Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 26, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35500 | ||
Entity Registrant Name | Oaktree Capital Group, LLC | ||
Entity Central Index Key | 0001403528 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-0174894 | ||
Entity Address, Address Line One | 333 South Grand Avenue | ||
Entity Address, Address Line Two | 28th Floor | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90071 | ||
City Area Code | 213 | ||
Local Phone Number | 830-6300 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Documents Incorporated by Reference | None | ||
6.625% Series A preferred units | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.625% Series A preferred units | ||
Trading Symbol | OAK-A | ||
Security Exchange Name | NYSE | ||
6.550% Series B preferred units | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.550% Series B preferred units | ||
Trading Symbol | OAK-B | ||
Security Exchange Name | NYSE | ||
Class B Units | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 61,816,685 | ||
Class A Units | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 97,967,255 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Deferred tax assets | $ 3,096 | $ 229,100 |
Receivable for securities sold | 65,346 | 74,795 |
Derivative assets, at fair value | 6,890 | 6,502 |
Total assets | 9,264,762 | 10,432,178 |
Liabilities: | ||
Operating lease liabilities | 45,793 | |
Derivative liabilities, at fair value | 4,254 | 2,961 |
Total liabilities | 6,696,371 | 6,982,839 |
Commitments and contingencies (Note 18) | ||
Non-controlling redeemable interests in consolidated funds | 866,222 | 961,622 |
Unitholders’ capital: | ||
Paid-in capital | 750,299 | 893,043 |
Retained earnings | 51,534 | 100,683 |
Accumulated other comprehensive (loss) income | (3,501) | 1,053 |
Unitholders’ capital attributable to Oaktree Capital Group, LLC | 1,198,916 | 1,395,363 |
Non-controlling interests in consolidated subsidiaries | 503,253 | 1,092,354 |
Total unitholders’ capital | 1,702,169 | 2,487,717 |
Total liabilities and unitholders’ capital | 9,264,762 | 10,432,178 |
Series A Preferred Units | ||
Unitholders’ capital: | ||
Preferred stock | 173,669 | 173,669 |
Series B Preferred Units | ||
Unitholders’ capital: | ||
Preferred stock | 226,915 | 226,915 |
Class A Units | ||
Unitholders’ capital: | ||
Common stock | 0 | 0 |
Class B Units | ||
Unitholders’ capital: | ||
Common stock | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | ||
Assets | ||
Cash and cash-equivalents | 323,550 | 460,937 |
U.S. Treasury and other securities | 9,232 | 546,531 |
Corporate investments (includes $34,934 and $74,899 measured at fair value as of December 31, 2019 and 2018, respectively) | 709,137 | 1,209,764 |
Due from affiliates | 164,189 | 442,912 |
Deferred tax assets | 3,096 | 229,100 |
Investments, at fair value | 34,934 | 74,899 |
Derivative assets, at fair value | 4,038 | |
Other assets | 41,198 | 533,044 |
Right-of-use assets | 39,702 | |
Liabilities: | ||
Accrued compensation expense | 130,818 | 437,966 |
Accounts payable, accrued expenses and other liabilities | 11,316 | 128,729 |
Due to affiliates | 87,063 | 188,367 |
Debt obligations | 0 | 745,945 |
Operating lease liabilities | 45,793 | |
Consolidated Funds | ||
Assets | ||
Cash and cash-equivalents | 518,243 | 370,790 |
Investments, at fair value | 7,358,409 | 6,531,385 |
Dividends and interest receivable | 25,058 | 26,792 |
Due from brokers | 0 | 11,599 |
Receivable for securities sold | 58,622 | 65,884 |
Derivative assets, at fair value | 6,890 | 2,464 |
Other assets | 7,436 | 976 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 89,937 | 31,000 |
Payables for securities purchased | 367,983 | 450,172 |
Debt obligations | 5,767,999 | 4,127,994 |
Securities sold short, at fair value | 0 | 2,609 |
Derivative liabilities, at fair value | 2,551 | 643 |
Distributions payable | 34,434 | 4,885 |
Borrowings under credit facilities | $ 158,477 | $ 864,529 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Series A Preferred Units | ||
Preferred stock, shares issued (in shares) | 7,200,000 | |
Preferred stock, shares outstanding (in shares) | 7,200,000 | |
Series B Preferred Units | ||
Preferred stock, shares issued (in shares) | 9,400,000 | |
Preferred stock, shares outstanding (in shares) | 9,400,000 | |
Class A Units | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | Unlimited | Unlimited |
Common stock, shares issued (in shares) | 97,967,255 | 71,661,623 |
Common stock, shares outstanding (in shares) | 97,967,255 | 71,661,623 |
Class B Units | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | Unlimited | Unlimited |
Common stock, shares issued (in shares) | 61,793,286 | 85,471,937 |
Common stock, shares outstanding (in shares) | 61,793,286 | 85,471,937 |
Oaktree Capital Group Excluding Consolidated Funds | ||
Investments, at fair value | $ 34,934 | $ 74,899 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Total revenues | $ 928,987 | $ 1,386,079 | $ 1,469,767 |
Expenses: | |||
Compensation and benefits | (368,196) | (407,674) | (392,827) |
Equity-based compensation | (65,533) | (62,989) | (59,337) |
Incentive income compensation | (175,753) | (338,675) | (416,481) |
Total compensation and benefits expense | (609,482) | (809,338) | (868,645) |
General and administrative | (189,447) | (153,483) | (130,892) |
Depreciation and amortization | (20,287) | (25,862) | (15,776) |
Consolidated fund expenses | (23,315) | (11,888) | (10,030) |
Total expenses | (842,531) | (1,000,571) | (1,025,343) |
Other income (loss): | |||
Interest expense | (197,159) | (160,111) | (169,888) |
Interest and dividend income | 368,870 | 287,155 | 215,119 |
Net realized gain (loss) on consolidated funds’ investments | (17,773) | (23,528) | 20,400 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 9,937 | (164,592) | 55,061 |
Investment income | 146,569 | 157,110 | 201,289 |
Other income, net | 58 | 7,782 | 138,519 |
Total other income | 310,502 | 103,816 | 460,500 |
Income before income taxes | 396,958 | 489,324 | 904,924 |
Income taxes | (9,620) | (24,779) | (215,442) |
Net income | 387,338 | 464,545 | 689,482 |
Less: | |||
Net income attributable to Oaktree Capital Group, LLC | 154,839 | 223,418 | 231,494 |
Net income attributable to preferred unitholders | (27,316) | (12,277) | 0 |
Net income attributable to Oaktree Capital Group, LLC Class A unitholders | $ 127,523 | $ 211,141 | $ 231,494 |
Distributions declared per Class A unit (in dollars per share) | $ 4.96 | $ 2.97 | $ 3.21 |
Net income per unit (basic and diluted): | |||
Net income per Class A unit (in dollars per share) | $ 1.59 | $ 2.99 | $ 3.61 |
Weighted average number of Class A units outstanding (basic and diluted) (in shares) | 80,045 | 70,526 | 64,148 |
Consolidated Subsidiaries | |||
Less: | |||
Net income attributable to non-controlling interests | $ (138,879) | $ (282,818) | $ (424,784) |
Consolidated Funds | |||
Less: | |||
Net income attributable to non-controlling interests | (93,620) | 41,691 | (33,204) |
Management fees | |||
Revenues: | |||
Total revenues | 578,863 | 712,020 | 726,414 |
Incentive income | |||
Revenues: | |||
Total revenues | $ 350,124 | $ 674,059 | $ 743,353 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 387,338 | $ 464,545 | $ 689,482 |
Other comprehensive income (loss), net of tax: | |||
Foreign-currency translation adjustments | (5,928) | 1,363 | (3,389) |
Unrealized gain on interest rate swap designated as cash flow hedge | 0 | 0 | 60 |
Other comprehensive income (loss), net of tax | (5,928) | 1,363 | (3,329) |
Total comprehensive income | 381,410 | 465,908 | 686,153 |
Comprehensive income attributable to Oaktree Capital Group, LLC | 150,285 | 224,028 | 230,144 |
Comprehensive income attributable to preferred unitholders | (27,316) | (12,277) | 0 |
Comprehensive income attributable to OCG Class A unitholders | 122,969 | 211,751 | 230,144 |
Consolidated Funds | |||
Other comprehensive income (loss), net of tax: | |||
Less: Comprehensive income attributable to non-controlling interests | (93,620) | 41,691 | (33,204) |
Consolidated Subsidiaries | |||
Other comprehensive income (loss), net of tax: | |||
Less: Comprehensive income attributable to non-controlling interests | $ (137,505) | $ (283,571) | $ (422,805) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 387,338 | $ 464,545 | $ 689,482 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Adoption of revenue recognition standard | 0 | 48,709 | 0 |
Investment income | (146,569) | (157,110) | (201,289) |
Depreciation and amortization | 20,287 | 25,862 | 15,776 |
Equity-based compensation | 65,533 | 62,989 | 59,337 |
Net realized and unrealized (gain) loss from consolidated funds’ investments | 7,836 | 188,120 | (75,461) |
Amortization (accretion) of original issue and market discount of consolidated funds’ investments, net | (3,625) | (4,999) | (3,816) |
Income distributions from corporate investments in funds and companies | 134,512 | 197,801 | 182,844 |
Other non-cash items | 2,929 | 1,961 | 1,028 |
Cash flows due to changes in operating assets and liabilities: | |||
Net cash used in operating activities | (3,133,647) | (617,017) | (336,305) |
Cash flows from investing activities: | |||
Purchases of U.S. Treasury and other securities | (602,600) | (1,048,083) | (610,474) |
Proceeds from maturities and sales of U.S. Treasury and other securities | 1,129,930 | 678,067 | 1,191,670 |
Corporate investments in funds and companies | (264,673) | (442,216) | (158,663) |
Distributions and proceeds from corporate investments in funds and companies | 495,509 | 324,898 | 264,226 |
Acquisition (BDCs) | 0 | 0 | (319,435) |
Purchases of fixed assets | (6,764) | (5,816) | (29,413) |
Proceeds from sale of fixed assets | 0 | 0 | 5,048 |
Net cash provided by (used in) investing activities | 751,402 | (493,150) | 342,959 |
Cash flows from financing activities: | |||
Net cash provided by (used in) financing activities | 2,730,302 | 994,983 | (51,032) |
Effect of exchange rate changes on cash | (8,289) | (239) | 39,285 |
Net increase (decrease) in cash and cash-equivalents | 339,768 | (115,423) | (5,093) |
Deconsolidation due to restructuring | (145,295) | 0 | 0 |
Initial consolidation (deconsolidation) of funds | (184,407) | (12,315) | 5,358 |
Cash and cash-equivalents, beginning balance | 831,727 | 959,465 | 959,200 |
Cash and cash-equivalents, ending balance | 841,793 | 831,727 | 959,465 |
Supplemental cash flow disclosures: | |||
Cash paid for interest | 136,385 | 131,113 | 146,341 |
Cash paid for income taxes | 8,887 | 13,103 | 22,853 |
Supplemental disclosure of non-cash activities: | |||
Net assets related to the initial consolidation of funds | 162,630 | 0 | 296,971 |
Net assets related to the deconsolidation of funds | 1,030,712 | 8,165 | 0 |
Net assets related to the deconsolidation due to restructuring | 500,629 | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | |||
Cash flows due to changes in operating assets and liabilities: | |||
Decrease in deferred tax assets | 122 | 13,122 | 202,294 |
(Increase) decrease in other assets | 4,365 | 10,745 | 7,818 |
Increase (decrease) in net due to affiliates | 177,615 | (241,067) | (184,616) |
Increase (decrease) in accrued compensation expense | (155,900) | 161,526 | (9,143) |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 63,972 | (22,537) | 7,533 |
Cash flows from financing activities: | |||
Proceeds from issuance of debt obligations | 0 | 0 | 250,000 |
Repayments of debt obligations | 0 | 0 | (250,000) |
Net proceeds from issuance of Class A units | 0 | 219,750 | 0 |
Purchase of OCGH units | 0 | (219,525) | 0 |
Repurchase and cancellation of units | (12,191) | (12,195) | (12,317) |
Distributions to Class A unitholders | (439,433) | (210,941) | (206,212) |
Distributions to preferred unitholders | (27,316) | (12,277) | 0 |
Distributions to OCGH unitholders | (360,321) | (284,507) | (355,834) |
Distributions to non-controlling interests | (3,421) | (4,921) | (4,784) |
Net proceeds from issuance of preferred units | 0 | 400,584 | 0 |
Payment of debt issuance costs | 0 | (2,235) | 0 |
Cash and cash-equivalents, beginning balance | 460,937 | 481,631 | |
Cash and cash-equivalents, ending balance | 323,550 | 460,937 | 481,631 |
Consolidated Funds | |||
Cash flows due to changes in operating assets and liabilities: | |||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 61,380 | 13,632 | 2,802 |
Increase in dividends and interest receivable | (7,092) | (6,554) | (4,328) |
Decrease in due from brokers | 11,476 | 42,683 | 44,457 |
(Increase) decrease in receivables for securities sold | (25,285) | 75,122 | (101,668) |
Increase in other assets | (5,251) | (286) | (286) |
Increase (decrease) in payables for securities purchased | 56,694 | (118,813) | 259,652 |
Purchases of securities | (6,684,118) | (4,949,238) | (5,337,361) |
Proceeds from maturities and sales of securities | 2,900,134 | 3,576,770 | 4,108,640 |
Cash flows from financing activities: | |||
Proceeds from issuance of debt obligations | 4,754,098 | 1,741,258 | 1,709,592 |
Repayments of debt obligations | (1,893,506) | (730,456) | (1,688,229) |
Contributions from non-controlling interests | 664,679 | 447,260 | 331,764 |
Distributions to non-controlling interests | (107,499) | (335,041) | (148,617) |
Payment of debt issuance costs | (4,199) | (1,771) | (8,159) |
Borrowings on credit facilities | 531,411 | 0 | 702,100 |
Repayments on credit facilities | (372,000) | 0 | (370,336) |
Cash and cash-equivalents, beginning balance | 370,790 | 477,834 | |
Cash and cash-equivalents, ending balance | $ 518,243 | $ 370,790 | $ 477,834 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Unitholders Capital - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 2,487,717 | $ 2,020,617 | $ 1,885,171 | ||
Cumulative-effect adjustment from adoption of accounting guidance | $ 48,709 | ||||
Issuance of units | 620,334 | ||||
Change in deferred taxes resulting from increase in Class A ownership percentage | 475 | ||||
Repurchase and cancellation of units | (12,191) | (231,720) | (12,317) | ||
Purchase of non-controlling interests in subsidiary | (2,916) | ||||
Restructuring equity distribution of entities | (500,629) | ||||
Deferred tax effect resulting from the purchase of OCGH units | 203,511 | 7,103 | |||
Capital increase related to equity-based compensation | 66,462 | 61,033 | 59,720 | ||
Distributions declared | (830,491) | (542,281) | (569,053) | ||
Net income | 293,718 | 505,475 | 659,950 | ||
Foreign currency translation adjustment, net of tax | (5,928) | 1,363 | (3,389) | ||
Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax | 0 | 0 | 60 | ||
Ending balance | 1,702,169 | 2,487,717 | 2,020,617 | ||
Paid-in Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 893,043 | 788,413 | 749,618 | ||
Cumulative-effect adjustment from adoption of accounting guidance | $ (352) | ||||
Issuance of units | 219,750 | ||||
Change in deferred taxes resulting from increase in Class A ownership percentage | 475 | ||||
Repurchase and cancellation of units | (8,378) | (228,469) | (9,073) | ||
Purchase of non-controlling interests in subsidiary | (1,320) | ||||
Restructuring equity distribution of entities | (413,074) | ||||
Deferred tax effect resulting from the purchase of OCGH units | 203,511 | 7,103 | |||
Equity reallocation between controlling and non-controlling interests | 306,015 | 80,106 | 23,151 | ||
Capital increase related to equity-based compensation | 31,943 | 27,460 | 24,594 | ||
Distributions declared | (262,761) | ||||
Ending balance | 750,299 | 893,043 | 788,413 | ||
Retained Earnings (Accumulated Deficit) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 100,683 | 80,128 | 54,494 | ||
Cumulative-effect adjustment from adoption of accounting guidance | 20,355 | $ 352 | |||
Distributions declared | (176,672) | (210,941) | (206,212) | ||
Net income | 127,523 | 211,141 | 231,494 | ||
Ending balance | 51,534 | 100,683 | 80,128 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 1,053 | 443 | 1,793 | ||
Foreign currency translation adjustment, net of tax | (4,554) | 610 | (1,374) | ||
Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax | 24 | ||||
Ending balance | (3,501) | 1,053 | 443 | ||
Non-controlling Interests in Consolidated Subsidiaries | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 1,092,354 | 1,121,237 | 1,050,319 | ||
Cumulative-effect adjustment from adoption of accounting guidance | $ 28,354 | ||||
Repurchase and cancellation of units | (3,813) | (3,251) | (3,244) | ||
Purchase of non-controlling interests in subsidiary | (1,596) | ||||
Restructuring equity distribution of entities | (87,555) | ||||
Equity reallocation between controlling and non-controlling interests | (306,015) | (80,106) | (23,151) | ||
Capital increase related to equity-based compensation | 34,519 | 33,573 | 35,126 | ||
Distributions declared | (363,742) | (289,428) | (360,618) | ||
Net income | 138,879 | 282,818 | 424,784 | ||
Foreign currency translation adjustment, net of tax | (1,374) | 753 | (2,015) | ||
Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax | 36 | ||||
Ending balance | 503,253 | 1,092,354 | 1,121,237 | ||
Non-controlling Interests in Consolidated Funds | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 0 | 30,396 | 28,947 | ||
Distributions declared | (29,635) | (2,223) | |||
Net income | (761) | 3,672 | |||
Ending balance | $ 0 | $ 0 | $ 30,396 | ||
Class A Units | Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 71,662 | 65,310 | 63,032 | ||
Issuance of units (in shares) | 29,713 | 6,688 | 2,507 | ||
Cancellation of units associated with forfeitures (in shares) | (115) | (21) | |||
Cancellation of units (in shares) | (3,149) | ||||
Repurchase and cancellation of units (in shares) | (259) | (221) | (208) | ||
Ending balance (in shares) | 97,967 | 71,662 | 65,310 | ||
Class B Units | Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 85,472 | 90,976 | 91,758 | ||
Issuance of units (in shares) | 5,153 | 182 | 524 | ||
Cancellation of units (in shares) | (3,429) | (582) | (1,221) | ||
Repurchase and cancellation of units (in shares) | (25,403) | (5,104) | (85) | ||
Ending balance (in shares) | 61,793 | 85,472 | 90,976 | ||
Series A Preferred Units | Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 173,669 | $ 0 | $ 0 | ||
Issuance of units | 173,669 | ||||
Distributions declared | (11,924) | (6,890) | |||
Net income | 11,924 | 6,890 | |||
Ending balance | 173,669 | 173,669 | 0 | ||
Series B Preferred Units | Preferred Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 226,915 | 0 | 0 | ||
Issuance of units | 226,915 | ||||
Distributions declared | (15,392) | (5,387) | |||
Net income | 15,392 | 5,387 | |||
Ending balance | $ 226,915 | $ 226,915 | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION As used in these consolidated financial statements: “Oaktree,” refers to (i) Oaktree Capital Group, LLC and, where applicable, its subsidiaries and affiliates prior to October 1, 2019 and (ii) the Oaktree Operating Group and, where applicable, their respective subsidiaries and affiliates after September 30, 2019; and the “Company” refers to Oaktree Capital Group, LLC and, where applicable, its subsidiaries and affiliates, including, as the context requires, affiliated Oaktree Operating Group members after September 30, 2019. Oaktree is a leader among global investment managers specializing in alternative investments. Oaktree emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. Funds managed by Oaktree (the “Oaktree funds”) include commingled funds, separate accounts, collateralized loan obligation vehicles (“CLOs”) and publicly-traded business development companies (“BDCs”). Commingled funds include open-end and closed-end limited partnerships in which the Oaktree makes an investment and for which it serves as the general partner. CLOs are structured finance vehicles in which Oaktree 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. Prior to the Mergers described below, the Company was owned by (i) its public Class A common unitholders, (ii) its public Series A and Series B preferred unitholders and (iii) Oaktree Capital Group Holdings, L.P. (“OCGH”) who held 100% of the Company’s Class B common units which did not represent an economic interest in the Company. OCGH is owned by the Company’s senior executives, current and former employees, and certain other investors (collectively, the “OCGH unitholders”). The Class A units held by the public unitholders were entitled to one vote per unit and the Class B units held by OCGH were entitled to ten votes per unit. The number of Class B units held by OCGH increased or decreased 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 consolidated financial statements. Subsequent to the Mergers, (i) all of the Company’s Class A units, which are no longer publicly traded, are held by an affiliate of Brookfield Asset Management, Inc. (“Brookfield”), (ii) the Company’s public preferred unitholders continue to hold the Series A and Series B preferred units listed on the NYSE and (iii) OCGH continues to hold all of the Company’s Class B units. Subject to the operating agreement of the Company, to the extent the approval of any matter requires the vote of the Company’s unitholders, the Class A units continue to be entitled to one vote per unit and the Class B units continue to be entitled to ten votes per unit, voting together as a single class. Additionally, prior to the Restructuring as described below, the Company’s operations were conducted through a group of six operating entities collectively referred to as the “Oaktree Operating Group,” and the Company had an indirect economic interest in each of the members of the Oaktree Operating Group. However, after the Restructuring, the Company has an indirect economic interest in only two of the six Oaktree Operating Group members. OCGH has a direct economic interest in all six of the Oaktree Operating Group members. 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. As of October 1, 2019, Oaktree Capital Management, L.P. (“OCM”), a former indirect subsidiary of the Company, provides certain administrative and other services relating to the operations of the Company’s business pursuant to a Services Agreement between the Company and OCM (as amended from time to time, the “Services Agreement”). Brookfield Merger On March 13, 2019, Oaktree, Brookfield, Berlin Merger Sub, LLC, a Delaware limited liability company (“Merger Sub”) and a wholly-owned subsidiary of Brookfield, Oslo Holdings LLC, a Delaware limited liability company (“SellerCo”) and a wholly-owned subsidiary of OCGH, and Oslo Holdings Merger Sub LLC, a Delaware limited liability company and a wholly-owned subsidiary of Oaktree (“Seller MergerCo”) entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the terms and conditions set forth in the Merger Agreement, on September 30, 2019, (i) Merger Sub merged with and into Oaktree (the “Merger”), with Oaktree continuing as the surviving entity, and (ii) immediately following the Merger, SellerCo merged with and into Seller MergerCo (the “Subsequent Merger” and together with the Merger, the “Mergers”), with Seller MergerCo continuing as the surviving entity. Upon the completion of the Mergers on September 30, 2019, Brookfield acquired 61.2% of Oaktree’s business in a stock and cash transaction. The remaining 38.8% of the business continued to be owned by OCGH, whose unitholders consist primarily of Oaktree’s founders and certain other members of management and current and former employees. As part of the Merger, Brookfield acquired all outstanding vested OCG Class A units for, at the election of OCG Class A unitholders, either $49.00 in cash or 1.0770 Class A shares of Brookfield per OCG Class A unit (subject to pro-ration to ensure that no more than fifty percent ( 50% ) of the aggregate merger consideration is paid in the form of cash or stock), in each case, without interest and subject to any applicable withholding taxes. In addition, as part of the Subsequent Merger the founders, senior management, and current and former employee-unitholders of OCGH sold 20% of their OCGH units to Brookfield for the same consideration as the OCG Class A unitholders received in the merger. The aggregate amount of cash payable to Class A unitholders and OCGH unitholders in the transaction was approximately $2.4 billion and approximately 52.8 million Brookfield Class A shares were issued in the Mergers. In connection with the closing of the Merger, Oaktree Class A units were delisted from the New York Stock Exchange. Upon completion of the Merger, each unvested Class A Unit held by current, or in certain cases former, employees, officers and directors of Oaktree and its subsidiaries was converted into one unvested OCGH Unit (each, a “Converted OCGH Unit”) and became subject to the terms and conditions of the OCGH limited partnership agreement. The Converted OCGH Units will (i) be subject to the same vesting terms that were applicable to such units prior to the completion of the Merger, (ii) be entitled to receive ongoing distributions in respect of earnings, but not capital distributions and (iii) upon vesting, receive the accumulated value of capital distributions that accrued while such units were unvested. Please see note 16 for more information. Restructuring Transaction On the closing date of the Mergers, the Company and certain other entities entered into a Restructuring Agreement (the “Restructuring”) pursuant to which the Company’s direct and indirect ownership of general partner and limited partner interests in certain Oaktree Operating Group entities were transferred to newly-formed, indirect subsidiaries of Brookfield as of October 1, 2019. As a result, as of October 1, 2019, four of the six Oaktree Operating Group entities are no longer indirect subsidiaries of the Company. Accordingly, the Company’s consolidated financial statements reflect its indirect economic interest in only two of the Oaktree Operating Group entities: (i) Oaktree Capital I, L.P. (“Oaktree Capital I”), which acts as or controls the general partner of certain Oaktree funds and which holds a majority of Oaktree’s investments in its funds and (ii) Oaktree Capital Management (Cayman), L.P. (“OCM Cayman”), which represents Oaktree’s non-U.S. fee business. As of October 1, 2019, the Company’s consolidated financial statements no longer reflects any economic interests in the remaining four Oaktree Operating Group entities: (i) Oaktree Capital II, L.P. (“Oaktree Capital II”), which acts as or controls the general partner of certain Oaktree funds and which includes Oaktree’s investments in certain funds and other businesses, including Oaktree’s investment in DoubleLine Capital, L.P., (ii) OCM, an entity that serves as the U.S. registered investment adviser to most of the Oaktree funds, (iii) Oaktree Investment Holdings, L.P. (“Oaktree Investment Holdings”), which holds certain corporate investments in other entities and (iv) Oaktree AIF Investments, L.P. (“Oaktree AIF”), which primarily holds interests in certain Oaktree fund investments for regulatory and structuring purposes. As a consequence, the assets of Oaktree Capital II, OCM, Oaktree Investment Holdings and Oaktree AIF will no longer directly support the Company’s operations. As a result of the Restructuring of the Company’s business, references to “Oaktree” in these financial statements will generally refer to the collective business of the Oaktree Operating Group, of which the Company is a component. Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The 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. The Restructuring was a transfer of assets among entities under common control, since both the transferring and receiving entities are under control of OCGH. Accordingly, the assets and liabilities were removed at book value and the transfer did not result in a gain or loss to the Company. The deconsolidation of the Oaktree Operating Group entities whose interests were transferred in the Restructuring was accounted for prospectively and did not require recast of the Company's historical financial information. The deconsolidation of entities whose interests were transferred in the Restructuring resulted in decreases in total assets of $1.7 billion , total liabilities of $1.2 billion , and total unitholders capital of $0.5 billion . Additionally, as a result of the Restructuring, our consolidated results of operations for the year ended December 31, 2019 reflect a full year of activities for Oaktree Capital I and OCM Cayman and related funds and investment vehicles and only nine months of activities for the remaining four Oaktree Operating Group entities and related funds and investment vehicles and, as a result, are not directly comparable to prior periods. Use of Estimates |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies of the Company Consolidation 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 variable interest entity (“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 those 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-based fees), would give it a controlling financial interest. A decision maker’s fee arrangement is not considered a variable interest if (a) 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 (b) 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. The Company does not consolidate most of the Oaktree funds because it is not the primary beneficiary of those funds due to the fact that its fee arrangements are considered at-market and thus not deemed to be variable interests, and it does not hold any other interests in those funds that are considered to be more than insignificant. Please see note 5 for more information regarding both consolidated and unconsolidated VIEs. For entities that are not VIEs, consolidation is evaluated through a majority voting interest model. “Consolidated funds” refers to Oaktree-managed funds and CLOs that the Company 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 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 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 13 for more information. Acquisitions The Company accounts for business combinations using the acquisition method of accounting, which requires the use of estimates and judgment to measure the fair value of identifiable tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree as of the acquisition date. Contingent consideration that is determined to be part of the business combination is recognized at fair value as of the acquisition date and is included in the purchase price. Transaction costs are expensed as incurred. Transactions that do not meet the definition of a business are accounted for as asset acquisitions. The cost of an asset acquisition is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. Transaction costs are included in the cost of the acquisition and no goodwill is recognized. 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 acquired identifiable intangible assets 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 seven to 25 years , and are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. In connection with the Restructuring, the Company’s indirect subsidiaries that held most of the goodwill and all of the acquired intangibles were deconsolidated, and these assets are no longer reflected on the statement of financial condition as of December 31, 2019. 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, debt obligations of consolidated CLOs, 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 pricing vendors or brokers. The Company seeks to obtain prices from at least two pricing vendors for the subject or similar securities. In cases where vendor pricing is not reflective of fair value, a secondary vendor is unavailable, or no vendor pricing is available, a comparison value made up of quotes for the subject or similar securities received from broker dealers may be used. 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 pricing vendors and brokers 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. 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 consolidated statements of operations. The Company’s accounting for these investments is similar to its accounting for investments held by the consolidated funds at fair value and the valuation methods are consistent with those used to determine the fair value of the consolidated funds’ 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 the debt obligations of CLOs line items in the 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. The fair value of CLO liabilities are 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. 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 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 consolidated statements of operations. Changes in the fair value of a CLO’s financial liabilities in accordance with the CLO measurement guidance are included in net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations. Please see notes 7 and 11 for more information. Foreign Currency The assets and liabilities of the Company’s foreign subsidiaries with non-U.S. dollar functional currencies are translated at exchange rates prevailing at the end of each reporting period. The results of foreign operations are translated at the weighted average exchange rate for each reporting period. Translation adjustments are included in other comprehensive income (loss) within the consolidated statements of financial condition until realized. Gains and losses resulting from foreign-currency transactions are included in general and administrative expense. Derivatives and Hedging A derivative is a financial instrument whose value is derived from an underlying financial instrument or index, such as interest rates, equity securities, currencies, commodities or credit spreads. Derivatives include futures, forwards, swaps or option contracts, and other financial instruments with similar characteristics. Derivative contracts often involve future commitments to exchange interest payment streams or currencies based on a notional or contractual amount (e.g., interest-rate swaps, foreign-currency forwards or cross-currency swaps). 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 result in 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. The Company recognizes all derivatives as assets or liabilities in its consolidated statements of financial condition at fair value. 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 consolidated statements of financial condition. When the Company enters into a derivative contract, it may elect to designate the derivative as a hedging instrument and apply hedge accounting as part of its overall risk management strategy. In other situations, when a derivative does not qualify for hedge accounting or when the derivative and the hedged item are both recorded in current-period earnings and thus deemed to be economic hedges, hedge accounting is not applied. Freestanding derivatives are financial instruments that we enter into as part of our overall risk management strategy but do not utilize hedge accounting. These financial instruments may include foreign-currency exchange contracts, interest-rate swaps and other derivative contracts. Derivatives that are designated as hedging instruments are classified as either a hedge of (a) a recognized asset or liability (“fair-value hedge”), (b) a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash-flow hedge”), or (c) a net investment in a foreign operation. For a fair-value hedge, the Company records changes in the fair value of the derivative and, to the extent that it is highly effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk in current-period earnings in the same caption in the consolidated statements of operations as the hedged item. Changes in the fair value of a derivative that is highly effective and is designated and qualifies as a cash-flow hedge, to the extent that the hedge is effective, are recorded in other comprehensive income (loss) until earnings are affected by the variability of cash flows of the hedged transaction. Any hedge ineffectiveness is recorded in current-period earnings. Changes in the fair value of derivatives designated as hedging instruments that are caused by factors other than changes in the risk being hedged are excluded from the assessment of hedge effectiveness and recognized in current-period earnings. For freestanding derivatives, changes in fair value are recorded in current-period earnings. The Company formally documents at inception the hedge relationship, including identification of the hedging instrument and the hedged item, as well as the risk management objectives, the strategy for undertaking the hedge transaction, and the evaluation of effectiveness of the hedged transaction. On a quarterly basis, the Company formally assesses whether the derivative it designated in each hedging relationship has been and is expected to remain highly effective in offsetting changes in the estimated fair value or cash flow of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the balance remaining in other comprehensive income (loss) is released to earnings. Cash and Cash-equivalents Cash and cash-equivalents include demand deposit accounts, money market funds and short-term investments with maturities of three months or less at the date of acquisition. U.S. Treasury and Other Securities U.S. Treasury and other securities include holdings of U.S. Treasury bills, time deposit securities and commercial paper with maturities greater than three months at the date of acquisition. These securities are classified as available-for-sale and recorded at fair value with changes in fair value included in other comprehensive income (loss). Changes in fair value were not material for all years presented. 