Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 10, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35500 | |
Entity Registrant Name | Oaktree Capital Group, LLC | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001403528 | |
Current Fiscal Year End Date | --12-31 | |
Series A Preferred Units | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.625% Series A preferred units | |
Trading Symbol | OAK-PA | |
Security Exchange Name | NYSE | |
Series B Preferred Units | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.550% Series B preferred units | |
Trading Symbol | OAK-PB | |
Security Exchange Name | NYSE | |
Class A Units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 102,695,918 | |
Class B Units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 56,823,386 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Total assets | $ 15,041,694 | $ 14,397,849 |
Liabilities: | ||
Operating lease liabilities | 37,368 | |
Total liabilities | 10,534,475 | 10,401,953 |
Commitments and contingencies | ||
Unitholders’ capital: | ||
Paid-in capital | 1,139,037 | 1,011,333 |
Retained earnings | 166,053 | 251,791 |
Accumulated other comprehensive loss | (3,701) | (3,334) |
Unitholders’ capital attributable to Oaktree Capital Group, LLC | 1,701,973 | 1,660,374 |
Non-controlling interests in consolidated subsidiaries | 538,305 | 612,228 |
Total unitholders’ capital | 2,240,278 | 2,272,602 |
Total liabilities and unitholders’ capital | 15,041,694 | 14,397,849 |
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 | 121,325 | 167,319 |
U.S. Treasury and other securities | 6,603 | 2,086 |
Investments | 1,021,487 | 1,022,564 |
Due from affiliates | 67,276 | 372,861 |
Deferred tax assets | 3,954 | 3,548 |
Right-of-use assets | 31,575 | 33,359 |
Other assets, net | 47,618 | 45,979 |
Liabilities: | ||
Accrued compensation expense | 140,463 | 245,787 |
Accounts payable, accrued expenses and other liabilities | 15,092 | 15,365 |
Due to affiliates | 9,049 | 4,198 |
Debt obligations | 0 | 0 |
Operating lease liabilities | 37,368 | 39,294 |
Consolidated Funds | ||
Assets | ||
Cash and cash-equivalents | 1,036,645 | 991,800 |
Investments | 12,256,098 | 11,456,895 |
Other assets, net | 12,951 | 23,853 |
Dividends and interest receivable | 59,446 | 48,584 |
Due from brokers | 54,648 | 15,498 |
Receivable for securities sold | 309,809 | 206,770 |
Derivative assets, at fair value | 12,259 | 6,733 |
Total assets | 13,700,000 | |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 57,353 | 80,897 |
Debt obligations | 7,972,105 | 7,806,263 |
Payables for securities purchased | 1,105,295 | 1,066,261 |
Derivative liabilities, at fair value | 43,594 | 11,847 |
Distributions payable | 126 | 123 |
Borrowings under credit facilities | 1,154,030 | 1,131,918 |
Total liabilities | 10,300,000 | |
Non-controlling redeemable interests in consolidated funds | $ 2,266,941 | $ 1,723,294 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Series A Preferred Units | ||
Preferred units, issued (in shares) | 7,200,000 | 7,200,000 |
Preferred units, outstanding (in shares) | 7,200,000 | 7,200,000 |
Series B Preferred Units | ||
Preferred units, issued (in shares) | 9,400,000 | 9,400,000 |
Preferred units, outstanding (in shares) | 9,400,000 | 9,400,000 |
Class A Units | ||
Common units, par value (in dollars per share) | $ 0 | $ 0 |
Common units, issued (in shares) | 99,136,620 | 99,136,620 |
Common units, outstanding (in shares) | 99,136,620 | 99,136,620 |
Class B Units | ||
Common units, par value (in dollars per share) | $ 0 | $ 0 |
Common units, issued (in shares) | 60,779,066 | 60,783,255 |
Common units, outstanding (in shares) | 60,779,066 | 60,783,255 |
Oaktree Capital Group Excluding Consolidated Funds | ||
Investments, at fair value | $ 56,106 | $ 71,154 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 63,030 | $ 607,751 |
Expenses: | ||
Compensation and benefits | (44,089) | (41,247) |
Equity-based compensation | (1,497) | (3,403) |
Incentive income compensation | (4,957) | (265,930) |
Total compensation and benefits expense | (50,543) | (310,580) |
General and administrative | (5,038) | (4,945) |
Depreciation and amortization | (583) | (579) |
Consolidated fund expenses | (24,802) | (10,834) |
Total expenses | (80,966) | (326,938) |
Other income (loss): | ||
Interest expense | (39,191) | (36,876) |
Interest and dividend income | 123,572 | 88,444 |
Net realized gain (loss) on consolidated funds’ investments | (89,225) | 6,044 |
Net change in unrealized appreciation (depreciation) on consolidated funds’ investments | 128,359 | 53,868 |
Investment income | 11,741 | 113,239 |
Other income, net | 0 | 19 |
Total other income | 135,256 | 224,738 |
Income before income taxes | 117,320 | 505,551 |
Income taxes | (3,697) | (2,270) |
Net income (loss) | 113,623 | 503,281 |
Less: | ||
Net income (loss) attributable to Oaktree Capital Group, LLC | 17,682 | 285,548 |
Net income attributable to preferred unitholders | (6,829) | (6,829) |
Net income attributable to OCG Class A unitholders | $ 10,853 | $ 278,719 |
Net income per Class A unit (basic and diluted): | ||
Weighted average number of Class A units outstanding, diluted (in shares) | 159,916 | 160,050 |
Class A Units | ||
Less: | ||
Net income attributable to OCG Class A unitholders | $ 10,853 | $ 278,719 |
Distributions declared per Class A unit (in dollars per share) | $ 0.97 | $ 1.07 |
Net income per Class A unit (basic and diluted): | ||
Net income per Class A unit, basic (in dollars per share) | 0.11 | 2.82 |
Net income per Class A unit, diluted (in dollars per share) | $ 0.11 | $ 2.82 |
Weighted average number of Class A units outstanding, basic (in shares) | 99,137 | 98,708 |
Weighted average number of Class A units outstanding, diluted (in shares) | 99,137 | 98,708 |
Consolidated Funds | ||
Less: | ||
Net income (loss) attributable to non-controlling interests | $ (98,943) | $ (51,305) |
Consolidated Subsidiaries | ||
Less: | ||
Net income (loss) attributable to non-controlling interests | 3,002 | (166,428) |
Management fees | ||
Revenues: | ||
Total revenues | 60,431 | 56,326 |
Incentive income | ||
Revenues: | ||
Total revenues | $ 2,599 | $ 551,425 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 113,623 | $ 503,281 |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments | (593) | (8,926) |
Other comprehensive loss, net of tax | (593) | (8,926) |
Total comprehensive income | 113,030 | 494,355 |
Comprehensive income attributable to OCG | 17,315 | 279,356 |
Comprehensive income attributable to preferred unitholders | (6,829) | (6,829) |
Comprehensive income attributable to OCG Class A unitholders | 10,486 | 272,527 |
Consolidated Funds | ||
Other comprehensive loss, net of tax: | ||
Less: Comprehensive (income) loss attributable to non-controlling interest | (98,943) | (51,305) |
Consolidated Subsidiaries | ||
Other comprehensive loss, net of tax: | ||
Less: Comprehensive (income) loss attributable to non-controlling interest | $ 3,228 | $ (163,694) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 113,623 | $ 503,281 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Investment income | (11,741) | (113,239) |
Depreciation and amortization | 583 | 579 |
Equity-based compensation | 1,497 | 3,403 |
Net realized and unrealized gain from consolidated funds’ investments | (39,134) | (59,912) |
Accretion of original issue and market discount of consolidated funds’ investments, net | (7,223) | 842 |
Income distributions from corporate investments in funds and companies | 10,898 | 70,497 |
SPAC deconsolidation gain and other non-cash items | 0 | (72,347) |
Cash flows due to changes in operating assets and liabilities: | ||
Net cash (used) provided in operating activities | (701,802) | 66,657 |
Cash flows from investing activities: | ||
Purchases of U.S. Treasury and other securities | (4,425) | (7,503) |
Proceeds from maturities and sales of U.S. Treasury and other securities | 0 | 7,503 |
Corporate investments in funds and companies | (21,922) | (74,391) |
Distributions and proceeds from corporate investments in funds and companies | 14,031 | 111,408 |
Purchases of fixed assets | (96) | (12) |
Net cash (used) provided by investing activities | (12,412) | 37,005 |
Cash flows from financing activities: | ||
Net cash provided by financing activities | 709,379 | 288,905 |
Effect of exchange rate changes on cash | 3,686 | (9,349) |
Net (decrease) increase in cash and cash-equivalents | (1,149) | 383,218 |
Initial consolidation (deconsolidation) of funds | 0 | (206,099) |
Cash and cash-equivalents, beginning balance | 1,159,119 | 1,200,341 |
Cash and cash-equivalents, ending balance | 1,157,970 | 1,377,460 |
Total cash and cash-equivalents | 1,157,970 | 1,377,460 |
Oaktree Capital Group Excluding Consolidated Funds | ||
Cash flows due to changes in operating assets and liabilities: | ||
Decrease in deferred tax assets | 505 | 105 |
Decrease in other assets | 4,942 | 559 |
(Increase) decrease in net due from affiliates | 312,556 | (13,319) |
Increase (decrease) in accrued compensation expense | (105,324) | 12,240 |
Decrease in accounts payable, accrued expenses and other liabilities | (3,145) | (4,996) |
Cash flows from financing activities: | ||
Capital contributions, net | 111,211 | 35,517 |
Distributions to Class A unitholders | (94,964) | (105,584) |
Distributions to OCGH unitholders | (54,703) | (65,671) |
Distributions to preferred unitholders | (6,829) | (6,829) |
Cash and cash-equivalents, ending balance | 121,325 | 504,693 |
Total cash and cash-equivalents | 121,325 | 504,693 |
Consolidated Funds | ||
Cash flows due to changes in operating assets and liabilities: | ||
Decrease in accounts payable, accrued expenses and other liabilities | (10,383) | 18,490 |
Increase in dividends and interest receivable | (11,352) | (10,434) |
Increase in due from brokers | (39,158) | (420) |
Increase in receivables for securities sold | (44,608) | (38,668) |
Decrease in other assets | 12,401 | 40,333 |
Increase in payables for securities purchased | 19,641 | 373,474 |
Purchases of securities | (3,092,034) | (2,108,475) |
Proceeds from maturities and sales of securities | 2,185,654 | 1,464,664 |
Cash flows from financing activities: | ||
Contributions from non-controlling interests | 533,419 | 256,391 |
Distributions to non-controlling interests | (89,928) | (22,582) |
Proceeds from debt obligations issued by CLOs | 528,876 | 83,205 |
Payment of debt issuance costs | (2,275) | (1,182) |
Repayment on debt obligations issued by CLOs | (237,540) | (39,219) |
Borrowings on credit facilities | 242,749 | 154,859 |
Repayments on credit facilities | (220,637) | 0 |
Cash and cash-equivalents, ending balance | 1,036,645 | 872,767 |
Total cash and cash-equivalents | $ 1,036,645 | $ 872,767 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Unitholders' Capital (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period | $ 2,272,602 | $ 1,879,988 |
Capital contributions | 112,500 | 37,500 |
Equity reallocation between controlling and non-controlling interests | (1,289) | (1,983) |
Capital increase related to equity-based compensation | 1,498 | 3,403 |
Distributions declared | (159,120) | (178,084) |
Net income | 14,680 | 451,976 |
Foreign currency translation adjustment, net of tax | (593) | (8,926) |
Unitholders' capital, end of period | 2,240,278 | 2,183,874 |
Paid-in Capital | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period | 1,011,333 | 819,963 |
Capital contributions | 112,500 | 37,500 |
Equity reallocation between controlling and non-controlling interests | 14,275 | 3,678 |
Capital increase related to equity-based compensation | 929 | 2,099 |
Unitholders' capital, end of period | 1,139,037 | 863,240 |
Retained Earnings (Accumulated Deficit) | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period | 251,791 | 119,920 |
Distributions declared | (96,591) | (105,584) |
Net income | 10,853 | 278,719 |
Unitholders' capital, end of period | 166,053 | 293,055 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period | (3,334) | (5,414) |
Foreign currency translation adjustment, net of tax | (367) | (6,192) |
Unitholders' capital, end of period | (3,701) | (11,606) |
Non-controlling Interests in Consolidated Subsidiaries | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period | 612,228 | 544,935 |
Capital contributions | 0 | |
Equity reallocation between controlling and non-controlling interests | (15,564) | (5,661) |
Capital increase related to equity-based compensation | 569 | 1,304 |
Distributions declared | (55,700) | (65,671) |
Net income | (3,002) | 166,428 |
