1 | ||
Consolidated Funds | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 3,302,188 | 45,179,906 | |
Consolidated Funds | Level III | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | 195,773 | 27,217,707 | |
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 2,564 | $ 289,107 | |
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 12.00% | 5.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 15.00% | 15.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 13.00% | 12.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 451,584 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 3 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 10 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 6 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 232,995 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer discretionary | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 36,217 | 156,160 | |
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 2,503 | $ 595,066 | |
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 15.00% | 6.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 17.00% | 14.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 16.00% | 11.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 232,958 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 21,341 | 241,667 | |
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Market approach (value of underlying assets) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 259,669 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Market approach (value of underlying assets) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.1 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Market approach (value of underlying assets) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.5 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Financials | Market approach (value of underlying assets) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.2 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 30,458 | $ 135,808 | |
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 5.00% | 5.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 16.00% | 15.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 7.00% | 13.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 7,549 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 5 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 9 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 7 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 45,647 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 38,727 | 24,247 | |
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (value of underlying assets) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 219,121 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (value of underlying assets) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 0.7 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (value of underlying assets) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Market approach (value of underlying assets) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 0.9 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow / Sales approach | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 55,310 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow / Sales approach | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate / Market transactions (as a percent) | 9.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow / Sales approach | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate / Market transactions (as a percent) | 11.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Industrials | Discounted cash flow / Sales approach | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate / Market transactions (as a percent) | 10.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 417,749 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 11.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 14.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 14.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 128,230 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 7 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 9 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 8 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 3,938 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Materials | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | 71,174 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer staples | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 6,221 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer staples | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 5.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer staples | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 7.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer staples | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 6.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Consumer staples | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 19,042 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Other | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 11,913 | $ 442,797 | |
Consolidated Funds | Level III | Credit-oriented investments: | Other | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 9.00% | 5.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Other | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 27.00% | 20.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Other | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 12.00% | 12.00% | |
Consolidated Funds | Level III | Credit-oriented investments: | Other | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 2,771 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Other | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 7 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Other | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 9 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Other | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 8 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Other | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 60,643 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Other | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 20,042 | 331,485 | |
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 199,841 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 6.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 13.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 12.00% | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 143,596 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 6 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 8 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 7 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 63,594 | ||
Consolidated Funds | Level III | Credit-oriented investments: | Information technology | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | 62,353 | ||
Consolidated Funds | Level III | Equity securities: | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 601 | ||
Consolidated Funds | Level III | Equity securities: | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 4 | ||
Consolidated Funds | Level III | Equity securities: | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 13 | ||
Consolidated Funds | Level III | Equity securities: | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 6 | ||
Consolidated Funds | Level III | Equity securities: | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 3,373 | ||
Consolidated Funds | Level III | Equity securities: | Financials | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 58,352 | ||
Consolidated Funds | Level III | Equity securities: | Financials | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 14.00% | ||
Consolidated Funds | Level III | Equity securities: | Financials | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 16.00% | ||
Consolidated Funds | Level III | Equity securities: | Financials | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 15.00% | ||