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 under 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 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. Revenue Recognition On January 1, 2018, the Company adopted the new revenue recognition standard on a modified retrospective basis. As a result, prior period amounts continue to be reported under historic GAAP. Upon adoption, the Company recorded a cumulative-effect increase to unitholders’ capital as of January 1, 2018 of $48.7 million , net of tax. This adjustment relates to incentive income that would have met the “probable that significant reversal will not occur” criteria as of January 1, 2018 under the new revenue standard. The Company earns management fees and incentive income from the investment advisory services it provides to its customers. Revenue is recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. The Company typically enters into contracts with investment funds to provide investment management and administrative services. These services are generally capable of being distinct and each is accounted for as separate performance obligations comprised of distinct service periods because the services are performed over time. The Company determined that for accounting purposes the investment funds are generally considered to be the customers with respect to commingled funds, while the individual investors are the customers with respect to separate account and fund-of-one vehicles. The Company receives management fees and/or incentive income with respect to its investment management services, and it is reimbursed by the funds for expenses incurred or paid on behalf of the funds with respect to its investment advisory services and its administrative services. The Company evaluates whether it is the principal (i.e., report as management fees on a gross basis) or agent (i.e., report as management fees on a net basis) with respect to each performance obligation and associated reimbursement arrangements. The Company has elected to apply the variable consideration exemption for its fee arrangements with its customers. Please see note 4 for more information on revenues. Management Fees Management fees are recognized over the period in which the investment management services are performed because customers simultaneously consume and receive benefits that are satisfied over time. The contractual terms of management fees generally vary by fund structure. For most closed-end funds, the management fee rate is applied against committed capital during the fund’s investment period and the lesser of total funded capital or cost basis of assets in the liquidation period. Certain closed-end funds pay management fees during the investment period based on drawn capital or cost basis. Additionally, for closed-end funds that pay management fees based on committed capital, the Company may elect to delay the start of the fund’s investment period and thus its full management fees, in which case it earns management fees based on drawn capital, and in certain cases outstanding borrowings under a fund-level credit facility made in lieu of drawing capital, until the Company elects to start the fund’s investment period. The Company’s right to receive management fees typically ends after 10 or 11 years from either the initial closing date or the start of the investment period, even if assets remain in the fund. In the case of CLOs, the management fee is based on the aggregate par value of collateral assets and principal cash, as defined in the applicable CLO indentures, and a portion of the management fees is dependent on the sufficiency of the particular vehicle’s cash flow. For open-end and evergreen funds, the management fee is generally based on the NAV of the fund. For the publicly-traded BDCs, the management fee is based on gross assets (including assets acquired with leverage), net of cash. In the case of certain open-end fund accounts, the Company has the potential to earn performance-based fees, typically in reference to a relevant benchmark index or hurdle rate, which are classified as management fees. The Company also earns quarterly incentive fees on the investment income from certain evergreen funds, such as the publicly-traded BDCs and other fund accounts, which are generally recurring in nature and reflected as management fees. The ultimate amount of management fees that will be earned over the life of the contract is subject to a large number and broad range of possible outcomes due to market volatility and other factors outside of the Company’s control. As a result, the amount of revenue earned in any given period is generally determined at the end of each reporting period and relates to services performed during that period. This amount relates to the gross-up of reimbursable costs incurred on behalf of Oaktree funds in which the Company has determined it is the principal. Such costs are presented in compensation and benefits and general and administrative expenses. Subsequent to the Restructuring, our management fees consist primarily of fees earned from funds managed by OCM Cayman and sub-advisory fees for services provided to OCM. Our revenue recognition for sub-advisory fees is substantially similar to revenue recognition for management fees. Incentive Income Incentive income generally represents 20% of each closed-end fund’s profits, subject to the return of contributed capital and a preferred return of typically 8% per annum, and up to 20% of certain evergreen fund’s annual profits, subject to high-water marks or hurdle rates. Incentive income is recognized when it is probable that a significant reversal will not occur. Revenue recognition is typically met (a) for closed-end funds, only after all contributed capital and the preferred return on that capital have been distributed to the fund’s investors, and (b) for certain evergreen funds, at the conclusion of each annual measurement period. Potential incentive income is highly susceptible to market volatility, the judgment and actions of third parties, and other factors outside of the Company’s control. The Company’s experience has demonstrated little predictive value in the amount of potential incentive income ultimately earned due to the highly uncertain nature of returns inherent in the markets and contingencies associated with many realization events. As a result, the amount of incentive income recognized in any given period is generally determined after giving consideration to a number of factors, including whether the fund is in its investment or liquidation period, and the nature and level of risk associated with changes in fair value of the remaining assets in the fund. In general, it would be unlikely that any amount of potential incentive income would be recognized until (a) the uncertainty is resolved or (b) the fund is near final liquidation, assets are under contract for sale or are of low risk of significant fluctuation in fair value, and the assets are significantly in excess of the threshold at which incentive income would be earned. Incentives received by the Company before the revenue recognition criteria have been met are deferred and recorded as a deferred incentive income liability within accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition. The Company may receive tax distributions related to taxable income allocated by funds, which are treated as an advance of incentive inco |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Asset Acquisitions [Abstract] | |
ACQUISITIONS | ACQUISITIONS On October 17, 2017, OCM completed a transaction in which it became the new investment adviser to two business development companies (the “BDCs”): Oaktree Specialty Lending Corporation (NASDAQ: OCSL) and Oaktree Strategic Income Corporation (NASDAQ: OCSI). Upon the closing of the transaction (the “BDC acquisition”), the Company paid $320.0 million in cash to Fifth Street Management LLC (“FSM”), net of certain transaction-related expenses, for all of FSM’s right, title and interest in specified business records related to FSM’s then-existing investment advisory agreements with each BDC. The transaction was accounted for as an asset acquisition. The net purchase price was $319.4 million , consisting of the $320.0 million cash payment, net of certain transaction-related expenses and reimbursements received from the seller. Substantially all of the purchase price was allocated to finite-lived contractual rights. While FSM pledged cash and other assets with an estimated fair value of $56.2 million to indemnify the Company or the BDCs against potential claims or assessments, the Company determined that the amount of the potential liability associated with these claims could not be reasonably estimated as of the acquisition date so no amounts were recognized in purchase accounting related to the indemnification agreement. As a result of the Restructuring, the assets acquired in the BDC acquisition and the net income associated with managing the BDCs are no longer included in these consolidated financial statements. Please see note 18 for more information. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The Company provides investment management services through funds and separate accounts. The Company earns revenues from the management fees and incentive income generated by the funds that it manages. Additionally, for acting as a sub-investment manager, or sub-advisor, to certain Oaktree funds, the Company earns sub-advisory fees. Under certain subsidiary services agreements the Company provides certain investment and marketing related services to Oaktree affiliated entities. As a result of the Restructuring, which was effective October 1, 2019, sub-advisory fees are no longer eliminated in the consolidated operating results of the Company while management fees earned by OCM are no longer included in the Company's consolidated operating results. Revenues are affected by economic factors related to the asset class composition of the holdings and the contractual terms such as the basis for calculating the management fees and investors’ ability to redeem: Year Ended December 31, 2019 2018 2017 Management Fees Closed-end $ 345,026 $ 466,319 $ 504,727 Open-end 93,401 142,013 160,961 Evergreen 89,227 103,688 60,726 Sub-advisory 51,209 — — Total $ 578,863 $ 712,020 $ 726,414 Incentive Income Closed-end $ 334,287 $ 651,021 $ 701,065 Evergreen 15,837 23,038 42,288 Total $ 350,124 $ 674,059 $ 743,353 Contract Balances The Company receives management fees monthly or quarterly in accordance with its contracts with customers. Incentive income is received when the fund makes a distribution. Contract assets relate to the Company’s conditional right to receive payment for its performance completed under the contract. Receivables are recorded when the right to consideration becomes unconditional (i.e., only requires the passage of time). Contract liabilities (i.e., deferred revenues) relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenues when the Company provides investment management services. The table below sets forth contract balances for the periods indicated: As of December 31, 2019 2018 Receivables (1) $ 65,346 $ 74,795 Contract assets (1) 73,907 288,176 Contract liabilities (2) — 26,549 (1) The changes in the balances primarily relate to accruals, net of payments received. (2) Revenue recognized in the year ended December 31, 2019 from amounts included in the contract liability balance was $17.1 million . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
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 fees. 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 a result of the Restructuring, the Company re-assessed its prior variable interest entity consolidation determinations, noting that it was no longer the primary beneficiary of three funds in which its direct ownership interests were held by Oaktree Operating Group entities that are no longer directly controlled by the Company. Consolidated VIEs As of December 31, 2019 , the Company consolidated 22 VIEs for which it was the primary beneficiary, including 9 funds managed by Oaktree and 13 CLOs for which Oaktree serves as collateral manager. Two of the consolidated funds, Oaktree Enhanced Income Retention Holdings III, LLC and Oaktree CLO RR Holder, LLC, were formed to satisfy risk retention requirements under Section 15G of the Exchange Act. As of December 31, 2018 , the Company consolidated 23 VIEs. As of December 31, 2019 , the assets and liabilities of the 22 consolidated VIEs representing funds and CLOs amounted to $7.4 billion and $6.2 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, all of which are eliminated in consolidation. As of December 31, 2019 , the Company’s investments in consolidated VIEs had a carrying value of $560.8 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 11 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. The carrying value of the Company’s investments in VIEs that were not consolidated are shown below. As of December 31, 2019 2018 Corporate investments $ 693,090 $ 1,093,294 Due from affiliates 87,524 384,225 Maximum exposure to loss $ 780,614 $ 1,477,519 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
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 under the equity method of accounting and reflect the Company’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. The Company’s general partnership interests are substantially illiquid. While investments in funds reflect each respective fund’s holdings at fair value, equity-method investments in 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. Corporate investments consisted of the following: As of December 31, Corporate Investments 2019 2018 Equity-method investments: Funds $ 670,348 $ 1,089,068 Companies 3,855 45,797 Other investments, at fair value 34,934 74,899 Total corporate investments $ 709,137 $ 1,209,764 The components of investment income are set forth below: Year Ended December 31, Investment Income 2019 2018 2017 Equity-method investments: Funds $ 68,145 $ 66,922 $ 138,465 Companies 57,475 73,868 71,311 Other investments, at fair value 20,949 16,320 (8,487 ) Total investment income $ 146,569 $ 157,110 $ 201,289 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, but 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 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. Each reporting period, the Company evaluates each of its equity-method investments to determine if any are considered significant, as defined by the U.S. Securities and Exchange Commission (“SEC”). As of December 31, 2019 and 2018 , or for the years ended December 31, 2019 , 2018 and 2017 , 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: As of December 31, Statements of Financial Condition 2019 2018 Assets: Cash and cash-equivalents $ 1,892,353 $ 3,875,072 Investments, at fair value 25,213,422 39,711,382 Other assets 635,277 2,832,960 Total assets $ 27,741,052 $ 46,419,414 Liabilities and Capital: Debt obligations $ 3,558,139 $ 7,234,596 Other liabilities 3,779,527 2,662,850 Total liabilities 7,337,666 9,897,446 Total capital 20,403,386 36,521,968 Total liabilities and capital $ 27,741,052 $ 46,419,414 Year Ended December 31, 2019 2018 2017 Statements of Operations Revenues / investment income $ 766,096 $ 1,861,551 $ 1,982,828 Interest expense (150,078 ) (276,779 ) (235,266 ) Other expenses (402,814 ) (876,627 ) (821,083 ) Net realized and unrealized gain on investments 1,077,761 1,087,345 3,795,102 Net income $ 1,290,965 $ 1,795,490 $ 4,721,581 Other Investments, at Fair Value Other investments, at fair value primarily consist of: (a) investments in certain Oaktree and non-Oaktree funds for which the fair value option of accounting has been elected and (b) derivatives utilized to hedge the Company’s exposure to investment income earned from its funds. The following table summarizes net gains (losses) attributable to the Company’s other investments: Year Ended December 31, 2019 2018 2017 Realized gain (loss) $ 7,763 $ 18,208 $ 8,439 Net change in unrealized gain (loss) 13,186 (1,888 ) (16,926 ) Total gain (loss) $ 20,949 $ 16,320 $ (8,487 ) Investments of Consolidated Funds Investments, at Fair Value Investments held and securities sold short by the consolidated funds are summarized below: Fair Value as of December 31, Fair Value as a Percentage of Investments of Consolidated Funds as of December 31, Investments 2019 2018 2019 2018 United States: Debt securities: Communication services $ 464,356 $ 543,948 6.4 % 8.4 % Consumer discretionary 508,701 506,551 6.9 7.8 Consumer staples 92,102 112,197 1.3 1.7 Energy 223,671 204,568 3.0 3.1 Financials 355,113 332,240 4.8 5.1 Health care 512,864 537,592 7.0 8.2 Industrials 563,920 443,406 7.7 6.8 Information technology 524,390 536,000 7.1 8.2 Materials 294,300 289,499 4.0 4.4 Real estate 204,933 217,633 2.8 3.3 Utilities 216,053 137,031 2.9 2.1 Total debt securities (cost: $3,981,956 and $4,019,823 as of December 31, 2019 and 2018, respectively) 3,960,403 3,860,665 53.9 59.1 Equity securities: Communication services 312 — 0.0 0.0 Consumer discretionary 658 1,915 0.0 0.1 Energy 256 131 0.0 0.0 Financials — 837 0.0 0.0 Health care — 1,348 0.0 0.0 Industrials — 88 0.0 0.0 Utilities 130,671 1,107 1.8 0.0 Total equity securities (cost: $137,149 and $6,117 as of December 31, 2019 and 2018, respectively) 131,897 5,426 1.8 0.1 Real estate: Real estate 230,741 — 3.1 — Total real estate (cost: $230,741 and $0 as of December 31, 2019 and 2018, respectively) 230,741 — 3.1 — Fair Value as of December 31, Fair Value as a Percentage of Investments of Consolidated Funds as of December 31, Investments 2019 2018 2019 2018 Europe: Debt securities: Communication services $ 469,822 $ 530,337 6.4 % 8.1 % Consumer discretionary 659,001 545,324 9.0 8.3 Consumer staples 178,609 160,406 2.4 2.5 Energy 11,316 15,260 0.2 0.2 Financials 101,933 48,545 1.4 0.7 Health care 579,765 418,516 7.9 6.4 Industrials 362,120 246,640 4.9 3.8 Information technology 177,152 194,988 2.4 3.0 Materials 230,289 221,660 3.1 3.4 Real estate 96,315 30,045 1.3 0.5 Utilities 3,852 1,559 0.1 0.0 Total debt securities (cost: $2,876,531 and $2,477,821 as of December 31, 2019 and 2018, respectively) 2,870,174 2,413,280 39.0 36.9 Equity securities: Consumer Discretionary 94 — 0.0 — Consumer staples — 38 — 0.0 Health care — 948 — 0.1 Total equity securities (cost: $1,227 and $320 as of December 31, 2019 and 2018, respectively) 94 986 0.0 0.1 Asia and other: Debt securities: Communication services 15,750 12,069 0.2 0.2 Consumer discretionary 40,073 36,822 0.5 0.6 Consumer staples 11,545 11,867 0.2 0.2 Energy 13,471 20,594 0.1 0.3 Financials 10,313 13,995 0.1 0.2 Government 917 12,155 0.0 0.2 Health care 8,923 9,633 0.1 0.1 Industrials 31,814 40,468 0.4 0.7 Information technology 5,639 1,887 0.1 0.0 Materials 5,604 15,516 0.1 0.2 Real estate 751 38,592 0.0 0.6 Utilities 20,300 14,870 0.3 0.2 Total debt securities (cost: $164,650 and $233,603 as of December 31, 2019 and 2018, respectively) 165,100 228,468 2.2 3.5 Fair Value as of December 31, Fair Value as a Percentage of Investments of Consolidated Funds as of December 31, Investments 2019 2018 2019 2018 Asia and other: Equity securities: Consumer discretionary — 874 — 0.0 Consumer staples — 997 — 0.0 Energy — 382 — 0.0 Financials — 2,935 — 0.0 Industrials — 11,265 — 0.2 Information technology — 1,725 — 0.0 Materials — 4,382 — 0.1 Total equity securities (cost: $0 and $22,977 as of December 31, 2019 and 2018, respectively) — 22,560 — 0.3 Total debt securities 6,995,677 6,502,413 95.1 99.5 Total equity securities 131,991 28,972 1.8 0.5 Total real estate 230,741 — 3.1 — Total investments, at fair value $ 7,358,409 $ 6,531,385 100.0 % 100.0 % Securities Sold Short Equity securities (proceeds: $0 and $2,644 as of December 31, 2019 and 2018, respectively) $ — $ (2,609 ) As of December 31, 2019 and 2018 , 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 consolidated statements of operations consist primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments. Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period. The following table summarizes net gains (losses) from investment activities: Year Ended December 31, 2019 2018 2017 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 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Investments and other financial instruments $ (11,227 ) $ 137,521 $ (26,109 ) $ (252,038 ) $ 27,910 $ (1,151 ) CLO liabilities (1) — (131,948 ) — 85,014 — 53,351 Foreign-currency forward contracts (2) (6,546 ) 4,364 513 2,327 (2,917 ) 1,909 Total-return and interest-rate swaps (2) — — 858 29 232 378 Options and futures (2) — — 1,210 76 (4,825 ) 574 Total $ (17,773 ) $ 9,937 $ (23,528 ) $ (164,592 ) $ 20,400 $ 55,061 (1) Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under the CLO measurement guidance. Please see note 2 for more information. (2) |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2019 | |
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. There were no transfers between Level I and Level II positions for the years ended December 31, 2019 and 2018 . Please see notes 11 and 19 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively. As of December 31, 2019 As of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Assets U.S. Treasury and other securities (1) $ 9,232 $ — $ — $ 9,232 $ 546,531 $ — $ — $ 546,531 Corporate investments — 4,717 30,311 35,028 — 29,476 45,426 74,902 Foreign-currency forward contracts (2) — — — — — 1,654 — 1,654 Cross-currency swap (2) — — — — — 2,384 — 2,384 Total assets $ 9,232 $ 4,717 $ 30,311 $ 44,260 $ 546,531 $ 33,514 $ 45,426 $ 625,471 Liabilities Contingent consideration (3) $ — $ — $ — $ — $ — $ — $ (6,657 ) $ (6,657 ) Foreign-currency forward contracts (4) — (1,703 ) — (1,703 ) — (2,318 ) — (2,318 ) Total liabilities $ — $ (1,703 ) $ — $ (1,703 ) $ — $ (2,318 ) $ (6,657 ) $ (8,975 ) (1) Carrying value approximates fair value due to the short-term nature. (2) Amounts are included in other assets in the consolidated statements of financial condition. (3) Amounts are included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition. (4) Amounts are included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition, except for $94 and $3 as of December 31, 2019 and 2018 , respectively, which are included within corporate investments in the consolidated statements of financial condition. The table below sets forth a summary of changes in the fair value of Level III financial instruments: Year Ended December 31, 2019 2018 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 45,426 $ (6,657 ) $ 50,902 $ (18,778 ) Contributions or additions 937 — 19,382 — Distributions (9,643 ) — (31,614 ) — Restructuring distribution of net assets (14,416 ) 6,657 — — Net gain (loss) included in earnings 8,007 — 6,756 12,121 Ending balance $ 30,311 $ — $ 45,426 $ (6,657 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 8,007 $ — $ 4,796 $ 12,121 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 December 31, Significant Unobservable Input Weighted Average Financial Instrument 2019 2018 Valuation Technique Range Corporate investment – Limited partnership interests $ 30,311 $ 45,426 Market approach Not applicable Not applicable Not applicable Contingent liability — (6,657 ) Discounted cash flow Assumed % of total potential contingent payments 0% – 100% 23% 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 December 31, 2019 As of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Assets Investments: Corporate debt – bank debt $ — $ 5,911,523 $ 149,642 $ 6,061,165 $ — $ 5,216,923 $ 136,055 $ 5,352,978 Corporate debt – all other — 903,246 31,266 934,512 634 963,423 185,378 1,149,435 Equities – common stock 552 345 130,437 131,334 24,483 — 3,063 27,546 Equities – preferred stock — — 657 657 — — 1,426 1,426 Real estate — — 230,741 230,741 — — — — Total investments 552 6,815,114 542,743 7,358,409 25,117 6,180,346 325,922 6,531,385 Derivatives: Foreign-currency forward contracts 27 6,863 — 6,890 — 2,275 — 2,275 Options and futures — — — 189 — — 189 Total derivatives 27 6,863 — 6,890 189 2,275 — 2,464 Total assets $ 579 $ 6,821,977 $ 542,743 $ 7,365,299 $ 25,306 $ 6,182,621 $ 325,922 $ 6,533,849 Liabilities CLO debt obligations: Senior secured notes (1) $ — $ (5,613,846 ) $ — $ (5,613,846 ) $ — $ (3,976,602 ) $ — $ (3,976,602 ) Subordinated notes (1) — (154,153 ) — (154,153 ) — (151,392 ) — (151,392 ) Total CLO debt obligations — (5,767,999 ) — (5,767,999 ) — (4,127,994 ) — (4,127,994 ) Securities sold short: Equity securities — — — — (2,609 ) — — (2,609 ) Derivatives: Foreign-currency forward contracts (202 ) (2,349 ) — (2,551 ) — (643 ) — (643 ) Total liabilities $ (202 ) $ (5,770,348 ) $ — $ (5,770,550 ) $ (2,609 ) $ (4,128,637 ) $ — $ (4,131,246 ) (1) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 11 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 Total 2019 Beginning balance $ 136,055 $ 185,378 $ 3,063 $ 1,426 $ — $ 325,922 Deconsolidation of funds (121,146 ) (116,714 ) (3,063 ) (1,426 ) — $ (242,349 ) Transfers into Level III 9,300 — 2,391 776 — 12,467 Transfers out of Level III (5,293 ) (57,325 ) (504 ) — — (63,122 ) Purchases 155,546 27,857 130,341 — 230,741 544,485 Sales (15,282 ) (8,471 ) (266 ) — — (24,019 ) Realized gains (losses), net 46 (119 ) (106 ) — — (179 ) Unrealized (depreciation) appreciation, net (9,584 ) 660 (1,419 ) (119 ) — (10,462 ) Ending balance $ 149,642 $ 31,266 $ 130,437 $ 657 $ 230,741 $ 542,743 Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period $ (9,780 ) $ 390 $ (1,419 ) $ (119 ) $ — $ (10,928 ) 2018 Beginning balance $ 86,999 $ 75,388 $ 3,427 $ — $ 121,588 $ 287,402 Deconsolidation of funds — — (52,000 ) (172 ) (121,087 ) (173,259 ) Transfers into Level III 48,312 2,034 490 — — 50,836 Transfers out of Level III (26,845 ) (10,984 ) (658 ) — — (38,487 ) Purchases 83,199 186,210 52,533 1,248 — 323,190 Sales (54,649 ) (57,414 ) (387 ) — (501 ) (112,951 ) Realized gains (losses), net 659 351 59 — 1,069 Unrealized (depreciation) appreciation, net (1,620 ) (10,207 ) (401 ) 350 — (11,878 ) Ending balance $ 136,055 $ 185,378 $ 3,063 $ 1,426 $ — $ 325,922 Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period $ (1,729 ) $ (7,619 ) $ (401 ) $ 350 $ — $ (9,399 ) 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 consolidated statements of operations. There were no transfers between Level I and Level II positions for the year ended December 31, 2019 . Transfers between Level I and Level II positions for the year ended December 31, 2018 included $0.7 million from Level I to Level II due to a decline in trading activity for one credit-oriented security, which was valued using broker quotes. 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 December 31, 2019 : Investment Type Fair Value Valuation Technique Significant Unobservable (1)(2) Range Weighted Average (3) Credit-oriented investments: Consumer discretionary: $ 16,836 Recent market information (5) Quoted prices Not applicable Not applicable Financials: 17,274 Recent market information (5) Quoted prices Not applicable Not applicable Health care: 26,863 Recent market information (5) Quoted prices Not applicable Not applicable Real estate: 16,755 Recent market information (5) Quoted prices Not applicable Not applicable 71,906 Recent transaction price (4) Other: 31,274 Recent market information (5) Quoted prices Not applicable Not applicable Equity investments: 130,341 Discounted cash flow (4) Discount rate 6% – 8% 7% 753 Recent market information (5) Real estate-oriented: 230,741 Recent transaction price (4) Not Applicable Not applicable Not applicable Total Level III $ 542,743 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, 2018 : Investment Type Fair Value Valuation Technique Significant Unobservable (1)(2) Range Weighted Average (3) Credit-oriented investments: Communication services: $ 20,746 Recent market information (5) Quoted prices Not applicable Not applicable 2,416 Discounted cash flow (4) Discount rate 12% – 14% 13% FInancials: 108,277 Recent market information (5) Quoted prices Not applicable Not applicable 3,608 Discounted cash flow (4) Discount rate 9% – 15% 14% Health care: 37,724 Recent market information (5) Quoted prices Not applicable Not applicable 2,550 Discounted cash flow (4) Discount rate 10% – 16% 14% Real estate: 79,562 Recent market information (5) Quoted prices Not applicable Not applicable 4,570 Discounted cash flow (4) Discount rate 12% – 23% 14% Other: 38,959 Recent market information (5) Quotes prices Not applicable Not applicable 17,943 Discounted cash flow (4) Discount rate 8% – 15% 13% 5,078 Recent transaction price (8) Not applicable Not applicable Not applicable Equity investments: 2,390 Discounted cash flow (4) Discount rate 10% – 30% 12% 2,099 Market approach (6) Earnings multiple (7) 4x – 10x 7x Total Level III $ 325,922 (1) 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. (2) 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. (3) The weighted average is based on the fair value of the investments included in the range. (4) 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. (5) Certain investments are valued using vendor prices or broker quotes 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. (6) 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. (7) 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. (8) 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. 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 year ended December 31, 2019 , 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. There were no changes in the valuation techniques for Level III securities for the year ended December 31, 2018 . |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING The fair value of freestanding derivatives consisted of the following: Assets Liabilities Notional Fair Value Notional Fair Value As of December 31, 2019 Foreign-currency forward contracts $ — $ — $ (156,281 ) $ (1,703 ) $ — $ — $ (156,281 ) $ (1,703 ) As of December 31, 2018 Foreign-currency forward contracts $ 58,254 $ 1,654 $ (77,156 ) $ (2,318 ) Cross-currency swap 242,450 2,384 — — $ 300,704 $ 4,038 $ (77,156 ) $ (2,318 ) Realized and unrealized gains and losses arising from freestanding derivatives were recorded in the consolidated statements of operations as follows: Year Ended December 31, 2019 2018 2017 Investment income $ 5,243 $ 9,191 $ (16,707 ) General and administrative expense (1) 2,143 (1,322 ) (14,199 ) Total gain (loss) $ 7,386 $ 7,869 $ (30,906 ) (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. There were no derivatives outstanding that were designated as hedging instruments for accounting purposes as of December 31, 2019 and 2018 . Additionally, the Company had not designated any derivatives as fair-value hedges or hedges of net investments in foreign operations as of December 31, 2019 and 2018 . 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 are accounted for as a hedging instrument utilizing hedge accounting. The fair value of derivatives held by the consolidated funds consisted of the following: Assets Liabilities Notional Fair Value Notional Fair Value As of December 31, 2019 Foreign-currency forward contracts $ 166,917 $ 6,890 $ (140,276 ) $ (2,551 ) $ 166,917 $ 6,890 $ (140,276 ) $ (2,551 ) As of December 31, 2018 Foreign-currency forward contracts $ 95,980 $ 2,275 $ (48,081 ) $ (643 ) Options and futures 11,126 189 — — $ 107,106 $ 2,464 $ (48,081 ) $ (643 ) The impact of derivatives held by the consolidated funds in the consolidated statements of operations was as follows: Year Ended December 31, 2019 2018 2017 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 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Foreign-currency forward contracts $ (6,546 ) $ 4,364 $ 513 $ 2,327 $ (2,917 ) $ 1,909 Total-return and interest-rate swaps — — 858 29 232 378 Options and futures — — 1,210 76 (4,825 ) 574 Total $ (6,546 ) $ 4,364 $ 2,581 $ 2,432 $ (7,510 ) $ 2,861 Balance Sheet Offsetting The Company recognizes all derivatives as assets or liabilities at fair value in its 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 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 December 31, 2019 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Derivative assets of consolidated funds: Foreign-currency forward contracts 6,890 — — 6,890 Subtotal 6,890 — — 6,890 Total $ 6,890 $ — $ — $ 6,890 Derivative Liabilities: Foreign-currency forward contracts $ (1,703 ) $ — $ — $ (1,703 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (2,551 ) — — (2,551 ) Total $ (4,254 ) $ — $ — $ (4,254 ) Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2018 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 1,654 $ 1,497 $ — $ 157 Cross-currency swap 2,384 — — 2,384 Subtotal 4,038 1,497 — 2,541 Derivative assets of consolidated funds: Foreign-currency forward contracts 2,275 — — 2,275 Options and futures 189 — — 189 Subtotal 2,464 — — 2,464 Total $ 6,502 $ 1,497 $ — $ 5,005 Derivative Liabilities: Foreign-currency forward contracts $ (2,318 ) $ (1,497 ) $ — $ (821 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (643 ) — — (643 ) Total $ (2,961 ) $ (1,497 ) $ — $ (1,464 ) |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | FIXED ASSETS Fixed assets, which consist of furniture and equipment, capitalized software, office leasehold improvements and company-owned aircraft, are included in other assets in the consolidated statements of financial position. The following table sets forth the Company’s fixed assets and accumulated depreciation: As of December 31, 2019 2018 Furniture, equipment and capitalized software $ 9,608 $ 26,345 Leasehold improvements 25,764 70,270 Corporate aircraft — 66,120 Other 937 4,859 Fixed assets 36,309 167,594 Accumulated depreciation (22,227 ) (61,879 ) Fixed assets, net $ 14,082 $ 105,715 As a result of the Restructuring, fixed assets of $89.5 million were transferred as part of the deconsolidation of entities effective October 1, 2019. |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 , the Company determined there was no goodwill impairment. The carrying value of goodwill was $18.4 million as of December 31, 2019 and $69.3 million as of 2018 . As a result of the Restructuring, goodwill and intangible assets of $50.9 million and $301.7 million , respectively, were transferred as part of the deconsolidation of entities effective October 1, 2019. The following table summarizes the carrying value of intangible assets: As of December 31, 2019 2018 Contractual rights $ — $ 347,452 Accumulated amortization — (33,173 ) Intangible assets, net $ — $ 314,279 Amortization expense associated with the Company’s intangible assets was $12.6 million , $16.9 million and $6.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Goodwill and intangible assets are included in other assets in the consolidated statements of financial position. |
DEBT OBLIGATIONS AND CREDIT FAC