Foreign currency translation adjustment, net of tax | (226) | (2,734) |
Unitholders' capital, end of period | $ 538,305 | $ 638,601 |
Class A Units | Common Units | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period (in shares) | 99,137 | 98,677 |
Unit exchange (in shares) | 460 | |
Unitholders' capital, end of period (in shares) | 99,137 | 99,137 |
Class B Units | Common Units | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period (in shares) | 60,783 | 61,371 |
Net issuance of units (in shares) | 3 | 4 |
Unit exchange (in shares) | (460) | |
Cancellation of units associated with forfeitures (in shares) | (7) | (3) |
Unitholders' capital, end of period (in shares) | 60,779 | 60,912 |
Series A Preferred Units | Equities – Preferred Stock | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period | $ 173,669 | $ 173,669 |
Distributions declared | (2,981) | (2,981) |
Net income | 2,981 | 2,981 |
Unitholders' capital, end of period | 173,669 | 173,669 |
Series B Preferred Units | Equities – Preferred Stock | ||
Increase (decrease) in Stockholders' Equity: | ||
Unitholders' capital, beginning of period | 226,915 | 226,915 |
Distributions declared | (3,848) | (3,848) |
Net income | 3,848 | 3,848 |
Unitholders' capital, end of period | $ 226,915 | $ 226,915 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION As used in these condensed 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 business development companies (“BDCs”). Commingled funds include open-end and closed-end limited partnerships in which 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 Oaktree’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 condensed 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 13 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, on October 1, 2019, four of the six Oaktree Operating Group entities were no longer indirect subsidiaries of the Company. Accordingly, subsequent to that date, the Company’s condensed 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 condensed consolidated financial statements no longer reflect 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 unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned or majority-owned subsidiaries and entities in which the Company is deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting interest model. Certain of the Oaktree funds consolidated by the Company are investment companies that follow a specialized basis of accounting established by GAAP. All intercompany transactions and balances have been eliminated in consolidation. 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 a recast of the Company's historical financial information. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 11, 2022. Use of Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of income and expenses during the period then ended. Actual results could differ from these estimates. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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 4 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 condensed consolidated financial statements. All of the revenues earned by the Company as investment manager of the consolidated funds are eliminated in consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the consolidation of a fund does not impact net income or loss attributable to the Company. Certain entities in which the Company has the ability to exert significant influence, including unconsolidated Oaktree funds for which the Company acts as general partner, are accounted for under the equity method of accounting. Non-controlling Redeemable Interests in Consolidated Funds The Company records non-controlling interests to reflect the economic interests of the unaffiliated limited partners in Oaktree-managed funds and the class A ordinary shareholders in Oaktree sponsored SPACs. These interests are presented as non-controlling redeemable interests in consolidated funds within the condensed consolidated statements of financial condition, outside of the permanent capital section. Limited partners in open-end and evergreen funds generally have the right to withdraw their capital, subject to the terms of the respective limited partnership agreements, over periods ranging from one month to three years. While limited partners in consolidated closed-end funds generally have not been granted redemption rights, these limited partners do have withdrawal or redemption rights in certain limited circumstances that are beyond the control of the Company, such as instances in which retaining the limited partnership interest could cause the limited partner to violate a law, regulation or rule. For Oaktree sponsored SPACs, the class A ordinary shareholders have redemption rights that are considered to be outside of the Company’s control. These shares are presented as non-controlling redeemable interests on the Company’s condensed consolidated statements of financial condition. The allocation of net income or loss to non-controlling redeemable interests in consolidated funds and Oaktree sponsored SPACs is based on the relative ownership interests of the unaffiliated limited partners after the consideration of contractual arrangements that govern allocations of income or loss. At the consolidated level, potential incentives are allocated to non-controlling redeemable interests in consolidated funds until such incentives become allocable to the Company under the substantive contractual terms of the limited partnership agreements of the funds. Non-controlling Interests in Consolidated Funds Non-controlling interests in consolidated funds represent the equity interests held by third-party investors in CLOs that had not yet priced as of the respective period end. All non-controlling interests in those CLOs are attributed a share of income or loss arising from the respective CLO based on the relative ownership interests of third-party investors after consideration of contractual arrangements that govern allocations of income or loss. Investors in those CLOs are generally unable to redeem their interests until the respective CLO liquidates, is called or otherwise terminates. Non-controlling Interests in Consolidated Subsidiaries Non-controlling interests in consolidated subsidiaries reflect the portion of unitholders’ capital attributable to OCGH unitholders (“OCGH non-controlling interest”) and third parties. All non-controlling interests in consolidated subsidiaries are attributed a share of income or loss in the respective consolidated subsidiary based on the relative economic interests of the OCGH unitholders or third parties after consideration of contractual arrangements that govern allocations of income or loss. Please see note 11 for more information. 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 inclusive of the Company’s investments in unconsolidated Oaktree funds 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 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 condensed consolidated statements of financial condition. The Company’s accounting for CLO assets is similar to its accounting for its funds with respect to both carrying investments held by CLOs at fair value and the valuation methods used to determine the fair value of those investments. 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 condensed consolidated statements of operations. Interest income of CLOs is included in interest and dividend income, and interest expense and other expenses, respectively, are included in interest expense and consolidated fund expenses in the condensed consolidated statements of operations. Changes in the fair value of a CLO’s financial liabilities in accordance with the CLO measurement guidance are included in net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Please see notes 6 and 8 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 condensed 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. The Company manages its exposure to interest rate and foreign exchange market risks, when deemed appropriate, through the use of derivatives, including foreign currency forward and option contracts, interest-rate and cross currency swaps with financial counterparties. 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 condensed 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 condensed consolidated statements of financial condition. When the Company enters into a derivative contract, it may or may not 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. Leases The Company determines whether an arrangement contains a lease at inception. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the consolidated statements of financial condition as separate line items: right-of-use assets and operating lease liabilities. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The right-of-use asset amount also includes deferred rent liabilities and lease incentives. The Company’s lease arrangements generally do not provide an implicit rate. As a result, in such situations the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company may also include options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its right-of-use assets and liabilities. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. Please see note 9 for more information. Cash and Cash-equivalents Cash and cash-equivalents include demand deposit accounts, money market funds, and other 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, notes and bonds, and commercial paper, and investment grade debt securities that are issued or guaranteed by U.S. government-sponsored entities, sovereign debt, domestic and international corporate fixed and floating rate debt, and structured credit with maturities greater than three months from the date of acquisition. These securities are classified as trading and are recorded at fair value with changes in fair value included in investment income. Corporate Investments Corporate investments may consist of investments in funds, companies in which the Company does not have a controlling financial interest, and non-investment grade debt securities. 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 generally 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. Non-investment grade debt securities include domestic and international corporate fixed and floating rating debt and structured credit investments. These securities are classified as trading and are recorded at fair value with changes in fair value included in investment income. Revenue Recognition 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, based on certain facts and circumstances specific to each investment fund structure, that either the investment fund or individual investors may be considered the customer 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 3 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 closed-end funds, the management fee rate is generally applied against committed capital, contributed capital or cost basis during the fund’s investment period and the lesser of aggregate contributed capital or cost basis of assets in the liquidation period. 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 contributed 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 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 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. Included in this amount is a gross-up for reimbursable costs incurred on behalf of the Oaktree funds in which the Company has determined it is the principal within the principal and agent relationship of the related fund. Such reimbursable 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 at 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 condensed 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. The Company may earn incentive income upon deconsolidation of a SPAC arising from the completion of a merger with an identified target. Upon deconsolidation, the Company will derecognize the net assets of the entity and record any gain or loss related to the remeasurement of its investments to fair value as incentive income in its condensed consolidated statements of operations. Subsequent fair value changes in the Company’s investments held in the entity will be recorded in investment income in its condensed consolidated statements of operations. 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, phantom equity awards, and long-term incentive plan. 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 Converted OCGH Units, OCGH units, deferred equity units and other performance-based units, and is calculated based on the grant-date fair value of the unit award. OCGH unit grants are valued based on a formula as described in note 13 under “Restated Exchange Agreement—Valuation” and reflect a discount for lack of marketability due to the post-vesting restrictions described in note 13. 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 Resta |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2022 | |