Consolidated Funds | Level III | Equity securities: | Financials | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 189,714 | ||
Consolidated Funds | Level III | Equity securities: | Financials | Market approach (value of underlying assets) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 1,029,904 | ||
Consolidated Funds | Level III | Equity securities: | Financials | Market approach (value of underlying assets) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1 | ||
Consolidated Funds | Level III | Equity securities: | Financials | Market approach (value of underlying assets) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.5 | ||
Consolidated Funds | Level III | Equity securities: | Financials | Market approach (value of underlying assets) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.4 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 37,130 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 10.00% | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 12.00% | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 11.00% | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 2,385,995 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 5 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 18 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 9 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 248,894 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | 53,005 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (value of underlying assets) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 1,287,791 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (value of underlying assets) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 0.9 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (value of underlying assets) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1 | ||
Consolidated Funds | Level III | Equity securities: | Industrials | Market approach (value of underlying assets) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1 | ||
Consolidated Funds | Level III | Equity securities: | Materials | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 1,238,760 | ||
Consolidated Funds | Level III | Equity securities: | Materials | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 7 | ||
Consolidated Funds | Level III | Equity securities: | Materials | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 9 | ||
Consolidated Funds | Level III | Equity securities: | Materials | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 8 | ||
Consolidated Funds | Level III | Equity securities: | Materials | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 25,133 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 1,898,334 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 6 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 18 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 10 | ||
Consolidated Funds | Level III | Equity securities: | Other | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 221,350 | ||
Consolidated Funds | Level III | Equity securities: | Other | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | 171,463 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (value of underlying assets) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 164,026 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (value of underlying assets) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.1 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (value of underlying assets) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.3 | ||
Consolidated Funds | Level III | Equity securities: | Other | Market approach (value of underlying assets) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.2 | ||
Consolidated Funds | Level III | Equity securities: | Utilities | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 616,596 | ||
Consolidated Funds | Level III | Equity securities: | Utilities | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 8 | ||
Consolidated Funds | Level III | Equity securities: | Utilities | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 11 | ||
Consolidated Funds | Level III | Equity securities: | Utilities | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 9 | ||
Consolidated Funds | Level III | Equity securities: | Utilities | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 200,112 | ||
Consolidated Funds | Level III | Equity securities: | Utilities | Other | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | 266,185 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 3,863,639 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 6.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 44.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 13.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Terminal Capitalization Rate Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Terminal capitalization rate (as a percent) | 0.05 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Terminal Capitalization Rate Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Terminal capitalization rate (as a percent) | 0.10 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Terminal Capitalization Rate Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Terminal capitalization rate (as a percent) | 0.07 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Direct Capitalization Rate Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Direct capitalization rate (as a percent) | 0.05 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Direct Capitalization Rate Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Direct capitalization rate (as a percent) | 0.10 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Direct Capitalization Rate Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Direct capitalization rate (as a percent) | 0.07 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Net Operating Income Growth Rate Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Net operating income growth rate (as a percent) | 0.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Net Operating Income Growth Rate Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Net operating income growth rate (as a percent) | 38.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Net Operating Income Growth Rate Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Net operating income growth rate (as a percent) | 10.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Absorption Rate Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Absorption rate (as a percent) | 25.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Absorption Rate Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Absorption rate (as a percent) | 44.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Absorption Rate Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Absorption rate (as a percent) | 30.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (comparable companies) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 218,817 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (comparable companies) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 9 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (comparable companies) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 11 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (comparable companies) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Earnings multiple | 11 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 512,120 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Sales approach | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | 1,385,418 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Recent market information | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 2,385,895 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Recent market information | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Quoted prices / discount (as a percent) | 0.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Recent market information | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Quoted prices / discount (as a percent) | 5.