DEBT OBLIGATIONS AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS AND CREDIT FACILITIES | DEBT OBLIGATIONS AND CREDIT FACILITIES Prior to the Restructuring, the Company’s financial statements reflected debt and debt service of the entire Oaktree Operating Group. OCM, Oaktree Capital I, Oaktree Capital II and Oaktree AIF are co-obligors and jointly and severally liable for all debt obligations listed below, however, debt obligations are reflected in the consolidated financial statements based upon the entity that actually made the borrowing and received the related proceeds. OCM has historically been the only direct borrower or issuer under credit agreements and private placement notes with third parties and made all payments of principal and interest. In connection with the Restructuring, debt obligations with a net carrying amount of $746.3 million related to OCM were transferred as part of the deconsolidation of entities effective October 1, 2019. Accordingly, the Company’s financial statements after the Restructuring generally will not reflect debt obligations, interest expense or related liabilities associated with its operating subsidiaries, until such time as Oaktree Capital I directly borrows or issues notes under such arrangements. As of December 31, 2019, Oaktree Capital I is jointly and severally liable, along with its co-obligors, for the debt obligations listed below with an aggregate outstanding principal balance of $750 million . The Company’s debt obligations are set forth below: As of December 31, 2019 2018 $250,000, 3.78%, issued in December 2017, payable on December 18, 2032 $ — $ 250,000 $250,000, variable-rate term loan, issued in March 2014, payable on March 29, 2023 (1) — 150,000 $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 — 50,000 $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 — 100,000 $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 — 100,000 $100,000, 3.69%, issued in July 2016, payable on July 12, 2031 — 100,000 Total remaining principal — 750,000 Less: Debt issuance costs — (4,055 ) Debt obligations $ — $ 745,945 (1) On December 13, 2019, the credit facility was amended to among other things, increase the revolving loan commitment from $500 million to $650 million , provide for the refinancing of the then-outstanding $150 million term loan with revolving loans, extend the maturity date from March 29, 2023 to December 13, 2024, favorably update the commitment fee and interest rate in the corporate ratings-based pricing grid and increase the asset under management covenant threshold from $60 million to $65 million . Borrowings generally bear interest at a spread to either LIBOR or an alternative base rate. Based on the current credit ratings of OCM, the interest rate on borrowings is LIBOR plus 0.88% per annum and the commitment fee on the unused portions of the revolving credit facility is 0.08% per annum. The credit agreement contains customary financial covenants and restrictions, including ones regarding a maximum leverage ratio and a minimum required level of assets under management (as defined in the credit agreement, as amended above). As of December 31, 2019 , OCM had $150 million outstanding under the revolving credit facility and the Company had no outstanding borrowings under the revolving credit facility. OCM and the Company were in compliance with all financial maintenance covenants associated with its senior notes and bank credit facility as of December 31, 2019 and 2018 , respectively. 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 $0.0 million and $720.3 million as of December 31, 2019 and 2018 , respectively. The fair value as of December 31, 2018 utilized an average borrowing rate of 4.4% . In July 2017, the Company agreed to guarantee a $ 17.5 million standby letter of credit extended to one of the investment funds that it manages, which expired in January 2018. Credit Facilities of the Consolidated Funds Certain consolidated funds may maintain revolving credit facilities that are secured by the assets of the fund or may issue 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 consolidated funds had the following debt obligations outstanding: Outstanding Amount as of December 31, Facility Capacity Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Commitment Fee Rate L/C Fee Credit Agreement 2019 2018 Senior variable rate notes $ 159,411 $ 870,098 $ 159,411 3.42% 4.4 N/A N/A Less: Debt issuance costs (934 ) (5,569 ) Total debt obligations, net $ 158,477 $ 864,529 As of December 31, 2019 and 2018 , the consolidated funds had debt obligations with an aggregate outstanding principal balance of $159.4 million and $870.1 million , respectively. The fair value of the senior variable rate notes is a Level III valuation and aggregated $159.1 million and $871.3 million as of December 31, 2019 and 2018 , respectively, using prices obtained from pricing vendors. 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. As a result of the Restructuring, senior variable rate notes and debt issuance costs of $870.7 million and $4.6 million , respectively, were transferred as part of the deconsolidation of entities effective October 1, 2019. Debt Obligations of CLOs Debt obligations of CLOs represent amounts due to holders of debt securities issued by the CLOs, as well as term loans of CLOs that had not priced as of period end. Set forth below are the outstanding debt obligations of CLOs: As of December 31, 2019 As of December 31, 2018 Fair Value (1) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Fair Value (1) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Senior secured notes $ 5,613,846 2.85% 8.6 $ 3,976,602 2.69% 9.9 Subordinated notes (2) 154,153 N/A 10.4 151,392 N/A 9.7 Total CLO debt obligations $ 5,767,999 $ 4,127,994 (1) 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 7 for more information. (2) 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 December 31, 2019 and 2018 , the fair value of CLO assets was $6.4 billion and $4.7 billion , respectively, and consisted of cash, corporate loans, corporate bonds and other securities. As of December 31, 2019 , future scheduled principal or par value payments with respect to the debt obligations of CLOs were as follows: 2020 $ 204,290 2021 — 2022 — 2023 — 2024 — Thereafter 5,622,072 Total $ 5,826,362 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases related to office space and certain equipment with remaining lease terms expiring within one year through 2031 , some of which include options to extend the leases for up to five years and some of which include options to terminate the leases within one year . As of December 31, 2019 , there were no finance leases outstanding and no additional operating leases that have not yet commenced. The components of lease expense included in general and administrative expense were as follows: Twelve months ended December 31, 2019 Operating lease cost $ 15,984 Sublease income (631 ) Total lease cost $ 15,353 Supplemental cash flow information related to leases was as follows: Twelve months ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 16,224 Weighted average remaining lease term for operating leases (in years) 10.7 Weighted average discount rate for operating leases 4.4 % As of December 31, 2019 , maturities of operating lease liabilities were as follows: 2020 6,262 2021 6,101 2022 5,480 2023 4,800 2024 4,224 Thereafter 28,778 Total lease payments 55,645 Less: imputed interest (9,852 ) Total operating lease liabilities $ 45,793 |
NON-CONTROLLING REDEEMABLE INTE
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS | 12 Months Ended |
Dec. 31, 2019 | |
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. Year Ended December 31, 2019 2018 2017 Beginning balance $ 961,622 $ 860,548 $ 344,047 Initial consolidation of a fund 96,248 — 296,971 Deconsolidation of funds due to restructuring (406,058 ) — — Deconsolidation of funds (423,598 ) — — Contributions 664,679 447,260 331,764 Distributions (107,499 ) (305,406 ) (146,393 ) Net income (loss) 93,620 (40,930 ) 29,532 Change in distributions payable (16,105 ) 2,469 1,853 Foreign-currency translation and other 3,313 (2,319 ) 2,774 Ending balance $ 866,222 $ 961,622 $ 860,548 |
UNITHOLDERS' CAPITAL
UNITHOLDERS' CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
UNITHOLDERS' CAPITAL | UNITHOLDERS’ CAPITAL Unitholders’ capital reflects the economic interests attributable to Class A unitholders, preferred 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, after giving effect to distributions, if any, attributable to the preferred unitholders, based on the proportionate share of Oaktree Operating Group units held by the OCGH unitholders. Certain expenses, such as income taxes and related administrative expenses of Oaktree Capital Group, LLC and its Intermediate Holding Companies, are solely attributable to the Class A unitholders. As of December 31, 2019 and 2018 , respectively, OCGH units represented 61,793,286 of the total 159,760,541 Oaktree Operating Group units and 85,471,937 of the total 157,133,560 Oaktree Operating Group units. Based on allocable capital of $1,301,066 and $1,997,745 as of December 31, 2019 and 2018, respectively, the OCGH non-controlling interest was $503,253 and $1,086,693 . As of December 31, 2019 and 2018, non-controlling interests attributable to third parties was $0 and $5,661 , respectively. Distributions per Class A unit are set forth below: Payment Date Record Date Applicable to Quarterly Period Ended Distribution Per Unit November 12, 2019 October 31, 2019 September 30, 2019 $ 0.03 September 30, 2019 September 30, 2019 - 3.13 May 10, 2019 May 6, 2019 March 31, 2019 1.05 February 22, 2019 February 15, 2019 December 31, 2018 0.75 Total 2019 $ 4.96 November 13, 2018 November 5, 2018 September 30, 2018 $ 0.70 August 10, 2018 August 6, 2018 June 30, 2018 0.55 May 11, 2018 May 7, 2018 March 31, 2018 0.96 February 23, 2018 February 16, 2018 December 31, 2017 0.76 Total 2018 $ 2.97 November 10, 2017 November 6, 2017 September 30, 2017 $ 0.56 August 11, 2017 August 7, 2017 June 30, 2017 1.31 May 12, 2017 May 8, 2017 March 31, 2017 0.71 February 24, 2017 February 17, 2017 December 31, 2016 0.63 Total 2017 $ 3.21 Class A Unit Issuance On February 12, 2018, the Company issued and sold 5,000,000 Class A units in a public offering, resulting in $219.5 million in net proceeds to the Company. The Company did not retain any proceeds from the sale of Class A units in this offering. The proceeds were used to acquire interests in the Company’s business from certain of the Company’s directors, employees and other investors, including certain senior executives and other members of the Company’s senior management. Preferred Unit Issuances On May 17, 2018, the Company issued 7,200,000 of its 6.625% Series A preferred units representing limited liability company interests with a liquidation preference of $25.00 per unit. The issuance resulted in $173.7 million in net proceeds to the Company. Distributions on the Series A preferred units, when and if declared by the board of directors of Oaktree, will be paid quarterly on March 15, June 15, September 15 and December 15 of each year. The first distribution was paid on September 17, 2018. Distributions on the Series A preferred units are non-cumulative. On August 9, 2018, the Company issued 9,400,000 of its 6.550% Series B preferred units representing limited liability company interests with a liquidation preference of $25.00 per unit. The issuance resulted in $226.9 million in net proceeds to the Company. Distributions on the Series B preferred units, when and if declared by the board of directors of Oaktree, will be paid quarterly on March 15, June 15, September 15 and December 15 of each year. The first distribution was paid on December 17, 2018. Distributions on the Series B preferred units are non-cumulative. Unless distributions have been declared and paid or declared and set apart for payment on the preferred units for a quarterly distribution period, during the remainder of that distribution period the Company may not repurchase any common units or any other units that are junior in rank, as to the payment of distributions, to the preferred units and the Company may not declare or pay or set apart payment for distributions on any common units or junior units for the remainder of that distribution period, other than certain Permitted Distributions (as defined in the unit designation related to the applicable preferred units (each, the “Preferred Unit Designation”)). These restrictions are not applicable during the initial distribution period, which is the period from the original issue date to, but excluding, September 15, 2018 and December 15, 2018 in regards to the Series A and Series B preferred units, respectively. The Company may redeem, at its option, out of funds legally available, the preferred units, in whole or in part, at any time on or after June 15, 2023 in respect of the Series A preferred units or September 15, 2023 in respect of the Series B preferred units, at a price of $25.00 per preferred unit plus declared and unpaid distributions to, but excluding, the redemption date, without payment of any undeclared distributions. Holders of the preferred units have no right to require the redemption of the preferred units. If a Change of Control Event (as defined in the applicable Preferred Unit Designation) occurs prior to June 15, 2023 in respect of the Series A preferred units or September 15, 2023 in respect of the Series B preferred units, the Company may, at its option, out of funds legally available, redeem the applicable preferred units, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such Change of Control Event, at a price of $25.25 per preferred unit, plus declared and unpaid distributions to, but excluding, the redemption date, without payment of any undeclared distributions. If a Tax Redemption Event or Rating Agency Event (each, as defined in the applicable Preferred Unit Designation) occurs prior to June 15, 2023 in respect of the Series A preferred units or September 15, 2023 in respect of the Series B preferred units, the Company may, at its option, out of funds legally available, redeem the applicable preferred units, in whole but not in part, upon at least 30 days’ notice, within 60 days of the occurrence of such Tax Redemption Event or Rating Agency Event, at a price of $25.50 per preferred unit, plus declared and unpaid distributions to, but excluding, the redemption date, without payment of any undeclared distributions. The preferred units are not convertible into Class A units or any other class or series of the Company’s interests or any other security. Holders of the preferred units do not have any of the voting rights given to holders of our Class A units, except that holders of the preferred units are entitled to certain voting rights under certain conditions. The following table sets forth a summary of net income attributable to the preferred unitholders, the OCGH non-controlling interest and the Class A common unitholders: Year Ended December 31, 2019 2018 2017 Weighted average Oaktree Operating Group units outstanding (in thousands): OCGH non-controlling interest 79,084 86,390 91,643 Class A unitholders 80,045 70,526 64,148 Total weighted average units outstanding 159,129 156,916 155,791 Oaktree Operating Group net income: Net income attributable to preferred unitholders (1) $ 27,316 $ 12,277 $ — Net income attributable to OCGH non-controlling interest 137,100 280,159 422,122 Net income attributable to OCG Class A unitholders 137,921 228,791 295,161 Oaktree Operating Group net income (2) $ 302,337 $ 521,227 $ 717,283 Net income attributable to OCG Class A unitholders: Oaktree Operating Group net income attributable to OCG Class A unitholders $ 137,921 $ 228,791 $ 295,161 Non-Operating Group income (expense) (8,662 ) (632 ) 144,143 Income tax expense of Intermediate Holding Companies (1,736 ) (17,018 ) (207,810 ) Net income attributable to OCG Class A unitholders $ 127,523 $ 211,141 $ 231,494 (1) Represents distributions declared, if any, on the preferred units. (2) Oaktree Operating Group net income does not include amounts attributable to other non-controlling interests, which amounted to $1,779 , $2,659 and $2,662 for the years ended December 31, 2019 , 2018 and 2017 , respectively. As a result of the Restructuring, as of October 1, 2019, four of the six Oaktree Operating Group entities are no longer indirect subsidiaries of the Company. Accordingly, subsequent to that date, the consolidated financial statements reflect the Company’s indirect economic interest in only two of the Oaktree Operating Group entities: (i) Oaktree Capital I and (ii) OCM Cayman. The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below: Year Ended December 31, 2019 2018 2017 Net income attributable to OCG Class A unitholders $ 127,523 $ 211,141 $ 231,494 Equity reallocation between controlling and non-controlling interests 306,015 80,106 23,151 Change from net income attributable to OCG Class A unitholders and transfers from non-controlling interests $ 433,538 $ 291,247 $ 254,645 |
EARNINGS PER UNIT
EARNINGS PER UNIT | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Unit [Abstract] | |
EARNINGS PER UNIT | EARNINGS PER UNIT The computation of net income per Class A unit is set forth below: Year Ended December 31, 2019 2018 2017 Net income per Class A unit (basic and diluted): (in thousands, except per unit amounts) Net income attributable to OCG Class A unitholders $ 127,523 $ 211,141 $ 231,494 Weighted average number of Class A units outstanding (basic and diluted) 80,045 70,526 64,148 Basic and diluted net income per Class A unit $ 1.59 $ 2.99 $ 3.61 Prior to the Mergers, OCGH units could be exchanged on a one -for- one basis into Class A units, subject to certain restrictions. The exchange of these units would have proportionally increased the Company’s interest in the Oaktree Operating Group. However, as the restrictions set forth in the then-current exchange agreement were in place for each applicable reporting period, those units were not included in the computation of diluted earnings per unit for the years ended December 31, 2019 , 2018 and 2017 . Subsequent to the Mergers, OCGH units are no longer exchangeable into Class A units. A deferred equity unit represents a special unit award that, when vested, will be settled with an unvested OCGH unit on a one -for- one basis. The number of deferred equity units that will vest is based on the achievement of certain performance targets through June 2024. Once a performance target has been met, the applicable number of OCGH units will be issued and begin to vest over periods of up to 10.0 years . The holder of a deferred equity unit is not entitled to any distributions until the issuance of an OCGH unit in settlement of a deferred equity unit. As of or for the years ended December 31, 2019 and 2018 , no OCGH units were considered issuable under the terms of the arrangement; consequently, no contingently issuable units were included in the computation of diluted earnings per unit for those periods. Please see note 16 for more information. Certain compensation arrangements include performance-based awards that could result in the issuance of OCGH units, which would vest over periods of four to ten years from date of issuance. As of and for the years ended December 31, 2019 and 2018 , no OCGH units were considered issuable under the terms of these arrangements; consequently, no contingently issuable units were included in the computation of diluted earnings per unit for those periods. The Company had a contingent consideration liability that was payable in cash and fully-vested OCGH units. In May 2018, the contingent consideration arrangement was modified in respect of certain performance targets and payment terms. The new arrangement provided for contingent consideration payable in cash and Class A units. No Class A units or OCGH units were considered issuable under the terms of the arrangement as of or for the years ended December 31, 2019 and 2018 ; consequently, no contingently issuable units were included in the computation of diluted earnings per unit for those periods. Please see note 18 for more information. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION In December 2011, the Company adopted the 2011 Oaktree Capital Group, LLC Equity Incentive Plan (the “2011 Plan”). The 2011 Plan provides for the granting of options, unit appreciation rights, restricted unit awards, unit bonus awards, phantom equity awards or other unit-based awards to senior executives, directors, officers, certain employees, consultants, and advisors of the Company and its affiliates. As of December 31, 2019 , a maximum of 23,570,034 units have been authorized to be awarded pursuant to the 2011 Plan, and 15,723,391 units (including 2,000,000 EVUs) have been awarded under the 2011 Plan. Each Class A and OCGH unit, when issued, represents an indirect interest in one Oaktree Operating Group unit. Total vested and unvested Converted OCGH Units, OCGH units and Class A units issued and outstanding were 159,760,541 as of December 31, 2019 . Restated Exchange Agreement At the closing of the Mergers, Oaktree entered into a Third Amended and Restated Exchange Agreement that will, among other things, allow limited partners of OCGH to exchange (“Exchanges”) certain vested limited partnership units of OCGH (“OCGH Units”) for cash, Brookfield Class A Shares, notes issued by a Brookfield subsidiary or equity interests in a subsidiary of OCGH that will entitle such limited partners to the proceeds from a note, or a combination of the foregoing. Either of such notes will have a three-year maturity and will accrue interest at the then-current 5 -year treasury note rate plus 3% . Only Converted OCGH Units, OCGH Units issued and outstanding at the time of the closing of the Mergers, OCGH Units issued after the closing of the Mergers pursuant to agreements in effect on March 13, 2019, OCGH Units issuable upon vesting of certain phantom equity awards (“Phantom Units”) and other OCGH Units consented-to by Brookfield will be, when vested, eligible to participate in an Exchange. The form of the consideration in an Exchange is generally in the discretion of Brookfield, subject to certain limitations. In general, OCGH limited partners will be entitled to provide an election notice to participate in an Exchange with respect to eligible vested OCGH Units during the first 60 calendar days of each year beginning January 1, 2022 (an “Open Period”). However, holders of Converted OCGH Units and Phantom Units will be eligible to provide an election notice with respect to their vested units beginning as early as 2020 and each year thereafter subject to certain limitations. Each Exchange will thereafter be consummated within the first 155 days of such calendar year, subject to extension in certain circumstances. Valuation Except as described below, for purposes of the Exchanges each OCGH Unit will be valued (i) by applying a 13.5 x multiple to the trailing three-year average (or two-year average for Exchanges in 2022) of fee-related earnings less stock-based compensation at grant value and excluding depreciation and amortization and a 6.75 x multiple to the trailing three-year average of net incentives created, and (ii) adding 100% of the value of net cash (defined as cash less the face value of debt and preferred stock, other than certain preferred stock issued in connection with certain Exchanges), 100% of the value of corporate investments and 75% of fund-level net accrued incentives as of December 31 of the prior year, in each case subject to certain adjustments. Amounts received in respect of each OCGH Unit will be reduced by the amount of any non-tax related distributions received in the calendar year in which the Exchange occurs, but increased by an amount accruing daily from January 1 of such year to the date of the closing of the Exchange at a rate per annum equal to the 5 -year treasury note rate as of December 31 of the prior year plus 3% . However, in 2020 and 2021, Converted OCGH Units and Phantom Units will be valued at $49.00 per unit, less the amount of any capital distributions received upon vesting. Thereafter any such Converted OCGH Units and Phantom Units will be valued using the same methodology applied to all other OCGH Units. Annual Limits Exchanges of OCGH Units, other than Converted OCGH Units and Phantom Units, will be subject to certain annual caps and limitations as follows: • Messrs. Howard Marks, Bruce Karsh, Jay Wintrob, John Frank, Sheldon Stone, Richard Masson and Larry Keele can, for the Open Period beginning in 2022, exchange up to 20% of the OCGH Units held by them collectively at the closing of the Mergers (or issued pursuant to agreements in place on March 19, 2019, or as agreed to by Brookfield). For each year thereafter, they will be able to exchange an additional 20% of such OCGH Units (subject to yearly caps and inclusive of any prior exchanges), such that they will be entitled to exchange 100% of their OCGH Units beginning during the Open Period in 2026 (subject to yearly caps and inclusive of any prior exchanges). • Current employees other than those included in the group named in the preceding bullet can, for the Open Period beginning in 2022, sell up to 12.5% of the OCGH Units held by them collectively at the closing (or issued pursuant to agreements in place on March 13, 2019, or as agreed to by Brookfield). For each year thereafter, they will be able to exchange an additional 12.5% of such OCGH Units (subject to yearly caps and inclusive of any prior exchanges). They will be entitled to exchange 100% of their OCGH Units beginning during the Open Period in 2029 (subject to yearly caps). • Brookfield is not obligated to permit Exchanges that, in the aggregate together with Exchanges requested by all other OCGH limited partners, exceed certain maximum amounts per year. These maximum amounts are: 20% of the exchangeable OCGH Units in calendar year 2022, 25% in 2023, 30% in 2024, and 35% in 2025 and each year thereafter. • In the event that OCGH limited partners wish to sell or exchange units in excess of the maximum amount for a given year, OCGH will have the right to allocate the opportunity to sell the exchangeable units among the OCGH limited partners in its sole discretion so that the amount exchanged does not exceed the maximum amount for such year. With respect to Exchanges of Converted OCGH Units and Phantom Units, OCGH limited partners will not be entitled to exchange such units to the extent the aggregate exchange consideration payable in respect thereof, in any given Exchange, would exceed an amount equal to (i) the amount of exchange consideration that would have been payable in respect of Converted OCGH Units and Phantom Units that were eligible for participation in the applicable Open Period in accordance with their original vesting schedule as of the date the notice for such Exchange was delivered plus (ii) $20 million ; and in the event that OCGH limited partners deliver election notices that would result in such excess, OCGH will reallocate such units among the OCGH limited partners in its sole discretion. In the event that OCGH limited partners would, following an Exchange, beneficially own less than 1% of the equity of the Oaktree Operating Group (as defined in the operating agreement of the Company, as amended from time to time), Brookfield can require that all remaining OCGH Units be exchanged on 36 -months’ notice. In addition, following the 8th anniversary of the closing date of the Mergers, Brookfield can discontinue the Exchange rights on 36 -months’ notice. In the event that OCGH limited partners would, following the final Exchange pursuant to a discontinuation notice, beneficially own less than 5% of the equity of the Oaktree Operating Group, Brookfield can require that all remaining OCGH Units be exchanged in such final Exchange. As a result of the foregoing, the earliest the exchange rights can be terminated is the 11th anniversary of the closing date of the Mergers. Following the delivery of a discontinuation notice, the caps and limits set forth above will cease to be in effect. Revisions to the terms of the exchange agreement governing post-vesting restrictions and exchange consideration described above and to the terms of the operating agreement of the Company and the partnership agreement of OCGH resulted in a Type I modification of unvested Class A and OCGH units at September 30, 2019. There was no incremental compensation cost resulting from the modifications. Class A and OCGH Unit Awards In 2019 , the Company granted 1,494,324 Class A units and 1,873,155 restricted OCGH units to its employees and directors, subject to annual vesting over a weighted average period of approximately 5.8 years . As of December 31, 2019 , the Company expected to recognize compensation expense on its unvested Converted OCGH Units and other OCGH unit awards of $35.8 million over a weighted average period of 3.2 years . The Company utilizes a contemporaneous valuation report in determining fair value at the date of grant for OCGH unit awards. Prior to the Merger, each valuation report was based on the market price of Oaktree’s Class A units. A discount was then applied to the Class A unit market price to reflect the lack of marketability for the OCGH units. The determination of an appropriate discount for lack of marketability was based on a review of discounts on the sale of restricted shares of publicly traded companies and multi-period put-based quantitative methods. Factors that influenced the size of the discount for lack of marketability include (a) the estimated time it would take for an OCGH unitholder to exchange units into Class A units, (b) the volatility of the Company’s business and (c) thin trading of the Class A units. Each of these factors is subject to significant judgment. The estimated time-to-liquidity assumption ranged between 5.8 years in 2017 to 7.0 years in March 2018 and 6.4 years in the most recent valuation in 2019. The estimated time to liquidity was influenced primarily by the need, prior to the Merger, for (a) the general partner of OCGH to elect in its discretion to declare an open period during which an OCGH unitholder could exchange his or her unrestricted vested OCGH units for, at the option of the Company’s board of directors, Class A units on a one -for- one basis, an equivalent amount of cash based on then-prevailing market prices, other consideration of equal value or any combination of the foregoing, and (b) the approval of the Company’s board of directors to exchange such OCGH units into any of the foregoing. Board approval was based primarily on the objective of maintaining an orderly market for Oaktree’s units, but may have taken into account any other factors that the board deemed appropriate in its sole discretion. Volatility was estimated from historical and implied volatilities of the Company and five other comparable public alternative asset management companies. In valuing employee OCGH unit grants, the discount percentage applied to the then-prevailing Class A unit trading price was 20% for all OCGH units granted in 2017 through the first three quarters of 2018 and 17.5% for the fourth quarter of 2018 through September 30, 2019. After the Merger, OCGH unit grants are valued based on a formula as described above under “Restated Exchange Agreement - Valuation” and reflect a discount for lack of marketability due to the post-vesting restrictions described above. Factors that influence the formula-based valuation include the estimated time it would take for an OCGH unitholder to exchange units for value pursuant to the Restated Exchange Agreement and estimates of the Company’s future results, which are inputs to the valuation formula. Each of these factors is subject to significant judgment. Through December 31, 2021, Converted OCGH Units will be valued at $49.00 per unit, less the amount of any capital distributions received upon vesting. Thereafter, any such Converted OCGH Units will be valued using the same methodology applied to all other OCGH units. With respect to forfeitures, the Company made an accounting policy election to account for forfeitures when they occur in connection with accounting guidance adopted in the first quarter of 2017 on a modified retrospective basis as discussed in note 2. Accordingly, no forfeitures have been assumed in the calculation of compensation expense effective January 1, 2017. A summary of the status of the Company’s unvested Converted OCGH units and other OCGH unit awards and a summary of changes for the periods presented are set forth below (actual dollars per unit): Converted OCGH Units (1) OCGH Units Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Balance, December 31, 2016 2,128,400 $ 41.86 2,337,953 $ 39.85 Granted 1,285,548 45.42 274,018 37.15 Vested (837,254 ) 40.57 (453,136 ) 38.50 Forfeited (20,378 ) 45.59 — — Balance, December 31, 2017 2,556,316 44.05 2,158,835 39.79 Granted 1,164,601 39.61 124,051 31.80 Vested (920,439 ) 42.57 (418,837 ) 37.23 Forfeited (99,893 ) 40.59 — — Balance, December 31, 2018 2,700,585 42.76 1,864,049 39.83 Granted 1,494,324 49.56 1,873,155 39.95 Vested (975,072 ) 43.06 (515,534 ) 35.44 Restructuring (2) (2,380,641 ) 45.83 (2,600,264 ) 40.87 Forfeited (107,955 ) 44.63 — — Balance, December 31, 2019 731,241 $ 45.99 621,406 $ 39.49 (1) Upon the completion of the Merger, each unvested Class A Unit held by current, or in certain cases former, employees, officers and directors of Oaktree and its subsidiaries was converted into one unvested OCGH Unit (each, a “Converted OCGH Unit”) and became subject to the terms and conditions of the OCGH limited partnership agreement. The Converted OCGH Units will (i) be subject to the same vesting terms that were applicable to such units prior to the completion of the Merger, (ii) be entitled to receive ongoing distributions in respect of earnings, but not capital distributions and (iii) upon vesting, receive the accumulated value of capital distributions that accrued while such units were unvested. However, in 2020 and 2021, Converted OCGH Units will be valued at $49.00 per unit, less the amount of any capital distributions received upon vesting. (2) Effective with the Restructuring, compensation related to unvested equity awards granted for service provided by employees of OCM is no longer included in these consolidated financial statements. Equity Value Units OCGH equity value units (“EVUs”) represent special limited partnership units in OCGH that entitle the holder the right to receive special distributions that will be settled in OCGH units, based on value created during a specified period in excess of a fixed “Base Value.” The value created is measured on a per unit basis, based on the appreciation of the OCGH units (before the Merger, the Class A units) and certain components of quarterly distributions with respect to OCGH units over the period beginning on January 1, 2015 and ending on each of December 31, 2019, December 31, 2020 and December 31, 2021, with one-third of the EVUs recapitalizing on each such date. As of December 31, 2019, the value created did not exceed the Base Value. 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. The value received under the EVUs will be reduced by (i) distributions received by the holder on 225,000 OCGH units granted to the holder on April 26, 2017, (ii) the value of the portion of profit sharing payments received by the holder attributable to the net incentive income received from certain funds, and (iii) the full value of the OCGH units granted to the holder on April 26, 2017. To the extent that the reduction relates to the value of any such OCGH units that are unvested at the time of the reduction, such OCGH units will vest at that time. Certain EVUs provide the holder with liquidity rights in respect of the special distributions, if any, that will be settled in OCGH units. As of December 31, 2019 , there were 2,000,000 vested EVUs outstanding. The fair value of EVUs was determined using a Monte Carlo simulation model. The fair value was 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. All of the outstanding EVUs were granted to an employee of OCM, accordingly, subsequent to the Restructuring, compensation expense related to these awards is no longer included in these consolidated financial statements. Deferred Equity Units A deferred equity unit represents a special unit award that, when vested, will be settled with an unvested OCGH unit on a one -for- one basis. The number of deferred equity units that will vest is based on the achievement of certain performance targets through June 2024. Once a performance target has been met, the applicable number of OCGH units will be issued and begin to vest over periods of up to 10.0 years . The holder of a deferred equity unit is not entitled to any distributions until settled by the issuance of an OCGH unit. As of December 31, 2019 , there were 767,499 deferred equity units outstanding, none of which were expected to vest. All of the outstanding deferred equity units were granted to employees of OCM, accordingly, subsequent to the Restructuring, compensation expense related to these awards is no longer included in these consolidated financial statements. The fair value of the deferred equity units issued in 2019 was determined at the grant date based on the then-prevailing Class A unit trading price and reflected a 17.5% lack-of-marketability discount for the OCGH units that will be issued upon vesting. |
INCOME TAXES AND RELATED PAYMEN