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. 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. Substantially all of our incentive income was generated by closed-end funds for the three months ended March 31, 2022 and 2021. For the three months ended March 31, 2021, the Company recorded $72.3 million of incentive income related to the deconsolidation of a SPAC. Revenues by fund structure and sub-advisory fees are set forth below. Three months ended March 31, 2022 2021 Management Fees Closed-end $ 1,382 $ 1,017 Open-end 1,370 1,344 Sub-advisory fees 57,679 53,965 Total $ 60,431 $ 56,326 Three months ended March 31, 2022 2021 Incentive Income Closed-end and Evergreen $ 2,599 $ 551,424 Contract Balances The Company receives management fees monthly or quarterly in accordance with its contracts with customers.Incentive income is received generally after all contributed capital and the preferred return on that capital have been distributed to the fund’s investors.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 March 31, 2022 December 31, 2021 Receivables $ 38,108 $ 138,435 Contract assets (1) 344 151,360 (1) The changes in the balances primarily relate to accruals, net of payments received. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2022 | |
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. Consolidated VIEs As of March 31, 2022, the Company consolidated 27 VIEs for which it was the primary beneficiary, including 11 funds managed by Oaktree and 16 CLOs for which Oaktree serves as collateral manager. As of December 31, 2021, the Company consolidated 25 VIEs. As of March 31, 2022, the assets and liabilities of the 27 consolidated VIEs representing funds and CLOs amounted to $13.7 billion and $10.3 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 March 31, 2022, the Company’s investments in consolidated VIEs had a carrying value of $1.2 billion, 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 8 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. Carrying Value as of March 31, 2022 December 31, 2021 Corporate investments $ 943,564 $ 895,116 Due from affiliates 2,976 188,237 Maximum exposure to loss $ 946,540 $ 1,083,353 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Corporate Investments Corporate investments may consist of investments in funds, companies in which the Company does not have a controlling financial interest, and non-investment grade debt securities. 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 Corporate Investments March 31, 2022 December 31, 2021 Equity-method investments: Funds $ 955,784 $ 915,185 Companies 9,597 36,225 Other investments, at fair value 56,106 71,154 Total corporate investments $ 1,021,487 $ 1,022,564 The components of investment income (loss) are set forth below: Three months ended March 31, Investment Income (Loss) 2022 2021 Equity-method investments: Funds $ 14,253 $ 106,524 Companies (646) 22 Other investments, at fair value (1,866) 6,693 Total investment income $ 11,741 $ 113,239 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 condensed consolidated statements of operations. The Company’s equity-method investments in Oaktree funds principally reflect the Company’s general partner interests in those funds, which typically does not exceed 2.5% in each fund. The Oaktree funds are investment companies that follow a specialized basis of accounting established by GAAP. Each reporting period, the Company evaluates each of its equity-method investments to determine if any are considered significant, as defined by the SEC. For the three months ended March 31, 2022, no individual equity-method investment met the significance criteria. Summarized financial information of the Company’s equity-method investments is set forth below. Three months ended March 31, Statements of Operations 2022 2021 Revenues / investment income $ 840,605 $ 413,311 Interest expense (54,290) (38,941) Other expenses (220,991) (199,258) Net realized and unrealized gain on investments 986,800 4,336,081 Net income $ 1,552,124 $ 4,511,193 Other Investments, at Fair Value Other investments, at fair value primarily consist of (a) investments in certain Oaktree and non-Oaktree funds, (b) non-investment grade debt securities, and (c) 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: Three months ended March 31, 2022 2021 Realized (loss) gain $ (91) $ 8,672 Net change in unrealized loss (1,775) (1,979) Total (loss) gain $ (1,866) $ 6,693 Investments of Consolidated Funds Investments, at Fair Value Investments held and securities sold short by the consolidated funds are summarized below: Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 United States: Debt securities: Communication services $ 632,188 $ 635,930 5.2 % 5.6 % Consumer discretionary 755,434 665,405 6.2 5.8 Consumer staples 258,509 190,391 2.1 1.7 Energy 358,067 354,585 2.9 3.1 Financials 507,025 463,412 4.1 4.0 Health care 452,332 459,713 3.7 4.0 Industrials 1,033,990 891,850 8.4 7.8 Information technology 664,185 685,959 5.4 6.0 Materials 504,009 436,434 4.1 3.8 Real estate 215,600 202,131 1.8 1.8 Utilities 315,793 305,220 2.6 2.7 Other 13,213 10,683 0.1 0.1 Total debt securities (cost:$5,781,052 and $5,303,858 as of March 31, 2022 and December 31, 2021, respectively) 5,710,345 5,301,713 46.5 46.3 Equity securities: Communication services 63,485 54,635 0.5 0.5 Consumer discretionary 148,153 126,978 1.2 1.1 Energy 438,506 369,912 3.6 3.2 Financials 191,637 151,501 1.6 1.3 Health care 42,397 33,475 0.3 0.3 Industrials 237,983 246,856 1.9 2.2 Materials 82,273 82,273 0.7 0.7 Utilities 85,994 81,989 0.7 0.7 Total equity securities (cost: $1,007,406 and $1,086,667 as of March 31, 2022 and December 31, 2021, respectively) 1,290,428 1,147,619 10.5 10.0 Real estate: Real estate — — — — Financials — — — — Total real estate securities (cost: $— and $— as of March 31, 2022 and December 31, 2021, respectively) — — — — Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Europe: Debt securities: Communication services $ 749,449 $ 756,728 6.1 % 6.6 % Consumer discretionary 846,533 915,535 6.9 8.0 Consumer staples 215,726 206,590 1.8 1.8 Energy 1,024 1,251 0.0 0.0 Financials 97,529 98,126 0.8 0.9 Health care 703,823 751,936 5.7 6.6 Industrials 659,808 656,033 5.4 5.7 Information technology 372,578 383,041 3.0 3.3 Materials 496,064 466,181 4.0 4.1 Real estate 32,766 34,116 0.3 0.3 Utilities 2,192 1,777 0.0 0.0 Other 12,324 15,049 0.1 0.1 Total debt securities (cost: $4,256,220 and $4,289,708 as of March 31, 2022 and December 31, 2021, respectively) 4,189,816 4,286,363 34.1 37.4 Equity securities: Consumer discretionary 114,679 102,919 0.9 0.9 Materials 28,729 — 0.2 — Financials 29,178 19,987 0.2 0.2 Health care 89 — 0.0 — Industrials 78,883 27,475 0.6 0.2 Total equity securities (cost: $219,444 and $119,114 as of March 31, 2022 and December 31, 2021, respectively) 251,558 150,381 2.1 1.3 Real estate: Real estate 36,887 33,834 0.3 0.3 Total real estate securities (cost: $38,874 and $34,927 as of March 31, 2022 and December 31, 2021, respectively) 36,887 33,834 0.3 0.3 Asia and other: Debt securities: Communication services 7,410 6,087 0.1 0.1 Consumer discretionary 77,447 71,082 0.6 0.6 Consumer staples 13,014 13,378 0.1 0.1 Energy 27,375 24,325 0.2 0.2 Financials 13,985 14,739 0.1 0.1 Health care 2,980 4,084 0.0 0.0 Industrials 10,642 7,084 0.1 0.1 Information technology 572 714 0.0 0.0 Materials 120,201 121,151 1.0 1.1 Real estate 325,643 131,155 2.7 1.1 Utilities 3,680 3,743 0.0 0.0 Other 10,670 9,482 0.1 0.1 Total debt securities (cost: $626,545 and $417,825 as of March 31, 2022 and December 31, 2021, respectively) 613,619 407,024 5.1 3.6 Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Asia and other: Equity securities: Consumer discretionary $ 1,108 $ 1,057 0.0 % 0.0 % Energy 8,555 8,332 0.1 0.1 Industrials 110,558 81,782 0.9 0.7 Real estate 42,960 38,614 0.4 0.3 Utilities 242 176 0.0 — Total equity securities (cost: $146,930 and $120,308 as of March 31, 2022 and December 31, 2021, respectively) 163,423 129,961 1.4 1.1 Total debt securities 10,513,780 9,995,100 85.8 87.2 Total equity securities 1,705,431 1,427,961 13.9 12.5 Total real estate 36,887 33,834 0.3 0.3 Total investments, at fair value $ 12,256,098 $ 11,456,895 100.0 % 100.0 % As of March 31, 2022 and December 31, 2021, no single issuer or investment had a fair value that exceeded 5% of Oaktree’s total consolidated net assets. Net Gains (Losses) From Investment Activities of Consolidated Funds Net gains (losses) from investment activities in the condensed consolidated statements of operations consist primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments. Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period. The following table summarizes net gains (losses) from investment activities: Three months ended March 31, 2022 2021 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 $ (90,055) $ 201,267 $ 4,967 $ 47,372 CLO liabilities (1) (2,115) (45,844) 1,928 4,563 Foreign-currency forward contracts (2) 956 2,928 (1,373) 2,706 Total-return and interest-rate swaps (2) (3,984) (32,833) — (34) Options and futures (2) 5,973 1,983 522 199 Warrants (2) — 858 — (938) Total $ (89,225) $ 128,359 $ 6,044 $ 53,868 (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 | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair Value of Financial Assets and Liabilities The short-term nature of cash and cash-equivalents, receivables and accounts payable causes each of their carrying values to approximate fair value. The fair value of short-term investments included in cash and cash-equivalents is a Level I valuation. The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below. Please see notes 8 and 16 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively. As of March 31, 2022 As of December 31, 2021 Level I Level II Level III Total Level I Level II Level III Total Assets U.S. Treasury and other securities (1) $ 6,603 $ — $ — $ 6,603 $ 2,086 $ — $ — $ 2,086 Corporate investments 47,413 8,693 — 56,106 62,124 7,316 1,714 71,154 Foreign-currency forward contracts (2) — 5,095 — 5,095 — 11,213 — 11,213 Total assets $ 54,016 $ 13,788 $ — $ 67,804 $ 64,210 $ 18,529 $ 1,714 $ 84,453 Liabilities Foreign-currency forward contracts (3) $ — $ (407) $ — $ (407) $ — $ (536) $ — $ (536) (1) For U.S. Treasury securities the carrying value approximates fair value due to their short-term nature and are classified as Level I investments within the fair value hierarchy detailed above. (2) Amounts are included in other assets, except for $2,345 as of March 31, 2022, which is included within corporate investments in the condensed consolidated statements of financial condition. (3) Amounts are included in accounts payable, accrued expenses and other liabilities in the condensed consolidated statements of financial condition, except for $147 and $494 as of March 31, 2022 and December 31, 2021, respectively, which are included within corporate investments in the condensed consolidated statements of financial condition. The table below sets forth a summary of changes in the fair value of Level III financial instruments: Three months ended March 31, 2022 2021 Corporate Investments: Beginning balance $ 1,714 $ 27,045 Contributions or additions — — Distributions and sales (1,590) (692) Net gain (loss) included in earnings (124) 1,571 Ending balance $ — $ 27,924 Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 411 $ 879 The Company’s Level III financial instruments held as of December 31, 2022 primarily include the CLO beneficial interest of one unconsolidated CLO, which was sold during the quarter ended March 31, 2022. 