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Recent market information | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Quoted prices / discount (as a percent) | 3.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (value of underlying assets) | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 992,695 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (value of underlying assets) | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (value of underlying assets) | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.8 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Market approach (value of underlying assets) | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Underlying asset multiple | 1.6 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Other | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 164,046 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow / Sales approach | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 132,640 | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow / Sales approach | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate / Market transactions (as a percent) | 6.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow / Sales approach | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate / Market transactions (as a percent) | 8.00% | ||
Consolidated Funds | Level III | Real estate-oriented investments: | Discounted cash flow / Sales approach | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate / Market transactions (as a percent) | 7.00% | ||
Consolidated Funds | Level III | Real estate loan portfolios | Discounted cash flow | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 2,101,463 | ||
Consolidated Funds | Level III | Real estate loan portfolios | Discounted cash flow | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 7.00% | ||
Consolidated Funds | Level III | Real estate loan portfolios | Discounted cash flow | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 23.00% | ||
Consolidated Funds | Level III | Real estate loan portfolios | Discounted cash flow | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 13.00% | ||
Consolidated Funds | Level III | Real estate loan portfolios | Recent transaction price | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total investments, at fair value | $ 495,942 |
DERIVATIVES AND HEDGING - Addit
DERIVATIVES AND HEDGING - Additional Information (Detail) | Jun. 30, 2016USD ($)instrument | Dec. 31, 2015USD ($) |
Term Loan, Variable Rate | ||
Derivatives And Hedging Activities [Line Items] | ||
Face Amount | $ 250,000,000 | |
Senior Unsecured Credit Facility | Term Loan, Variable Rate | ||
Derivatives And Hedging Activities [Line Items] | ||
Face Amount | $ 250,000,000 | |
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivatives And Hedging Activities [Line Items] | ||
Number of interest-rate swaps (in agreements) | instrument | 1 | |
Notional value of interest-rate swaps | $ 162,500,000 | |
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | Senior Unsecured Credit Facility | Term Loan, Variable Rate | ||
Derivatives And Hedging Activities [Line Items] | ||
Notional value of interest-rate swaps | $ 150,000,000 |
DERIVATIVES AND HEDGING - Summa
DERIVATIVES AND HEDGING - Summary of Net Forward Currency Sell Contracts Under Freestanding Derivatives (Detail) - Not Designated as Hedging Instrument - Foreign Currency Forward Sell Contracts € in Thousands, ¥ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016JPY (¥) | Jun. 30, 2016EUR (€) | Dec. 31, 2015JPY (¥) | Dec. 31, 2015EUR (€) | |
Derivative [Line Items] | ||||||
Contract amount | $ 456,113 | $ 393,360 | ||||
Market Value in U.S. Dollars | 466,380 | 390,771 | ||||
Net Unrealized Appreciation (Depreciation) | (10,267) | 2,589 | ||||
Euro | ||||||
Derivative [Line Items] | ||||||
Contract amount | 307,020 | 274,135 | € 273,050 | € 246,850 | ||
Market Value in U.S. Dollars | 304,905 | 269,603 | ||||
Net Unrealized Appreciation (Depreciation) | $ 2,115 | $ 4,532 | ||||
Euro | Minimum | ||||||
Derivative [Line Items] | ||||||
Expiration date | Jul. 8, 2016 | Jan. 8, 2016 | ||||
Euro | Maximum | ||||||
Derivative [Line Items] | ||||||
Expiration date | Sep. 29, 2017 | Dec. 30, 2016 | ||||
USD | ||||||
Derivative [Line Items] | ||||||
Contract amount | $ 92,963 | $ 70,594 | ||||
Market Value in U.S. Dollars | 102,697 | 72,476 | ||||
Net Unrealized Appreciation (Depreciation) | $ (9,734) | $ (1,882) | ||||
USD | Minimum | ||||||
Derivative [Line Items] | ||||||
Expiration date | Jul. 29, 2016 | Jan. 8, 2016 | ||||
USD | Maximum | ||||||
Derivative [Line Items] | ||||||
Expiration date | Jul. 31, 2017 | Oct. 31, 2016 | ||||
Japanese Yen | ||||||
Derivative [Line Items] | ||||||
Contract amount | $ 56,130 | $ 48,631 | ¥ 6,051,400 | ¥ 5,840,300 | ||
Market Value in U.S. Dollars | 58,778 | 48,692 | ||||
Net Unrealized Appreciation (Depreciation) | $ (2,648) | $ (61) | ||||
Expiration date | Sep. 30, 2016 | |||||
Japanese Yen | Minimum | ||||||
Derivative [Line Items] | ||||||
Expiration date | Jan. 29, 2016 | |||||
Japanese Yen | Maximum | ||||||
Derivative [Line Items] | ||||||
Expiration date | Sep. 30, 2016 |
DERIVATIVES AND HEDGING - Sum61
DERIVATIVES AND HEDGING - Summary of Impact of Freestanding Derivative Instruments on Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains and losses from freestanding derivative instruments | $ (1,691) | $ (1,114) | $ (20,483) | $ 22,841 |
Investment Income | Not Designated as Hedging Instrument | Foreign-currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains and losses from freestanding derivative instruments | 6,530 | 0 | (2,371) | 0 |
General and Administrative Expense | Not Designated as Hedging Instrument | Foreign-currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains and losses from freestanding derivative instruments | $ (8,221) | $ (1,114) | $ (18,112) | $ 22,841 |
DERIVATIVES AND HEDGING - Impac
DERIVATIVES AND HEDGING - Impact of Derivative Instruments Held by Consolidated Funds on Condensed Consolidated Statements of Operations (Detail) - Not Designated as Hedging Instrument - Consolidated Funds - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivatives, Fair Value [Line Items] | ||||
Net Realized Gain (Loss) on Investments | $ (1,969) | $ 150,121 | $ (2,239) | $ 457,152 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 1,131 | (399,415) | (1,022) | (449,247) |
Foreign-currency forward contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Realized Gain (Loss) on Investments | (298) | 175,334 | (500) | 471,310 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 849 | (339,448) | 457 | (319,064) |
Total-return and interest-rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Realized Gain (Loss) on Investments | (907) | (2,248) | (890) | (7,174) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 222 | (56,008) | (1,396) | (116,226) |
Options and futures | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Realized Gain (Loss) on Investments | (764) | (21,778) | (849) | (3,977) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 60 | (5,150) | (83) | (16,299) |
Swaptions | ||||
Derivatives, Fair Value [Line Items] | ||||
Net Realized Gain (Loss) on Investments | 0 | (1,187) | 0 | (3,007) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | $ 0 | $ 1,191 | $ 0 | $ 2,342 |
DERIVATIVES AND HEDGING - Balan
DERIVATIVES AND HEDGING - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Assets: | ||
Derivative assets, at fair value | $ 5,069 | $ 204,226 |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Assets | 4,300 | 50,285 |
Cash Collateral Received (Pledged) | 0 | 0 |
Net Amount | 769 | 153,941 |
Derivative Liabilities: | ||
Derivative liabilities | (17,003) | (304,437) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | (4,300) | (50,285) |
Cash Collateral Pledged | (1,364) | (202,765) |
Net Amount | (11,339) | (51,387) |
Oaktree Capital Group, LLC | ||
Derivative Liabilities: | ||
Derivative liabilities | (15,628) | (4,229) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | (4,289) | (2,047) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | (11,339) | (2,182) |