INCOME TAXES AND RELATED PAYMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES AND RELATED PAYMENTS | INCOME TAXES AND RELATED PAYMENTS The Company is a publicly traded partnership and Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc., two of its Intermediate Holding Companies, were wholly-owned corporate subsidiaries. Income earned by these corporate subsidiaries were subject to U.S. federal and state income taxes during the year. 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. Upon the Restructuring, Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. merged with and into newly formed, indirect subsidiaries of Brookfield, with those subsidiaries surviving the mergers. As a result, as of October 1, 2019, Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. ceased to exist and the Company will no longer include on its financial statements economic interests in Oaktree Capital II, L.P., Oaktree Investment Holdings, L.P., Oaktree Capital Management, L.P., and Oaktree AIF Investments, L.P. 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 our two corporate Intermediate Holding Companies that were subject to income tax through the date of the Restructuring, and our three other Intermediate Holding Companies that are not; consequently, from period to period the effective tax rate is subject to significant variation. Tax Legislation On December 22, 2017, the Tax Act was enacted. The Tax Act reduced the corporate income tax rate from 35% to 21%, and included significant changes to other domestic and international corporate income tax provisions. The rate change resulted in a net reduction to net income attributable to Oaktree Capital Group, LLC of $33.2 million in the fourth quarter of 2017, comprised of $178.2 million in additional tax expense due to a reduction in the Company’s deferred tax assets and a $145.1 million benefit to other income due to a reduction in the Company’s tax receivable agreement liability. Income tax expense from operations consisted of the following: Year Ended December 31, 2019 2018 2017 Current: U.S. federal income tax $ (93 ) $ 4,645 $ 4,085 State and local income tax 1,674 2,934 2,687 Foreign income tax 7,933 7,402 5,907 $ 9,514 $ 14,981 $ 12,679 Deferred: U.S. federal income tax $ 519 $ 8,934 $ 191,488 State and local income tax (158 ) 844 10,928 Foreign income tax (255 ) 20 347 $ 106 $ 9,798 $ 202,763 Total: U.S. federal income tax $ 426 $ 13,579 $ 195,573 State and local income tax 1,516 3,778 13,615 Foreign income tax 7,678 7,422 6,254 Income tax expense $ 9,620 $ 24,779 $ 215,442 The Company’s income (loss) before income taxes consisted of the following: Year Ended December 31, 2019 2018 2017 Domestic income (loss) before income taxes $ 380,653 $ 467,264 $ 894,911 Foreign income (loss) before income taxes 16,305 22,060 10,013 Total income (loss) before income taxes $ 396,958 $ 489,324 $ 904,924 The Company’s effective tax rate differed from the federal statutory rate for the following reasons: Year Ended December 31, 2019 2018 2017 Income tax expense at federal statutory rate 21.00 % 21.00 % 35.00 % Income passed through (20.96 ) (17.78 ) (31.61 ) State and local taxes, net of federal benefit 0.45 0.55 0.38 Foreign taxes 1.07 0.57 0.23 Deferred tax adjustment — — 19.76 Other, net 0.86 0.72 0.05 Total effective rate 2.42 % 5.06 % 23.81 % The components of the Company’s deferred tax assets and liabilities were as follows: As of December 31, 2019 2018 2017 Deferred tax assets: Investment in partnerships $ — $ 210,678 $ 191,713 Equity-based compensation expense — 5,535 3,537 Net operating losses — 7,393 — Other (1) 3,096 9,191 9,311 Total deferred tax assets 3,096 232,797 204,561 Total deferred tax liabilities — 3,697 2,101 Net deferred tax assets before valuation allowance 3,096 229,100 202,460 Valuation allowance — — — Net deferred tax assets $ 3,096 $ 229,100 $ 202,460 (1) As of December 31, 2019, balance of Other of $3,096 relates to deferred tax assets in foreign jurisdictions (relating primarily to fixed assets and accruals). All deferred tax balances related to these entities were deconsolidated as part of the Restructuring effective October 1, 2019. When assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred tax assets are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, and tax liabilities for the tax jurisdiction in which the tax asset is located. The deferred tax asset recognized by the Company, as it relates to the higher tax basis in the carrying value of certain assets compared to the book basis of those assets, will be recognized in future years by these taxable entities. Deferred tax assets are based on the amount of the tax benefit that the Company’s management has determined is more likely than not to be realized in future periods. In determining the realizability of this tax benefit, management considered numerous factors that will give rise to pre-tax income in future periods. Among these are the historical and expected future book and tax basis pre-tax income of the Company and unrealized gains in the Company’s assets at the determination date. Based on these and other factors, the Company determined that, as of December 31, 2019 , all deferred tax assets were more likely than not to be realized in future periods. The Company recognizes tax benefits related to its tax positions only where the position is “more likely than not” to be sustained in the event of examination by tax authorities. As part of its assessment, the Company analyzes its tax filing positions in all of the federal, state and foreign tax jurisdictions where it is required to file income tax returns, and for all open tax years in these jurisdictions. As of December 31, 2019 , the total reserve balance, including interest and penalties, was $0.2 million . The following is a reconciliation of unrecognized tax benefits (excluding interest and penalties thereon): Year Ended December 31, 2019 2018 2017 Unrecognized tax benefits, January 1 $ 2,699 $ 4,366 $ 5,768 Additions for tax positions related to the current year — — 350 Additions for tax positions related to prior years — — — Reductions for tax positions related to prior years (1) (2,440 ) (18 ) (412 ) Settlements — (1,423 ) — Lapse in statute of limitations (152 ) (226 ) (1,340 ) Unrecognized tax benefits, December 31 $ 107 $ 2,699 $ 4,366 (1) Reduction of $2,440 during 2019 relates to the transfer of unrecognized tax benefits to Brookfield. As of October 1, 2019, all unrecognized tax benefits related to Oaktree Holdings, Inc., Oaktree AIF Holdings, Inc., and Oaktree Capital Management, L.P. were transferred through equity to Brookfield. If the above tax benefits as of December 31, 2019 were to be recognized in 2019 , the $0.1 million would impact the annual effective tax rate. The Company recognizes interest and penalties related to unrecognized tax positions in the provision for income taxes in the consolidated statements of operations. As of December 31, 2019 and 2018 , respectively, the aggregate amount of interest and penalties accrued was $0.1 million and $1.9 million . The Company recognized a net expense of $0.2 million , net benefit of $1.2 million and net expense of $0.1 million in 2019 , 2018 and 2017 , respectively. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal, state, local and foreign tax regulators. With limited exceptions, the Company is no longer subject to income tax audits by taxing authorities for periods before 2016. Tax authorities currently are examining certain income tax returns of Oaktree, with certain of these examinations at an advanced stage. Over the next twelve months ending December 31, 2020, 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 $0.2 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. Exchange Agreement and Tax Receivable Agreement Under the terms of an exchange agreement in effect prior to the Merger, each OCGH unitholder, subject to certain restrictions, including the approval of our board of directors, had the right to (or could have been required to) exchange his or her OCGH units for, at the option of the Company’s board of directors, Class A units, an equivalent amount of cash based on then-prevailing market prices, other consideration of equal value or any combination of the foregoing. These exchanges resulted in, increases in the tax basis of the tangible and intangible assets of the Oaktree Operating Group. These increases in tax basis have increased and will increase (for tax purposes) depreciation and amortization deductions and reduce gain on sales of assets, and therefore reduce the taxes of two Intermediate Holding Companies, Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc., that were our subsidiaries prior to the Merger. Prior to the Merger, Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. entered into a tax receivable agreement with the OCGH (the “Original TRA”) unitholders that provided for the payment by Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. to the OCGH unitholders of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that Oaktree Holdings, Inc. or Oaktree AIF Holdings, Inc. actually realizes (or is 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 discussed below) as a result of these increases in tax basis and of certain other tax benefits related to our entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. These payment obligations were obligations of Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. and not of the Oaktree Operating Group. For the years ended December 31, 2019 , 2018 and 2017 , respectively, amounts paid under the tax receivable agreement totaled $10.0 million , $20.7 million and $20.0 million . At the closing of the Merger, Oaktree entered into a Third Amended and Restated Tax Receivable Agreement (the "TRA Amendment"), which amended and restated the Original TRA. Pursuant to the TRA Amendment, the Original TRA no longer applies and no Tax Benefit Payments (as defined in the Original TRA) will be made with respect to any exchanges of OCGH units that occur on or after March 13, 2019. With respect to any exchanges of OCGH units that occurred prior to March 13, 2019, the TRA Amendment provides that Tax Benefit Payments (as defined in the Original TRA) will continue to be made with respect to such exchanges in accordance with the Original TRA (as amended in certain respects, including that such payments will be calculated without taking into account any tax attributes of Brookfield). Note that upon closing of the Merger, all of the obligation for future Tax Benefit Payments were transferred to the entities that were deconsolidated as part of the Restructuring effective October 1, 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
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 as revenue until it is probable that a significant reversal will not occur. As of December 31, 2019 and 2018 , respectively, the aggregate of such amounts recorded at the fund level in excess of incentive income recognized by the Company was $864,900 and $1,434,458 , for which related direct incentive income compensation expense was estimated to be $462,684 and $754,903 . Contingent Liabilities The Company had a contingent consideration obligation of up to $60.0 million related to the Highstar acquisition that was payable in cash and fully-vested OCGH units. The amount of contingent consideration was based on the achievement of certain performance targets over a period of up to seven years from the acquisition date of August 2014. In May 2018, the contingent consideration arrangement was modified in respect of certain performance targets and payment terms. The new arrangement provides for contingent consideration of up to $36.1 million , payable in cash and Class A units. The modification resulted in a $7.1 million reduction in the contingent consideration liability. As of December 31, 2019 and 2018 , respectively, the fair value of the contingent consideration liability was $0.0 million and $6.7 million , respectively. Changes in this liability resulted in income of $0.0 million , $12.1 million and $4.8 million in 2019 , 2018 and 2017 , 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 most recent estimate. For periods prior to the Restructuring, the contingent consideration liability is included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition and changes in the liability are recorded in general and administrative expense in the consolidated statements of operations. In connection with the October 2017 BDC acquisition, FSM pledged assets with an estimated fair value of $56.2 million to indemnify OCM or the BDCs against any claims or assessments arising from the period during which it managed the BDCs. Please see note 3 for more information. Commitments to Funds As of December 31, 2019 and 2018 , the Company, generally in its capacity as general partner, had undrawn capital commitments of $237.3 million and $385.8 million , respectively, including commitments to both unconsolidated and consolidated funds. Operating Leases Oaktree leases its main headquarters office in Los Angeles and offices in 17 other cities in the U.S., Europe, Asia and Australia, pursuant to current lease terms expiring through 2031. The Company’s occupancy costs, including non-lease expenses, were $20,081 , $22,369 and $20,477 for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , the Company’s aggregate estimated minimum commitments under Oaktree’s operating leases were as follows: 2020 $ 6,262 2021 6,101 2022 5,480 2023 4,800 2024 4,224 Thereafter 28,778 Total $ 55,645 Investment Commitments of the 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 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 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 December 31, 2019 and 2018 , the consolidated funds had potential aggregate commitments of $2.3 million and $13.8 million , respectively. These commitments are expected to 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 December 31, 2019 and 2018 , there were no guaranteed amounts under such arrangements. 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 year ended December 31, 2019 , the consolidated funds did not provide any financial support to portfolio companies. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
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 weighted average interest rate approximated the Company’s cost of debt. The fair value of amounts due to affiliates approximated $85,151 and $95,953 as of December 31, 2019 and 2018 , respectively. The valuation as of December 31, 2018 was based on a discount rate of 10.0% . The tax receivable agreement liability was transferred as part of the Restructuring on October 1, 2019. As of December 31, 2019 2018 Due from affiliates: Loans $ 2,596 $ 3,857 Amounts due from unconsolidated funds 2,415 72,588 Management fees and incentive income due from unconsolidated funds 88,043 362,971 Payments made on behalf of unconsolidated entities 71,051 3,469 Non-interest bearing advances made to certain non-controlling interest holders and employees 84 27 Total due from affiliates $ 164,189 $ 442,912 Due to affiliates: Due to OCGH unitholders in connection with the tax receivable agreement (please see note 17) $ — $ 187,872 Amounts due to unconsolidated entities 86,575 — Amounts due to senior executives, certain non-controlling interest holders and employees 488 495 Total due to affiliates $ 87,063 $ 188,367 Loans Loans primarily consist of interest-bearing loans made to certain non-controlling interest holders, primarily certain employees, to meet tax obligations related to vesting of equity awards. The loans, 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 $73 , $211 and $451 for the years ended December 31, 2019 , 2018 and 2017 , 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. Revenues Earned From Oaktree Funds Management fees and incentive income earned from unconsolidated Oaktree funds totaled $0.8 billion , $1.3 billion and $1.4 billion for the years ended December 31, 2019 , 2018 and 2017 , 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 within “non-interest bearing advances made to certain non-controlling interest holders and employees” in the table above. Aircraft Services OCM owns an aircraft for business purposes. Howard Marks, the Company’s Co-Chairman, may use this aircraft for personal travel and will reimburse OCM to the extent his use of the aircraft for personal travel exceeds a certain threshold pursuant to an Oaktree policy. Oaktree also provides certain senior executives a personal travel allowance for private aircraft usage up to a certain threshold pursuant to the same Oaktree policy. Additionally, Oaktree occasionally makes use of an aircraft owned by one of its senior executives for business purposes at a price to Oaktree 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. Administrative Services Effective October 1, 2019, the Company is party to the Services Agreement with OCM. Pursuant to the Services Agreement, OCM provides administrative services to the Company necessary for the operations of the Company, which include providing office facilities, equipment, clerical, bookkeeping and record keeping services at such facilities and such other services as OCM, subject to review by the Company’s Board of Directors, shall from time to time deem to be necessary or useful to perform its obligations under the Services Agreement. OCM may, on behalf of the Company, conduct relations and negotiate agreements with custodians, trustees, depositories, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks and such other persons in any such other capacity deemed to be necessary or desirable. OCM makes reports to the Company’s Board of Directors of its performance of obligations under the Services Agreement and furnishes advice and recommendations with respect to such other aspects of the Company’s business and affairs, in each case, as it shall determine to be desirable or as reasonably required by the Company’s Board of Directors. OCM is responsible for the financial and other records that the Company is required to maintain and prepares, prints and disseminates reports to the Company’s stockholders and all other materials filed with the SEC. In addition, OCM assists the Company in overseeing the preparation and filing of the Company’s tax returns, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. On an annual basis the Company will reimburse OCM $750,000 of the costs incurred for providing these administrative services. This reimbursement is payable quarterly, in equal installments, and relates to the Company’s allocable portion of overhead and other expenses (facilities and personnel) incurred by OCM in performing its obligations under the Services Agreement. This amount includes the Company’s allocable portion of (i) the rent of the Company’s principal executive offices (which are located in a building owned by a Brookfield affiliate) at market rates and (ii) the costs of compensation and related expenses of various personnel at Oaktree that perform duties for the Company. The Services Agreement may be terminated by either party without penalty upon 90 days ’ written notice to the other. For the year ended December 31, 2019 , the Company incurred administrative expenses of $0.2 million , which was included in “Due to affiliates” in the Consolidated Statements of Financial Condition, reflecting the unpaid portion of administrative expenses and other reimbursable expenses payable to OCM. Leases OCM leases certain office space from affiliates of Brookfield. Rent expense associated with these leases was $4.5 million , $4.7 million and $4.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Effective with the Restructuring, OCM’s lease expense and obligations are no longer included in these consolidated financial statements. |
CAPITAL REQUIREMENTS OF REGULAT
CAPITAL REQUIREMENTS OF REGULATED ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
CAPITAL REQUIREMENTS OF REGULATED ENTITIES | CAPITAL REQUIREMENTS OF REGULATED ENTITIES One of the Company’s indirect subsidiaries prior to the Restructuring is a registered U.S. broker-dealer that is subject to the minimum net capital requirements of the SEC and the U.S. Financial Industry Regulatory Authority. Additionally, two of the Company’s indirect subsidiaries based in London is subject to the capital requirements of the U.K. Financial Conduct Authority, and another based in Hong Kong is subject to the capital requirements of the Hong Kong Securities and Futures Ordinance. These entities operate in excess of their respective regulatory capital requirements. The regulatory capital requirements referred to above may restrict the Company’s ability to withdraw capital from its entities for purposes such as paying cash distributions or advances to the Company. As of December 31, 2019 and 2018 , respectively, there was approximately $190.7 million and $183.7 million of such potentially restricted amounts. Effective with the Restructuring, the U.S. broker-dealer’s restricted amounts, if any, will no longer be included in these consolidated financial statements. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING As a global investment manager, the Company provides investment management services through funds, separate accounts and subsidiary services agreements. The Company earns revenues from the management fees and incentive income generated by the funds that it manages or serves as the general partner. Additionally, for acting as a sub-investment manager, or sub-advisor, to certain Oaktree funds, the Company earns sub-advisory fees. Under the subsidiary services agreements, the Company provides certain investment and marketing related services to Oaktree affiliated entities. Management uses a consolidated approach to assess performance and allocate resources. As such, the Company’s business is comprised of one segment, the investment management business. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Class A Unit Distribution A distribution of $0.22 per Class A unit was paid on February 24, 2020 to holders of record at the close of business on February 3, 2020. Preferred Unit Distributions A distribution of $0.414063 per Series A preferred unit will be paid on March 16, 2020 to Series A preferred unitholders of record at the close of business on March 1, 2020. A distribution of $0.409375 |
QUARTERLY FINANCIAL DATA (UNAU
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Prior to the Restructuring on October 1, 2019, the Company’s consolidated operating results included substantially all of the revenues and expenses of the Oaktree Operating Group and related consolidated funds and investment vehicles. Subsequent to the Restructuring, the Company’s consolidated operating results reflect only Oaktree Capital I and OCM Cayman and related consolidated funds and investment vehicles. Since the deconsolidation of the remaining four Oaktree Operating Group entities was not required to be presented on a retrospective basis, the Company’s results of operations for the year ended December 31, 2019 reflect a full year of activities for Oaktree Capital I and OCM Cayman and related funds and investment vehicles and only nine months of activities for the remaining four Oaktree Operating Group entities and related funds and investment vehicles and, as a result, are not directly comparable to prior periods.The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands except per unit data): Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenues $ 266,415 $ 313,483 $ 205,190 $ 143,899 Expenses (237,474 ) (265,888 ) (245,480 ) (93,689 ) Other income 159,957 75,785 24,190 50,570 Income before income taxes $ 188,898 $ 123,380 $ (16,100 ) $ 100,780 Net income $ 184,400 $ 121,528 $ (20,898 ) $ 102,308 Net income attributable to OCG Class A unitholders $ 47,254 $ 42,444 $ (16,648 ) $ 54,473 Net income per unit (basic and diluted): Net income per Class A unit $ 0.66 $ 0.57 $ (0.22 ) $ 0.56 Distributions declared per Class A unit $ 0.75 $ 1.05 $ 3.13 $ 0.03 Three Months Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Revenues $ 337,321 $ 213,283 $ 241,227 $ 594,248 Expenses (251,036 ) (184,606 ) (191,167 ) (373,762 ) Other income 57,513 41,947 99,599 (95,243 ) Income before income taxes $ 143,798 $ 70,624 $ 149,659 $ 125,243 Net income $ 137,401 $ 65,757 $ 143,091 $ 118,296 Net income attributable to OCG Class A unitholders $ 52,732 $ 31,121 $ 52,750 $ 74,538 Net income per unit (basic and diluted): Net income per Class A unit $ 0.78 $ 0.44 $ 0.74 $ 1.04 Distributions declared per Class A unit $ 0.76 $ 0.96 $ 0.55 $ 0.70 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation 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 variable interest entity (“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 those 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-based fees), would give it a controlling financial interest. A decision maker’s fee arrangement is not considered a variable interest if (a) 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 (b) 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. The Company does not consolidate most of the Oaktree funds because it is not the primary beneficiary of those funds due to the fact that its fee arrangements are considered at-market and thus not deemed to be variable interests, and it does not hold any other interests in those funds that are considered to be more than insignificant. Please see note 5 for more information regarding both consolidated and unconsolidated VIEs. For entities that are not VIEs, consolidation is evaluated through a majority voting interest model. “Consolidated funds” refers to Oaktree-managed funds and CLOs that the Company 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 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 and Non-controlling Interests in Consolidated Funds | 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 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 Subsidiaries | 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 13 for more information. |
Acquisitions | Acquisitions The Company accounts for business combinations using the acquisition method of accounting, which requires the use of estimates and judgment to measure the fair value of identifiable tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree as of the acquisition date. Contingent consideration that is determined to be part of the business combination is recognized at fair value as of the acquisition date and is included in the purchase price. Transaction costs are expensed as incurred. Transactions that do not meet the definition of a business are accounted for as asset acquisitions. The cost of an asset acquisition is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. Transaction costs are included in the cost of the acquisition and no goodwill is recognized. |
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 acquired identifiable intangible assets 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 seven to 25 years , and are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. In connection with the Restructuring, the Company’s indirect subsidiaries that held most of the goodwill and all of the acquired intangibles were deconsolidated, and these assets are no longer reflected on the statement of financial condition as of December 31, 2019. |
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, debt obligations of consolidated CLOs, 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 pricing vendors or brokers. The Company seeks to obtain prices from at least two pricing vendors for the subject or similar securities. In cases where vendor pricing is not reflective of fair value, a secondary vendor is unavailable, or no vendor pricing is available, a comparison value made up of quotes for the subject or similar securities received from broker dealers may be used. 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 pricing vendors and brokers 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. 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 consolidated statements of operations. The Company’s accounting for these investments is similar to its accounting for investments held by the consolidated funds at fair value and the valuation methods are consistent with those used to determine the fair value of the consolidated funds’ 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 the debt obligations of CLOs line items in the 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. The fair value of CLO liabilities are 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. 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 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 consolidated statements of operations. Changes in the fair value of a CLO’s financial liabilities in accordance with the CLO measurement guidance are included in net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations. Please see notes 7 and 11 for more information. |
Foreign Currency | Foreign Currency The assets and liabilities of the Company’s foreign subsidiaries with non-U.S. dollar functional currencies are translated at exchange rates prevailing at the end of each reporting period. The results of foreign operations are translated at the weighted average exchange rate for each reporting period. Translation adjustments are included in other comprehensive income (loss) within the consolidated statements of financial condition until realized. Gains and losses resulting from foreign-currency transactions are included in general and administrative expense. Foreign Currency Investments denominated in non-U.S. currencies are recorded in the consolidated financial statements after translation into U.S. dollars utilizing rates of exchange on the last business day of the period. Interest and dividend income is recorded net of foreign withholding taxes and calculated using the exchange rate in effect when the income is recognized. The effect of changes in exchange rates on assets and liabilities, income, and realized gains or losses is included as part of net realized gain (loss) on consolidated funds’ investments and net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations. |
Derivatives and Hedging | Derivatives and Hedging A derivative is a financial instrument whose value is derived from an underlying financial instrument or index, such as interest rates, equity securities, currencies, commodities or credit spreads. Derivatives include futures, forwards, swaps or option contracts, and other financial instruments with similar characteristics. Derivative contracts often involve future commitments to exchange interest payment streams or currencies based on a notional or contractual amount (e.g., interest-rate swaps, foreign-currency forwards or cross-currency swaps). 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 result in 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. The Company recognizes all derivatives as assets or liabilities in its consolidated statements of financial condition at fair value. 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 consolidated statements of financial condition. When the Company enters into a derivative contract, it may elect to designate the derivative as a hedging instrument and apply hedge accounting as part of its overall risk management strategy. In other situations, when a derivative does not qualify for hedge accounting or when the derivative and the hedged item are both recorded in current-period earnings and thus deemed to be economic hedges, hedge accounting is not applied. Freestanding derivatives are financial instruments that we enter into as part of our overall risk management strategy but do not utilize hedge accounting. These financial instruments may include foreign-currency exchange contracts, interest-rate swaps and other derivative contracts. Derivatives that are designated as hedging instruments are classified as either a hedge of (a) a recognized asset or liability (“fair-value hedge”), (b) a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash-flow hedge”), or (c) a net investment in a foreign operation. For a fair-value hedge, the Company records changes in the fair value of the derivative and, to the extent that it is highly effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk in current-period earnings in the same caption in the consolidated statements of operations as the hedged item. Changes in the fair value of a derivative that is highly effective and is designated and qualifies as a cash-flow hedge, to the extent that the hedge is effective, are recorded in other comprehensive income (loss) until earnings are affected by the variability of cash flows of the hedged transaction. Any hedge ineffectiveness is recorded in current-period earnings. Changes in the fair value of derivatives designated as hedging instruments that are caused by factors other than changes in the risk being hedged are excluded from the assessment of hedge effectiveness and recognized in current-period earnings. For freestanding derivatives, changes in fair value are recorded in current-period earnings. The Company formally documents at inception the hedge relationship, including identification of the hedging instrument and the hedged item, as well as the risk management objectives, the strategy for undertaking the hedge transaction, and the evaluation of effectiveness of the hedged transaction. On a quarterly basis, the Company formally assesses whether the derivative it designated in each hedging relationship has been and is expected to remain highly effective in offsetting changes in the estimated fair value or cash flow of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the balance remaining in other comprehensive income (loss) is released to earnings. |
Cash and Cash-equivalents | Cash and Cash-equivalents Cash and cash-equivalents held at the consolidated funds represent cash that, although not legally restricted, is not available to support the general liquidity needs of the Company as the use of such amounts is generally limited to the investment activities of the consolidated funds. Cash-equivalents, a Level I valuation, include highly liquid investments such as money market funds, whose carrying value approximates fair value due to its short-term nature. Cash and Cash-equivalents |
U.S. Treasury and Other Securities | U.S. Treasury and Other Securities U.S. Treasury and other securities include holdings of U.S. Treasury bills, time deposit securities and commercial paper with maturities greater than three months at the date of acquisition. These securities are classified as available-for-sale and recorded at fair value with changes in fair value included in other comprehensive income (loss). Changes in fair value were not material for all years presented. |
Corporate 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 under 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 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. |