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 March 31, 2022 As of December 31, 2021 Level I Level II Level III Total Level I Level II Level III Total Assets Investments: Corporate debt – bank debt $ — $ 8,054,042 $ 867,294 $ 8,921,336 $ — $ 7,867,741 $ 597,188 $ 8,464,929 Corporate debt – all other — 1,367,954 224,490 1,592,444 — 1,300,595 229,576 1,530,171 Equities – common stock 321,797 23,320 690,278 1,035,395 206,133 76,751 581,748 864,632 Equities – preferred stock 76,284 — 593,752 670,036 77,299 — 486,030 563,329 Real estate — — 36,887 36,887 — — 33,834 33,834 Total investments 398,081 9,445,316 2,412,701 12,256,098 283,432 9,245,087 1,928,376 11,456,895 Derivatives: Foreign-currency forward contracts — 9,063 — 9,063 — 5,062 — 5,062 Swaps — 718 — 718 — 1,162 — — Options and futures 2,478 — — 2,478 509 — — 509 Total derivatives (1) 2,478 9,781 — 12,259 509 6,224 — 5,571 Total assets $ 400,559 $ 9,455,097 $ 2,412,701 $ 12,268,357 $ 283,941 $ 9,251,311 $ 1,928,376 $ 11,462,466 Liabilities CLO debt obligations: Senior secured notes $ — $ (7,649,601) $ — $ (7,649,601) $ — $ (7,472,521) $ — $ (7,472,521) Subordinated notes — (322,504) — (322,504) — (333,742) — (333,742) Total CLO debt obligations (2) — (7,972,105) — (7,972,105) — (7,806,263) — (7,806,263) Derivatives: Foreign-currency forward contracts — (1,563) — (1,563) — (886) — (886) Swaps (36,997) (936) — (37,933) (4,100) (235) — (4,335) Options and futures (36) — — (36) — — — — Warrants — (4,062) — (4,062) — (6,626) — (6,626) Total derivatives (3) (37,033) (6,561) — (43,594) (4,100) (7,747) — (11,847) Total liabilities $ (37,033) $ (7,978,666) $ — $ (8,015,699) $ (4,100) $ (7,814,010) $ — $ (7,818,110) (1) Amounts are included in other assets under “assets of consolidated funds” in the condensed consolidated statements of financial condition. (2) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 8 for more information. (3) Amounts are included in accounts payable, accrued expenses and other liabilities under “liabilities of consolidated funds” in the condensed consolidated statements of financial condition 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 Three months ended March 31, 2022 Beginning balance $ 597,188 $ 229,576 $ 581,748 $ 486,030 $ 33,834 $ 1,928,376 Deconsolidation of funds — — — — — — Transfers into Level III 4,407 1,412 — — — 5,819 Transfers out of Level III (20,683) (2,475) (6) — — (23,164) Purchases 351,155 1,962 100,462 91,378 3,947 548,904 Sales (65,804) (7) (43,063) — — (108,874) Realized gain (losses), net 2,888 (22) (128,379) — — (125,513) Unrealized appreciation (depreciation), net (1,857) (5,956) 179,516 16,344 (894) 187,153 Ending balance $ 867,294 $ 224,490 $ 690,278 $ 593,752 $ 36,887 $ 2,412,701 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (486) $ (67) $ 37 $ (7) $ 2 $ (521) Three months ended March 31, 2021 Beginning balance $ 255,283 $ 79,085 $ 187,370 $ 23,219 $ — $ 544,957 Deconsolidation of funds (3,065) — — — — (3,065) Transfers into Level III 36,022 305 5 — — 36,332 Transfers out of Level III (26,318) (4,044) — — — (30,362) Purchases 177,279 35,071 69,794 128,490 — 410,634 Sales (14,005) (3,932) (215) — — (18,152) Realized gains (losses), net 1,131 386 — — — 1,517 Unrealized appreciation (depreciation), net 2,704 5,676 208 5,313 — 13,901 Ending balance $ 429,031 $ 112,547 $ 257,162 $ 157,022 $ — $ 955,762 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ 2,972 $ 5,717 $ 219 $ 5,312 $ — $ 14,220 Total realized and unrealized gains and losses recorded for Level III investments are included in net realized gain on consolidated funds’ investments or net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. 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 March 31, 2022: Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (1)(2) Range Weighted Average (3) Credit-oriented investments: Communication services 60,892 Discounted cash flow (8) Discount rate 12% - 14% 13% 37,527 Recent market information (6) Quoted prices Not applicable Not applicable 3,497 Recent transaction price (7) Quoted prices Not applicable Not applicable Consumer discretionary: 26,998 Discounted cash flow (8) Discount rate 11% - 12% 11% 5,626 Recent market information (6) Quoted prices Not applicable Not applicable Energy: 97,658 Discounted cash flow (8) Discount rate 12% - 22% 14% 867 Recent market information (6) Quoted prices Not applicable Not applicable Financials: 36,734 Discounted cash flow (8) Discount rate 12% - 17% 13% 47,607 Recent market information (6) Quoted prices Not applicable Not applicable 8,216 Recent transaction price (7) Quoted prices Not applicable Not applicable Industrials 108,713 Discounted cash flow (8) Discount rate 9% - 13% 10% 3,213 Recent market information (6) Quoted prices Not applicable Not applicable 30,845 Market approach (value of underlying assets) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x Materials: 135,479 Discounted cash flow (8) Discount rate 9% - 15% 12% 24,420 Recent transaction price (7) Quoted prices Not applicable Not applicable Real estate: 269,806 Recent transaction price (7) Quoted prices Not applicable Not applicable 60,644 Market approach (value of underlying assets) Multiple of underlying assets (9) 0.7x - 0.9x 0.8x 24,149 Recent market information (6) Quoted prices Not applicable Not applicable 48,348 Discounted cash flow (8) Discount rate 9% - 15% 11% Other: 49,119 Recent market information (6) Quoted prices Not applicable Not applicable 11,422 Recent transaction price (7) Quoted prices Not applicable Not applicable Equity investments: 397,556 Recent transaction price (7) Quoted prices Not applicable Not applicable 132,088 Discounted cash flow (8) Discount rate 0.9% - 24% 13% 192,358 Market approach (comparable companies) (4) Revenue multiple (8) 6x - 70x 12x 67,995 Market approach (comparable companies) (4) Revenue multiple (8) 0.3x - 11x 2x 90,308 Recent market information (6) Quoted prices Not applicable Not applicable 403,729 Market approach (comparable companies) (4) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x Real estate-oriented investments: 33,973 Discounted cash flow (8) Discount rate 23% - 25% 24% 2,914 Recent transaction price (7) Quoted prices Not applicable Not applicable Total Level III 2,412,701 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, 2021: Investment Type Fair Value Valuation Technique Significant Unobservable (1)(2) Range Weighted Average (3) Credit-oriented investments: Consumer discretionary: $ 20,954 Recent transaction price (4) Quoted prices Not applicable Not applicable 12,677 Recent market information (5) Quoted prices Not applicable Not applicable 6,864 Discounted cash flow (6) Discount rate 9% – 11% 10% Communication services: 60,384 Market approach (comparable companies) (7) Revenue multiple (8) 2x - 4x 3x 38,352 Recent market information (5) Quoted prices Not applicable Not applicable 3,402 Recent transaction price (4) Quoted prices Not applicable Not applicable Energy: 51,012 Discounted cash flow (6) Discount rate 12% – 13% 12% 33,987 Recent transaction price (4) Quoted prices Not applicable Not applicable 13,640 Recent market information (5) Quoted prices Not applicable Not applicable Financials: 29,519 Discounted cash flow (6) Discount rate 10% – 12% 11% 23,129 Recent market information (5) Quoted prices Not applicable Not applicable 13,187 Recent transaction price (4) Quoted prices Not applicable Not applicable Industrials: 87,727 Discounted cash flow (6) Discount rate 8% – 13% 10% 1,852 Recent market information (5) Quoted prices Not applicable Not applicable Materials: 136,117 Discounted cash flow (6) Discount rate 8% – 14% 9% 24,420 Recent transaction price (4) Quoted prices Not applicable Not applicable 6,674 Recent market information (5) Quoted prices Not applicable Not applicable Real estate: 76,503 Recent transaction price (4) Quoted prices Not applicable Not applicable 60,643 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.7x - 0.9x 0.8x 27,235 Recent market information (5) Quoted prices Not applicable Not applicable Other: 78,631 Recent market information (5) Quoted prices Not applicable Not applicable 11,425 Recent transaction price (4) Quoted prices Not applicable Not applicable 8,430 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.9x - 1.1x 1.0x Equity investments: 411,574 Recent transaction price (4) Quoted prices Not applicable Not applicable 364,851 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x 110,973 Market approach (comparable companies) (7) Earnings multiple (10) 6x - 16x 11x 83,999 Discounted cash flow (6) Discount rate 7% – 16% 16% 59,805 Market approach (comparable companies) (7) Revenue multiple (8) 3x - 11x 9x 36,576 Recent market information (5) Quoted prices Not applicable Not applicable Real estate-oriented: 18,526 Recent transaction price (4) Quoted prices Not applicable Not applicable 15,308 Discounted cash flow (6) Discount rate 24% – 26% 25% Total Level III $ 1,928,376 (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) 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. (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 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. (7) A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying. (8) Revenue multiples are based on comparable public companies and transactions with comparable companies. The Company typically applies the multiple to trailing twelve-months’ revenue. However, in certain cases other revenue measures, such as pro forma revenue, may be utilized if deemed to be more relevant. (9) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company. The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors. The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets. (10) 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. 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 three months ended March 31, 2022 and 2021, there were no changes in the valuation techniques for Level III securities. |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Foreign-currency forward contracts $ 318,313 $ 5,095 $ (21,500) $ (407) As of December 31, 2021 Foreign-currency forward contracts $ 324,322 $ 11,213 $ (24,735) $ (536) Realized and unrealized gains and losses arising from freestanding derivatives were recorded in the condensed consolidated statements of operations as follows: Three months ended March 31, 2022 2021 Investment income $ 1,384 $ 8,915 General and administrative expense (1) 988 3,668 Total gain (loss) $ 2,372 $ 12,583 (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 March 31, 2022 and December 31, 2021. 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 March 31, 2022 Foreign-currency forward contracts $ 381,809 $ 9,063 $ (18,099) $ (1,563) Total-return and interest-rate and credit default swaps 8,291 718 (182,441) (37,933) Options and futures 222,665 2,478 (64) (36) Warrants — — — (7,095) Total $ 612,765 $ 12,259 $ (200,604) $ (46,627) As of December 31, 2021 Foreign-currency forward contracts $ 210,868 $ 5,062 $ (24,845) $ (886) Total-return and interest-rate and credit default swaps 13,727 1,162 (27,254) (4,335) Options and futures 213,575 509 — — Warrants — — — (6,626) Total $ 438,170 $ 6,733 $ (52,099) $ (11,847) The impact of derivatives held by the consolidated funds in the consolidated statements of operations was as follows: Three months ended March 31, 2022 2021 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 $ 956 $ 2,928 $ (1,373) $ 2,706 Total-return and interest-rate and credit default swaps (3,984) (32,833) — (34) Options and futures 5,973 1,983 522 199 Warrants — 858 — 938 Total $ 2,945 $ (27,064) $ (851) $ 3,809 Balance Sheet Offsetting The Company recognizes all derivatives as assets or liabilities at fair value in its condensed consolidated statements of financial condition. In connection with its derivative activities, the Company generally enters into agreements subject to enforceable master netting arrangements that allow the Company to offset derivative assets and liabilities in the same currency by specific derivative type or, in the event of default by the counterparty, to offset derivative assets and liabilities with the same counterparty. While these derivatives are eligible to be offset in accordance with applicable accounting guidance, the Company has elected to present derivative assets and liabilities based on gross fair value in its condensed consolidated statements of financial condition. The table below sets forth the setoff rights and related arrangements associated with derivatives held by the Company. The “gross amounts not offset in statements of financial condition” columns represent derivatives that management has elected not to offset in the condensed consolidated statements of financial condition even though they are eligible to be offset in accordance with applicable accounting guidance. Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of March 31, 2022 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 5,095 $ 407 $ — $ 4,688 Derivative assets of consolidated funds: Foreign-currency forward contracts 9,063 — — 9,063 Total-return and interest-rate and credit default swaps 718 — — 718 Options and futures 2,478 — — 2,478 Subtotal 12,259 — — 12,259 Total $ 17,354 $ 407 $ — $ 16,947 Derivative Liabilities: Foreign-currency forward contracts $ (407) $ (407) $ — $ — Derivative liabilities of consolidated funds: Foreign-currency forward contracts (1,563) — — (1,563) Total-return and interest-rate and credit default swaps (37,933) — — (37,933) Options and futures (36) — — (36) Warrants (6,626) — — (6,626) Subtotal (46,158) — — (46,158) Total $ (46,565) $ (407) $ — $ (46,158) Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2021 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 11,213 $ 404 $ — $ 10,809 Derivative assets of consolidated funds: Foreign-currency forward contracts 5,062 — — 5,062 Total-return and interest-rate and credit default swaps 1,162 — — 1,162 Options and futures 509 — — 509 Subtotal 6,733 — — 6,733 Total $ 17,946 $ 404 $ — $ 17,542 Derivative Liabilities: Foreign-currency forward contracts $ (536) $ (404) $ — $ (132) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (886) — — (886) Total-return and interest-rate and credit default swaps (4,335) — — (4,335) Warrants (6,626) — (6,626) Subtotal (11,847) — — (11,847) Total $ (12,383) $ (404) $ — $ (11,979) |