Oaktree Capital Group, LLC | Foreign-currency forward contracts | ||
Derivative Assets: | ||
Derivative assets, at fair value | 4,649 | 5,875 |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Assets | 4,289 | 2,047 |
Cash Collateral Received (Pledged) | 0 | 0 |
Net Amount | 360 | 3,828 |
Derivative Liabilities: | ||
Derivative liabilities | (14,916) | (3,286) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | (4,289) | (2,047) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | (10,627) | (1,239) |
Oaktree Capital Group, LLC | Interest-rate swaps | ||
Derivative Liabilities: | ||
Derivative liabilities | (712) | (943) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | 0 | 0 |
Cash Collateral Pledged | 0 | 0 |
Net Amount | (712) | (943) |
Consolidated Funds | ||
Derivative Assets: | ||
Derivative assets, at fair value | 420 | 198,351 |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Assets | 11 | 48,238 |
Cash Collateral Received (Pledged) | 0 | 0 |
Net Amount | 409 | 150,113 |
Derivative Liabilities: | ||
Derivative liabilities | (1,375) | (300,208) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | (11) | (48,238) |
Cash Collateral Pledged | (1,364) | (202,765) |
Net Amount | 0 | (49,205) |
Consolidated Funds | Foreign-currency forward contracts | ||
Derivative Assets: | ||
Derivative assets, at fair value | 416 | 156,234 |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Assets | 11 | 38,033 |
Cash Collateral Received (Pledged) | 0 | 0 |
Net Amount | 405 | 118,201 |
Derivative Liabilities: | ||
Derivative liabilities | (11) | (64,364) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | (11) | (38,788) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | (25,576) |
Consolidated Funds | Total-return and interest-rate swaps | ||
Derivative Assets: | ||
Derivative assets, at fair value | 16,544 | |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Assets | 4,526 | |
Cash Collateral Received (Pledged) | 0 | |
Net Amount | 12,018 | |
Derivative Liabilities: | ||
Derivative liabilities | (921) | (231,610) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | 0 | (5,304) |
Cash Collateral Pledged | (921) | (202,677) |
Net Amount | 0 | (23,629) |
Consolidated Funds | Options and futures | ||
Derivative Assets: | ||
Derivative assets, at fair value | 4 | 25,559 |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Assets | 0 | 5,665 |
Cash Collateral Received (Pledged) | 0 | 0 |
Net Amount | 4 | 19,894 |
Derivative Liabilities: | ||
Derivative liabilities | (443) | (4,234) |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Liabilities | 0 | (4,146) |
Cash Collateral Pledged | (443) | (88) |
Net Amount | $ 0 | 0 |
Consolidated Funds | Swaptions | ||
Derivative Assets: | ||
Derivative assets, at fair value | 14 | |
Gross Amounts Not Offset in Statements of Financial Condition | ||
Derivative Assets | 14 | |
Cash Collateral Received (Pledged) | 0 | |
Net Amount | $ 0 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets | $ 79,345 | $ 75,661 |
Accumulated depreciation | (42,127) | (36,394) |
Fixed assets, net | 37,218 | 39,267 |
Furniture, equipment and capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets | 18,055 | 16,820 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets | 45,478 | 43,107 |
Corporate airplane | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets | 12,439 | 12,439 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets | $ 3,373 | $ 3,295 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 69,300 | $ 69,300 | $ 69,300 | ||
Accumulated amortization | (7,672) | (7,672) | (5,671) | ||
Intangible assets, net | 20,345 | 20,345 | 22,346 | ||
Amortization | 1,000 | $ 1,000 | 2,000 | $ 2,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2016 | 2,000 | 2,000 | |||
2,017 | 4,000 | 4,000 | |||
2,018 | 4,000 | 4,000 | |||
2,019 | 4,000 | 4,000 | |||
2,020 | 4,000 | 4,000 | |||
Contractual rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Contractual rights | $ 28,017 | $ 28,017 | $ 28,017 |
DEBT OBLIGATIONS AND CREDIT F66
DEBT OBLIGATIONS AND CREDIT FACILITIES - Debt Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total remaining principal | $ 800,000 | $ 850,000 |
Less: Debt issuance costs | (4,042) | (3,646) |
Debt obligations | 795,958 | 846,354 |
6.09% | ||
Debt Instrument [Line Items] | ||
Total remaining principal | 0 | 50,000 |
5.82% | ||
Debt Instrument [Line Items] | ||
Total remaining principal | 50,000 | 50,000 |
6.75% | ||
Debt Instrument [Line Items] | ||
Total remaining principal | 250,000 | 250,000 |
Term Loan, Variable Rate | ||
Debt Instrument [Line Items] | ||
Total remaining principal | 250,000 | 250,000 |
3.91% | ||
Debt Instrument [Line Items] | ||
Total remaining principal | 50,000 | 50,000 |
4.01% | ||
Debt Instrument [Line Items] | ||
Total remaining principal | 100,000 | 100,000 |
4.21% | ||
Debt Instrument [Line Items] | ||
Total remaining principal | $ 100,000 | $ 100,000 |
DEBT OBLIGATIONS AND CREDIT F67
DEBT OBLIGATIONS AND CREDIT FACILITIES - Debt Obligations (Additional Information) (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
6.09% | |
Debt Instrument [Line Items] | |
Face Amount | $ 50,000,000 |
Stated percentage (as a percent) | 6.09% |
Maturity date | Jun. 6, 2016 |
Offering date | Jun. 30, 2006 |
5.82% | |
Debt Instrument [Line Items] | |
Face Amount | $ 50,000,000 |
Stated percentage (as a percent) | 5.82% |
Maturity date | Nov. 8, 2016 |
Offering date | Nov. 30, 2006 |
6.75% | |
Debt Instrument [Line Items] | |
Face Amount | $ 250,000,000 |
Stated percentage (as a percent) | 6.75% |
Maturity date | Dec. 2, 2019 |
Offering date | Nov. 30, 2009 |
Term Loan, Variable Rate | |
Debt Instrument [Line Items] | |
Face Amount | $ 250,000,000 |
Maturity date | Mar. 31, 2021 |
Offering date | Mar. 31, 2014 |
3.91% | |
Debt Instrument [Line Items] | |
Face Amount | $ 50,000,000 |
Stated percentage (as a percent) | 3.91% |
Maturity date | Sep. 3, 2024 |
Offering date | Sep. 30, 2014 |
4.01% | |
Debt Instrument [Line Items] | |
Face Amount | $ 100,000,000 |
Stated percentage (as a percent) | 4.01% |
Maturity date | Sep. 3, 2026 |
Offering date | Sep. 30, 2014 |
4.21% | |
Debt Instrument [Line Items] | |
Face Amount | $ 100,000,000 |
Stated percentage (as a percent) | 4.21% |
Maturity date | Sep. 3, 2029 |
Offering date | Sep. 30, 2014 |
DEBT OBLIGATIONS AND CREDIT F68
DEBT OBLIGATIONS AND CREDIT FACILITIES - Future Principal Payments of Debt Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Last six months of 2016 | $ 50,000 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 250,000 | |
2,020 | 0 | |
Thereafter | 500,000 | |
Debt obligations | $ 800,000 | $ 850,000 |
DEBT OBLIGATIONS AND CREDIT F69
DEBT OBLIGATIONS AND CREDIT FACILITIES - Additional Information (Detail) | Jul. 12, 2016USD ($) | Mar. 31, 2016 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||||
Debt obligations | $ 800,000,000 | $ 850,000,000 | ||||
Repayment | 50,000,000 | $ 0 | ||||
Senior Unsecured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Minimum required levels of assets | $ 60,000,000,000 | |||||
Consolidated Funds | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Term (in years) | 10 years | |||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio | 3 | |||||
Unused commitment fee (as a percent) | 0.125% | |||||
Credit agreement | $ 500,000,000 | |||||
Senior Unsecured Credit Facilities | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement | 500,000,000 | |||||
Level III | ||||||
Debt Instrument [Line Items] | ||||||
Total CLO debt obligations | $ 812,500,000 | $ 855,300,000 | ||||
Average borrowing rate (as a percent) | 3.40% | 3.70% | ||||
Percentage increase in average borrowing rate assumption that would decrease fair value of debt obligation | 10.00% | |||||
Fair value of debt obligation decrease in value due to increase in average borrowing rate | $ 798,000,000 | |||||
Percentage decrease in average borrowing rate assumption that would increase fair value of debt obligation | 10.00% | |||||
Fair value of debt obligation increase in value due to decrease in average borrowing rate | $ 827,600,000 | |||||