Revenue | Revenue Recognition On January 1, 2018, the Company adopted the new revenue recognition standard on a modified retrospective basis. As a result, prior period amounts continue to be reported under historic GAAP. Upon adoption, the Company recorded a cumulative-effect increase to unitholders’ capital as of January 1, 2018 of $48.7 million , net of tax. This adjustment relates to incentive income that would have met the “probable that significant reversal will not occur” criteria as of January 1, 2018 under the new revenue standard. The Company earns management fees and incentive income from the investment advisory services it provides to its customers. Revenue is recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. The Company typically enters into contracts with investment funds to provide investment management and administrative services. These services are generally capable of being distinct and each is accounted for as separate performance obligations comprised of distinct service periods because the services are performed over time. The Company determined that for accounting purposes the investment funds are generally considered to be the customers with respect to commingled funds, while the individual investors are the customers with respect to separate account and fund-of-one vehicles. The Company receives management fees and/or incentive income with respect to its investment management services, and it is reimbursed by the funds for expenses incurred or paid on behalf of the funds with respect to its investment advisory services and its administrative services. The Company evaluates whether it is the principal (i.e., report as management fees on a gross basis) or agent (i.e., report as management fees on a net basis) with respect to each performance obligation and associated reimbursement arrangements. The Company has elected to apply the variable consideration exemption for its fee arrangements with its customers. Please see note 4 for more information on revenues. Management Fees Management fees are recognized over the period in which the investment management services are performed because customers simultaneously consume and receive benefits that are satisfied over time. The contractual terms of management fees generally vary by fund structure. For most closed-end funds, the management fee rate is applied against committed capital during the fund’s investment period and the lesser of total funded capital or cost basis of assets in the liquidation period. Certain closed-end funds pay management fees during the investment period based on drawn capital or cost basis. Additionally, for closed-end funds that pay management fees based on committed capital, the Company may elect to delay the start of the fund’s investment period and thus its full management fees, in which case it earns management fees based on drawn capital, and in certain cases outstanding borrowings under a fund-level credit facility made in lieu of drawing capital, until the Company elects to start the fund’s investment period. The Company’s right to receive management fees typically ends after 10 or 11 years from either the initial closing date or the start of the investment period, even if assets remain in the fund. In the case of CLOs, the management fee is based on the aggregate par value of collateral assets and principal cash, as defined in the applicable CLO indentures, and a portion of the management fees is dependent on the sufficiency of the particular vehicle’s cash flow. For open-end and evergreen funds, the management fee is generally based on the NAV of the fund. For the publicly-traded BDCs, the management fee is based on gross assets (including assets acquired with leverage), net of cash. In the case of certain open-end fund accounts, the Company has the potential to earn performance-based fees, typically in reference to a relevant benchmark index or hurdle rate, which are classified as management fees. The Company also earns quarterly incentive fees on the investment income from certain evergreen funds, such as the publicly-traded BDCs and other fund accounts, which are generally recurring in nature and reflected as management fees. The ultimate amount of management fees that will be earned over the life of the contract is subject to a large number and broad range of possible outcomes due to market volatility and other factors outside of the Company’s control. As a result, the amount of revenue earned in any given period is generally determined at the end of each reporting period and relates to services performed during that period. This amount relates to the gross-up of reimbursable costs incurred on behalf of Oaktree funds in which the Company has determined it is the principal. Such costs are presented in compensation and benefits and general and administrative expenses. Subsequent to the Restructuring, our management fees consist primarily of fees earned from funds managed by OCM Cayman and sub-advisory fees for services provided to OCM. Our revenue recognition for sub-advisory fees is substantially similar to revenue recognition for management fees. Incentive Income Incentive income generally represents 20% of each closed-end fund’s profits, subject to the return of contributed capital and a preferred return of typically 8% per annum, and up to 20% of certain evergreen fund’s annual profits, subject to high-water marks or hurdle rates. Incentive income is recognized when it is probable that a significant reversal will not occur. Revenue recognition is typically met (a) for closed-end funds, only after all contributed capital and the preferred return on that capital have been distributed to the fund’s investors, and (b) for certain evergreen funds, at the conclusion of each annual measurement period. Potential incentive income is highly susceptible to market volatility, the judgment and actions of third parties, and other factors outside of the Company’s control. The Company’s experience has demonstrated little predictive value in the amount of potential incentive income ultimately earned due to the highly uncertain nature of returns inherent in the markets and contingencies associated with many realization events. As a result, the amount of incentive income recognized in any given period is generally determined after giving consideration to a number of factors, including whether the fund is in its investment or liquidation period, and the nature and level of risk associated with changes in fair value of the remaining assets in the fund. In general, it would be unlikely that any amount of potential incentive income would be recognized until (a) the uncertainty is resolved or (b) the fund is near final liquidation, assets are under contract for sale or are of low risk of significant fluctuation in fair value, and the assets are significantly in excess of the threshold at which incentive income would be earned. Incentives received by the Company before the revenue recognition criteria have been met are deferred and recorded as a deferred incentive income liability within accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition. The Company may receive tax distributions related to taxable income allocated by funds, which are treated as an advance of incentive income and subject to the same recognition criteria. Tax distributions are contractually not subject to clawback. |
Total Compensation and Benefits | Compensation and Benefits Compensation and benefits expense reflects all compensation-related items not directly related to incentive income, investment income or equity-based compensation, and includes salaries, bonuses, compensation based on management fees or a definition of profits, employee benefits, payroll taxes and phantom equity awards. Bonuses are generally accrued over the related service period. Phantom equity awards represent liability-classified awards subject to vesting and remeasurement at the end of each reporting period. Prior to the Merger, the remeasurement was based on changes in the Company’s Class A unit trading price. After the Merger, the remeasurement is based on changes in the value of Converted OCGH Units or other OCGH units, as applicable. Subsequent to the Restructuring, our consolidated operating results include compensation and benefits expense primarily related to employees of OCM Cayman. Equity-based Compensation Equity-based compensation expense reflects the non-cash charge associated with grants of Class A units, OCGH units, OCGH equity value units (“EVUs”), deferred equity units and other performance-based units, and is calculated based on the grant-date fair value of the unit award. A contemporaneous valuation report is utilized in determining fair value at the date of grant for OCGH unit awards. Prior to the Merger, each valuation report was based on the market price of the Class A units as well as other pertinent factors. A discount was then applied to the Class A unit market price to reflect the lack of marketability for equity-classified awards, if applicable. The determination of an appropriate discount for lack of marketability was based on a review of discounts on the sale of restricted shares of publicly-traded companies and multi-period put-based quantitative methods. Factors that influenced the size of the discount for lack of marketability applicable to OCGH units included (a) the estimated time it would take for an OCGH unitholder to exchange units into Class A units, (b) the volatility of the Company’s business and (c) thin trading of the Class A units. Each of these factors is subject to significant judgment. After the Merger, OCGH unit grants are valued based on a formula as described in note 16 under “Restated Exchange Agreement— Valuation” and reflect a discount for lack of marketability due to the post-vesting restrictions described in note 16. Factors that influence the formula-based valuation include the estimated time it would take for an OCGH unitholder to exchange units for value pursuant to the Restated Exchange Agreement and estimates of the Company’s future results, which are inputs to the valuation formula. Each of these factors is subject to significant judgment. Equity-based awards that do not require future service (i.e., awards vested at grant) are expensed immediately. Equity-based awards that require future service are expensed on a straight-line basis over the requisite service period. Cash-settled equity-based awards are classified as liabilities and are remeasured at the end of each reporting period. With respect to forfeitures, the Company made an accounting policy election to account for forfeitures when they occur in connection with accounting guidance adopted in the first quarter of 2017 on a modified retrospective basis. Accordingly, no forfeitures have been assumed in the calculation of compensation expense effective January 1, 2017. Incentive Income Compensation Incentive income compensation expense primarily reflects compensation directly related to incentive income, which generally consists of percentage interests (sometimes referred to as “points”) that the Company grants to its investment professionals associated with the particular fund that generated the incentive income, and secondarily, compensation directly related to investment income. The Company has an obligation to pay a fixed percentage of the incentive income earned from a particular fund, including income from consolidated funds that is eliminated in consolidation, to specified investment professionals responsible for the management of the fund. Amounts payable pursuant to these arrangements are recorded as compensation expense when they have become probable and reasonably estimable. The Company’s determination of the point at which it becomes probable and reasonably estimable that incentive income compensation expense should be recorded is based on its assessment of numerous factors, particularly those related to the profitability, realizations, distribution status, investment profile and commitments or contingencies of the individual funds that may give rise to incentive income. Incentive income compensation is generally expensed in the period in which the underlying income is recognized. Payment of incentive income compensation generally occurs in the same period the related income is received or in the next period. Participation in incentive income generated by the funds is subject to forfeiture upon departure and to vesting provisions (generally over a period of five years ), in each case, under certain circumstances set forth in the applicable governing documents. These provisions are generally only applicable to incentive income compensation that has not yet been recognized as an expense by the Company or paid to the participant. |
Depreciation and Amortization | Depreciation and Amortization Depreciation and amortization expense includes costs associated with the purchase of furniture and equipment, capitalized software, office leasehold improvements, corporate aircraft and acquired intangibles. Furniture and equipment and capitalized software costs are depreciated using the straight-line method over the estimated useful life of the asset, generally three to five years beginning in the first full month after the asset is placed in service. Leasehold improvements are amortized using the straight-line method over the shorter of the respective estimated useful life or the lease term. Corporate aircraft are depreciated using the straight-line method over their estimated useful life. Acquired intangibles primarily relate to contractual rights and are amortized over their estimated useful lives on a straight-line basis, which range from seven to 25 years . |
Other Income (Expense), Net | Other Income (Expense), Net |
Income Taxes | Income Taxes The Company is a publicly traded partnership. Because it satisfies the qualifying income test, it is not required to be treated as a corporation for U.S. federal and state income tax purposes; rather it is taxed as a partnership. Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc., which were two of the Company’s Intermediate Holding Companies and wholly-owned corporate subsidiaries, were subject to U.S. federal and state income taxes. The remainder of the Company’s income is generally not subject to U.S. corporate-level taxation. Upon the Restructuring, Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. merged with and into newly formed, indirect subsidiaries of Brookfield, with those subsidiaries surviving the mergers. As a result, as of October 1, 2019, Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc. ceased to exist and we will no longer include on our financial statements economic interests in Oaktree Capital II, Oaktree Investment Holdings, OCM, and Oaktree AIF. All deferred tax balances related to these entities were deconsolidated as part of the Restructuring effective October 1, 2019. 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 two corporate subsidiaries that were subject to income tax through the date of the Restructuring and the three other subsidiaries that are not; consequently, the effective tax rate is subject to significant variation from period to period. The Company’s non-U.S. income or loss before taxes is generally not significant in relation to total pre-tax income or loss and is generally more predictable because, unlike U.S. pre-tax income, it is not significantly impacted by unrealized gains or losses. Non-U.S. tax expense typically represents a disproportionately large percentage of total income tax expense because nearly all of the Company’s non-U.S. income or loss is subject to corporate-level income tax, whereas a substantial portion of the Company’s U.S.-based income or loss is not subject to corporate-level taxes. In addition, changes in the proportion of non-U.S. pre-tax income to total pre-tax income impact the Company’s effective tax rate to the extent non-U.S. rates differ from the combined U.S. federal and state tax rate. Income taxes are accounted for using the liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amount of assets and liabilities and their respective tax bases, using currently enacted tax rates. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets would be reduced by a valuation allowance if it becomes more likely than not that some portion or all of the deferred tax assets will not be realized. The Company analyzes its tax filing positions for all open tax years in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns. If the Company determines that uncertainties in tax positions exist, a reserve is established. The Company recognizes accrued interest and penalties related to uncertain tax positions within income tax expense in the consolidated statements of operations. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties. The Company reviews its tax positions quarterly and adjusts its tax balances as new information becomes available. The Oaktree funds are generally not subject to U.S. federal and state income taxes and, consequently, no income tax provision has been made in the accompanying consolidated financial statements because individual partners are responsible for their proportionate share of the taxable income. Income Taxes |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting unitholders’ capital that are excluded from net income (loss). Other gains and losses result from foreign-currency translation adjustments, net of tax, and unrealized gains and losses on cash-flow hedges. |
Investment Transactions and Income Recognition | Investment Transactions and Income Recognition The consolidated funds record investment transactions at cost on trade date for publicly-traded securities or when they have an enforceable right to acquire the security, which is generally on the closing date if not publicly traded. Realized gains and losses on investments are recorded on a specific-identification basis. The consolidated funds record dividend income on the ex-dividend date and interest income on an accrual basis, unless the related investment is in default or if collection of the income is otherwise considered doubtful. The consolidated funds may hold investments that provide for interest payable in-kind rather than in cash, in which case the related income is recorded at its estimated net realizable amount. |
Receivable for Investments Sold | Receivable for Investments Sold Receivables for investments sold by the consolidated funds are recorded at net realizable value. Changes in net realizable value are reflected within net change in unrealized appreciation (depreciation) on consolidated funds’ investments and realizations are reflected within net realized gain on consolidated funds’ investments in the consolidated statements of operations. |
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 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 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 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 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 consolidated financial statements. |
Securities Sold Short | Securities Sold Short Securities sold short represent obligations of the consolidated funds to make a future delivery of a specific security and, correspondingly, create an obligation to purchase the security at prevailing market prices (or deliver the security, if owned by the consolidated funds) as of the delivery date. As a result, these short sales create the risk that the funds’ obligations to satisfy the delivery requirement may exceed the amount recorded in the accompanying consolidated statements of financial condition. Securities sold short are recorded at fair value, with the resulting change in value reflected as a component of net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the consolidated statements of operations. When the securities are delivered, any gain or loss is included in net realized gain on consolidated funds’ investments. The funds maintain cash deposits with prime brokers in order to cover their obligations on short sales. These amounts are included in due from brokers in the consolidated statements of financial condition. |
Options | Options The purchase price of a call option or a put option is recorded as an investment, which is carried at fair value. If a purchased option expires, a loss in the amount of the cost of the option is realized. When there is a closing sale transaction, a gain or loss is realized if the proceeds are greater or less than, respectively, the cost of the option. When a call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid. When a consolidated fund writes an option, the premium received is recorded as a liability and is subsequently adjusted to the current fair value of the option written. If a written option expires, a gain is realized in the amount of the premium received. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain or loss. The writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. Options written are included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition. |
Total-return Swaps | Total-return Swaps A total-return swap is an agreement to exchange cash flows based on an underlying asset. Pursuant to these agreements, a fund may deposit collateral with the counterparty and may pay a swap fee equal to a fixed |
Due From Brokers | Due From Brokers Due from brokers represents cash owned by the consolidated funds and cash collateral on deposit with brokers and counterparties that are used as collateral for the consolidated funds’ securities and swaps. |
Risks and Uncertainties | Risks and Uncertainties Certain consolidated funds invest primarily in the securities of entities that are undergoing, or are considered likely to undergo, reorganization, debt restructuring, liquidation or other extraordinary transactions. Investments in such entities are considered speculative and involve substantial risk of principal loss. Certain of the consolidated funds’ investments may also consist of securities that are thinly traded, securities and other assets for which no market exists, and securities which are restricted as to their transferability. Additionally, investments are subject to concentration and industry risks, reflecting numerous factors, including political, regulatory or economic issues that could cause the investments and their markets to be relatively illiquid and their prices relatively volatile. Investments denominated in non-U.S. currencies or involving non-U.S. domiciled entities are subject to risks and special considerations not typically associated with U.S. investments. Such risks may include, but are not limited to, investment and repatriation restrictions; currency exchange-rate fluctuations; adverse political, social and economic developments; less liquidity; smaller capital markets; and certain local tax law considerations. Credit risk is the potential loss that may be incurred from the failure of a counterparty or an issuer to make payments according to the terms of a contract. Some consolidated funds are subject to additional credit risk due to strategies of investing in debt of financially distressed issuers or derivatives, as well as involvement in privately-negotiated structured notes and structured-credit transactions. Counterparties include custodian banks, major brokerage houses and their affiliates. The Company monitors the creditworthiness of the financial institutions with which it conducts business. Bank debt has exposure to certain types of risk, including interest rate, market, and the potential non-payment of principal and interest as a result of default or bankruptcy of the issuer. Loans are generally subject to prepayment risk, which will affect the maturity of such loans. The consolidated funds may enter into bank debt participation agreements through contractual relationships with a third-party intermediary, causing the consolidated funds to assume the credit risk of both the borrower and the intermediary. Certain consolidated funds may invest in real property and real estate-related investments, including commercial mortgage-backed securities (“CMBS”) and real estate loans, that entail substantial inherent risks. There can be no assurance that such investments will increase in value or that significant losses will not be incurred. CMBS are subject to a number of risks, including credit, interest rate, prepayment and market. These risks can be affected by a number of factors, including general economic conditions, particularly those in the area where the related mortgaged properties are located, the level of the borrowers’ equity in the mortgaged properties, and the relative timing and rate of delinquencies and prepayments of mortgage loans bearing a higher rate of interest. Real estate loans include residential or commercial loans that are non-performing at the time of their acquisition or that become non-performing following their acquisition. Non-performing real estate loans may require a substantial amount of workout negotiations or restructuring, which may entail, among other things, a substantial reduction in the interest rate and/or write-down of the principal balance. Moreover, foreclosure on collateral securing one or more real estate loans held by the consolidated funds may be necessary, which may be lengthy and expensive. Residential loans are typically subject to risks associated with the value of the underlying properties, which may be affected by a number of factors including general economic conditions, mortgage qualification standards, local market conditions such as employment levels, the supply of homes, and the safety, convenience and attractiveness of the properties and neighborhoods. Commercial loans are typically subject to risks associated with the ability of the borrower to repay, which may be impacted by general economic conditions, as well as borrower-specific factors including the quality of management, the ability to generate sufficient income to make scheduled principal and interest payments, or the ability to obtain alternative financing to repay the loan. Certain consolidated funds hold over-the-counter derivatives that may allow counterparties to terminate derivative contracts prior to maturity under certain circumstances, thereby resulting in an accelerated payment of any net liability owed to the counterparty. |
Recent Accounting Developments | Recent Accounting Developments In August 2018, the Financial Accounting Standards Board (“FASB”) issued guidance that changes the fair value measurement disclosure requirements. The amendments remove or modify certain disclosures, while adding others. The guidance is effective for the Company in the first quarter of 2020, with early adoption permitted. The Company expects that adoption of this guidance will not have a material impact on the consolidated financial statements. In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairments by eliminating step 2 of the goodwill impairment test. This step currently requires an entity to perform a hypothetical purchase price allocation to derive the implied fair value of goodwill. Under the new guidance, an impairment loss is recognized if the carrying value of a reporting unit exceeds its fair value. The impairment loss would equal the amount of that excess, limited to the total amount of goodwill. All other goodwill impairment guidance remains largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The guidance is effective for the Company in the first quarter of 2020 on a prospective basis, with early adoption permitted. The Company expects that adoption of this guidance will not have a material impact on the consolidated financial statements. In June 2016, the FASB issued guidance that significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The revised credit loss guidance will replace the existing “incurred loss” model with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as is required with the current other-than-temporary impairment credit loss model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The Company reviewed its consolidated financial statements and determined that the amounts in scope were primarily related to short term receivables from Oaktree funds. The guidance is effective for the Company in the first quarter of 2020 and will be adopted through a cumulative-effect adjustment to retained earnings as of January 1, 2020. The Company expects that adoption of this guidance will not have a material impact on the consolidated financial statements. In February 2016, the FASB issued guidance that requires a lessee to recognize a lease asset and a lease liability for most of its operating leases. Under current GAAP, operating leases were not recognized by a lessee in its statements of financial position. In general, the asset and liability 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 Company adopted the guidance in the first quarter of 2019 under the simplified transition method, which allows companies to forgo the comparative reporting requirements initially required under the modified retrospective transition approach and apply the new guidance prospectively. The adoption did not have an impact on the consolidated statements of operations because all of the Company’s leases are currently classified as operating leases, which under the guidance will continue to be recognized as expense on a straight-line basis. The adoption, however, resulted in a significant gross-up in total assets and total liabilities on the consolidated statements of financial position. The amount of the liability represents the aggregate discounted amount of the Company’s minimum lease obligations as of that date. The difference between the asset and liability amounts represents deferred rent liabilities and lease incentives as of the reporting date that are netted against the asset amount. |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregated by Fund Structure | Revenues are affected by economic factors related to the asset class composition of the holdings and the contractual terms such as the basis for calculating the management fees and investors’ ability to redeem: Year Ended December 31, 2019 2018 2017 Management Fees Closed-end $ 345,026 $ 466,319 $ 504,727 Open-end 93,401 142,013 160,961 Evergreen 89,227 103,688 60,726 Sub-advisory 51,209 — — Total $ 578,863 $ 712,020 $ 726,414 Incentive Income Closed-end $ 334,287 $ 651,021 $ 701,065 Evergreen 15,837 23,038 42,288 Total $ 350,124 $ 674,059 $ 743,353 |
Contract Balances | The table below sets forth contract balances for the periods indicated: As of December 31, 2019 2018 Receivables (1) $ 65,346 $ 74,795 Contract assets (1) 73,907 288,176 Contract liabilities (2) — 26,549 (1) The changes in the balances primarily relate to accruals, net of payments received. (2) Revenue recognized in the year ended December 31, 2019 from amounts included in the contract liability balance was $17.1 million . |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | The carrying value of the Company’s investments in VIEs that were not consolidated are shown below. As of December 31, 2019 2018 Corporate investments $ 693,090 $ 1,093,294 Due from affiliates 87,524 384,225 Maximum exposure to loss $ 780,614 $ 1,477,519 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Corporate Investments | Summarized financial information of the Company’s equity-method investments is set forth below: As of December 31, Statements of Financial Condition 2019 2018 Assets: Cash and cash-equivalents $ 1,892,353 $ 3,875,072 Investments, at fair value 25,213,422 39,711,382 Other assets 635,277 2,832,960 Total assets $ 27,741,052 $ 46,419,414 Liabilities and Capital: Debt obligations $ 3,558,139 $ 7,234,596 Other liabilities 3,779,527 2,662,850 Total liabilities 7,337,666 9,897,446 Total capital 20,403,386 36,521,968 Total liabilities and capital $ 27,741,052 $ 46,419,414 Year Ended December 31, 2019 2018 2017 Statements of Operations Revenues / investment income $ 766,096 $ 1,861,551 $ 1,982,828 Interest expense (150,078 ) (276,779 ) (235,266 ) Other expenses (402,814 ) (876,627 ) (821,083 ) Net realized and unrealized gain on investments 1,077,761 1,087,345 3,795,102 Net income $ 1,290,965 $ 1,795,490 $ 4,721,581 Corporate investments consisted of the following: As of December 31, Corporate Investments 2019 2018 Equity-method investments: Funds $ 670,348 $ 1,089,068 Companies 3,855 45,797 Other investments, at fair value 34,934 74,899 Total corporate investments $ 709,137 $ 1,209,764 |
Investment | The following table summarizes net gains (losses) attributable to the Company’s other investments: Year Ended December 31, 2019 2018 2017 Realized gain (loss) $ 7,763 $ 18,208 $ 8,439 Net change in unrealized gain (loss) 13,186 (1,888 ) (16,926 ) Total gain (loss) $ 20,949 $ 16,320 $ (8,487 ) The components of investment income are set forth below: Year Ended December 31, Investment Income 2019 2018 2017 Equity-method investments: Funds $ 68,145 $ 66,922 $ 138,465 Companies 57,475 73,868 71,311 Other investments, at fair value 20,949 16,320 (8,487 ) Total investment income $ 146,569 $ 157,110 $ 201,289 |
Investments, at Fair Value | Investments held and securities sold short by the consolidated funds are summarized below: Fair Value as of December 31, Fair Value as a Percentage of Investments of Consolidated Funds as of December 31, Investments 2019 2018 2019 2018 United States: Debt securities: Communication services $ 464,356 $ 543,948 6.4 % 8.4 % Consumer discretionary 508,701 506,551 6.9 7.8 Consumer staples 92,102 112,197 1.3 1.7 Energy 223,671 204,568 3.0 3.1 Financials 355,113 332,240 4.8 5.1 Health care 512,864 537,592 7.0 8.2 Industrials 563,920 443,406 7.7 6.8 Information technology 524,390 536,000 7.1 8.2 Materials 294,300 289,499 4.0 4.4 Real estate 204,933 217,633 2.8 3.3 Utilities 216,053 137,031 2.9 2.1 Total debt securities (cost: $3,981,956 and $4,019,823 as of December 31, 2019 and 2018, respectively) 3,960,403 3,860,665 53.9 59.1 Equity securities: Communication services 312 — 0.0 0.0 Consumer discretionary 658 1,915 0.0 0.1 Energy 256 131 0.0 0.0 Financials — 837 0.0 0.0 Health care — 1,348 0.0 0.0 Industrials — 88 0.0 0.0 Utilities 130,671 1,107 1.8 0.0 Total equity securities (cost: $137,149 and $6,117 as of December 31, 2019 and 2018, respectively) 131,897 5,426 1.8 0.1 Real estate: Real estate 230,741 — 3.1 — Total real estate (cost: $230,741 and $0 as of December 31, 2019 and 2018, respectively) 230,741 — 3.1 — Fair Value as of December 31, Fair Value as a Percentage of Investments of Consolidated Funds as of December 31, Investments 2019 2018 2019 2018 Europe: Debt securities: Communication services $ 469,822 $ 530,337 6.4 % 8.1 % Consumer discretionary 659,001 545,324 9.0 8.3 Consumer staples 178,609 160,406 2.4 2.5 Energy 11,316 15,260 0.2 0.2 Financials 101,933 48,545 1.4 0.7 Health care 579,765 418,516 7.9 6.4 Industrials 362,120 246,640 4.9 3.8 Information technology 177,152 194,988 2.4 3.0 Materials 230,289 221,660 3.1 3.4 Real estate 96,315 30,045 1.3 0.5 Utilities 3,852 1,559 0.1 0.0 Total debt securities (cost: $2,876,531 and $2,477,821 as of December 31, 2019 and 2018, respectively) 2,870,174 2,413,280 39.0 36.9 Equity securities: Consumer Discretionary 94 — 0.0 — Consumer staples — 38 — 0.0 Health care — 948 — 0.1 Total equity securities (cost: $1,227 and $320 as of December 31, 2019 and 2018, respectively) 94 986 0.0 0.1 Asia and other: Debt securities: Communication services 15,750 12,069 0.2 0.2 Consumer discretionary 40,073 36,822 0.5 0.6 Consumer staples 11,545 11,867 0.2 0.2 Energy 13,471 20,594 0.1 0.3 Financials 10,313 13,995 0.1 0.2 Government 917 12,155 0.0 0.2 Health care 8,923 9,633 0.1 0.1 Industrials 31,814 40,468 0.4 0.7 Information technology 5,639 1,887 0.1 0.0 Materials 5,604 15,516 0.1 0.2 Real estate 751 38,592 0.0 0.6 Utilities 20,300 14,870 0.3 0.2 Total debt securities (cost: $164,650 and $233,603 as of December 31, 2019 and 2018, respectively) 165,100 228,468 2.2 3.5 Fair Value as of December 31, Fair Value as a Percentage of Investments of Consolidated Funds as of December 31, Investments 2019 2018 2019 2018 Asia and other: Equity securities: Consumer discretionary — 874 — 0.0 Consumer staples — 997 — 0.0 Energy — 382 — 0.0 Financials — 2,935 — 0.0 Industrials — 11,265 — 0.2 Information technology — 1,725 — 0.0 Materials — 4,382 — 0.1 Total equity securities (cost: $0 and $22,977 as of December 31, 2019 and 2018, respectively) — 22,560 — 0.3 Total debt securities 6,995,677 6,502,413 95.1 99.5 Total equity securities 131,991 28,972 1.8 0.5 Total real estate 230,741 — 3.1 — Total investments, at fair value $ 7,358,409 $ 6,531,385 100.0 % 100.0 % Securities Sold Short Equity securities (proceeds: $0 and $2,644 as of December 31, 2019 and 2018, respectively) $ — $ (2,609 ) |
Net Gains (Losses) from Investment Activities of Consolidated Funds | The following table summarizes net gains (losses) from investment activities: Year Ended December 31, 2019 2018 2017 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 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Investments and other financial instruments $ (11,227 ) $ 137,521 $ (26,109 ) $ (252,038 ) $ 27,910 $ (1,151 ) CLO liabilities (1) — (131,948 ) — 85,014 — 53,351 Foreign-currency forward contracts (2) (6,546 ) 4,364 513 2,327 (2,917 ) 1,909 Total-return and interest-rate swaps (2) — — 858 29 232 378 Options and futures (2) — — 1,210 76 (4,825 ) 574 Total $ (17,773 ) $ 9,937 $ (23,528 ) $ (164,592 ) $ 20,400 $ 55,061 (1) Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under the CLO measurement guidance. Please see note 2 for more information. (2) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. There were no transfers between Level I and Level II positions for the years ended December 31, 2019 and 2018 . Please see notes 11 and 19 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively. As of December 31, 2019 As of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Assets U.S. Treasury and other securities (1) $ 9,232 $ — $ — $ 9,232 $ 546,531 $ — $ — $ 546,531 Corporate investments — 4,717 30,311 35,028 — 29,476 45,426 74,902 Foreign-currency forward contracts (2) — — — — — 1,654 — 1,654 Cross-currency swap (2) — — — — — 2,384 — 2,384 Total assets $ 9,232 $ 4,717 $ 30,311 $ 44,260 $ 546,531 $ 33,514 $ 45,426 $ 625,471 Liabilities Contingent consideration (3) $ — $ — $ — $ — $ — $ — $ (6,657 ) $ (6,657 ) Foreign-currency forward contracts (4) — (1,703 ) — (1,703 ) — (2,318 ) — (2,318 ) Total liabilities $ — $ (1,703 ) $ — $ (1,703 ) $ — $ (2,318 ) $ (6,657 ) $ (8,975 ) (1) Carrying value approximates fair value due to the short-term nature. (2) Amounts are included in other assets in the consolidated statements of financial condition. (3) Amounts are included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition. (4) Amounts are included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition, except for $94 and $3 as of December 31, 2019 and 2018 , respectively, which are included within corporate investments in the consolidated statements of financial condition. |