DEBT OBLIGATIONS AND CREDIT FAC
DEBT OBLIGATIONS AND CREDIT FACILITIES | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed 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. On May 20, 2020, OCM entered into a note and guaranty agreement with certain accredited investors pursuant to which OCM agreed to issue and sell to such investors $250 million of senior unsecured notes that bear a blended 3.68% fixed rate of interest and a weighted average maturity of 2031. These notes are guaranteed by Oaktree Capital I, a consolidated subsidiary of the Company, along with Oaktree Capital II and Oaktree AIF, as co-obligors. The offering closed on July 22, 2020 and OCM received proceeds of $250 million on the closing date. As OCM is the issuer of such senior notes, the outstanding principal and interest payments guaranteed by Oaktree Capital I will not be included in the Company’s financial statements unless an event of default occurs. Oaktree Capital I, along with certain other Oaktree Operating Group members as co-borrowers, are parties to a credit agreement with a subsidiary of Brookfield that provides for a subordinated credit facility maturing on May 19, 2023. The subordinated credit facility has a revolving loan commitment of $250 million and borrowings generally bear interest at a spread to either LIBOR or an alternative base rate. Borrowings on the subordinated credit facility are subordinate to the outstanding debt obligations and borrowings on the primary credit facility of Oaktree Capital I and its co-borrowers. Oaktree Capital I is jointly and severally liable, along with its co-obligors for outstanding borrowings on the subordinated credit facility. For reasons set forth in the preceding paragraph, the Company’s financial statements 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 from the subordinated credit facility. In March 2022, this credit facility was amended to extend the revolving credit maturity date from May 19, 2023 to September 14, 2026. No amounts were outstanding on the subordinated credit facility as of March 31, 2022. On November 4, 2021, OCM entered into a note and guaranty agreement with certain accredited investors pursuant to which OCM agreed to issue and sell to such investors $200 million aggregate principal amount of its 3.06% Senior Notes due January 12, 2037. These notes are guaranteed by Oaktree Capital I, a consolidated subsidiary of the Company, along with Oaktree Capital II and Oaktree AIF, as co-obligors. The offering closed on January 12, 2022 and OCM received proceeds of $200 million on the closing date. As OCM is the issuer of such notes, the outstanding principal and interest payments guaranteed by Oaktree Capital I will not be included in the Company’s financial statements unless an event of default occurs. As of March 31, 2022, 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 $1,050 million. The Company’s maximum exposure to these debt obligations is set forth below: As of March 31, 2022 December 31, 2021 Senior unsecured notes $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 $ 50,000 50,000 $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 100,000 100,000 $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 100,000 100,000 $100,000, 3.69%, issued in July 2016, payable on July 12, 2031 100,000 100,000 $250,000, 3.78%, issued in December 2017, payable on December 18, 2032 250,000 250,000 $200,000, 3.64%, issued in July 2020, payable on July 22, 2030 200,000 200,000 $50,000, 3.84%, issued in July 2020, payable on July 22, 2035 50,000 50,000 $200,000, 3.06%, issued in January 2022, payable on January 12, 2037 200,000 — Credit facility, issued in March 2014, variable rate obligations payable on September 14, 2026 — 55,000 Total remaining principal $ 1,050,000 $ 905,000 On December 13, 2019, Oaktree’s credit facility was amended to increase the credit limit from $500 million to $650 million. The credit facility 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 1.00% per annum and the commitment fee on the unused portions of the revolving credit facility is 0.10% 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). Oaktree’s credit facility was further amended on September 14, 2021 to among other things, (i) extend the maturity date from December 13, 2024 to September 14, 2026, (ii) modify the assets under management covenant threshold from $65 billion of assets under management to $57.5 billion of management-fee generating assets under management and (iii) increase the maximum leverage ratio to 4.00 to 1.00. As of March 31, 2022, OCM 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 March 31, 2022 and December 31, 2021, respectively. On March 30, 2022, Oaktree Capital I entered into a note and guaranty agreement with certain accredited investors pursuant to which Oaktree Capital I agreed to issue and sell to such investors €50 million of its 2.20% Senior Notes, Series A, due 2032, €75 million of its 2.40% Senior Notes, Series B, due 2034, and €75 million of its 2.58% Senior Notes, Series C, due 2037. These notes are senior unsecured obligations of Oaktree Capital I, a consolidated subsidiary of the Company, and jointly and severally guaranteed by OCM, Oaktree Capital II and Oaktree AIF. The issuance and funding of these notes are subject to customary closing conditions and are expected to occur on or before June 8, 2022. Debt Obligations 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 Key terms as of March 31, 2022 Credit Agreement March 31, 2022 December 31, 2021 Facility Capacity Effective Interest Rate Weighted Average Remaining Maturity (years) Commitment Fee Rate L/C Fee Revolving credit facility (1) $ 1,154,030 $ 1,119,178 $ 1,319,030 2.09% 0.4 0.25% N/A Secured borrowings $ — $ 12,740 Total debt obligations $ 1,154,030 $ 1,131,918 Less: Debt issuance costs (1,458) (2,552) Total debt obligations, net (2) $ 2,306,602 $ 2,261,284 (1) The credit facility capacity is calculated on a pro rata basis using fund commitments as of March 31, 2022. (2) For the revolving credit facilities, amount is shown net of debt issuance costs of $1,458 and $2,552 that are included in other assets, net at March 31, 2022 and December 31, 2021. As of March 31, 2022 and December 31, 2021, the consolidated funds had debt obligations with an aggregate outstanding principal balance of $1.2 billion and $1.1 billion, respectively. The carrying value of the revolving credit facilities approximated fair value due to recent issuance. Secured borrowing outstanding were recorded as a result of certain securities that were sold and simultaneously repurchased at a premium, with amounts payable to the counterparty due on the repurchase settlement date. Financial instruments that are valued using quoted prices for the security or similar securities are generally classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions. 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. Outstanding debt obligations of CLOs were as follows: As of March 31, 2022 As of December 31, 2021 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 $ 7,649,601 1.85% 11.0 $ 7,472,521 1.75% 11.0 Subordinated notes (2) 322,504 N/A 11.5 333,742 N/A 11.2 Total CLO debt obligations $ 7,972,105 $ 7,806,263 (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. The fair value of the beneficial interests was calculated using a discounted cash flow model specific to each investment structure. Please see notes 2 and 6 for more information, including the significant valuation inputs such as input range and weighted average rate. (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 March 31, 2022 and December 31, 2021, the fair value of CLO assets was $8.5 billion and $9.1 billion, respectively, and consisted of cash, corporate loans, corporate bonds and other securities. The fair value of the Company’s CLO beneficial interests held at March 31, 2022 was calculated using a discounted cash flow model specific to each investment structure. The significant valuation inputs, including the input range and weighted average rate, are as follows: Valuation Input Low High Weighted Average Rate Discount rates 11.0% 18.0% 14.0% Constant default rates 2.0% 2.0% 2.0% Recovery rates 65.0% 70.0% 67.9% As of March 31, 2022, future scheduled principal or par value payments with respect to the debt obligations of CLOs were as follows: Remainder of 2022 $ 119,744 2023 — 2024 — 2025 — 2026 — Thereafter 8,045,176 Total $ 8,164,920 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, 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: Three months ended March 31, 2022 2021 Operating lease cost $ 1,779 $ 2,005 Sublease income (13) (102) Total lease cost $ 1,766 $ 1,903 Supplemental cash flow information related to leases was as follows: Three months ended March 31, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $1,603 Weighted average remaining lease term for operating leases (in years) 8.9 Weighted average discount rate for operating leases 4.4% As of March 31, 2022, maturities of operating lease liabilities were as follows: Remainder of 2022 $ 4,834 2023 5,686 2024 4,655 2025 4,510 2026 4,510 Thereafter 20,779 Total lease payments 44,974 Less: imputed interest (7,606) Total operating lease liabilities $ 37,368 |
NON-CONTROLLING REDEEMABLE INTE
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS | 3 Months Ended |
Mar. 31, 2022 | |
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. Three months ended March 31, 2022 2021 Beginning balance $ 1,723,294 $ 715,347 Deconsolidation of funds — (192,837) Contributions 533,419 256,391 Distributions (89,928) (22,582) Net income 98,943 51,305 Change in distributions payable (3) 10,073 Foreign currency translation and other, net 1,216 (12,676) Ending balance $ 2,266,941 $ 805,021 |
UNITHOLDERS' CAPITAL
UNITHOLDERS' CAPITAL | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [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 March 31, 2022 and December 31, 2021, OCGH units represented 60,779,066 of the total 159,915,686 Oaktree Operating Group units and 60,783,255 of the total 159,919,875 Oaktree Operating Group units, respectively. Based on total allocable capital of $1,408,530 and $1,565,119 as of March 31, 2022 and December 31, 2021, respectively, the OCGH non-controlling interest was $538,305 and $612,228. As of March 31, 2022 and December 31, 2021, there were no non-controlling interests attributable to third parties. 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”)). 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: Three months ended March 31, 2022 2021 Weighted average Oaktree Operating Group units outstanding (in thousands): OCGH non-controlling interest 60,779 61,342 Class A unitholders 99,137 98,708 Total weighted average units outstanding 159,916 160,050 Oaktree Operating Group net income (loss): Net income attributable to preferred unitholders (1) $ 6,829 $ 6,829 Net income (loss) attributable to OCGH non-controlling interest (3,002) 164,635 Net income (loss) attributable to OCG Class A unitholders (7,849) 264,917 Oaktree Operating Group net income (loss) $ (4,022) $ 436,381 Net income (loss) attributable to OCG Class A unitholders: Oaktree Operating Group net income (loss) attributable to OCG Class A unitholders $ (7,849) $ 264,917 Non-Operating Group income and expense 18,702 13,802 Net income attributable to OCG Class A unitholders $ 10,853 $ 278,719 (1) Represents distributions declared, if any, on the preferred units. The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below: Three months ended March 31, 2022 2021 Net income attributable to OCG Class A unitholders $ 10,853 $ 278,719 Equity reallocation between controlling and non-controlling interests 14,275 3,678 Change from net income attributable to OCG Class A unitholders and transfers from non-controlling interests $ 25,128 $ 282,397 Please see notes 11, 12 and 13 for additional information regarding transactions that impacted unitholders’ capital. |