Level III | Consolidated Funds | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total CLO debt obligations | $ 3,700,000,000 | |||||
6.09% Loan Due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Debt obligations | 0 | 50,000,000 | ||||
Face Amount | $ 50,000,000 | |||||
Stated percentage (as a percent) | 6.09% | |||||
2.22% Term Loan Due 2021 | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Face Amount | $ 250,000,000 | |||||
Extension period (in years) | 1 year | |||||
Holding percentage | 50.00% | |||||
Stated percentage (as a percent) | 2.22% | |||||
3.69% Senior Notes | Senior Notes | Oaktree Capital Management, L.P. | ||||||
Debt Instrument [Line Items] | ||||||
Face Amount | $ 100,000,000 | |||||
Stated percentage (as a percent) | 3.69% | |||||
Debt term (in years) | 15 years | |||||
Term Loan, Variable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt obligations | $ 250,000,000 | $ 250,000,000 | ||||
Face Amount | 250,000,000 | |||||
Term Loan, Variable Rate | Senior Unsecured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Face Amount | $ 250,000,000 | |||||
LIBOR | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage (as a percent) | 1.00% | |||||
Subsequent Event | Term Loan, Variable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Repayment | $ 100,000,000 |
DEBT OBLIGATIONS AND CREDIT F70
DEBT OBLIGATIONS AND CREDIT FACILITIES - Credit Facilities of Consolidated Funds (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Less: Debt issuance costs | $ (4,042) | $ (3,646) |
Debt obligations | 795,958 | 846,354 |
Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Borrowings under credit facilities | 65,700 | 6,442,742 |
Debt obligations | 2,678,566 | 2,330,359 |
Credit facilities | Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Borrowings under credit facilities | 65,700 | 2,381,324 |
Credit agreement | $ 450,000 | |
LIBOR margin (as a percent) | 1.25% | |
Maturity | Apr. 19, 2019 | |
Revolving credit facilities | Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Borrowings under credit facilities | $ 0 | 2,718,394 |
Senior variable rate notes | Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Borrowings under credit facilities | 0 | 1,363,044 |
Credit Agreement | Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Borrowings under credit facilities | 65,700 | 6,462,762 |
Less: Debt issuance costs | 0 | (20,020) |
Debt obligations | 65,700 | 6,442,742 |
Level III | ||
Debt Instrument [Line Items] | ||
Fair value | $ 812,500 | 855,300 |
Level III | Senior Notes | Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Fair value | $ 3,700,000 |
DEBT OBLIGATIONS AND CREDIT F71
DEBT OBLIGATIONS AND CREDIT FACILITIES - Collateralized Loan Obligation Loans Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Carrying Value | $ 800,000 | $ 850,000 |
Less: Debt issuance costs | (4,042) | (3,646) |
Debt obligations | 795,958 | 846,354 |
Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Debt obligations | 2,678,566 | 2,330,359 |
Assets backing the obligation | 3,100,000 | 2,600,000 |
Collateralized Loan Obligations | Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Carrying Value | 2,678,566 | 2,355,060 |
Less: Debt issuance costs | 0 | (24,701) |
Debt obligations | 2,678,566 | 2,330,359 |
Collateralized Loan Obligations | Consolidated Funds | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | 2,294,938 | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 1 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 455,509 | $ 457,196 |
Weighted average interest rate (as a percent) | 2.63% | 2.37% |
Weighted Average Remaining Maturity (in years) | 8 years 9 months 6 days | 9 years 3 months 18 days |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 1 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 447,460 | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 1 | Estimate of Fair Value Measurement | LIBOR | ||
Debt Instrument [Line Items] | ||
LIBOR margin (as a percent) | 2.01% | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 2 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 456,770 | $ 454,423 |
Weighted average interest rate (as a percent) | 2.81% | 2.52% |
Weighted Average Remaining Maturity (in years) | 10 years 6 months | 11 years |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 2 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 446,558 | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 2 | Estimate of Fair Value Measurement | LIBOR | ||
Debt Instrument [Line Items] | ||
LIBOR margin (as a percent) | 2.17% | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 3 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 73,833 | $ 79,914 |
Weighted average interest rate (as a percent) | 2.97% | 2.96% |
Weighted Average Remaining Maturity (in years) | 2 years 6 months | 3 years |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 3 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 78,632 | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 3 | Estimate of Fair Value Measurement | Minimum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee (as a percent) | 0.00% | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 3 | Estimate of Fair Value Measurement | Maximum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee (as a percent) | 2.00% | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 4 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 372,735 | $ 363,709 |
Weighted average interest rate (as a percent) | 2.26% | 2.26% |
Weighted Average Remaining Maturity (in years) | 11 years 2 months 12 days | 11 years 8 months 12 days |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 4 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 357,626 | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 4 | Estimate of Fair Value Measurement | EURIBOR | ||
Debt Instrument [Line Items] | ||
Base rate (as a percent) | 0.00% | |
LIBOR margin (as a percent) | 2.26% | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 5 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 457,846 | $ 455,295 |
Weighted average interest rate (as a percent) | 2.72% | 2.54% |
Weighted Average Remaining Maturity (in years) | 11 years 6 months | 12 years |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 5 | LIBOR | ||
Debt Instrument [Line Items] | ||
LIBOR margin (as a percent) | 2.09% | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 5 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 448,933 | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 6 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 373,649 | $ 361,142 |
Weighted average interest rate (as a percent) | 2.29% | 2.29% |
Weighted Average Remaining Maturity (in years) | 11 years 9 months 18 days | 12 years 3 months 18 days |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 6 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 359,914 | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 6 | Estimate of Fair Value Measurement | EURIBOR | ||
Debt Instrument [Line Items] | ||
Base rate (as a percent) | 0.00% | |
LIBOR margin (as a percent) | 2.29% | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 7 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 404,499 | |
Weighted average interest rate (as a percent) | 2.28% | |
Weighted Average Remaining Maturity (in years) | 12 years 10 months 24 days | |
Collateralized Loan Obligations | Consolidated Funds | Senior variable rate notes 7 | Estimate of Fair Value Measurement | EURIBOR | ||
Debt Instrument [Line Items] | ||
Base rate (as a percent) | 0.00% | |
LIBOR margin (as a percent) | 2.28% | |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 1 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 10,758 | $ 25,500 |
Weighted Average Remaining Maturity (in years) | 10 years 6 months | 11 years |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 1 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 16,400 | |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 2 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 17,896 | $ 21,183 |