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: Year Ended December 31, 2019 2018 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 45,426 $ (6,657 ) $ 50,902 $ (18,778 ) Contributions or additions 937 — 19,382 — Distributions (9,643 ) — (31,614 ) — Restructuring distribution of net assets (14,416 ) 6,657 — — Net gain (loss) included in earnings 8,007 — 6,756 12,121 Ending balance $ 30,311 $ — $ 45,426 $ (6,657 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 8,007 $ — $ 4,796 $ 12,121 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 December 31, Significant Unobservable Input Weighted Average Financial Instrument 2019 2018 Valuation Technique Range Corporate investment – Limited partnership interests $ 30,311 $ 45,426 Market approach Not applicable Not applicable Not applicable Contingent liability — (6,657 ) Discounted cash flow Assumed % of total potential contingent payments 0% – 100% 23% |
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: Year Ended December 31, 2019 2018 Corporate Investments Contingent Consideration Liability Corporate Investments Contingent Consideration Liability Beginning balance $ 45,426 $ (6,657 ) $ 50,902 $ (18,778 ) Contributions or additions 937 — 19,382 — Distributions (9,643 ) — (31,614 ) — Restructuring distribution of net assets (14,416 ) 6,657 — — Net gain (loss) included in earnings 8,007 — 6,756 12,121 Ending balance $ 30,311 $ — $ 45,426 $ (6,657 ) Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 8,007 $ — $ 4,796 $ 12,121 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 December 31, Significant Unobservable Input Weighted Average Financial Instrument 2019 2018 Valuation Technique Range Corporate investment – Limited partnership interests $ 30,311 $ 45,426 Market approach Not applicable Not applicable Not applicable Contingent liability — (6,657 ) Discounted cash flow Assumed % of total potential contingent payments 0% – 100% 23% 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 Total 2019 Beginning balance $ 136,055 $ 185,378 $ 3,063 $ 1,426 $ — $ 325,922 Deconsolidation of funds (121,146 ) (116,714 ) (3,063 ) (1,426 ) — $ (242,349 ) Transfers into Level III 9,300 — 2,391 776 — 12,467 Transfers out of Level III (5,293 ) (57,325 ) (504 ) — — (63,122 ) Purchases 155,546 27,857 130,341 — 230,741 544,485 Sales (15,282 ) (8,471 ) (266 ) — — (24,019 ) Realized gains (losses), net 46 (119 ) (106 ) — — (179 ) Unrealized (depreciation) appreciation, net (9,584 ) 660 (1,419 ) (119 ) — (10,462 ) Ending balance $ 149,642 $ 31,266 $ 130,437 $ 657 $ 230,741 $ 542,743 Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period $ (9,780 ) $ 390 $ (1,419 ) $ (119 ) $ — $ (10,928 ) 2018 Beginning balance $ 86,999 $ 75,388 $ 3,427 $ — $ 121,588 $ 287,402 Deconsolidation of funds — — (52,000 ) (172 ) (121,087 ) (173,259 ) Transfers into Level III 48,312 2,034 490 — — 50,836 Transfers out of Level III (26,845 ) (10,984 ) (658 ) — — (38,487 ) Purchases 83,199 186,210 52,533 1,248 — 323,190 Sales (54,649 ) (57,414 ) (387 ) — (501 ) (112,951 ) Realized gains (losses), net 659 351 59 — 1,069 Unrealized (depreciation) appreciation, net (1,620 ) (10,207 ) (401 ) 350 — (11,878 ) Ending balance $ 136,055 $ 185,378 $ 3,063 $ 1,426 $ — $ 325,922 Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period $ (1,729 ) $ (7,619 ) $ (401 ) $ 350 $ — $ (9,399 ) |
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 December 31, 2019 As of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Assets Investments: Corporate debt – bank debt $ — $ 5,911,523 $ 149,642 $ 6,061,165 $ — $ 5,216,923 $ 136,055 $ 5,352,978 Corporate debt – all other — 903,246 31,266 934,512 634 963,423 185,378 1,149,435 Equities – common stock 552 345 130,437 131,334 24,483 — 3,063 27,546 Equities – preferred stock — — 657 657 — — 1,426 1,426 Real estate — — 230,741 230,741 — — — — Total investments 552 6,815,114 542,743 7,358,409 25,117 6,180,346 325,922 6,531,385 Derivatives: Foreign-currency forward contracts 27 6,863 — 6,890 — 2,275 — 2,275 Options and futures — — — 189 — — 189 Total derivatives 27 6,863 — 6,890 189 2,275 — 2,464 Total assets $ 579 $ 6,821,977 $ 542,743 $ 7,365,299 $ 25,306 $ 6,182,621 $ 325,922 $ 6,533,849 Liabilities CLO debt obligations: Senior secured notes (1) $ — $ (5,613,846 ) $ — $ (5,613,846 ) $ — $ (3,976,602 ) $ — $ (3,976,602 ) Subordinated notes (1) — (154,153 ) — (154,153 ) — (151,392 ) — (151,392 ) Total CLO debt obligations — (5,767,999 ) — (5,767,999 ) — (4,127,994 ) — (4,127,994 ) Securities sold short: Equity securities — — — — (2,609 ) — — (2,609 ) Derivatives: Foreign-currency forward contracts (202 ) (2,349 ) — (2,551 ) — (643 ) — (643 ) Total liabilities $ (202 ) $ (5,770,348 ) $ — $ (5,770,550 ) $ (2,609 ) $ (4,128,637 ) $ — $ (4,131,246 ) (1) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 11 for more information. |
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 December 31, 2019 : Investment Type Fair Value Valuation Technique Significant Unobservable (1)(2) Range Weighted Average (3) Credit-oriented investments: Consumer discretionary: $ 16,836 Recent market information (5) Quoted prices Not applicable Not applicable Financials: 17,274 Recent market information (5) Quoted prices Not applicable Not applicable Health care: 26,863 Recent market information (5) Quoted prices Not applicable Not applicable Real estate: 16,755 Recent market information (5) Quoted prices Not applicable Not applicable 71,906 Recent transaction price (4) Other: 31,274 Recent market information (5) Quoted prices Not applicable Not applicable Equity investments: 130,341 Discounted cash flow (4) Discount rate 6% – 8% 7% 753 Recent market information (5) Real estate-oriented: 230,741 Recent transaction price (4) Not Applicable Not applicable Not applicable Total Level III $ 542,743 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, 2018 : Investment Type Fair Value Valuation Technique Significant Unobservable (1)(2) Range Weighted Average (3) Credit-oriented investments: Communication services: $ 20,746 Recent market information (5) Quoted prices Not applicable Not applicable 2,416 Discounted cash flow (4) Discount rate 12% – 14% 13% FInancials: 108,277 Recent market information (5) Quoted prices Not applicable Not applicable 3,608 Discounted cash flow (4) Discount rate 9% – 15% 14% Health care: 37,724 Recent market information (5) Quoted prices Not applicable Not applicable 2,550 Discounted cash flow (4) Discount rate 10% – 16% 14% Real estate: 79,562 Recent market information (5) Quoted prices Not applicable Not applicable 4,570 Discounted cash flow (4) Discount rate 12% – 23% 14% Other: 38,959 Recent market information (5) Quotes prices Not applicable Not applicable 17,943 Discounted cash flow (4) Discount rate 8% – 15% 13% 5,078 Recent transaction price (8) Not applicable Not applicable Not applicable Equity investments: 2,390 Discounted cash flow (4) Discount rate 10% – 30% 12% 2,099 Market approach (6) Earnings multiple (7) 4x – 10x 7x Total Level III $ 325,922 (1) 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. (2) 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. (3) The weighted average is based on the fair value of the investments included in the range. (4) 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. (5) Certain investments are valued using vendor prices or broker quotes 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. (6) 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. (7) 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. (8) 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. |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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 December 31, 2019 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Derivative assets of consolidated funds: Foreign-currency forward contracts 6,890 — — 6,890 Subtotal 6,890 — — 6,890 Total $ 6,890 $ — $ — $ 6,890 Derivative Liabilities: Foreign-currency forward contracts $ (1,703 ) $ — $ — $ (1,703 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (2,551 ) — — (2,551 ) Total $ (4,254 ) $ — $ — $ (4,254 ) Gross and Net Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2018 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 1,654 $ 1,497 $ — $ 157 Cross-currency swap 2,384 — — 2,384 Subtotal 4,038 1,497 — 2,541 Derivative assets of consolidated funds: Foreign-currency forward contracts 2,275 — — 2,275 Options and futures 189 — — 189 Subtotal 2,464 — — 2,464 Total $ 6,502 $ 1,497 $ — $ 5,005 Derivative Liabilities: Foreign-currency forward contracts $ (2,318 ) $ (1,497 ) $ — $ (821 ) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (643 ) — — (643 ) Total $ (2,961 ) $ (1,497 ) $ — $ (1,464 ) The fair value of freestanding derivatives consisted of the following: Assets Liabilities Notional Fair Value Notional Fair Value As of December 31, 2019 Foreign-currency forward contracts $ — $ — $ (156,281 ) $ (1,703 ) $ — $ — $ (156,281 ) $ (1,703 ) As of December 31, 2018 Foreign-currency forward contracts $ 58,254 $ 1,654 $ (77,156 ) $ (2,318 ) Cross-currency swap 242,450 2,384 — — $ 300,704 $ 4,038 $ (77,156 ) $ (2,318 ) The fair value of derivatives held by the consolidated funds consisted of the following: Assets Liabilities Notional Fair Value Notional Fair Value As of December 31, 2019 Foreign-currency forward contracts $ 166,917 $ 6,890 $ (140,276 ) $ (2,551 ) $ 166,917 $ 6,890 $ (140,276 ) $ (2,551 ) As of December 31, 2018 Foreign-currency forward contracts $ 95,980 $ 2,275 $ (48,081 ) $ (643 ) Options and futures 11,126 189 — — $ 107,106 $ 2,464 $ (48,081 ) $ (643 ) |
Summary of Impact of Derivative Instruments on Condensed Consolidated Statement of Operations | The impact of derivatives held by the consolidated funds in the consolidated statements of operations was as follows: Year Ended December 31, 2019 2018 2017 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 Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Foreign-currency forward contracts $ (6,546 ) $ 4,364 $ 513 $ 2,327 $ (2,917 ) $ 1,909 Total-return and interest-rate swaps — — 858 29 232 378 Options and futures — — 1,210 76 (4,825 ) 574 Total $ (6,546 ) $ 4,364 $ 2,581 $ 2,432 $ (7,510 ) $ 2,861 Realized and unrealized gains and losses arising from freestanding derivatives were recorded in the consolidated statements of operations as follows: Year Ended December 31, 2019 2018 2017 Investment income $ 5,243 $ 9,191 $ (16,707 ) General and administrative expense (1) 2,143 (1,322 ) (14,199 ) Total gain (loss) $ 7,386 $ 7,869 $ (30,906 ) (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. |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | The following table sets forth the Company’s fixed assets and accumulated depreciation: As of December 31, 2019 2018 Furniture, equipment and capitalized software $ 9,608 $ 26,345 Leasehold improvements 25,764 70,270 Corporate aircraft — 66,120 Other 937 4,859 Fixed assets 36,309 167,594 Accumulated depreciation (22,227 ) (61,879 ) Fixed assets, net $ 14,082 $ 105,715 As a result of the Restructuring, fixed assets of $89.5 million were transferred as part of the deconsolidation of entities effective October 1, 2019. |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Value of Intangible Assets | The following table summarizes the carrying value of intangible assets: As of December 31, 2019 2018 Contractual rights $ — $ 347,452 Accumulated amortization — (33,173 ) Intangible assets, net $ — $ 314,279 |
DEBT OBLIGATIONS AND CREDIT F_2
DEBT OBLIGATIONS AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Set forth below are the outstanding debt obligations of CLOs: As of December 31, 2019 As of December 31, 2018 Fair Value (1) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Fair Value (1) Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Senior secured notes $ 5,613,846 2.85% 8.6 $ 3,976,602 2.69% 9.9 Subordinated notes (2) 154,153 N/A 10.4 151,392 N/A 9.7 Total CLO debt obligations $ 5,767,999 $ 4,127,994 (1) 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 7 for more information. (2) 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 debt obligations outstanding: Outstanding Amount as of December 31, Facility Capacity Weighted Average Interest Rate Weighted Average Remaining Maturity (years) Commitment Fee Rate L/C Fee Credit Agreement 2019 2018 Senior variable rate notes $ 159,411 $ 870,098 $ 159,411 3.42% 4.4 N/A N/A Less: Debt issuance costs (934 ) (5,569 ) Total debt obligations, net $ 158,477 $ 864,529 The Company’s debt obligations are set forth below: As of December 31, 2019 2018 $250,000, 3.78%, issued in December 2017, payable on December 18, 2032 $ — $ 250,000 $250,000, variable-rate term loan, issued in March 2014, payable on March 29, 2023 (1) — 150,000 $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 — 50,000 $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 — 100,000 $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 — 100,000 $100,000, 3.69%, issued in July 2016, payable on July 12, 2031 — 100,000 Total remaining principal — 750,000 Less: Debt issuance costs — (4,055 ) Debt obligations $ — $ 745,945 (1) On December 13, 2019, the credit facility was amended to among other things, increase the revolving loan commitment from $500 million to $650 million , provide for the refinancing of the then-outstanding $150 million term loan with revolving loans, extend the maturity date from March 29, 2023 to December 13, 2024, favorably update the commitment fee and interest rate in the corporate ratings-based pricing grid and increase the asset under management covenant threshold from $60 million to $65 million . Borrowings generally bear interest at a spread to either LIBOR or an alternative base rate. Based on the current credit ratings of OCM, the interest rate on borrowings is LIBOR plus 0.88% per annum and the commitment fee on the unused portions of the revolving credit facility is 0.08% per annum. The credit agreement contains customary financial covenants and restrictions, including ones regarding a maximum leverage ratio and a minimum required level of assets under management (as defined in the credit agreement, as amended above). As of December 31, 2019 , OCM had $150 million outstanding under the revolving credit facility and the Company had no outstanding borrowings under the revolving credit facility. OCM and the Company were in compliance with all financial maintenance covenants associated with its senior notes and bank credit facility as of December 31, 2019 and 2018 , respectively. |
Future Principal Payments of Debt Obligations | As of December 31, 2019 , future scheduled principal or par value payments with respect to the debt obligations of CLOs were as follows: 2020 $ 204,290 2021 — 2022 — 2023 — 2024 — Thereafter 5,622,072 Total $ 5,826,362 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense included in general and administrative expense were as follows: Twelve months ended December 31, 2019 Operating lease cost $ 15,984 Sublease income (631 ) Total lease cost $ 15,353 Supplemental cash flow information related to leases was as follows: Twelve months ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 16,224 Weighted average remaining lease term for operating leases (in years) 10.7 Weighted average discount rate for operating leases 4.4 % |
Maturities of Operating Lease Liabilites | As of December 31, 2019 , maturities of operating lease liabilities were as follows: 2020 6,262 2021 6,101 2022 5,480 2023 4,800 2024 4,224 Thereafter 28,778 Total lease payments 55,645 Less: imputed interest (9,852 ) Total operating lease liabilities $ 45,793 |
NON-CONTROLLING REDEEMABLE IN_2
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. Year Ended December 31, 2019 2018 2017 Beginning balance $ 961,622 $ 860,548 $ 344,047 Initial consolidation of a fund 96,248 — 296,971 Deconsolidation of funds due to restructuring (406,058 ) — — Deconsolidation of funds (423,598 ) — — Contributions 664,679 447,260 331,764 Distributions (107,499 ) (305,406 ) (146,393 ) Net income (loss) 93,620 (40,930 ) 29,532 Change in distributions payable (16,105 ) 2,469 1,853 Foreign-currency translation and other 3,313 (2,319 ) 2,774 Ending balance $ 866,222 $ 961,622 $ 860,548 |
UNITHOLDERS' CAPITAL (Tables)
UNITHOLDERS' CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Distributions Made | Distributions per Class A unit are set forth below: Payment Date Record Date Applicable to Quarterly Period Ended Distribution Per Unit November 12, 2019 October 31, 2019 September 30, 2019 $ 0.03 September 30, 2019 September 30, 2019 - 3.13 May 10, 2019 May 6, 2019 March 31, 2019 1.05 February 22, 2019 February 15, 2019 December 31, 2018 0.75 Total 2019 $ 4.96 November 13, 2018 November 5, 2018 September 30, 2018 $ 0.70 August 10, 2018 August 6, 2018 June 30, 2018 0.55 May 11, 2018 May 7, 2018 March 31, 2018 0.96 February 23, 2018 February 16, 2018 December 31, 2017 0.76 Total 2018 $ 2.97 November 10, 2017 November 6, 2017 September 30, 2017 $ 0.56 August 11, 2017 August 7, 2017 June 30, 2017 1.31 May 12, 2017 May 8, 2017 March 31, 2017 0.71 February 24, 2017 February 17, 2017 December 31, 2016 0.63 Total 2017 $ 3.21 |
Summary of Net Income (Loss) | The following table sets forth a summary of net income attributable to the preferred unitholders, the OCGH non-controlling interest and the Class A common unitholders: Year Ended December 31, 2019 2018 2017 Weighted average Oaktree Operating Group units outstanding (in thousands): OCGH non-controlling interest 79,084 86,390 91,643 Class A unitholders 80,045 70,526 64,148 Total weighted average units outstanding 159,129 156,916 155,791 Oaktree Operating Group net income: Net income attributable to preferred unitholders (1) $ 27,316 $ 12,277 $ — Net income attributable to OCGH non-controlling interest 137,100 280,159 422,122 Net income attributable to OCG Class A unitholders 137,921 228,791 295,161 Oaktree Operating Group net income (2) $ 302,337 $ 521,227 $ 717,283 Net income attributable to OCG Class A unitholders: Oaktree Operating Group net income attributable to OCG Class A unitholders $ 137,921 $ 228,791 $ 295,161 Non-Operating Group income (expense) (8,662 ) (632 ) 144,143 Income tax expense of Intermediate Holding Companies (1,736 ) (17,018 ) (207,810 ) Net income attributable to OCG Class A unitholders $ 127,523 $ 211,141 $ 231,494 (1) Represents distributions declared, if any, on the preferred units. (2) Oaktree Operating Group net income does not include amounts attributable to other non-controlling interests, which amounted to $1,779 , $2,659 and $2,662 for the years ended December 31, 2019 , 2018 and 2017 , respectively. As a result of the Restructuring, as of October 1, 2019, four of the six Oaktree Operating Group entities are no longer indirect subsidiaries of the Company. Accordingly, subsequent to that date, the consolidated financial statements reflect the Company’s indirect economic interest in only two of the Oaktree Operating Group entities: (i) Oaktree Capital I and (ii) OCM Cayman. |
Changes in Company Ownership Interest | The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below: Year Ended December 31, 2019 2018 2017 Net income attributable to OCG Class A unitholders $ 127,523 $ 211,141 $ 231,494 Equity reallocation between controlling and non-controlling interests 306,015 80,106 23,151 Change from net income attributable to OCG Class A unitholders and transfers from non-controlling interests $ 433,538 $ 291,247 $ 254,645 |
EARNINGS PER UNIT (Tables)
EARNINGS PER UNIT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Unit [Abstract] | |
Computations of Net Income Per Unit | The computation of net income per Class A unit is set forth below: Year Ended December 31, 2019 2018 2017 Net income per Class A unit (basic and diluted): (in thousands, except per unit amounts) Net income attributable to OCG Class A unitholders $ 127,523 $ 211,141 $ 231,494 Weighted average number of Class A units outstanding (basic and diluted) 80,045 70,526 64,148 Basic and diluted net income per Class A unit $ 1.59 $ 2.99 $ 3.61 |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Unvested Equity-Based Awards and Changes | A summary of the status of the Company’s unvested Converted OCGH units and other OCGH unit awards and a summary of changes for the periods presented are set forth below (actual dollars per unit): Converted OCGH Units (1) OCGH Units Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Balance, December 31, 2016 2,128,400 $ 41.86 2,337,953 $ 39.85 Granted 1,285,548 45.42 274,018 37.15 Vested (837,254 ) 40.57 (453,136 ) 38.50 Forfeited (20,378 ) 45.59 — — Balance, December 31, 2017 2,556,316 44.05 2,158,835 39.79 Granted 1,164,601 39.61 124,051 31.80 Vested (920,439 ) 42.57 (418,837 ) 37.23 Forfeited (99,893 ) 40.59 — — Balance, December 31, 2018 2,700,585 42.76 1,864,049 39.83 Granted 1,494,324 49.56 1,873,155 39.95 Vested (975,072 ) 43.06 (515,534 ) 35.44 Restructuring (2) (2,380,641 ) 45.83 (2,600,264 ) 40.87 Forfeited (107,955 ) 44.63 — — Balance, December 31, 2019 731,241 $ 45.99 621,406 $ 39.49 (1) Upon the completion of the Merger, each unvested Class A Unit held by current, or in certain cases former, employees, officers and directors of Oaktree and its subsidiaries was converted into one unvested OCGH Unit (each, a “Converted OCGH Unit”) and became subject to the terms and conditions of the OCGH limited partnership agreement. The Converted OCGH Units will (i) be subject to the same vesting terms that were applicable to such units prior to the completion of the Merger, (ii) be entitled to receive ongoing distributions in respect of earnings, but not capital distributions and (iii) upon vesting, receive the accumulated value of capital distributions that accrued while such units were unvested. However, in 2020 and 2021, Converted OCGH Units will be valued at $49.00 per unit, less the amount of any capital distributions received upon vesting. (2) Effective with the Restructuring, compensation related to unvested equity awards granted for service provided by employees of OCM is no longer included in these consolidated financial statements. |
INCOME TAXES AND RELATED PAYM_2
INCOME TAXES AND RELATED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Income tax expense from operations consisted of the following: Year Ended December 31, 2019 2018 2017 Current: U.S. federal income tax $ (93 ) $ 4,645 $ 4,085 State and local income tax 1,674 2,934 2,687 Foreign income tax 7,933 7,402 5,907 $ 9,514 $ 14,981 $ 12,679 Deferred: U.S. federal income tax $ 519 $ 8,934 $ 191,488 State and local income tax (158 ) 844 10,928 Foreign income tax (255 ) 20 347 $ 106 $ 9,798 $ 202,763 Total: U.S. federal income tax $ 426 $ 13,579 $ 195,573 State and local income tax 1,516 3,778 13,615 Foreign income tax 7,678 7,422 6,254 Income tax expense $ 9,620 $ 24,779 $ 215,442 |
Schedule of Income before Income Tax, Domestic and Foreign | The Company’s income (loss) before income taxes consisted of the following: Year Ended December 31, 2019 2018 2017 Domestic income (loss) before income taxes $ 380,653 $ 467,264 $ 894,911 Foreign income (loss) before income taxes 16,305 22,060 10,013 Total income (loss) before income taxes $ 396,958 $ 489,324 $ 904,924 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s effective tax rate differed from the federal statutory rate for the following reasons: Year Ended December 31, 2019 2018 2017 Income tax expense at federal statutory rate 21.00 % 21.00 % 35.00 % Income passed through (20.96 ) (17.78 ) (31.61 ) State and local taxes, net of federal benefit 0.45 0.55 0.38 Foreign taxes 1.07 0.57 0.23 Deferred tax adjustment — — 19.76 Other, net 0.86 0.72 0.05 Total effective rate 2.42 % 5.06 % 23.81 % |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities were as follows: As of December 31, 2019 2018 2017 Deferred tax assets: Investment in partnerships $ — $ 210,678 $ 191,713 Equity-based compensation expense — 5,535 3,537 Net operating losses — 7,393 — Other (1) 3,096 9,191 9,311 Total deferred tax assets 3,096 232,797 204,561 Total deferred tax liabilities — 3,697 2,101 Net deferred tax assets before valuation allowance 3,096 229,100 202,460 Valuation allowance — — — Net deferred tax assets $ 3,096 $ 229,100 $ 202,460 (1) As of December 31, 2019, balance of Other of $3,096 relates to deferred tax assets in foreign jurisdictions (relating primarily to fixed assets and accruals). |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of unrecognized tax benefits (excluding interest and penalties thereon): Year Ended December 31, 2019 2018 2017 Unrecognized tax benefits, January 1 $ 2,699 $ 4,366 $ 5,768 Additions for tax positions related to the current year — — 350 Additions for tax positions related to prior years — — — Reductions for tax positions related to prior years (1) (2,440 ) (18 ) (412 ) Settlements — (1,423 ) — Lapse in statute of limitations (152 ) (226 ) (1,340 ) Unrecognized tax benefits, December 31 $ 107 $ 2,699 $ 4,366 (1) Reduction of $2,440 during 2019 relates to the transfer of unrecognized tax benefits to Brookfield. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2019 , the Company’s aggregate estimated minimum commitments under Oaktree’s operating leases were as follows: 2020 $ 6,262 2021 6,101 2022 5,480 2023 4,800 2024 4,224 Thereafter 28,778 Total $ 55,645 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Amounts Due from and Due to Affiliates | As of December 31, 2019 2018 Due from affiliates: Loans $ 2,596 $ 3,857 Amounts due from unconsolidated funds 2,415 72,588 Management fees and incentive income due from unconsolidated funds 88,043 362,971 Payments made on behalf of unconsolidated entities 71,051 3,469 Non-interest bearing advances made to certain non-controlling interest holders and employees 84 27 Total due from affiliates $ 164,189 $ 442,912 Due to affiliates: Due to OCGH unitholders in connection with the tax receivable agreement (please see note 17) $ — $ 187,872 Amounts due to unconsolidated entities 86,575 — Amounts due to senior executives, certain non-controlling interest holders and employees 488 495 Total due to affiliates $ 87,063 $ 188,367 |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2019 and December 31, 2018 (dollars in thousands except per unit data): Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenues $ 266,415 $ 313,483 $ 205,190 $ 143,899 Expenses (237,474 ) (265,888 ) (245,480 ) (93,689 ) Other income 159,957 75,785 24,190 50,570 Income before income taxes $ 188,898 $ 123,380 $ (16,100 ) $ 100,780 Net income $ 184,400 $ 121,528 $ (20,898 ) $ 102,308 Net income attributable to OCG Class A unitholders $ 47,254 $ 42,444 $ (16,648 ) $ 54,473 Net income per unit (basic and diluted): Net income per Class A unit $ 0.66 $ 0.57 $ (0.22 ) $ 0.56 Distributions declared per Class A unit $ 0.75 $ 1.05 $ 3.13 $ 0.03 Three Months Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Revenues $ 337,321 $ 213,283 $ 241,227 $ 594,248 Expenses (251,036 ) (184,606 ) (191,167 ) (373,762 ) Other income 57,513 41,947 99,599 (95,243 ) Income before income taxes $ 143,798 $ 70,624 $ 149,659 $ 125,243 Net income $ 137,401 $ 65,757 $ 143,091 $ 118,296 Net income attributable to OCG Class A unitholders $ 52,732 $ 31,121 $ 52,750 $ 74,538 Net income per unit (basic and diluted): Net income per Class A unit $ 0.78 $ 0.44 $ 0.74 $ 1.04 Distributions declared per Class A unit $ 0.76 $ 0.96 $ 0.55 $ 0.70 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION - Additional Information (Details) $ / shares in Units, $ in Billions | Sep. 30, 2019USD ($)$ / sharesshares | Mar. 13, 2019 | Dec. 31, 2019entitypartnership_interestvote | Oct. 01, 2019USD ($)entity |
Subsidiary, Sale of Stock [Line Items] | ||||
Ownership interest (as a percent) | 100.00% | |||
Number of votes per class A unit | vote | 1 | |||
Number of votes per class B unit | vote | 10 | |||
Number of operating entities | entity | 6 | 6 | ||
Number of limited partnership interests | partnership_interest | 1 | |||
Number of former indirect subsidiaries | entity | 4 | |||
Number of indirect subsidiaries | entity | 2 | 2 | ||
Deconsolidation, total assets transferred | $ 1.7 | |||
Deconsolidation, total liabilities transferred | 1.2 | |||
Deconsolidation, total unitholders capital transferred | $ 0.5 | |||
Brookfield Asset Management Inc. Merger Agreement, OCGH Unitholders | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
OSC class A, cash consideration (in USD per share) | $ / shares | $ 49 | |||
Shares of Brookfield issued (in shares) | shares | 1.0770 | |||
Cash pro ration | 50.00% | |||
Aggregate amount of cash payable to unitholders | $ 2.4 | |||
Class A Units | Brookfield Asset Management Inc. Merger Agreement, OCGH Unitholders | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Share pro ration | 20.00% | |||
Number of shares issued during mergers (in shares) | shares | 52,800,000 | |||
Converted OCGH Units | Brookfield Asset Management Inc. Merger Agreement, OCGH Unitholders | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of unvested shares converted during mergers (in shares) | shares | 1 | |||
Brookfield Asset Management Inc. | Brookfield Merger Agreement | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Percentage of business acquired by Brookfield | 61.20% | |||
Oaktree Capital Group Holdings, L.P. | Brookfield Merger Agreement | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Percentage of business owned by OCGH | 38.80% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Non-controlling Redeemable Interests in Consolidated Funds) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Variable Interest Entity [Line Items] | |
Withdrawal period | 1 month |
Maximum | |
Variable Interest Entity [Line Items] | |
Withdrawal period | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Intangible Assets) (Details) - Acquired Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives (in years) | 7 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives (in years) | 25 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Retained earnings | $ 51,534 | $ 100,683 | ||
Revenues | $ 928,987 | 1,386,079 | $ 1,469,767 | |
Management Fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Period to receive payment | The Company’s right to receive management fees typically ends after 10 or 11 years from either the initial closing date or the start of the investment period, even if assets remain in the fund. | |||
Revenues | $ 578,863 | 712,020 | 726,414 | |
Incentive Income, Closed-end | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 334,287 | 651,021 | 701,065 | |
Preferred return on funds | 20.00% | |||
Percentage of fund profits | 8.00% | |||
Incentive Income, Evergreen | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 15,837 | 23,038 | 42,288 | |
Preferred return on funds | 20.00% | |||
Investment Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 350,124 | $ 674,059 | $ 743,353 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Disaggregation of Revenue [Line Items] | ||||
Retained earnings | $ 48,700 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Total Compensation and Benefits) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Incentive income compensation vesting period | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Depreciation and Amortization) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Acquired Intangibles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (in years) | 7 years |
Acquired Intangibles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (in years) | 25 years |
Contractual Rights to Earn Future Fee Income [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (in years) | 7 years |
Contractual Rights to Earn Future Fee Income [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives (in years) | 25 years |
Furniture, equipment and capitalized software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Furniture, equipment and capitalized software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Income (Expense), Net) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Income tax benefit related to Tax Act, tax receivable liability | $ 145.1 | $ 145.1 |
Oaktree Capital Group Excluding Consolidated Funds | $250,000, 6.75%, issued in November 2009, payable on December 2, 2019 | ||
Debt Instrument [Line Items] | ||
Make-whole premium expense related to early repayment of debt | 22 | |
Debt redeemed | $ 250 | |
Stated rate | 6.75% | 6.75% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Recent Accounting Developments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 51,534 | $ 100,683 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 48,700 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - Fifth Street Management LLC $ in Millions | Oct. 17, 2017USD ($)company |
Asset Acquisitions [Line Items] | |
Number of companies acquired | company | 2 |
Cash purchase price | $ 320 |
Net purchase price | 319.4 |
Finite-lived contractual rights | $ 56.2 |
REVENUES - Revenues Disaggregat
REVENUES - Revenues Disaggregated by Fund Structure (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 928,987 | $ 1,386,079 | $ 1,469,767 |
Closed-end | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 345,026 | 466,319 | 504,727 |
Open-end | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 93,401 | 142,013 | 160,961 |
Evergreen | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 89,227 | 103,688 | 60,726 |
Sub-advisory | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 51,209 | 0 | 0 |
Management Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 578,863 | 712,020 | 726,414 |
Closed-end | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 334,287 | 651,021 | 701,065 |
Evergreen | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 15,837 | 23,038 | 42,288 |
Incentive Income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 350,124 | $ 674,059 | $ 743,353 |
REVENUES - Contract Balances (D
REVENUES - Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 65,346 | $ 74,795 |
Contract assets | 73,907 | 288,176 |
Contract liabilities | 0 | $ 26,549 |
Revenue recognized from amounts included in contract liability balance | $ 17,100 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - Consolidated VIEs $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)entity | Dec. 31, 2018entity | |
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated (in entity) | 22 | 23 |
VIE consolidated assets | $ | $ 7,400 | |
VIE consolidated liabilities | $ | 6,200 | |
Maximum loss exposure | $ | $ 560.8 | |
Funds Managed By Oaktree | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated (in entity) | 9 | |
CLO's For Which Oaktree Acts As Collateral Manager | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated (in entity) | 13 | |
Remaining Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Number of VIE's consolidated (in entity) | 22 |
VARIABLE INTEREST ENTITIES - VI
VARIABLE INTEREST ENTITIES - VIEs Not Consolidated (Details) - Unconsolidated VIEs - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 780,614 | $ 1,477,519 |
Corporate investments | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 693,090 | 1,093,294 |
Due from affiliates | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 87,524 | $ 384,225 |
INVESTMENTS - Corporate Investm
INVESTMENTS - Corporate Investments (Details) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Other investments, at fair value | $ 34,934 | $ 74,899 |
Total corporate investments | 709,137 | 1,209,764 |
Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments | 670,348 | 1,089,068 |
Companies | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments | $ 3,855 | $ 45,797 |
INVESTMENTS - Investment Income
INVESTMENTS - Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Other investments, at fair value | $ 20,949 | $ 16,320 | $ (8,487) |
Total investment income | 146,569 | 157,110 | 201,289 |
Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity-method investments | 68,145 | 66,922 | 138,465 |
Companies | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity-method investments | $ 57,475 | $ 73,868 | $ 71,311 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Detail) | Dec. 31, 2019 |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 2.50% |
INVESTMENTS - Equity-method Inv
INVESTMENTS - Equity-method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets: | |||
Cash and cash-equivalents | $ 1,892,353 | $ 3,875,072 | |
Investments, at fair value | 25,213,422 | 39,711,382 | |
Other assets | 635,277 | 2,832,960 | |
Total assets | 27,741,052 | 46,419,414 | |
Liabilities and Capital: | |||
Debt obligations | 3,558,139 | 7,234,596 | |