EARNINGS PER UNIT
EARNINGS PER UNIT | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER UNIT | EARNINGS PER UNIT The computation of net income (loss) per Class A unit is set forth below: Three months ended March 31, 2022 2021 (in thousands, except per unit amounts) Net income per Class A unit (basic and diluted): Net income attributable to OCG Class A unitholders $ 10,853 $ 278,719 Weighted average number of Class A units outstanding (basic and diluted) 99,137 98,708 Basic and diluted net income per Class A unit $ 0.11 $ 2.82 Subsequent to the Mergers, OCGH units are not exchangeable into Class A units. As the restrictions set forth in the then-current exchange agreement were in place for each applicable reporting period, OCGH units were not included in the computation of diluted earnings per unit for the three months ended March 31, 2022 and 2021. Certain compensation arrangements include performance-based awards that could result in the issuance of OCGH units, which would vest over periods of four |
EQUITY-BASED AND OTHER DEFERRED
EQUITY-BASED AND OTHER DEFERRED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
EQUITY-BASED AND OTHER DEFERRED COMPENSATION | EQUITY-BASED AND OTHER DEFERRED COMPENSATION Long-Term Incentive Plan Awards In March 2020 the Company adopted the Oaktree Capital Group, LLC Long-Term Incentive Plan (the “LTIP”). The LTIP provides for the granting of cash-based incentive awards to senior executives, directors, officers, partners, employees, consultants and advisors of the Company and its affiliates. Awards may be denominated in U.S. dollars or other currencies determined by the LTIP’s plan administrator. The unvested value of each LTIP award adjusts over its vesting period to track the performance of a fund designated by the plan administrator or by the award recipient from investment options selected by the plan administrator. Investment options may include funds managed by Company affiliates or by third parties. Awards do not represent an actual interest in the funds whose performance they track. Such fund investments are purely nominal and solely for the purpose of calculating the value of an award on each vesting or payment date. Awards under the LTIP represent only a contractual right to receive a cash payment upon vesting from the Company or the affiliate that issued the award. Awards tracking the performance of funds that make periodic distributions to their investors may provide for award recipients to receive corresponding payments from the Company or the affiliate issuing the award, with the remaining unvested value of the award reduced to reflect the amount of each such payment. Each payment under an award is fully vested upon receipt. Awards denominated in currencies other than U.S. dollars which track the performance of U.S. dollar- denominated funds are nominally converted into U.S. dollars for performance tracking purposes, with amounts payable under the awards converted back into the original currency at a market rate at the time of each vesting payment. Certain recipients of awards denominated in currencies other than U.S. dollars which track the performance of U.S. dollar-denominated funds receive the option to hedge the value of their awards to a currency other than U.S. dollars. All such currency hedges are calculated on a purely hypothetical basis and do not represent a right to participate in actual currency hedging contracts. During the three months ended March 31, 2022, the Company granted LTIP awards valued at $13.6 million to employees, partners and directors of the Company and its subsidiaries, subject to annual vesting over a weighted average period of approximately 4.0 years. As of March 31, 2022, the Company expected to recognize compensation expense on its unvested LTIP awards of $40.2 million, subject to adjustment based on future performance, over a weighted average period of 2.8 years. During three months ended March 31, 2022, the Company recognized $4.6 million of compensation expense related to the LTIP, which was included in compensation and benefits expense in the condensed consolidated statement of operations. 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 March 31, 2022, a maximum of 23,988,048 units have been authorized to be awarded pursuant to the 2011 Plan, and 15,705,531 units have been awarded under the 2011 Plan. Each Class A and OCGH unit, when issued, represented 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 159,915,686 as of March 31, 2022. 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 and Converted 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. 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 reallocate 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. OCGH Unit Awards The Company did not grant any OCGH units during the three months ended March 31, 2022. As of March 31, 2022, the Company expected to recognize compensation expense on its unvested OCGH unit and Converted OCGH unit awards of $15.3 million over a weighted average period of 3.8 years. With respect to forfeitures, the Company made an accounting policy election to account for forfeitures when they occur. Accordingly, no forfeitures have been assumed in the calculation of compensation expense. The estimated time-to-liquidity assumption ranged between 7.0 years in March 2018 to 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 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 2021, Converted OCGH Units could have been exchanged at $49.00 per unit, less the amount of any capital distributions received upon vesting. Thereafter, any such Converted OCGH Units is valued using the same methodology applied to all other OCGH units. A summary of the status of the Company’s unvested Converted OCGH units and other OCGH unit awards and changes for the period 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 as of December 31, 2021 (2) 277,464 $ 46.79 338,530 $ 37.64 Vested (137,875) 45.38 (135,723) 31.01 Forfeited (1,723) 49.52 — — Balance as of March 31, 2022 137,866 $ 48.20 202,807 $ 42.07 (1) 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 thereafter became subject to the terms and conditions of the OCGH limited partnership agreement. The Converted OCGH Units (i) are subject to the same vesting terms that were applicable to such units prior to the completion of the Merger, (ii) are 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. Through 2021, Converted OCGH Units were 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 condensed 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. No OCGH units were issued as a result of the recapitalizations. 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. 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 condensed consolidated financial statements. |
INCOME TAXES AND RELATED PAYMEN
INCOME TAXES AND RELATED PAYMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES AND RELATED PAYMENTS | INCOME TAXES AND RELATED PAYMENTS The Company is a publicly traded partnership and currently holds interests in Oaktree Capital I, L.P. (a non-corporate entity that is not subject to U.S. federal and state corporate income tax) and Oaktree Capital Management (Cayman), L.P. (which holds subsidiaries that are taxable in non-U.S. jurisdictions). 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 2018. 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 condensed consolidated financial statements; however, there can be no assurances as to the ultimate outcomes. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed 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 March 31, 2022 and December 31, 2021, respectively, the aggregate of such amounts recorded at the fund level in excess of incentive income recognized by the Company was $1,666,346 and $1,668,839, for which related direct incentive income compensation expense was estimated to be $865,529 and $868,408, respectively. Commitments to Funds As of March 31, 2022 and December 31, 2021, the Company, generally in its capacity as general partner, had undrawn capital commitments of $288.4 million and $325.8 million, respectively, including commitments to both unconsolidated and consolidated funds. Additionally, as of March 31, 2022, the Company had undrawn capital commitments of $412.5 million in its capacity as a limited partner in Opps XI (as defined in note 16). 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 condensed consolidated statements of financial condition. The unfunded liability associated with these credit arrangements is equal to the amount by which the contractual loan commitment exceeds the sum of funded debt and cash held in escrow, if any. As of March 31, 2022 and December 31, 2021, the consolidated funds had potential aggregate commitments of $14.6 million and $13.5 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 March 31, 2022 and December 31, 2021, 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 three months ended March 31, 2022, the consolidated funds did not provide any financial support to portfolio companies. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
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. As of March 31, 2022 December 31, 2021 Due from affiliates: Loans to affiliates and employees $ — $ 44,088 Amounts due from unconsolidated funds 2,507 2,829 Management fees and incentive income due from unconsolidated funds and affiliates 39,208 289,795 Receivable from unconsolidated entities 25,419 36,001 Non-interest bearing advances made to certain non-controlling interest holders and employees 142 148 Total due from affiliates $ 67,276 $ 372,861 Due to affiliates: Amounts due to unconsolidated entities $ 9,049 $ 4,198 Amounts due to senior executives, certain non-controlling interest holders and employees — — Total due to affiliates $ 9,049 $ 4,198 Loans To Affiliates and Employees Loans primarily consist of interest-bearing loans made to affiliates and interest-bearing loans made to certain Oaktree employees to facilitate their investment in Oaktree funds or to meet tax obligations related to vesting of equity awards. On May 7, 2021 the Company, through its consolidated subsidiary Oaktree Capital I, L.P, entered into two revolving line of credit notes with Oaktree Capital Management, L.P., one as a borrower and the other as a lender. Both revolving line of credit notes allow for outstanding principal amounts not to exceed $250.0 million and mature on May 7, 2024. As of March 31, 2022, Oaktree Capital Management, L.P. had no borrowings outstanding from the Company through Oaktree Capital I, L.P, and the Company generated interest income of $9 and $52 for the three months ended March 31, 2022 and March 31, 2021, respectively. The employee 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. As of March 31, 2022 and December 31, 2021, there were no Company loans to employees. Due From Oaktree Funds In the normal course of business, the Company advances certain expenses on behalf of Oaktree funds. Amounts advanced on behalf of consolidated funds are eliminated in consolidation. Certain expenses paid by the Company, which typically are employee travel and other costs associated with particular portfolio company holdings, are reimbursed to the Company by the portfolio companies. In addition, the Company recognizes distributions and proceeds from corporate investments in Oaktree funds for which it serves as general partner, and other third-party managed funds and companies as receivables when certain criteria is met. Revenues Earned From Oaktree Funds In aggregate, management fees and incentive income earned from unconsolidated Oaktree funds totaled $5.4 million and $553.0 million for the three months ended March 31, 2022 and 2021, 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 typically pay the particular fund’s 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 unitholders 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. The