Weighted Average Remaining Maturity (in years) | 11 years 2 months 12 days | 11 years 8 months 21 days |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 2 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 15,876 | |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 3 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 18,125 | $ 25,500 |
Weighted Average Remaining Maturity (in years) | 11 years 6 months | 12 years |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 3 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 18,337 | |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 4 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 14,766 | $ 17,924 |
Weighted Average Remaining Maturity (in years) | 11 years 9 months 18 days | 12 years 3 months 18 days |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 4 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 11,928 | |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 5 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 22,180 | $ 12,036 |
Weighted Average Remaining Maturity (in years) | 12 years 10 months 24 days | 1 year 7 months 6 days |
Collateralized Loan Obligations | Consolidated Funds | Subordinated note 5 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 12,036 | |
Collateralized Loan Obligations | Consolidated Funds | Term Loan 2 | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 81,238 | |
Weighted average interest rate (as a percent) | 1.20% | |
Weighted Average Remaining Maturity (in years) | 1 year 7 months 6 days | |
Collateralized Loan Obligations | Consolidated Funds | Term Loan 2 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Collateralized loan obligation loans payable | $ 81,238 |
DEBT OBLIGATIONS AND CREDIT F72
DEBT OBLIGATIONS AND CREDIT FACILITIES - Future Principal Payments with Respect to the CLO Loans Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Last six months of 2016 | $ 50,000 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 250,000 | |
2,020 | 0 | |
Thereafter | 500,000 | |
Debt obligations | 800,000 | $ 850,000 |
Collateralized Loan Obligations | Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Debt obligations | 2,678,566 | $ 2,355,060 |
Collateralized Loan Obligations | Consolidated Funds | CLO | ||
Debt Instrument [Line Items] | ||
Last six months of 2016 | 0 | |
2,017 | 0 | |
2,018 | 73,833 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 2,652,551 | |
Debt obligations | $ 2,726,384 |
NON-CONTROLLING REDEEMABLE IN73
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS - Summary of Changes in Non-controlling Redeemable Interests in Consolidated Funds (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Non-Controlling Redeemable Interests in Consolidated Funds [Roll Forward] | ||
Beginning balance | $ 38,173,125 | $ 41,681,155 |
Cumulative-effect adjustment from adoption of accounting guidance | (37,969,042) | 0 |
Contributions | 64,321 | 3,309,316 |
Distributions | (21,919) | (3,711,727) |
Net income | 1,989 | 742,608 |
Change in distributions payable | (822) | 544,060 |
Change in accrued or deferred contributions | 0 | 12,267 |
Foreign currency translation and other | 1,605 | (364,239) |
Ending balance | $ 249,257 | $ 42,213,440 |
UNITHOLDERS' CAPITAL - Addition
UNITHOLDERS' CAPITAL - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||||
Total unitholders’ capital | $ 1,744,426 | $ 1,888,052 | $ 1,744,426 | $ 1,888,052 | $ 1,808,094 | $ 1,840,130 |
OCGH non-controlling interest | $ 84,468 | 55,509 | $ 144,502 | 163,610 | ||
OCGH | ||||||
Class of Stock [Line Items] | ||||||
Unitholders' capital (in shares) | 92,340,656 | 92,340,656 | 91,937,873 | |||
Total unitholders’ capital | $ 958,732 | $ 958,732 | $ 941,141 | |||
Oaktree Operating Group | ||||||
Class of Stock [Line Items] | ||||||
Total Oaktree Operating Group units (in shares) | 154,943,451 | 154,943,451 | 153,907,733 | |||
Total unitholders’ capital | $ 1,608,709 | $ 1,608,709 | $ 1,575,504 | |||
OCGH non-controlling interest | 1,212 | $ 1,269 | 2,420 | $ 604 | ||
Equity Held by Third Parties | ||||||
Class of Stock [Line Items] | ||||||
Total unitholders’ capital | $ 11,140 | $ 11,140 | $ 102,789 |
UNITHOLDERS' CAPITAL - Summary
UNITHOLDERS' CAPITAL - Summary of Net Income (Loss) (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||||
Weighted average number of Class A units outstanding (in shares) | 62,617 | 48,372 | 62,256 | 46,727 |
Oaktree Operating Group net income: | ||||
Oaktree Operating Group net income: | $ 140,834 | $ (316,638) | $ 224,002 | $ 966,381 |
Net income (loss) attributable to Oaktree Capital Group, LLC: | ||||
Income tax expense of Intermediate Holding Companies | (8,571) | (5,485) | (21,251) | (13,360) |
Net income attributable to Oaktree Capital Group, LLC | $ 49,047 | $ 19,814 | $ 77,125 | $ 58,067 |
OCGH non-controlling interest | ||||
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||||
Weighted average number of Class A units outstanding (in shares) | 92,440 | 105,467 | 92,177 | 106,813 |
Oaktree Operating Group net income: | ||||
Oaktree Operating Group net income: | $ 83,256 | $ 54,240 | $ 142,082 | $ 163,006 |
Class A Unitholders | ||||
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||||
Weighted average number of Class A units outstanding (in shares) | 62,617 | 48,372 | 62,256 | 46,727 |
Oaktree Operating Group net income: | ||||
Oaktree Operating Group net income: | $ 56,397 | $ 24,878 | $ 96,012 | $ 70,188 |
Oaktree Operating Group | ||||
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||||
Weighted average number of Class A units outstanding (in shares) | 155,057 | 153,839 | 154,433 | 153,540 |
Oaktree Operating Group net income: | ||||
Oaktree Operating Group net income: | $ 139,653 | $ 79,118 | $ 238,094 | $ 233,194 |
Oaktree Capital Group, LLC | ||||
Net income (loss) attributable to Oaktree Capital Group, LLC: | ||||
Oaktree Operating Group net income attributable to Class A unitholders | 56,397 | 24,878 | 96,012 | 70,188 |
Non-Operating Group expenses | (201) | (626) | (465) | (960) |
Income tax expense of Intermediate Holding Companies | (7,149) | (4,438) | (18,422) | (11,161) |
Net income attributable to Oaktree Capital Group, LLC | $ 49,047 | $ 19,814 | $ 77,125 | $ 58,067 |
UNITHOLDERS' CAPITAL - Changes
UNITHOLDERS' CAPITAL - Changes in Company Ownership Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | ||||
Net income attributable to Oaktree Capital Group, LLC | $ 49,047 | $ 19,814 | $ 77,125 | $ 58,067 |
Equity reallocation between controlling and non-controlling interests | 645 | (559) | 8,126 | 45,202 |
Change from net income attributable to Oaktree Capital Group, LLC and transfers from non-controlling interests | $ 49,692 | $ 19,255 | $ 85,251 | $ 103,269 |
EARNINGS PER UNIT - Computation
EARNINGS PER UNIT - Computations of Net Income (Loss) Per Unit (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 49,047 | $ 19,814 | $ 77,125 | $ 58,067 |
Weighted average number of Class A units outstanding (in shares) | 62,617 | 48,372 | 62,256 | 46,727 |
Basic and diluted net income per Class A unit (in dollars per share) | $ 0.78 | $ 0.41 | $ 1.24 | $ 1.24 |
EARNINGS PER UNIT - Computati78
EARNINGS PER UNIT - Computations of Net Income (Loss) Per Unit (Additional Information) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016shares | Dec. 31, 2014 | |
OCGH Units | ||
Earnings Per Share [Line Items] | ||
Exchange ratio | 1 | |
OCGH Issued (in shares) | 92,340,656 | |
Class A Units | ||
Earnings Per Share [Line Items] | ||
Exchange ratio | 1 | |
OCGH units represented (in shares) | 92,340,656 | |
Highstar Capital | ||
Earnings Per Share [Line Items] | ||
Performance period (in years) | 7 years | 7 years |
EQUITY-BASED COMPENSATION - Add
EQUITY-BASED COMPENSATION - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units granted (in shares) | 629,667 |
Discount from market price (as a percent) | 20.00% |
Forfeiture rate (as a percent) | 3.00% |
Unrecognized compensation expense on non-vested equity-based awards | $ | $ 164.9 |
Weighted average period of recognition non-vested equity-based awards (in years) | 4 years 2 months 12 days |