Other liabilities | 3,779,527 | 2,662,850 | |
Total liabilities | 7,337,666 | 9,897,446 | |
Total capital | 20,403,386 | 36,521,968 | |
Total liabilities and capital | 27,741,052 | 46,419,414 | |
Statements of Operations | |||
Revenues / investment income | 766,096 | 1,861,551 | $ 1,982,828 |
Interest expense | (150,078) | (276,779) | (235,266) |
Other expenses | (402,814) | (876,627) | (821,083) |
Net realized and unrealized gain on investments | 1,077,761 | 1,087,345 | 3,795,102 |
Net income | $ 1,290,965 | $ 1,795,490 | $ 4,721,581 |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Realized gain (loss) | $ (17,773) | $ (23,528) | $ 20,400 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 9,937 | (164,592) | 55,061 |
Total gain (loss) | (7,836) | (188,120) | 75,461 |
Other Investments, at Fair Value | |||
Schedule of Investments [Line Items] | |||
Realized gain (loss) | 7,763 | 18,208 | 8,439 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 13,186 | (1,888) | (16,926) |
Total gain (loss) | $ 20,949 | $ 16,320 | $ (8,487) |
INVESTMENTS - Investments, at F
INVESTMENTS - Investments, at Fair Value (Detail) - Consolidated Funds - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Investments In Marketable Securities [Line Items] | ||
Real estate investments, at fair value | $ 230,741 | $ 0 |
Real estate, fair value as a percentage of investments of consolidated funds | 3.10% | 0.00% |
Investments, at fair value | $ 7,358,409 | $ 6,531,385 |
Total investments, fair value as a percentage of investments of consolidated funds | 100.00% | 100.00% |
Securities Sold Short | $ 0 | $ (2,609) |
Proceeds from securities sold short | 0 | 2,644 |
Debt securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 6,995,677 | $ 6,502,413 |
Debt, fair value as a percentage of investments of consolidated funds | 95.10% | 99.50% |
Equity securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 131,991 | $ 28,972 |
Equity securities, fair value as a percentage of investments of consolidated funds | 1.80% | 0.50% |
Securities Sold Short | $ 0 | $ (2,609) |
United States | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, cost | 3,981,956 | 4,019,823 |
Equity securities, cost | 137,149 | 6,117 |
Real estate investments, at fair value | $ 230,741 | $ 0 |
Real estate, fair value as a percentage of investments of consolidated funds | 3.10% | 0.00% |
Real estate, cost | $ 230,741 | $ 0 |
United States | Debt securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 3,960,403 | $ 3,860,665 |
Debt, fair value as a percentage of investments of consolidated funds | 53.90% | 59.10% |
United States | Debt securities | Communication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 464,356 | $ 543,948 |
Debt, fair value as a percentage of investments of consolidated funds | 6.40% | 8.40% |
United States | Debt securities | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 508,701 | $ 506,551 |
Debt, fair value as a percentage of investments of consolidated funds | 6.90% | 7.80% |
United States | Debt securities | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 92,102 | $ 112,197 |
Debt, fair value as a percentage of investments of consolidated funds | 1.30% | 1.70% |
United States | Debt securities | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 223,671 | $ 204,568 |
Debt, fair value as a percentage of investments of consolidated funds | 3.00% | 3.10% |
United States | Debt securities | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 355,113 | $ 332,240 |
Debt, fair value as a percentage of investments of consolidated funds | 4.80% | 5.10% |
United States | Debt securities | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 512,864 | $ 537,592 |
Debt, fair value as a percentage of investments of consolidated funds | 7.00% | 8.20% |
United States | Debt securities | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 563,920 | $ 443,406 |
Debt, fair value as a percentage of investments of consolidated funds | 7.70% | 6.80% |
United States | Debt securities | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 524,390 | $ 536,000 |
Debt, fair value as a percentage of investments of consolidated funds | 7.10% | 8.20% |
United States | Debt securities | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 294,300 | $ 289,499 |
Debt, fair value as a percentage of investments of consolidated funds | 4.00% | 4.40% |
United States | Debt securities | Real estate | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 204,933 | $ 217,633 |
Debt, fair value as a percentage of investments of consolidated funds | 2.80% | 3.30% |
United States | Debt securities | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 216,053 | $ 137,031 |
Debt, fair value as a percentage of investments of consolidated funds | 2.90% | 2.10% |
United States | Equity securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 131,897 | $ 5,426 |
Equity securities, fair value as a percentage of investments of consolidated funds | 1.80% | 0.10% |
United States | Equity securities | Communication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 312 | $ 0 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
United States | Equity securities | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 658 | $ 1,915 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.10% |
United States | Equity securities | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 256 | $ 131 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
United States | Equity securities | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 837 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
United States | Equity securities | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 1,348 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
United States | Equity securities | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 88 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
United States | Equity securities | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 130,671 | $ 1,107 |
Equity securities, fair value as a percentage of investments of consolidated funds | 1.80% | 0.00% |
Europe | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, cost | $ 2,876,531 | $ 2,477,821 |
Equity securities, cost | 1,227 | 320 |
Europe | Debt securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 2,870,174 | $ 2,413,280 |
Debt, fair value as a percentage of investments of consolidated funds | 39.00% | 36.90% |
Europe | Debt securities | Communication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 469,822 | $ 530,337 |
Debt, fair value as a percentage of investments of consolidated funds | 6.40% | 8.10% |
Europe | Debt securities | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 659,001 | $ 545,324 |
Debt, fair value as a percentage of investments of consolidated funds | 9.00% | 8.30% |
Europe | Debt securities | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 178,609 | $ 160,406 |
Debt, fair value as a percentage of investments of consolidated funds | 2.40% | 2.50% |
Europe | Debt securities | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 11,316 | $ 15,260 |
Debt, fair value as a percentage of investments of consolidated funds | 0.20% | 0.20% |
Europe | Debt securities | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 101,933 | $ 48,545 |
Debt, fair value as a percentage of investments of consolidated funds | 1.40% | 0.70% |
Europe | Debt securities | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 579,765 | $ 418,516 |
Debt, fair value as a percentage of investments of consolidated funds | 7.90% | 6.40% |
Europe | Debt securities | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 362,120 | $ 246,640 |
Debt, fair value as a percentage of investments of consolidated funds | 4.90% | 3.80% |
Europe | Debt securities | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 177,152 | $ 194,988 |
Debt, fair value as a percentage of investments of consolidated funds | 2.40% | 3.00% |
Europe | Debt securities | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 230,289 | $ 221,660 |
Debt, fair value as a percentage of investments of consolidated funds | 3.10% | 3.40% |
Europe | Debt securities | Real estate | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 96,315 | $ 30,045 |
Debt, fair value as a percentage of investments of consolidated funds | 1.30% | 0.50% |
Europe | Debt securities | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 3,852 | $ 1,559 |
Debt, fair value as a percentage of investments of consolidated funds | 0.10% | 0.00% |
Europe | Equity securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 94 | $ 986 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.10% |
Europe | Equity securities | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 94 | $ 0 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | |
Europe | Equity securities | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 38 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | |
Europe | Equity securities | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | 0 | $ 948 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.10% | |
Asia and other | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, cost | 164,650 | $ 233,603 |
Equity securities, cost | 0 | 22,977 |
Asia and other | Debt securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 165,100 | $ 228,468 |
Debt, fair value as a percentage of investments of consolidated funds | 2.20% | 3.50% |
Asia and other | Debt securities | Communication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 15,750 | $ 12,069 |
Debt, fair value as a percentage of investments of consolidated funds | 0.20% | 0.20% |
Asia and other | Debt securities | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 40,073 | $ 36,822 |
Debt, fair value as a percentage of investments of consolidated funds | 0.50% | 0.60% |
Asia and other | Debt securities | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 11,545 | $ 11,867 |
Debt, fair value as a percentage of investments of consolidated funds | 0.20% | 0.20% |
Asia and other | Debt securities | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 13,471 | $ 20,594 |
Debt, fair value as a percentage of investments of consolidated funds | 0.10% | 0.30% |
Asia and other | Debt securities | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 10,313 | $ 13,995 |
Debt, fair value as a percentage of investments of consolidated funds | 0.10% | 0.20% |
Asia and other | Debt securities | Government | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 917 | $ 12,155 |
Debt, fair value as a percentage of investments of consolidated funds | 0.00% | 0.20% |
Asia and other | Debt securities | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 8,923 | $ 9,633 |
Debt, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Asia and other | Debt securities | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 31,814 | $ 40,468 |
Debt, fair value as a percentage of investments of consolidated funds | 0.40% | 0.70% |
Asia and other | Debt securities | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 5,639 | $ 1,887 |
Debt, fair value as a percentage of investments of consolidated funds | 0.10% | 0.00% |
Asia and other | Debt securities | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 5,604 | $ 15,516 |
Debt, fair value as a percentage of investments of consolidated funds | 0.10% | 0.20% |
Asia and other | Debt securities | Real estate | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 751 | $ 38,592 |
Debt, fair value as a percentage of investments of consolidated funds | 0.00% | 0.60% |
Asia and other | Debt securities | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt, fair value | $ 20,300 | $ 14,870 |
Debt, fair value as a percentage of investments of consolidated funds | 0.30% | 0.20% |
Asia and other | Equity securities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 22,560 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.30% |
Asia and other | Equity securities | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 874 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Asia and other | Equity securities | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 997 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Asia and other | Equity securities | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 382 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Asia and other | Equity securities | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 2,935 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Asia and other | Equity securities | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 11,265 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.20% |
Asia and other | Equity securities | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 1,725 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Asia and other | Equity securities | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Equity securities, fair value | $ 0 | $ 4,382 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.10% |
INVESTMENTS - Net Gains (Losses
INVESTMENTS - Net Gains (Losses) from Investment Activities of Consolidated Funds (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gain (Loss) on Investments | $ (17,773) | $ (23,528) | $ 20,400 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 9,937 | (164,592) | 55,061 |
Consolidated Funds | Not Designated as Hedging Instrument | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gain (Loss) on Investments | (17,773) | (23,528) | 20,400 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 9,937 | (164,592) | 55,061 |
Consolidated Funds | Not Designated as Hedging Instrument | Investments and other financial instruments | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gain (Loss) on Investments | (11,227) | (26,109) | 27,910 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 137,521 | (252,038) | (1,151) |
Consolidated Funds | Not Designated as Hedging Instrument | CLO liabilities | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gain (Loss) on Investments | 0 | 0 | 0 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (131,948) | 85,014 | 53,351 |
Consolidated Funds | Not Designated as Hedging Instrument | Foreign-currency forward contracts | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gain (Loss) on Investments | (6,546) | 513 | (2,917) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 4,364 | 2,327 | 1,909 |
Consolidated Funds | Not Designated as Hedging Instrument | Total-return and interest-rate swaps | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gain (Loss) on Investments | 0 | 858 | 232 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 0 | 29 | 378 |
Consolidated Funds | Not Designated as Hedging Instrument | Options and futures | |||
Gain (Loss) on Securities [Line Items] | |||
Net Realized Gain (Loss) on Investments | 0 | 1,210 | (4,825) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | $ 0 | $ 76 | $ 574 |
FAIR VALUE - Financial Instrume
FAIR VALUE - Financial Instruments by Fair-value Hierarchy Level (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | $ 6,890 | $ 6,502 |
Derivative liabilities | (4,254) | (2,961) |
Oaktree Capital Group Excluding Consolidated Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 34,934 | 74,899 |
Derivative assets, at fair value | 4,038 | |
Oaktree Capital Group Excluding Consolidated Funds | Foreign-currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 1,654 | |
Derivative liabilities | (1,703) | (2,318) |
Oaktree Capital Group Excluding Consolidated Funds | Cross-currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 2,384 | |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 44,260 | 625,471 |
Contingent consideration | 0 | (6,657) |
Total liabilities | (1,703) | (8,975) |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Foreign-currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 1,654 |
Derivative liabilities | (1,703) | (2,318) |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Foreign-currency forward contracts | Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (94) | (3) |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Cross-currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 2,384 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | U.S. Treasury securities and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 9,232 | 546,531 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 35,028 | 74,902 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 9,232 | 546,531 |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Foreign-currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 0 |
Derivative liabilities | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Cross-currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level I | U.S. Treasury securities and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 9,232 | 546,531 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 4,717 | 33,514 |
Contingent consideration | 0 | 0 |
Total liabilities | (1,703) | (2,318) |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Foreign-currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 1,654 |
Derivative liabilities | (1,703) | (2,318) |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Cross-currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 2,384 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level II | U.S. Treasury securities and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 4,717 | 29,476 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 30,311 | 45,426 |
Contingent consideration | 0 | (6,657) |
Total liabilities | 0 | (6,657) |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Foreign-currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 0 |
Derivative liabilities | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Cross-currency swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level III | U.S. Treasury securities and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 0 | 0 |
Oaktree Capital Group Excluding Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | $ 30,311 | $ 45,426 |
FAIR VALUE FAIR VALUE - Changes
FAIR VALUE FAIR VALUE - Changes in Fair Value (Details) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 45,426 | $ 50,902 |
Contributions or additions | 937 | 19,382 |
Distributions | (9,643) | (31,614) |
Restructuring distribution of net assets | (14,416) | 0 |
Net gain (loss) included in earnings | 8,007 | 6,756 |
Ending balance | 30,311 | 45,426 |
Net change in unrealized gains (losses) attributable to financial instruments still held at end of period | 8,007 | 4,796 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | (6,657) | (18,778) |
Contributions or additions | 0 | 0 |
Distributions | 0 | 0 |
Restructuring distribution of net assets | 6,657 | 0 |
Net gain (loss) included in earnings | 0 | 12,121 |
Ending balance | 0 | (6,657) |
Net change in unrealized gains (losses) attributable to financial instruments still held at end of period | $ 0 | $ 12,121 |
FAIR VALUE FAIR VALUE - Valuati
FAIR VALUE FAIR VALUE - Valuation Technique (Details) - Oaktree Capital Group Excluding Consolidated Funds $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | $ 34,934 | $ 74,899 |
Corporate investment – Limited partnership interests | Market approach (value of underlying assets) | Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 30,311 | 45,426 |
Contingent liability | Discounted cash flow | Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent liability | $ 0 | $ (6,657) |
Discount rate | Contingent liability | Discounted cash flow | Level III | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, measurement input | 0 | |
Discount rate | Contingent liability | Discounted cash flow | Level III | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, measurement input | 1 | |
Discount rate | Contingent liability | Discounted cash flow | Level III | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, measurement input | 0.23 |
FAIR VALUE - Valuation of Inves
FAIR VALUE - Valuation of Investments and Other Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | $ 6,890 | $ 6,502 |
Total CLO debt obligations | (4,127,994) | |
Derivative liabilities | (4,254) | (2,961) |
Consolidated Funds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 7,358,409 | 6,531,385 |
Derivative assets, at fair value | 6,890 | 2,464 |
Total CLO debt obligations | (5,767,999) | |
Securities sold short | 0 | (2,609) |
Derivative liabilities | (2,551) | (643) |
Consolidated Funds | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 189 | |
Consolidated Funds | Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 542,743 | 325,922 |
Consolidated Funds | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 7,358,409 | 6,531,385 |
Derivative assets, at fair value | 6,890 | 2,464 |
Total assets | 7,365,299 | 6,533,849 |
Total liabilities | (5,770,550) | (4,131,246) |
Consolidated Funds | Fair Value, Measurements, Recurring | CLO Debt Obligations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (5,767,999) | (4,127,994) |
Consolidated Funds | Fair Value, Measurements, Recurring | CLO Debt Obligations | Senior notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (5,613,846) | (3,976,602) |
Consolidated Funds | Fair Value, Measurements, Recurring | CLO Debt Obligations | Subordinated Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (154,153) | (151,392) |
Consolidated Funds | Fair Value, Measurements, Recurring | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 6,890 | 2,275 |
Derivative liabilities | (2,551) | (643) |
Consolidated Funds | Fair Value, Measurements, Recurring | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 0 | 189 |
Consolidated Funds | Fair Value, Measurements, Recurring | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 6,061,165 | 5,352,978 |
Consolidated Funds | Fair Value, Measurements, Recurring | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 934,512 | 1,149,435 |
Consolidated Funds | Fair Value, Measurements, Recurring | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 131,334 | 27,546 |
Consolidated Funds | Fair Value, Measurements, Recurring | Equities – Preferred Stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 657 | 1,426 |
Consolidated Funds | Fair Value, Measurements, Recurring | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 230,741 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 552 | 25,117 |
Derivative assets, at fair value | 27 | 189 |
Total assets | 579 | 25,306 |
Total liabilities | (202) | (2,609) |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | CLO Debt Obligations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | CLO Debt Obligations | Senior notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | CLO Debt Obligations | Subordinated Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 27 | 0 |
Derivative liabilities | (202) | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 189 | |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 634 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 552 | 24,483 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Equities – Preferred Stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level I | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 6,815,114 | 6,180,346 |
Derivative assets, at fair value | 6,863 | 2,275 |
Total assets | 6,821,977 | 6,182,621 |
Total liabilities | (5,770,348) | (4,128,637) |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | CLO Debt Obligations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (5,767,999) | (4,127,994) |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | CLO Debt Obligations | Senior notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (5,613,846) | (3,976,602) |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | CLO Debt Obligations | Subordinated Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | (154,153) | (151,392) |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 6,863 | 2,275 |
Derivative liabilities | (2,349) | (643) |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 5,911,523 | 5,216,923 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 903,246 | 963,423 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 345 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Equities – Preferred Stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level II | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 542,743 | 325,922 |
Derivative assets, at fair value | 0 | 0 |
Total assets | 542,743 | 325,922 |
Total liabilities | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | CLO Debt Obligations | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | CLO Debt Obligations | Senior notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | CLO Debt Obligations | Subordinated Notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total CLO debt obligations | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 0 | 0 |
Derivative liabilities | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative assets, at fair value | 0 | 0 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 149,642 | 136,055 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 31,266 | 185,378 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 130,437 | 3,063 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Equities – Preferred Stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 657 | 1,426 |
Consolidated Funds | Fair Value, Measurements, Recurring | Level III | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 230,741 | 0 |
Equity securities | Consolidated Funds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities sold short | 0 | (2,609) |
Equity securities | Consolidated Funds | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities sold short | 0 | (2,609) |
Equity securities | Consolidated Funds | Fair Value, Measurements, Recurring | Level I | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities sold short | 0 | (2,609) |
Equity securities | Consolidated Funds | Fair Value, Measurements, Recurring | Level II | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities sold short | 0 | 0 |
Equity securities | Consolidated Funds | Fair Value, Measurements, Recurring | Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Securities sold short | $ 0 | $ 0 |
FAIR VALUE - Summary of Changes
FAIR VALUE - Summary of Changes in Fair Value of Level III Investments (Detail) - Consolidated Funds - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 325,922 | $ 287,402 |
Deconsolidation of funds | 242,349 | (173,259) |
Transfers into Level III | 12,467 | 50,836 |
Transfers out of Level III | (63,122) | (38,487) |
Purchases | 544,485 | 323,190 |
Sales | (24,019) | (112,951) |
Realized gains (losses), net | (179) | 1,069 |
Unrealized (depreciation) appreciation, net | (10,462) | (11,878) |
Ending balance | 542,743 | 325,922 |
Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period | (10,928) | (9,399) |
Corporate Debt – Bank Debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 136,055 | 86,999 |
Deconsolidation of funds | (121,146) | 0 |
Transfers into Level III | 9,300 | 48,312 |
Transfers out of Level III | (5,293) | (26,845) |
Purchases | 155,546 | 83,199 |
Sales | (15,282) | (54,649) |
Realized gains (losses), net | 46 | 659 |
Unrealized (depreciation) appreciation, net | (9,584) | (1,620) |
Ending balance | 149,642 | 136,055 |
Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period | (9,780) | (1,729) |
Corporate Debt – All Other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 185,378 | 75,388 |
Deconsolidation of funds | (116,714) | 0 |
Transfers into Level III | 0 | 2,034 |
Transfers out of Level III | (57,325) | (10,984) |
Purchases | 27,857 | 186,210 |
Sales | (8,471) | (57,414) |
Realized gains (losses), net | (119) | 351 |
Unrealized (depreciation) appreciation, net | 660 | (10,207) |
Ending balance | 31,266 | 185,378 |
Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period | 390 | (7,619) |
Equities – common stock | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 3,063 | 3,427 |
Deconsolidation of funds | (3,063) | (52,000) |
Transfers into Level III | 2,391 | 490 |
Transfers out of Level III | (504) | (658) |
Purchases | 130,341 | 52,533 |
Sales | (266) | (387) |
Realized gains (losses), net | (106) | 59 |
Unrealized (depreciation) appreciation, net | (1,419) | (401) |
Ending balance | 130,437 | 3,063 |
Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period | (1,419) | (401) |
Equities – Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,426 | 0 |
Deconsolidation of funds | (1,426) | (172) |
Transfers into Level III | 776 | 0 |
Transfers out of Level III | 0 | |
Purchases | 1,248 | |
Sales | 0 | |
Realized gains (losses), net | 0 | |
Unrealized (depreciation) appreciation, net | (119) | 350 |
Ending balance | 657 | 1,426 |
Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period | (119) | 350 |
Real Estate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 121,588 |
Deconsolidation of funds | 0 | (121,087) |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | |
Purchases | 230,741 | 0 |
Sales | (501) | |
Realized gains (losses), net | ||
Unrealized (depreciation) appreciation, net | 0 | |
Ending balance | 230,741 | 0 |
Net change in unrealized (depreciation) appreciation attributable to assets still held at end of period | $ 0 | $ 0 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Consolidated Funds | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Transfers from Level I to Level II | $ 0.7 |
FAIR VALUE - Summary of Valuati
FAIR VALUE - Summary of Valuation Techniques and Quantitative Information (Detail) - Consolidated Funds $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate investments, at fair value | $ 230,741 | $ 0 |
Investments, at fair value | 7,358,409 | 6,531,385 |
Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, at fair value | 542,743 | 325,922 |
Level III | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | 753 | |
Level III | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate investments, at fair value | 230,741 | |
Level III | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | 130,341 | 2,390 |
Level III | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | 2,099 | |
Level III | Consumer discretionary | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 16,836 | |
Level III | Communication services | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 20,746 | |
Level III | Communication services | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 2,416 | |
Level III | Financials | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 17,274 | 108,277 |
Level III | Financials | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 3,608 | |
Level III | Health care | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 26,863 | 37,724 |
Level III | Health care | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 2,550 | |
Level III | Real estate | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 16,755 | 79,562 |
Level III | Real estate | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 71,906 | |
Level III | Real estate | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 4,570 | |
Credit-oriented investments, measurement inputs | 0.14 | |
Level III | Other | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 31,274 | $ 38,959 |
Level III | Other | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 5,078 | |
Level III | Other | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 17,943 | |
Discount rate | Level III | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.06 | 0.10 |
Discount rate | Level III | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.08 | 0.30 |
Discount rate | Level III | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.07 | 0.12 |
Discount rate | Level III | Communication services | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.12 | |
Discount rate | Level III | Communication services | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.14 | |
Discount rate | Level III | Communication services | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.13 | |
Discount rate | Level III | Financials | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.09 | |
Discount rate | Level III | Financials | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.15 | |
Discount rate | Level III | Financials | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.14 | |
Discount rate | Level III | Health care | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.10 | |
Discount rate | Level III | Health care | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.16 | |
Discount rate | Level III | Health care | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.14 | |
Discount rate | Level III | Real estate | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.12 | |
Discount rate | Level III | Real estate | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.23 | |
Discount rate | Level III | Other | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.08 | |
Discount rate | Level III | Other | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.15 | |
Discount rate | Level III | Other | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.13 | |
Earnings multiple | Level III | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 7 | |
Earnings multiple | Level III | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 4 | |
Earnings multiple | Level III | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 10 |
DERIVATIVES AND HEDGING DERIVAT
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING - Fair Value of Derivatives (Details) - Not Designated as Hedging Instrument - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Notional | $ 0 | $ 300,704 |
Fair Value | 0 | 4,038 |
Liabilities | ||
Notional | (156,281) | (77,156) |
Fair Value | (1,703) | (2,318) |
Foreign-currency forward contracts | ||
Assets | ||
Notional | 0 | 58,254 |
Fair Value | 0 | 1,654 |
Liabilities | ||
Notional | (156,281) | (77,156) |
Fair Value | $ (1,703) | (2,318) |
Cross-currency swap | ||
Assets | ||
Notional | 242,450 | |
Fair Value | 2,384 | |
Liabilities | ||
Notional | 0 | |
Fair Value | $ 0 |
DERIVATIVES AND HEDGING - Summa
DERIVATIVES AND HEDGING - Summary of Impact of Derivative Instruments on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) | $ 7,386 | $ 7,869 | $ (30,906) |
Investment income | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) | 5,243 | 9,191 | (16,707) |
General and Administrative Expense | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) | $ 2,143 | $ (1,322) | $ (14,199) |
DERIVATIVES AND HEDGING DERIV_2
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING - Fair Value of Derivatives of Consolidated Funds (Details) - Consolidated Funds - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Notional | $ 166,917 | $ 107,106 |
Fair Value | 6,890 | 2,464 |
Liabilities | ||
Notional | (140,276) | (48,081) |
Fair Value | (2,551) | (643) |
Foreign-currency forward contracts | ||
Assets | ||
Notional | 166,917 | 95,980 |
Fair Value | 6,890 | 2,275 |
Liabilities | ||
Notional | (140,276) | (48,081) |
Fair Value | $ (2,551) | (643) |
Options and futures | ||
Assets | ||
Notional | 11,126 | |
Fair Value | 189 | |
Liabilities | ||
Notional | 0 | |
Fair Value | $ 0 |
DERIVATIVES AND HEDGING - Impac
DERIVATIVES AND HEDGING - Impact of Derivatives Held by the Consolidated Fund on the Consolidated Statements of Operations (Details) - Consolidated Funds - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Net Realized Gain (Loss) on Investments | $ (6,546) | $ 2,581 | $ (7,510) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 4,364 | 2,432 | 2,861 |
Foreign-currency forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Net Realized Gain (Loss) on Investments | (6,546) | 513 | (2,917) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 4,364 | 2,327 | 1,909 |
Total-return and interest-rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Net Realized Gain (Loss) on Investments | 0 | 858 | 232 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 0 | 29 | 378 |
Options and futures | |||
Derivatives, Fair Value [Line Items] | |||
Net Realized Gain (Loss) on Investments | 0 | 1,210 | (4,825) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | $ 0 | $ 76 | $ 574 |
DERIVATIVES AND HEDGING - Balan
DERIVATIVES AND HEDGING - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Assets: | ||
Gross and Net Amounts of Assets Presented | $ 6,890 | $ 6,502 |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative Assets | 0 | 1,497 |
Gross Amounts Not Offset in Statements of Financial Condition, Cash Collateral Received | 0 | 0 |
Net Amount | 6,890 | 5,005 |
Derivative Liabilities: | ||
Gross and Net Amounts of Liabilities | (4,254) | (2,961) |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative (Liabilities) | 0 | (1,497) |