Company incurred administrative services expense of $0.2 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021, no amounts and $0.2 million, respectively were included in “Due to affiliates” in the condensed consolidated statements of financial condition. Subordinated Credit Facility Oaktree Capital I, along with certain other Oaktree Operating Group members as co-borrowers, are parties to a credit agreement with a subsidiary of Brookfield that provides for a subordinated credit facility maturing on May 19, 2023. The subordinated credit facility has a revolving loan commitment of $250 million and borrowings generally bear interest at a spread to either LIBOR or an alternative base rate. Borrowings on the subordinated credit facility are subordinate to the outstanding debt obligations and borrowings on the primary credit facility of Oaktree Capital I and its co-borrowers as detailed in note 8. Oaktree Capital I is jointly and severally liable, along with its co-obligors for outstanding borrowings on the subordinated credit facility. As set forth in note 8, the Company’s financial statements 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 from the subordinated credit facility. In March 2022, this credit facility was amended to extend the revolving credit maturity date from May 19, 2023 to September 14, 2026. No amounts were outstanding on the subordinated credit facility as of March 31, 2022. Investment in Oaktree Opportunities Fund XI The Company has subscribed for a limited partner interest in, and made a capital commitment of, $750 million to Oaktree Opportunities Fund XI, L.P., a parallel investment vehicle thereof or a feeder fund in respect of one of the foregoing (such limited partner interest, the “Opps XI Investment” and such fund entities collectively, “Opps XI”). In order to make the Opps XI Investment, the Company’s sole Class A unitholder, or one of its affiliates, will contribute cash as a capital contribution (the “Opps XI Investment Cash”) as and to the extent required to satisfy the Company’s obligations to Opps XI. The Company will use the Opps XI Investment Cash solely to fund the Opps XI Investment and satisfy its obligations in respect of Opps XI and distributions from the Opps XI Investment are intended for the benefit of the Class A unitholder, subject to applicable law. The Company’s preferred unitholders should not rely on distributions received by the Company in respect of the Company’s Opps XI Investment for payment of dividends or redemption of the preferred units. During the three months ended March 31, 2022, the Company funded $112.5 million of its capital commitment. As of March 31, 2022, the Company has funded in the aggregate $338 million of the $750 million capital commitment. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTINGAs 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 | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Class A Unit Distributions A distribution of $0.27 per Class A unit was paid on May 10, 2022 to holders of record at the close of business on April 30, 2022. Preferred Unit Distributions A distribution of $0.414063 per Series A preferred unit will be paid on June 15, 2022 to Series A preferred unitholders of record at the close of business on June 1, 2022. A distribution of $0.409375 per Series B preferred unit will be paid on June 15, 2022 to Series B preferred unitholders of record at the close of business on June 1, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported amounts of income and expenses during the period then ended. Actual results could differ from these estimates. |
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 4 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 condensed consolidated financial statements. All of the revenues earned by the Company as investment manager of the consolidated funds are eliminated in consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the consolidation of a fund does not impact net income or loss attributable to the Company. Certain entities in which the Company has the ability to exert significant influence, including unconsolidated Oaktree funds for which the Company acts as general partner, are accounted for under the equity method of accounting. |
Non-controlling Redeemable Interests in Consolidated Funds | Non-controlling Redeemable Interests in Consolidated Funds The Company records non-controlling interests to reflect the economic interests of the unaffiliated limited partners in Oaktree-managed funds and the class A ordinary shareholders in Oaktree sponsored SPACs. These interests are presented as non-controlling redeemable interests in consolidated funds within the condensed consolidated statements of financial condition, outside of the permanent capital section. Limited partners in open-end and evergreen funds generally have the right to withdraw their capital, subject to the terms of the respective limited partnership agreements, over periods ranging from one month to three years. While limited partners in consolidated closed-end funds generally have not been granted redemption rights, these limited partners do have withdrawal or redemption rights in certain limited circumstances that are beyond the control of the Company, such as instances in which retaining the limited partnership interest could cause the limited partner to violate a law, regulation or rule. For Oaktree sponsored SPACs, the class A ordinary shareholders have redemption rights that are considered to be outside of the Company’s control. These shares are presented as non-controlling redeemable interests on the Company’s condensed consolidated statements of financial condition. The allocation of net income or loss to non-controlling redeemable interests in consolidated funds and Oaktree sponsored SPACs 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 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 Non-controlling interests in consolidated subsidiaries reflect the portion of unitholders’ capital attributable to OCGH unitholders (“OCGH non-controlling interest”) and third parties. All non-controlling interests in consolidated subsidiaries are attributed a share of income or loss in the respective consolidated subsidiary based on the relative economic interests of the OCGH unitholders or third parties after consideration of contractual arrangements that govern allocations of income or loss. Please see note 11 for more information. |
Fair Value of Financial Instruments and Fair Value Option | 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 inclusive of the Company’s investments in unconsolidated Oaktree funds 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 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 condensed consolidated statements of financial condition. The Company’s accounting for CLO assets is similar to its accounting for its funds with respect to both carrying investments held by CLOs at fair value and the valuation methods used to determine the fair value of those investments. 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 condensed consolidated statements of operations. Interest income of CLOs is included in interest and dividend income, and interest expense and other |
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 condensed 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 condensed 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 condensed 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. The Company manages its exposure to interest rate and foreign exchange market risks, when deemed appropriate, through the use of derivatives, including foreign currency forward and option contracts, interest-rate and cross currency swaps with financial counterparties. 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 condensed 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 condensed consolidated statements of financial condition. When the Company enters into a derivative contract, it may or may not 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. |
Leases | Leases The Company determines whether an arrangement contains a lease at inception. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the consolidated statements of financial condition as separate line items: right-of-use assets and operating lease liabilities. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The right-of-use asset amount also includes deferred rent liabilities and lease incentives. The Company’s lease arrangements generally do not provide an implicit rate. As a result, in such situations the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company may also include options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its right-of-use assets and liabilities. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. Please see note 9 for more information. |
Cash and Cash-equivalents | Cash and Cash-equivalents Cash and cash-equivalents include demand deposit accounts, money market funds, and other 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 U.S. Treasury and other securities include holdings of U.S. Treasury bills, time deposit securities, notes and bonds, and commercial paper, and investment grade debt securities that are issued or guaranteed by U.S. government-sponsored entities, sovereign debt, domestic and international corporate fixed and floating rate debt, and structured credit with maturities greater than three months from the date of acquisition. These securities are classified as trading and are recorded at fair value with changes in fair value included in investment income. |
Corporate Investments | Corporate Investments Corporate investments may consist of investments in funds, companies in which the Company does not have a controlling financial interest, and non-investment grade debt securities. 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 generally 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. Non-investment grade debt securities include domestic and international corporate fixed and floating rating debt and structured credit investments. These securities are classified as trading and are recorded at fair value with changes in fair value included in investment income. |
Revenue Recognition | Revenue Recognition 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, based on certain facts and circumstances specific to each investment fund structure, that either the investment fund or individual investors may be considered the customer 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 3 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 closed-end funds, the management fee rate is generally applied against committed capital, contributed capital or cost basis during the fund’s investment period and the lesser of aggregate contributed capital or cost basis of assets in the liquidation period. 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 contributed 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 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 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. Included in this amount is a gross-up for reimbursable costs incurred on behalf of the Oaktree funds in which the Company has determined it is the principal within the principal and agent relationship of the related fund. Such reimbursable 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 at 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 condensed 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 | 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, phantom equity awards, and long-term incentive plan. 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 Converted OCGH Units, OCGH units, deferred equity units and other performance-based units, and is calculated based on the grant-date fair value of the unit award. OCGH unit grants are valued based on a formula as described in note 13 under “Restated Exchange Agreement—Valuation” and reflect a discount for lack of marketability due to the post-vesting restrictions described in note 13. 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. Accordingly, no forfeitures have been assumed in the calculation of compensation expense. 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” or an allocation of shares received upon the completion of a successful SPAC merger) that the Company grants to its investment professionals associated with the particular fund or SPAC 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 or SPAC, including income from consolidated funds that is eliminated in consolidation, to specified investment professionals responsible for the management of the fund or SPAC. 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 or the completion of a merger by an Oaktree sponsored SPAC. 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 or SPACs 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, and office leasehold improvements. Furniture and equipment and capitalized software are depreciated using the straight-line method over the estimated useful life of the asset, generally three |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net represents non-operating income or expense items. |