Restricted Unit Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average vesting period (in years) | 4 years 2 months 12 days |
OCGH Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units granted (in shares) | 629,667 |
Class A Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units granted (in shares) | 787,103 |
EQUITY-BASED COMPENSATION - Sum
EQUITY-BASED COMPENSATION - Summary of Unvested Equity-Based Awards and Changes (Detail) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of Units | |
Granted (in shares) | 629,667 |
Class A Units | |
Number of Units | |
Beginning balance (in shares) | 2,376,340 |
Granted (in shares) | 787,103 |
Vested (in shares) | (922,746) |
Forfeited (in shares) | (41,301) |
Ending balance (in shares) | 2,199,396 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 38.18 |
Granted (in dollars per share) | $ / shares | 46.93 |
Vested (in dollars per share) | $ / shares | 37.45 |
Forfeited (in dollars per share) | $ / shares | 37.66 |
Ending balance (in dollars per share) | $ / shares | $ 41.63 |
OCGH Units | |
Number of Units | |
Beginning balance (in shares) | 2,265,967 |
Granted (in shares) | 629,667 |
Vested (in shares) | (312,663) |
Forfeited (in shares) | (110,932) |
Ending balance (in shares) | 2,472,039 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 40.70 |
Granted (in dollars per share) | $ / shares | 37.56 |
Vested (in dollars per share) | $ / shares | 39.10 |
Forfeited (in dollars per share) | $ / shares | 39.93 |
Ending balance (in dollars per share) | $ / shares | $ 40.14 |
EQUITY-BASED COMPENSATION - Equ
EQUITY-BASED COMPENSATION - Equity Value Units (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense on non-vested equity-based awards | $ | $ 164.9 |
Discount from market price (as a percent) | 20.00% |
Forfeiture rate (as a percent) | 3.00% |
Chief Executive Officer | Equity Value Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense on non-vested equity-based awards | $ | $ 7.6 |
Weighted average remaining service term (in years) | 3 years 6 months |
Forfeiture rate (as a percent) | 0.00% |
Chief Executive Officer | Equity Value Units, Equity Settled | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units (in shares) | shares | 1,000,000 |
Chief Executive Officer | Equity Value Units, Cash Settled | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units (in shares) | shares | 1,000,000 |
INCOME TAXES AND RELATED PAYM82
INCOME TAXES AND RELATED PAYMENTS (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)company | |
Income Tax Disclosure [Abstract] | |
Number of wholly-owned subsidiaries | company | 2 |
Decreases resulting from settlements with taxing authorities | $ | $ 3.8 |
Percentage of cash savings | 85.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Contingencies And Commitments [Line Items] | ||||||
Accrued incentives (fund level) | $ 1,520,994,000 | $ 1,520,994,000 | $ 1,540,469,000 | |||
Compensation expense related to accrued incentives (fund level) | 751,874,000 | 751,874,000 | 750,077,000 | |||
Capital commitments | 516,600,000 | 516,600,000 | 469,400,000 | |||
Consolidated Funds | ||||||
Contingencies And Commitments [Line Items] | ||||||
Aggregate potential credit and investment commitments | 2,900,000 | $ 2,900,000 | 1,300,000,000 | |||
Highstar Capital | ||||||
Contingencies And Commitments [Line Items] | ||||||
Contingent consideration | $ 60,000,000 | |||||
Performance period (in years) | 7 years | 7 years | ||||
Contingent consideration | 25,000,000 | $ 25,000,000 | 28,500,000 | |||
Contingent consideration income | 2,900,000 | 3,500,000 | ||||
Contingent consideration expense | $ 700,000 | $ 1,500,000 | ||||
Financial Guarantee | Consolidated Funds | ||||||
Contingencies And Commitments [Line Items] | ||||||
Other commitment | $ 0 | $ 0 | $ 142,400,000 |
SEGMENT REPORTING - Adjusted Ne
SEGMENT REPORTING - Adjusted Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Management fees | $ 195,015 | $ 50,923 | $ 393,568 | $ 101,742 |
Incentive income | 87,701 | 564 | 143,638 | 564 |
Total revenues | 282,716 | 51,487 | 537,206 | 102,306 |
Expenses: | ||||
Compensation and benefits | (103,002) | (107,750) | (211,407) | (217,893) |
Equity-based compensation | (14,726) | (16,083) | (28,622) | (27,789) |
Incentive income compensation | (35,461) | (35,211) | (45,268) | (102,103) |
General and administrative | (32,949) | (33,488) | (80,780) | (40,068) |
Depreciation and amortization | (4,048) | (3,107) | (8,209) | (5,999) |
Total expenses | (191,648) | (245,929) | (376,832) | (481,903) |
Interest expense, net of interest income | (26,730) | (52,742) | (54,435) | (99,311) |
Other income (expense), net | 5,548 | 2,863 | 11,349 | 7,557 |
Adjusted net income | 142,645 | 85,279 | 247,670 | 235,305 |
Investment Management | ||||
Revenues: | ||||
Management fees | 197,450 | 190,197 | 398,720 | 380,292 |
Incentive income | 87,647 | 61,148 | 184,235 | 214,027 |
Investment income | 47,725 | 23,365 | 62,802 | 76,823 |
Total revenues | 332,822 | 274,710 | 645,757 | 671,142 |
Expenses: | ||||
Compensation and benefits | (99,173) | (104,767) | (203,443) | (213,648) |
Equity-based compensation | (12,445) | (11,901) | (23,148) | (18,924) |
Incentive income compensation | (35,407) | (29,554) | (85,156) | (119,656) |
General and administrative | (30,600) | (30,335) | (62,081) | (59,902) |
Depreciation and amortization | (3,048) | (2,105) | (6,208) | (3,996) |
Total expenses | (180,673) | (178,662) | (380,036) | (416,126) |
Adjusted net income before interest and other income (expense) | 152,149 | 96,048 | 265,721 | 255,016 |
Interest expense, net of interest income | (7,977) | (8,782) | (16,659) | (17,715) |
Other income (expense), net | (1,527) | (1,987) | (1,392) | (1,996) |
Adjusted net income | $ 142,645 | $ 85,279 | $ 247,670 | $ 235,305 |
SEGMENT REPORTING - Adjusted 85
SEGMENT REPORTING - Adjusted Net Income (Additional Information) (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Number of segments | segment | 1 | |||
Investment Management | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Placement costs | $ 2.8 | $ 3.7 | ||
Interest income | $ 1.6 | $ 1.2 | $ 2.9 | $ 2.2 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Net Income Attributable to Oaktree Capital Group, LLC to Adjusted Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net income attributable to Oaktree Capital Group, LLC | $ 49,047 | $ 19,814 | $ 77,125 | $ 58,067 |
Investment income | 41,000 | 15,694 | 70,447 | 28,376 |
Equity-based compensation | 14,726 | 16,083 | 28,622 | 27,789 |
Income taxes | 8,571 | 5,485 | 21,251 | 13,360 |
Non-controlling interests | 84,468 | 55,509 | 144,502 | 163,610 |
Adjusted Net Income | 142,645 | 85,279 | 247,670 | 235,305 |
Adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Net income attributable to Oaktree Capital Group, LLC | (93,598) | (65,465) | (170,545) | (177,238) |
Incentive income | (54) | (5,805) | 39,888 | 11,573 |
Incentive income compensation | 54 | 5,657 | (39,888) | (17,553) |
Investment income | (6,725) | (7,671) | 7,645 | (48,447) |
Placement costs | 1,210 | 0 | 7,914 | 0 |
Foreign-currency hedging | 3,665 | (67) | 9,531 | (5,379) |
Acquisition-related items | (1,889) | 1,695 | (1,498) | 3,502 |
Income taxes | 8,571 | 5,485 | 21,251 | 13,360 |
Non-Operating Group expenses | 201 | 626 | 465 | 960 |
Non-controlling interests | 84,468 | 55,509 | 144,502 | 163,610 |
Adjustments | Units Issued Prior to IPO and EVUs | ||||
Segment Reporting Information [Line Items] | ||||
Equity-based compensation | 2,281 | 4,182 | 5,473 | 8,865 |
Adjustments | Collateralized Loan Obligations | ||||
Segment Reporting Information [Line Items] | ||||
Investment income | (3,149) | (13,578) | ||
Adjustments | OCGH | ||||
Segment Reporting Information [Line Items] | ||||
Non-controlling interests | $ 82,708 | $ 53,692 | $ 140,987 | $ 161,910 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Reconciliation of Total Segments to Income Loss Attributable to Oaktree Capital Group, LLC and Total Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Management fees | $ 195,015 | $ 50,923 | $ 393,568 | $ 101,742 | |
Incentive income | 87,701 | 564 | 143,638 | 564 | |