Gross Amounts Not Offset in Statements of Financial Condition, Cash (Pledged) | 0 | 0 |
Net Amount | (4,254) | (1,464) |
Oaktree Capital Group Excluding Consolidated Funds | ||
Derivative Assets: | ||
Gross and Net Amounts of Assets Presented | 4,038 | |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative Assets | 1,497 | |
Gross Amounts Not Offset in Statements of Financial Condition, Cash Collateral Received | 0 | |
Net Amount | 2,541 | |
Oaktree Capital Group Excluding Consolidated Funds | Foreign-currency forward contracts | ||
Derivative Assets: | ||
Gross and Net Amounts of Assets Presented | 1,654 | |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative Assets | 1,497 | |
Gross Amounts Not Offset in Statements of Financial Condition, Cash Collateral Received | 0 | |
Net Amount | 157 | |
Derivative Liabilities: | ||
Gross and Net Amounts of Liabilities | (1,703) | (2,318) |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative (Liabilities) | 0 | (1,497) |
Gross Amounts Not Offset in Statements of Financial Condition, Cash (Pledged) | 0 | 0 |
Net Amount | (1,703) | (821) |
Oaktree Capital Group Excluding Consolidated Funds | Cross-currency swap | ||
Derivative Assets: | ||
Gross and Net Amounts of Assets Presented | 2,384 | |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative Assets | 0 | |
Gross Amounts Not Offset in Statements of Financial Condition, Cash Collateral Received | 0 | |
Net Amount | 2,384 | |
Consolidated Funds | ||
Derivative Assets: | ||
Gross and Net Amounts of Assets Presented | 6,890 | 2,464 |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative Assets | 0 | 0 |
Gross Amounts Not Offset in Statements of Financial Condition, Cash Collateral Received | 0 | 0 |
Net Amount | 6,890 | 2,464 |
Derivative Liabilities: | ||
Gross and Net Amounts of Liabilities | (2,551) | (643) |
Consolidated Funds | Foreign-currency forward contracts | ||
Derivative Assets: | ||
Gross and Net Amounts of Assets Presented | 6,890 | 2,275 |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative Assets | 0 | 0 |
Gross Amounts Not Offset in Statements of Financial Condition, Cash Collateral Received | 0 | 0 |
Net Amount | 6,890 | 2,275 |
Derivative Liabilities: | ||
Gross and Net Amounts of Liabilities | (2,551) | (643) |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative (Liabilities) | 0 | 0 |
Gross Amounts Not Offset in Statements of Financial Condition, Cash (Pledged) | 0 | 0 |
Net Amount | $ (2,551) | (643) |
Consolidated Funds | Options and futures | ||
Derivative Assets: | ||
Gross and Net Amounts of Assets Presented | 189 | |
Gross Amounts Not Offset in Statements of Financial Condition, Derivative Assets | 0 | |
Gross Amounts Not Offset in Statements of Financial Condition, Cash Collateral Received | 0 | |
Net Amount | $ 189 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Fixed assets | $ 36,309 | $ 167,594 | |
Accumulated depreciation | (22,227) | (61,879) | |
Fixed assets, net | 14,082 | 105,715 | |
Furniture, equipment and capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 9,608 | 26,345 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 25,764 | 70,270 | |
Corporate aircraft | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 0 | 66,120 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | $ 937 | $ 4,859 | |
Indirect Subsidiaries of Brookfield Asset Management, Inc. | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, net | $ 89,500 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 01, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 18,400 | $ 69,300 | ||
Amortization expense | 12,600 | 16,900 | $ 6,600 | |
Contractual rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Contractual rights | 0 | 347,452 | ||
Accumulated amortization | 0 | (33,173) | ||
Intangible assets, net | $ 0 | $ 314,279 | ||
Indirect Subsidiaries of Brookfield Asset Management, Inc. | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 50,900 | |||
Intangible assets, net | $ 301,700 |
DEBT OBLIGATIONS AND CREDIT F_3
DEBT OBLIGATIONS AND CREDIT FACILITIES - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Oct. 01, 2019 | Dec. 31, 2018 | Jul. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Debt fair value | $ 4,127,994,000 | |||
Oaktree Capital Group Excluding Consolidated Funds | ||||
Debt Instrument [Line Items] | ||||
Debt obligations | $ 0 | 745,945,000 | ||
Total remaining principal | 0 | 750,000,000 | ||
Debt issuance costs | 0 | 4,055,000 | ||
Oaktree Capital Group Excluding Consolidated Funds | Letter of Credit | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Guarantee | $ 17,500,000 | |||
Oaktree Capital Group Excluding Consolidated Funds | Level III | ||||
Debt Instrument [Line Items] | ||||
Debt fair value | 0 | $ 720,300,000 | ||
Average borrowing rate | 4.40% | |||
Consolidated Funds | ||||
Debt Instrument [Line Items] | ||||
Debt obligations | 5,767,999,000 | $ 4,127,994,000 | ||
Total remaining principal | 5,826,362,000 | |||
Debt fair value | 5,767,999,000 | |||
VIE consolidated assets | 6,400,000,000 | 4,700,000,000 | ||
Consolidated Funds | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt fair value | $ 5,613,846,000 | $ 3,976,602,000 | ||
Average borrowing rate | 2.85% | 2.69% | ||
Consolidated Funds | Revolving Credit Facility | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt agreement term | 10 years | |||
Consolidated Funds | Senior notes | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt obligations | $ 158,477,000 | $ 864,529,000 | ||
Total remaining principal | $ 159,411,000 | 870,098,000 | ||
Average borrowing rate | 3.42% | |||
Debt issuance costs | $ 934,000 | 5,569,000 | ||
Consolidated Funds | Level III | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt fair value | 159,100,000 | $ 871,300,000 | ||
Indirect Subsidiaries of Brookfield Asset Management, Inc. | ||||
Debt Instrument [Line Items] | ||||
Debt obligations | $ 746,300,000 | |||
Indirect Subsidiaries of Brookfield Asset Management, Inc. | Consolidated Funds | Senior notes | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | 870,700,000 | |||
Debt issuance costs | $ 4,600,000 | |||
Indirect guarantee of debt obligations | Oaktree Capital I | ||||
Debt Instrument [Line Items] | ||||
Guarantee | $ 750,000,000 |
DEBT OBLIGATIONS AND CREDIT F_4
DEBT OBLIGATIONS AND CREDIT FACILITIES - Debt Obligations (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 13, 2019USD ($) | Dec. 12, 2019USD ($) | Dec. 31, 2018USD ($) | |
Oaktree Capital Group Excluding Consolidated Funds | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | $ 0 | $ 750,000,000 | ||
Less: Debt issuance costs | 0 | (4,055,000) | ||
Debt obligations | $ 0 | 745,945,000 | ||
Oaktree Capital Group Excluding Consolidated Funds | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 3.50 | |||
Oaktree Capital Group Excluding Consolidated Funds | Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Facility capacity | $ 650,000,000 | $ 500,000,000 | ||
Commitment fee payable on unused funds | 0.08% | |||
Borrowings under credit facilities | $ 0 | |||
Oaktree Capital Group Excluding Consolidated Funds | Credit Facility | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | 150,000,000 | |||
Face amount | $ 250,000,000 | |||
Assets under management, carrying amount | $ 65,000,000 | $ 60,000,000 | ||
Oaktree Capital Group Excluding Consolidated Funds | LIBOR | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Spread on variable rate | 0.88% | |||
Oaktree Capital Group Excluding Consolidated Funds | $250,000, 3.78%, issued in December 2017, payable on December 18, 2032 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | $ 0 | 250,000,000 | ||
Face amount | $ 250,000,000 | |||
Stated rate | 3.78% | |||
Oaktree Capital Group Excluding Consolidated Funds | Term Loan | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | $ 0 | 150,000,000 | ||
Oaktree Capital Group Excluding Consolidated Funds | $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | 0 | 50,000,000 | ||
Face amount | $ 50,000,000 | |||
Stated rate | 3.91% | |||
Oaktree Capital Group Excluding Consolidated Funds | $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | $ 0 | 100,000,000 | ||
Face amount | $ 100,000,000 | |||
Stated rate | 4.01% | |||
Oaktree Capital Group Excluding Consolidated Funds | $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | $ 0 | 100,000,000 | ||
Face amount | $ 100,000,000 | |||
Stated rate | 4.21% | |||
Oaktree Capital Group Excluding Consolidated Funds | $100,000, 3.69%, issued in July 2016, payable on July 12, 2031 | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Total remaining principal | $ 0 | $ 100,000,000 | ||
Face amount | $ 100,000,000 | |||
Stated rate | 3.69% | |||
OCM | Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowings under credit facilities | $ 150,000,000 |
DEBT OBLIGATIONS AND CREDIT F_5
DEBT OBLIGATIONS AND CREDIT FACILITIES - Credit Facilities of Consolidated Funds (Details) - Consolidated Funds - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Principal | $ 5,826,362,000 | |
Debt obligations | 5,767,999,000 | $ 4,127,994,000 |
Credit Facility | Senior variable rate notes | ||
Debt Instrument [Line Items] | ||
Principal | 159,411,000 | 870,098,000 |
Less: Debt issuance costs | (934,000) | (5,569,000) |
Debt obligations | 158,477,000 | $ 864,529,000 |
Facility Capacity | $ 159,411,000 | |
Weighted Average Interest Rate | 3.42% | |
Weighted Average Remaining Maturity (years) | 4 years 4 months 24 days |
DEBT OBLIGATIONS AND CREDIT F_6
DEBT OBLIGATIONS AND CREDIT FACILITIES - Collateralized Loan Obligation Loans Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Fair value | $ 4,127,994 | |
Consolidated Funds | ||
Debt Instrument [Line Items] | ||
Fair value | $ 5,767,999 | |
Consolidated Funds | Senior notes | ||
Debt Instrument [Line Items] | ||
Fair value | $ 5,613,846 | $ 3,976,602 |
Weighted Average Interest Rate | 2.85% | 2.69% |
Weighted Average Remaining Maturity (years) | 8 years 7 months 6 days | 9 years 10 months 24 days |
Consolidated Funds | Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Fair value | $ 154,153 | $ 151,392 |
Weighted Average Remaining Maturity (years) | 10 years 4 months 24 days | 9 years 8 months 12 days |
DEBT OBLIGATIONS AND CREDIT F_7
DEBT OBLIGATIONS AND CREDIT FACILITIES - CLO Future principal payments (Details) - Consolidated Funds $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 204,290 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 5,622,072 |
Total | $ 5,826,362 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Remaining lease term | 1 year |
Extension term | 5 years |
Termination period | 1 year |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 15,984 |
Sublease income | (631) |
Total lease cost | $ 15,353 |
LEASES - Supplemental Cash flow
LEASES - Supplemental Cash flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows used for operating leases | $ 16,224 |
Weighted average remaining lease term for operating leases (in years) | 10 years 8 months 12 days |
Weighted average discount rate for operating leases, percent | 4.40% |
LEASES - Maturity of Operating
LEASES - Maturity of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 6,262 |
2021 | 6,101 |
2022 | 5,480 |
2023 | 4,800 |
2024 | 4,224 |
Thereafter | 28,778 |
Total lease payments | 55,645 |
Less: imputed interest | (9,852) |
Total operating lease liabilities | $ 45,793 |
NON-CONTROLLING REDEEMABLE IN_3
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS - Summary of Changes in Non-controlling Redeemable Interests in Consolidated Funds (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-Controlling Redeemable Interests in Consolidated Funds [Roll Forward] | |||
Beginning balance | $ 961,622 | $ 860,548 | $ 344,047 |
Initial consolidation of a fund | 96,248 | 0 | 296,971 |
Deconsolidation of funds due to restructuring | (406,058) | 0 | 0 |
Deconsolidation of funds | (423,598) | 0 | 0 |
Contributions | 664,679 | 447,260 | 331,764 |
Distributions | (107,499) | (305,406) | (146,393) |
Net income (loss) | 93,620 | (40,930) | 29,532 |
Change in distributions payable | (16,105) | 2,469 | 1,853 |
Foreign-currency translation and other | 3,313 | (2,319) | 2,774 |
Ending balance | $ 866,222 | $ 961,622 | $ 860,548 |
UNITHOLDERS' CAPITAL - Addition
UNITHOLDERS' CAPITAL - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 09, 2018 | May 17, 2018 | Feb. 12, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||
Total unitholders’ capital | $ 1,702,169 | $ 2,487,717 | $ 2,020,617 | $ 1,885,171 | |||
Preferred redemption price (in dollars per share) | $ 25 | ||||||
Preferred redemption price, change of control event (in dollars per share) | $ 25.25 | ||||||
Redemption notice period | 30 days | ||||||
Redemption notice period after change in control event | 60 days | ||||||
Redemption period after tax redemption | 60 days | ||||||
Preferred redemption price, tax redemption event (in dollars per share) | $ 25.50 | ||||||
OCGH | |||||||
Class of Stock [Line Items] | |||||||
Unitholders' capital (in shares) | 61,793,286 | 85,471,937 | |||||
Total unitholders’ capital | $ 503,253 | $ 1,086,693 | |||||
Oaktree Operating Group | |||||||
Class of Stock [Line Items] | |||||||
Subsidiary units outstanding (in shares) | 159,760,541 | 157,133,560 | |||||
Total unitholders’ capital | $ 1,301,066 | $ 1,997,745 | |||||
Equity Held by Third Parties | |||||||
Class of Stock [Line Items] | |||||||
Non-controlling interests in consolidated funds | $ 0 | $ 5,661 | |||||
Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Number of units issued and sold (in shares) | 5,000,000 | ||||||
Net proceeds from units sold | $ 219,500 | ||||||
Series A Preferred Units | |||||||
Class of Stock [Line Items] | |||||||
Net proceeds from units sold | $ 173,700 | ||||||
Preferred dividend rate | 6.625% | ||||||
Preferred redemption price (in dollars per share) | $ 25 | ||||||
Series A Preferred Units | Preferred Unit Issuance | |||||||
Class of Stock [Line Items] | |||||||
Number of units issued and sold (in shares) | 7,200,000 | ||||||
Series B Preferred Units | |||||||
Class of Stock [Line Items] | |||||||
Net proceeds from units sold | $ 226,900 | ||||||
Preferred dividend rate | 6.55% | ||||||
Preferred redemption price (in dollars per share) | $ 25 | ||||||
Series B Preferred Units | Preferred Unit Issuance | |||||||
Class of Stock [Line Items] | |||||||
Number of units issued and sold (in shares) | 9,400,000 |
UNITHOLDERS' CAPITAL - Summary
UNITHOLDERS' CAPITAL - Summary of Distributions Made (Details) - $ / shares | Nov. 12, 2019 | Sep. 30, 2019 | May 10, 2019 | Feb. 22, 2019 | Nov. 13, 2018 | Aug. 10, 2018 | May 11, 2018 | Feb. 23, 2018 | Nov. 10, 2017 | Aug. 11, 2017 | May 12, 2017 | Feb. 24, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class A Units | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Distribution Per Unit (in dollars per unit) | $ 0.03 | $ 3.13 | $ 1.05 | $ 0.75 | $ 0.70 | $ 0.55 | $ 0.96 | $ 0.76 | $ 0.56 | $ 1.31 | $ 0.71 | $ 0.63 | $ 4.96 | $ 2.97 | $ 3.21 |
UNITHOLDERS' CAPITAL - Summar_2
UNITHOLDERS' CAPITAL - Summary of Net Income (Loss) (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average Oaktree Operating Group units outstanding (in thousands): | |||||||||||
Units outstanding (in shares) | 80,045 | 70,526 | 64,148 | ||||||||
Oaktree Operating Group net income: | |||||||||||
Net income | $ 102,308 | $ (20,898) | $ 121,528 | $ 184,400 | $ 118,296 | $ 143,091 | $ 65,757 | $ 137,401 | $ 387,338 | $ 464,545 | $ 689,482 |
Net income attributable to OCG Class A unitholders: | |||||||||||
Oaktree Operating Group net income attributable to OCG Class A unitholders | 137,921 | 228,791 | 295,161 | ||||||||
Non-Operating Group income (expense) | (8,662) | (632) | 144,143 | ||||||||
Income tax expense of Intermediate Holding Companies | (1,736) | (17,018) | (207,810) | ||||||||
Net income attributable to Oaktree Capital Group, LLC Class A unitholders | $ 127,523 | $ 211,141 | $ 231,494 | ||||||||
Oaktree Operating Group | |||||||||||
Weighted average Oaktree Operating Group units outstanding (in thousands): | |||||||||||
Units outstanding (in shares) | 159,129 | 156,916 | 155,791 | ||||||||
Oaktree Operating Group net income: | |||||||||||
Net income | $ 302,337 | $ 521,227 | $ 717,283 | ||||||||
Net income attributable to OCG Class A unitholders: | |||||||||||
OCGH non-controlling interest | 1,779 | 2,659 | 2,662 | ||||||||
Series A Preferred Units | Oaktree Operating Group | |||||||||||
Oaktree Operating Group net income: | |||||||||||
Net income | $ 27,316 | $ 12,277 | $ 0 | ||||||||
OCGH Units | Oaktree Operating Group | |||||||||||
Weighted average Oaktree Operating Group units outstanding (in thousands): | |||||||||||
Units outstanding (in shares) | 79,084 | 86,390 | 91,643 | ||||||||
Oaktree Operating Group net income: | |||||||||||
Net income | $ 137,100 | $ 280,159 | $ 422,122 | ||||||||
Class A Units | Oaktree Operating Group | |||||||||||
Weighted average Oaktree Operating Group units outstanding (in thousands): | |||||||||||
Units outstanding (in shares) | 80,045 | 70,526 | 64,148 | ||||||||
Oaktree Operating Group net income: | |||||||||||
Net income | $ 137,921 | $ 228,791 | $ 295,161 |
UNITHOLDERS' CAPITAL - Changes
UNITHOLDERS' CAPITAL - Changes in Company Ownership Interest (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)entity | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 01, 2019entity | |
Equity [Abstract] | ||||
Net income attributable to OCG Class A unitholders | $ 127,523 | $ 211,141 | $ 231,494 | |
Equity reallocation between controlling and non-controlling interests | 306,015 | 80,106 | 23,151 | |
Change from net income attributable to OCG Class A unitholders and transfers from non-controlling interests | $ 433,538 | $ 291,247 | $ 254,645 | |
Number of former indirect subsidiaries | entity | 4 | |||
Number of indirect subsidiaries | entity | 6 | 6 |
EARNINGS PER UNIT - Computation
EARNINGS PER UNIT - Computations of Net Income Per Unit (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income per Class A unit (basic and diluted): | |||||||||||
Net income attributable to OCG Class A unitholders | $ 127,523 | $ 211,141 | $ 231,494 | ||||||||
Weighted average number of Class A units outstanding (basic and diluted) (in shares) | 80,045 | 70,526 | 64,148 | ||||||||
Basic and diluted net income per Class A unit (in dollars per share) | $ 0.56 | $ (0.22) | $ 0.57 | $ 0.66 | $ 1.04 | $ 0.74 | $ 0.44 | $ 0.78 | $ 1.59 | $ 2.99 | $ 3.61 |
EARNINGS PER UNIT - Computati_2
EARNINGS PER UNIT - Computations of Net Income Per Unit Additional information (Detail) | 12 Months Ended | |
Dec. 31, 2019shares | Dec. 31, 2018shares | |
OCGH Units | ||
Earnings Per Share [Line Items] | ||
Potential exchangeable units ratio | 1 | |
Class A Units | ||
Earnings Per Share [Line Items] | ||
Potential exchangeable units ratio | 1 | |
Deferred equity unit | ||
Earnings Per Share [Line Items] | ||
Potential exchangeable units ratio | 1 | |
Units vesting periods | 10 years | |
Deferred equity unit | OCGH Units | ||
Earnings Per Share [Line Items] | ||
Units vesting periods | 10 years | |
Deferred equity unit | ||
Earnings Per Share [Line Items] | ||
Issuable shares (in shares) | 0 | 0 |
Minimum | Deferred equity unit | OCGH Units | ||
Earnings Per Share [Line Items] | ||
Units vesting periods | 4 years | |
Maximum | Deferred equity unit | OCGH Units | ||
Earnings Per Share [Line Items] | ||
Units vesting periods | 10 years |
EQUITY-BASED COMPENSATION - Equ
EQUITY-BASED COMPENSATION - Equity-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Converted OCGH Units and OCGH Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested and unvested Class A and OCGH units issued and outstanding units (in shares) | 159,760,541 |
2011 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Authorized units (in shares) | 23,570,034 |
Units authorized (in shares) | 15,723,391 |
2011 Plan | Equity Value Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units issued as of balance sheet date (in shares) | 2,000,000 |
EQUITY-BASED COMPENSATION - Res
EQUITY-BASED COMPENSATION - Restated Exchange Agreement (Details) | Sep. 30, 2019 | Dec. 31, 2029 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2025 | Dec. 31, 2028 | Jan. 01, 2020$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maturity of notes issued under exchange agreement | 3 years | ||||||||||
Exchange election notice period | 60 days | ||||||||||
Exchange consummation period | 155 days | ||||||||||
Beneficial ownership percentage following an exchange, minimum threshold | 1.00% | ||||||||||
Required notice period for remaining units following exchange | 36 months | ||||||||||
Beneficial ownership percentage following final exchange, minimum threshold | 5.00% | ||||||||||
OCGH Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Valuation assumptions, multiple applied to fee-related earnings less stock-based compensation excluding depreciation and amortization | 13.5 | ||||||||||
Valuation assumptions, multiple applied to net incentives created | 6.75 | ||||||||||
Valuation assumptions, trailing period for net incentives created | 3 years | ||||||||||
Valuation assumptions, percentage of net cash value | 100.00% | ||||||||||
Valuation assumptions, percentage of corporate investments value | 100.00% | ||||||||||
Valuation assumptions, percentage of fund-level net accrued incentives | 75.00% | ||||||||||
Converted Class A Units and Phantom Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Valuation assumptions, price per unit (in usd per share) | $ 49 | ||||||||||
Maximum exchange consideration amount payable, incremental amount above exchange consideration | $ | $ 20,000,000 | ||||||||||
Treasury rate | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Notes issued under exchange agreement, basis spread on variable rate | 3.00% | 3.00% | |||||||||
Forecast | OCGH Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum percentage of units to exchange in aggregate, annual limit | 35.00% | 30.00% | 25.00% | 20.00% | |||||||
Forecast | Converted OCGH Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Valuation assumptions, price per unit (in usd per share) | $ 49 | ||||||||||
Forecast | Messrs. Howard Marks, Bruce Karsh, Jay Wintrob, John Frank, Sheldon Stone, Richard Masson And Larry Keele | OCGH Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum percentage of units to exchange per individual | 100.00% | 20.00% | |||||||||
Maximum percentage of units to exchange per individual, additional annual limit | 20.00% | ||||||||||
Forecast | Current employees not separately named | OCGH Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum percentage of units to exchange per individual | 100.00% | 12.50% | |||||||||
Maximum percentage of units to exchange per individual, additional annual limit | 12.50% | ||||||||||
Maximum | OCGH Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Valuation assumptions, trailing period for fee-related earnings less stock-based compensation excluding depreciation and amortization | 3 years | ||||||||||
Minimum | OCGH Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Valuation assumptions, trailing period for fee-related earnings less stock-based compensation excluding depreciation and amortization | 2 years |
EQUITY-BASED COMPENSATION - Cla
EQUITY-BASED COMPENSATION - Class A and OCGH Unit Awards (Details) $ in Millions | 1 Months Ended | 12 Months Ended | 33 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2019USD ($)companyshares | Sep. 30, 2019 | Dec. 31, 2018shares | Dec. 31, 2017shares | Sep. 30, 2018 | |
Class A Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Units granted (in shares) | 1,494,324 | |||||
Share exchange rate (in shares) | 1 | |||||
OCGH Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Units granted (in shares) | 1,873,155 | 124,051 | 274,018 | |||
Units vesting periods | 5 years 9 months 18 days | |||||
Estimated time-to-liquidity assumption | 7 years | 6 years 4 months 24 days | 5 years 9 months 18 days | |||
Share exchange rate (in shares) | 1 | |||||
Number of comparable publicly-owned alternative asset managers | company | 5 | |||||
Discount rate | 17.50% | 20.00% | ||||
Converted OCGH Units and OCGH Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unvested equity-based awards | $ | $ 35.8 | |||||
Recognition period | 3 years 2 months 12 days |
EQUITY-BASED COMPENSATION - Sum
EQUITY-BASED COMPENSATION - Summary of Unvested Equity-Based Awards and Changes (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2020 | |
Number of Units | ||||
Ending balance (in shares) | 2,000,000 | |||
Converted OCGH Units | ||||
Number of Units | ||||
Beginning balance (in shares) | 2,700,585 | 2,556,316 | 2,128,400 | |
Granted (in shares) | 1,494,324 | 1,164,601 | 1,285,548 | |
Vested (in shares) | (975,072) | (920,439) | (837,254) | |
Restructuring (in shares) | (2,380,641) | |||
Forfeited (in shares) | (107,955) | (99,893) | (20,378) | |
Ending balance (in shares) | 731,241 | 2,700,585 | 2,556,316 | |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 42.76 | $ 44.05 | $ 41.86 | |
Granted (in dollars per share) | 49.56 | 39.61 | 45.42 | |
Vested (in dollars per share) | 43.06 | 42.57 | 40.57 | |
Restructuring (in dollars per share) | 45.83 | |||
Forfeited (in dollars per share) | 44.63 | 40.59 | 45.59 | |
Ending balance (in dollars per share) | $ 45.99 | $ 42.76 | $ 44.05 | |
OCGH Units | ||||
Number of Units | ||||
Beginning balance (in shares) | 1,864,049 | 2,158,835 | 2,337,953 | |
Granted (in shares) | 1,873,155 | 124,051 | 274,018 | |
Vested (in shares) | (515,534) | (418,837) | (453,136) | |
Restructuring (in shares) | (2,600,264) | |||
Forfeited (in shares) | 0 | 0 | 0 | |
Ending balance (in shares) | 621,406 | 1,864,049 | 2,158,835 | |
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 39.83 | $ 39.79 | $ 39.85 | |
Granted (in dollars per share) | 39.95 | 31.80 | 37.15 | |
Vested (in dollars per share) | 35.44 | 37.23 | 38.50 | |
Restructuring (in dollars per share) | 40.87 | |||
Forfeited (in dollars per share) | 0 | 0 | 0 | |
Ending balance (in dollars per share) | $ 39.49 | $ 39.83 | $ 39.79 | |
Forecast | Converted OCGH Units | ||||
Weighted Average Grant Date Fair Value | ||||
Valuation assumptions, price per unit (in usd per share) | $ 49 |
EQUITY-BASED COMPENSATION - E_2
EQUITY-BASED COMPENSATION - Equity Value Units (Details) - shares | Apr. 26, 2017 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units outstanding (in shares) | 2,000,000 | |
Equity Value Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recapitalizing percentage | 33.33% | |
Units granted (in shares) | 225,000 |
EQUITY-BASED COMPENSATION EQUIT
EQUITY-BASED COMPENSATION EQUITY-BASED COMPENSATION - Deferred Equity Units (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units outstanding (in shares) | 2,000,000 |
OCGH Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Potential exchangeable units ratio | 1 |
Deferred equity unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Potential exchangeable units ratio | 1 |
Units vesting periods | 10 years |
Units outstanding (in shares) | 767,499 |
Lack of marketability discount | 17.50% |
Deferred equity unit | OCGH Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units vesting periods | 10 years |
INCOME TAXES AND RELATED PAYM_3
INCOME TAXES AND RELATED PAYMENTS - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)company | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |||||
Number of wholly-owned subsidiaries (in company) | company | 2 | ||||
Income tax expense related to Tax Act | $ 33.2 | ||||
Income tax expense related to Tax Act, deferred tax assets | 178.2 | ||||
Income tax benefit related to Tax Act, tax receivable liability | $ 145.1 | $ 145.1 | |||
Total reserve | $ 0.2 | ||||
Unrecognized tax benefits that would impact tax rate | 0.1 | ||||
Income tax penalties and interest accrued | 0.1 | $ 1.9 | |||
Income tax penalties and interest expenses | $ 0.2 | 1.2 | 0.1 | ||
Income Tax Contingency [Line Items] | |||||
Percentage of cash savings (as a percent) | 85.00% | ||||
Payments to unitholders under tax receivable agreement | $ 10 | $ 20.7 | $ 20 | ||
Forecast | |||||
Income Tax Contingency [Line Items] | |||||
Decrease resulting from settlements with taxing authorities | $ 0.2 |
INCOME TAXES AND RELATED PAYM_4
INCOME TAXES AND RELATED PAYMENTS - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
U.S. federal income tax | $ (93) | $ 4,645 | $ 4,085 |
State and local income tax | 1,674 | 2,934 | 2,687 |
Foreign income tax | 7,933 | 7,402 | 5,907 |
Current | 9,514 | 14,981 | 12,679 |
Deferred: | |||
U.S. federal income tax | 519 | 8,934 | 191,488 |
State and local income tax | (158) | 844 | 10,928 |
Foreign income tax | (255) | 20 | 347 |
Deferred | 106 | 9,798 | 202,763 |
Total: | |||
U.S. federal income tax | 426 | 13,579 | 195,573 |
State and local income tax | 1,516 | 3,778 | 13,615 |
Foreign income tax | 7,678 | 7,422 | 6,254 |
Income tax expense | $ 9,620 | $ 24,779 | $ 215,442 |
INCOME TAXES AND RELATED PAYM_5
INCOME TAXES AND RELATED PAYMENTS - Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic income (loss) before income taxes | $ 380,653 | $ 467,264 | $ 894,911 | ||||||||
Foreign income (loss) before income taxes | 16,305 | 22,060 | 10,013 | ||||||||
Income before income taxes | $ 100,780 | $ (16,100) | $ 123,380 | $ 188,898 | $ 125,243 | $ 149,659 | $ 70,624 | $ 143,798 | $ 396,958 | $ 489,324 | $ 904,924 |
INCOME TAXES AND RELATED PAYM_6
INCOME TAXES AND RELATED PAYMENTS - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at federal statutory rate | 21.00% | 21.00% | 35.00% |
Income passed through | (20.96%) | (17.78%) | (31.61%) |
State and local taxes, net of federal benefit | 0.45% | 0.55% | 0.38% |
Foreign taxes | 1.07% | 0.57% | 0.23% |
Other, net | 0.86% | 0.72% | 0.05% |
Deferred tax adjustment | 0.00% | 0.00% | 19.76% |
Total effective rate | 2.42% | 5.06% | 23.81% |
INCOME TAXES AND RELATED PAYM_7
INCOME TAXES AND RELATED PAYMENTS - Income Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Examination [Line Items] | |||
Investment in partnerships | $ 0 | $ 210,678 | $ 191,713 |
Equity-based compensation expense | 0 | 5,535 | 3,537 |
Net operating losses | 0 | 7,393 | 0 |
Other (1) | 3,096 | 9,191 | 9,311 |
Total deferred tax assets | 3,096 | 232,797 | 204,561 |
Total deferred tax liabilities | 0 | 3,697 | 2,101 |
Net deferred tax assets before valuation allowance | 3,096 | 229,100 | 202,460 |
Valuation allowance | 0 | 0 | 0 |
Net deferred tax assets | 3,096 | $ 229,100 | $ 202,460 |
Foreign Tax Authority | |||
Income Tax Examination [Line Items] | |||
Other (1) | $ 3,096 |
INCOME TAXES AND RELATED PAYM_8
INCOME TAXES AND RELATED PAYMENTS - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 2,699 | $ 4,366 | $ 5,768 |
Additions for tax positions related to the current year | 0 | 0 | 350 |
Additions for tax positions related to prior years | 0 | 0 | 0 |
Reductions for tax positions related to prior years | (2,440) | (18) | (412) |
Settlements | 0 | (1,423) | 0 |
Lapse of statute of limitations | (152) | (226) | (1,340) |
Balance at end of period | $ 107 | $ 2,699 | $ 4,366 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2018USD ($) | Dec. 31, 2019USD ($)city | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 17, 2017USD ($) | Aug. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | ||||||
Accrued incentives (fund level) | $ 864,900,000 | $ 1,434,458,000 | ||||
Compensation expense related to accrued incentives (fund level) | 462,684,000 | 754,903,000 | ||||
Capital commitments | $ 237,300,000 | 385,800,000 | ||||
Number of offices (in office) | city | 17 | |||||
Occupancy costs, including non-lease expenses | $ 20,081,000 | 22,369,000 | $ 20,477,000 | |||
Consolidated Funds | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments | $ 2,300,000 | 13,800,000 | ||||
Highstar Capital | ||||||
Loss Contingencies [Line Items] | ||||||
Contingent consideration (up to) | $ 36,100,000 | $ 60,000,000 | ||||
Period of performance | 7 years | |||||
Reduction in contingent consideration liability | $ 7,100,000 | |||||
Contingent consideration | $ 0 | 6,700,000 | ||||
Contingent consideration expense | $ 0 | $ 12,100,000 | $ 4,800,000 | |||
Fifth Street Management LLC | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnification asset | $ 56,200,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Operating Leases) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 6,262 |
2021 | 6,101 |
2022 | 5,480 |
2023 | 4,800 |
2024 | 4,224 |
Thereafter | 28,778 |
Total | $ 55,645 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Detail) | Oct. 01, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Reimbursable expenses payable | $ 750,000 | |||
Termination period (in days) | 90 days | |||
Administrative expenses | $ 200,000 | |||
Rent expense | 4,500,000 | |||
Rent expense | $ 4,700,000 | $ 4,700,000 | ||
Oaktree Capital Group Excluding Consolidated Funds | ||||
Related Party Transaction [Line Items] | ||||
Interest income | 73,000 | 211,000 | 451,000 | |
Oaktree Capital Group Excluding Consolidated Funds | Level III | ||||
Related Party Transaction [Line Items] | ||||
Due to affiliates | 85,151,000 | 95,953,000 | ||
Oaktree Capital Group Excluding Consolidated Funds | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Management fees and incentive income | $ 800,000,000 | $ 1,300,000,000 | $ 1,400,000,000 | |
Discount rate | Oaktree Capital Group Excluding Consolidated Funds | Discounted cash flow | Affiliated Entity | Level III | ||||
Related Party Transaction [Line Items] | ||||
Measurement input | 0.100 |
RELATED PARTY TRANSACTIONS - Am
RELATED PARTY TRANSACTIONS - Amounts Due from and Due to Affiliates (Detail) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Due from affiliates: | ||
Loans | $ 2,596 | $ 3,857 |
Amounts due from unconsolidated funds | 2,415 | 72,588 |
Management fees and incentive income due from unconsolidated funds | 88,043 | 362,971 |
Payments made on behalf of unconsolidated entities | 71,051 | 3,469 |
Non-interest bearing advances made to certain non-controlling interest holders and employees | 84 | 27 |
Total due from affiliates | 164,189 | 442,912 |
Due to affiliates: | ||
Due to OCGH unitholders in connection with the tax receivable agreement (please see note 17) | 0 | 187,872 |
Amounts due to unconsolidated entities | 86,575 | 0 |
Amounts due to senior executives, certain non-controlling interest holders and employees | 488 | 495 |
Total due to affiliates | $ 87,063 | $ 188,367 |
CAPITAL REQUIREMENTS OF REGUL_2
CAPITAL REQUIREMENTS OF REGULATED ENTITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | ||
Potential restricted amounts | $ 190.7 | $ 183.7 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of segments | 1 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Details) - $ / shares | Mar. 16, 2020 | Feb. 24, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||||||||
Distributions declared per Class A unit (in dollars per share) | $ 0.03 | $ 3.13 | $ 1.05 | $ 0.75 | $ 0.70 | $ 0.55 | $ 0.96 | $ 0.76 | $ 4.96 | $ 2.97 | $ 3.21 | ||
Class A Units | Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Distributions declared per Class A unit (in dollars per share) | $ 0.22 | ||||||||||||
Forecast | Series A Preferred Units | Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Distributions declared per preferred unit (in dollars per share) | $ 0.414063 | ||||||||||||
Forecast | Series B Preferred Units | Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Distributions declared per preferred unit (in dollars per share) | $ 0.409375 |
QUARTERLY FINANCIAL DATA (Detai
QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 143,899 | $ 205,190 | $ 313,483 | $ 266,415 | $ 594,248 | $ 241,227 | $ 213,283 | $ 337,321 | |||
Expenses | (93,689) | (245,480) | (265,888) | (237,474) | (373,762) | (191,167) | (184,606) | (251,036) | $ (842,531) | $ (1,000,571) | $ (1,025,343) |
Other income | 50,570 | 24,190 | 75,785 | 159,957 | (95,243) | 99,599 | 41,947 | 57,513 | 310,502 | 103,816 | 460,500 |
Income before income taxes | 100,780 | (16,100) | 123,380 | 188,898 | 125,243 | 149,659 | 70,624 | 143,798 | 396,958 | 489,324 | 904,924 |
Net income | 102,308 | (20,898) | 121,528 | 184,400 | 118,296 | 143,091 | 65,757 | 137,401 | 387,338 | 464,545 | 689,482 |
Net income attributable to Oaktree Capital Group, LLC | $ 54,473 | $ (16,648) | $ 42,444 | $ 47,254 | $ 74,538 | $ 52,750 | $ 31,121 | $ 52,732 | $ 154,839 | $ 223,418 | $ 231,494 |
Net income per unit (basic and diluted): | |||||||||||
Net income per Class A unit (in dollars per share) | $ 0.56 | $ (0.22) | $ 0.57 | $ 0.66 | $ 1.04 | $ 0.74 | $ 0.44 | $ 0.78 | $ 1.59 | $ 2.99 | $ 3.61 |
Distributions declared per Class A unit (in dollars per share) | $ 0.03 | $ 3.13 | $ 1.05 | $ 0.75 | $ 0.70 | $ 0.55 | $ 0.96 | $ 0.76 | $ 4.96 | $ 2.97 | $ 3.21 |