Investment Income | 41,000 | 15,694 | 70,447 | 28,376 | |
Total expenses | (191,648) | (245,929) | (376,832) | (481,903) | |
Interest expense, net | (26,730) | (52,742) | (54,435) | (99,311) | |
Other income, net | 5,548 | 2,863 | 11,349 | 7,557 | |
Other income (loss) of Consolidated Funds | 38,519 | (82,526) | 57,518 | 1,422,716 | |
Income taxes | (8,571) | (5,485) | (21,251) | (13,360) | |
OCGH non-controlling interest | (84,468) | (55,509) | (144,502) | (163,610) | |
Net income attributable to Oaktree Capital Group, LLC | 49,047 | 19,814 | 77,125 | 58,067 | |
Corporate investments | 1,036,238 | 176,678 | 1,036,238 | 176,678 | $ 213,988 |
Total assets | 6,624,875 | 55,186,630 | 6,624,875 | 55,186,630 | $ 51,762,731 |
Investment Management | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Management fees | 197,450 | 190,197 | 398,720 | 380,292 | |
Incentive income | 87,647 | 61,148 | 184,235 | 214,027 | |
Total expenses | (180,673) | (178,662) | (380,036) | (416,126) | |
Interest expense, net | (7,977) | (8,782) | (16,659) | (17,715) | |
Other income, net | (1,527) | (1,987) | (1,392) | (1,996) | |
Corporate investments | 1,400,000 | 1,400,000 | |||
Non-controlling Interests in Consolidated Funds | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Net income (loss) attributable to non-controlling interests in consolidated funds | (7,319) | 391,961 | (2,375) | (744,704) | |
OCGH non-controlling interest | (7,319) | 391,961 | (2,375) | (744,704) | |
Segment | Investment Management | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Management fees | 197,450 | 190,197 | 398,720 | 380,292 | |
Incentive income | 87,647 | 61,148 | 184,235 | 214,027 | |
Investment Income | 47,725 | 23,365 | 62,802 | 76,823 | |
Total expenses | (180,673) | (178,662) | (380,036) | (416,126) | |
Interest expense, net | (7,977) | (8,782) | (16,659) | (17,715) | |
Other income, net | (1,527) | (1,987) | (1,392) | (1,996) | |
Other income (loss) of Consolidated Funds | 0 | 0 | 0 | 0 | |
Income taxes | 0 | 0 | 0 | 0 | |
OCGH non-controlling interest | 0 | 0 | 0 | 0 | |
Net income attributable to Oaktree Capital Group, LLC | 142,645 | 85,279 | 247,670 | 235,305 | |
Corporate investments | 1,371,978 | 1,560,235 | 1,371,978 | 1,560,235 | |
Total assets | 3,160,373 | 3,245,460 | 3,160,373 | 3,245,460 | |
Segment | Non-controlling Interests in Consolidated Funds | Investment Management | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Net income (loss) attributable to non-controlling interests in consolidated funds | 0 | 0 | 0 | 0 | |
Adjustments | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Management fees | (2,435) | (139,274) | (5,152) | (278,550) | |
Incentive income | 54 | (60,584) | (40,597) | (213,463) | |
Investment Income | (6,725) | (7,671) | 7,645 | (48,447) | |
Total expenses | (10,975) | (67,267) | 3,204 | (65,777) | |
Interest expense, net | (18,753) | (43,960) | (37,776) | (81,596) | |
Other income, net | 7,075 | 4,850 | 12,741 | 9,553 | |
Other income (loss) of Consolidated Funds | 38,519 | (82,526) | 57,518 | 1,422,716 | |
Income taxes | (8,571) | (5,485) | (21,251) | (13,360) | |
OCGH non-controlling interest | (84,468) | (55,509) | (144,502) | (163,610) | |
Net income attributable to Oaktree Capital Group, LLC | (93,598) | (65,465) | (170,545) | (177,238) | |
Corporate investments | (335,740) | (1,383,557) | (335,740) | (1,383,557) | |
Total assets | 3,464,502 | 51,941,170 | 3,464,502 | 51,941,170 | |
Adjustments | Non-controlling Interests in Consolidated Funds | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Net income (loss) attributable to non-controlling interests in consolidated funds | $ (7,319) | $ 391,961 | $ (2,375) | $ (744,704) |
SEGMENT REPORTING - Schedule 88
SEGMENT REPORTING - Schedule of Reconciliation of Total Segments to Income Loss Attributable to Oaktree Capital Group, LLC and Total Assets (Additional Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Equity-based compensation | $ 14,726 | $ 16,083 | $ 28,622 | $ 27,789 | |
Consolidated fund expenses | 1,635 | 54,920 | 2,676 | 72,430 | |
Expenses incurred by Intermediate Holding Companies | 241 | 652 | 536 | 987 | |
Corporate investments | 1,036,238 | 176,678 | 1,036,238 | 176,678 | $ 213,988 |
Investment Management | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Equity-based compensation | 12,445 | 11,901 | 23,148 | 18,924 | |
Placement costs | 2,800 | 3,700 | |||
Corporate investments | 1,400,000 | 1,400,000 | |||
Investment Management | Equity Method Investments | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Equity method investments | 1,100,000 | 1,300,000 | 1,100,000 | 1,300,000 | |
Adjustments | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Foreign currency hedging gains (losses) | 27 | 4,639 | 689 | 6,684 | |
Investment income | 3,149 | 13,578 | |||
Incentive income compensation | 54 | 5,657 | 39,888 | 17,553 | |
Acquisition-related items | 1,889 | 1,695 | 1,498 | 3,502 | |
Reimbursable expenses | 5,545 | 5,513 | 11,346 | 11,103 | |
Gain on foreign currency | (1,530) | 663 | (1,395) | 1,550 | |
Share-based compensation accounted for as liability awards | 540 | 173 | 593 | 261 | |
Placement costs | 1,210 | 7,914 | |||
Foreign-currency hedging | 5,168 | (5,369) | 10,237 | (13,613) | |
Other expenses | 16 | 55 | |||
OCGH Units Prior to Initial Public Offering in April 2012 | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Equity-based compensation | $ 2,821 | $ 4,010 | $ 6,066 | $ 8,605 |
RELATED-PARTY TRANSACTIONS - Ad
RELATED-PARTY TRANSACTIONS - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest income | $ 246 | $ 543 | $ 450 | $ 913 | ||
Face Amount | 23,902 | 23,902 | $ 29,718 | |||
Buyout provision | $ 12,500 | |||||
Level III | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Due to affiliates | 170,651 | 170,651 | $ 160,952 | |||
Affiliates | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Revenue from Related Parties | $ 255,400 | $ 18,700 | $ 482,400 | $ 37,900 | ||
Discounted cash flow | Affiliates | Level III | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount rate (as a percent) | 10.00% | |||||
Minimum | Discounted cash flow | Affiliates | Level III | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Average interest rate (as a percent) | 2.00% | |||||
Maximum | Discounted cash flow | Affiliates | Level III | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Average interest rate (as a percent) | 3.00% |
RELATED-PARTY TRANSACTIONS - Am
RELATED-PARTY TRANSACTIONS - Amounts Due from and Due to Affiliates (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Due from affiliates: | ||
Loans | $ 23,902 | $ 29,718 |
Amounts due from unconsolidated funds | 40,395 | 777 |
Management fees and incentive income due from unconsolidated funds | 48,811 | 0 |
Payments made on behalf of unconsolidated entities | 3,710 | 3,788 |
Non-interest bearing advances made to certain non-controlling interest holders and employees | 1,045 | 1,616 |
Total due from affiliates | 117,863 | 35,899 |
Due to affiliates: | ||
Due to OCGH unitholders in connection with the tax receivable agreement (please see note 14) | 356,851 | 356,851 |
Amounts due to senior executives, certain non-controlling interest holders and employees | 1,865 | 0 |
Total due to affiliates | $ 358,716 | $ 356,851 |
SUBSEQUENT EVENTS (Detail)
SUBSEQUENT EVENTS (Detail) - USD ($) | 6 Months Ended | |||
Jun. 30, 2016 | Jul. 28, 2016 | Jul. 12, 2016 | Apr. 30, 2016 | |
Class A Units | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Dividend declared (in dollars per share) | $ 0.58 | |||
Term Loan, Variable Rate | ||||
Class of Stock [Line Items] | ||||
Face Amount | $ 250,000,000 | |||
Oaktree Capital Management, L.P. | Senior Notes | 3.69% Senior Notes | ||||
Class of Stock [Line Items] | ||||
Face Amount | $ 100,000,000 | |||
Stated percentage (as a percent) | 3.69% | |||
Debt term (in years) | 15 years | |||
Scenario, Forecast | Oaktree Capital Management, L.P. | Senior Notes | 3.69% Senior Notes | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Face Amount | $ 100,000,000 | |||
Stated percentage (as a percent) | 3.69% |