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. The Company currently holds interests in Oaktree Capital I, L.P. (a non-corporate entity that is not subject to U.S. federal corporate income tax) and Oaktree Capital Management (Cayman), L.P. (which holds subsidiaries that are taxable in non-U.S. jurisdictions). 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 condensed 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 condensed consolidated financial statements because individual partners are responsible for their proportionate share of the taxable income. Income Taxes The consolidated funds may invest in operating entities that are treated as partnerships for U.S. federal income tax purposes which may give rise to unrelated business taxable income or income effectively connected with a U.S. trade or business. In such situations, the consolidated funds permit certain investors to elect to participate in these investments through a “blocker structure” using entities that are treated as corporations for U.S. federal income tax purposes and are generally subject to U.S. federal, state and local taxes. The consolidated funds withhold blocker expenses and tax payments from electing limited partners, which are treated as deemed distributions to such limited partners pursuant to the terms of the respective limited partnership agreement. |
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. |
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 condensed 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 condensed consolidated statements of financial condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Non-publicly traded debt and equity securities and other securities or instruments for which reliable market quotations are not available are valued by management using valuation methodologies applied on a consistent basis. These securities may initially be valued at the acquisition price as the best indicator of fair value. The Company reviews the significant unobservable inputs, valuations of comparable investments and other similar transactions for investments valued at acquisition price to determine whether another valuation methodology should be utilized. Subsequent valuations will depend on the facts and circumstances known as of the valuation date and the application of valuation methodologies as further described below under “—Non-publicly Traded Equity and Real Estate Investments.” The fair value may also be based on a pending transaction expected to close after the valuation date. Exchange-traded Investments Securities listed on one or more national securities exchanges are valued at their last reported sales price on the date of valuation. If no sale occurred on the valuation date, the security is valued at the mean of the last “bid” and “ask” prices on the valuation date. Securities that are not readily marketable due to legal restrictions that may limit or restrict transferability are generally valued at a discount from quoted market prices. The discount would reflect the amount market participants would require due to the risk relating to the inability to access a public market for the security for the specified period and would vary depending on the nature and duration of the restriction and the perceived risk and volatility of the underlying securities. Securities with longer duration restrictions or higher volatility are generally valued at a higher discount. Such discounts are generally estimated based on put option models or an analysis of market studies. Instances where the Company has applied discounts to quoted prices of restricted listed securities have been infrequent. The impact of such discounts is not material to the Company’s condensed consolidated statements of financial condition and results of operations for all periods presented. Credit-oriented Investments (including Real Estate Loan Portfolios) Investments in corporate and government debt which are not listed or admitted to trading on any securities exchange are valued at the mean of the last bid and ask prices on the valuation date based on quotations supplied by recognized quotation services or by reputable broker-dealers. The market-yield approach is considered in the valuation of non-publicly traded debt securities, utilizing expected future cash flows and discounted using estimated current market rates. Discounted cash-flow calculations may be adjusted to reflect current market conditions and/or the perceived credit risk of the borrower. Consideration is also given to a borrower’s ability to meet principal and interest obligations; this may include an evaluation of collateral and/or the underlying value of the borrower utilizing techniques described below under “—Non-publicly Traded Equity and Real Estate Investments.” Non-publicly Traded Equity and Real Estate Investments The fair value of equity and real estate investments is determined using a cost, market or income approach. The cost approach is based on the current cost of reproducing a real estate investment less deterioration and functional and economic obsolescence. The market approach utilizes valuations of comparable public companies and transactions, and generally seeks to establish the enterprise value of the portfolio company or investment property using a market-multiple methodology. This approach takes into account the financial measure (such as EBITDA, adjusted EBITDA, free cash flow, net operating income, net income, book value or net asset value) believed to be most relevant for the given company or investment property. Consideration also may be given to factors such as acquisition price of the security or investment property, historical and projected operational and financial results for the portfolio company, the strengths and weaknesses of the portfolio company or investment property relative to its comparable companies or properties, industry trends, general economic and market conditions, and others deemed relevant. The income approach is typically a discounted cash-flow method that incorporates expected timing and level of cash flows. It incorporates assumptions in determining growth rates, income and expense projections, discount and capitalization rates, capital structure, terminal values, and other factors. The applicability and weight assigned to market and income approaches are determined based on the availability of reliable projections and comparable companies and transactions. The valuation of securities may be impacted by expectations of investors’ receptiveness to a public offering of the securities, the size of the holding of the securities and any associated control, information with respect to transactions or offers for the securities (including the transaction pursuant to which the investment was made and the elapsed time from the date of the investment to the valuation date), and applicable restrictions on the transferability of the securities. These valuation methodologies involve a significant degree of management judgment. Accordingly, valuations by the Company do not necessarily represent the amounts that eventually may be realized from sales or other dispositions of investments. Fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the condensed consolidated financial statements. |
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 condensed 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 condensed 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 condensed 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 condensed 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 percentage of the value of the underlying security (notional amount). A fund earns interest on cash collateral held on account with the counterparty and may be required to deposit additional collateral equal to the unrealized appreciation or depreciation on the underlying asset. Changes in the value of the swaps, which are recorded as unrealized gains or losses, are based on changes in the underlying value of the security. All amounts exchanged with the swap counterparty representing capital appreciation or depreciation, dividend income and expense, items of interest income on short proceeds, borrowing costs on short sales, and commissions are recorded as realized gains or losses. Dividend income and expense on the underlying assets are accrued as unrealized gains or losses on the ex-date. |
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 March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance is effective upon issuance and generally may be elected over time through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through March 31, 2022, but will continue to evaluate the possible adoption (including potential impact) of any such expedients or exceptions during the effective period as circumstances evolve. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregated by Fund Structure | Revenues by fund structure and sub-advisory fees are set forth below. Three months ended March 31, 2022 2021 Management Fees Closed-end $ 1,382 $ 1,017 Open-end 1,370 1,344 Sub-advisory fees 57,679 53,965 Total $ 60,431 $ 56,326 Three months ended March 31, 2022 2021 Incentive Income Closed-end and Evergreen $ 2,599 $ 551,424 |
Contract Balances | The table below sets forth contract balances for the periods indicated: As of March 31, 2022 December 31, 2021 Receivables $ 38,108 $ 138,435 Contract assets (1) 344 151,360 (1) The changes in the balances primarily relate to accruals, net of payments received. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Carrying Value of the Company's Investments in VIEs | The carrying value of the Company’s investments in VIEs that were not consolidated are shown below. Carrying Value as of March 31, 2022 December 31, 2021 Corporate investments $ 943,564 $ 895,116 Due from affiliates 2,976 188,237 Maximum exposure to loss $ 946,540 $ 1,083,353 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Corporate Investments | Corporate investments consisted of the following: As of Corporate Investments March 31, 2022 December 31, 2021 Equity-method investments: Funds $ 955,784 $ 915,185 Companies 9,597 36,225 Other investments, at fair value 56,106 71,154 Total corporate investments $ 1,021,487 $ 1,022,564 Summarized financial information of the Company’s equity-method investments is set forth below. Three months ended March 31, Statements of Operations 2022 2021 Revenues / investment income $ 840,605 $ 413,311 Interest expense (54,290) (38,941) Other expenses (220,991) (199,258) Net realized and unrealized gain on investments 986,800 4,336,081 Net income $ 1,552,124 $ 4,511,193 |
Investment Income (Loss) | The components of investment income (loss) are set forth below: Three months ended March 31, Investment Income (Loss) 2022 2021 Equity-method investments: Funds $ 14,253 $ 106,524 Companies (646) 22 Other investments, at fair value (1,866) 6,693 Total investment income $ 11,741 $ 113,239 |
Other Investments, Net Gains (Losses) | The following table summarizes net gains (losses) attributable to the Company’s other investments: Three months ended March 31, 2022 2021 Realized (loss) gain $ (91) $ 8,672 Net change in unrealized loss (1,775) (1,979) Total (loss) gain $ (1,866) $ 6,693 Investments held and securities sold short by the consolidated funds are summarized below: Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 United States: Debt securities: Communication services $ 632,188 $ 635,930 5.2 % 5.6 % Consumer discretionary 755,434 665,405 6.2 5.8 Consumer staples 258,509 190,391 2.1 1.7 Energy 358,067 354,585 2.9 3.1 Financials 507,025 463,412 4.1 4.0 Health care 452,332 459,713 3.7 4.0 Industrials 1,033,990 891,850 8.4 7.8 Information technology 664,185 685,959 5.4 6.0 Materials 504,009 436,434 4.1 3.8 Real estate 215,600 202,131 1.8 1.8 Utilities 315,793 305,220 2.6 2.7 Other 13,213 10,683 0.1 0.1 Total debt securities (cost:$5,781,052 and $5,303,858 as of March 31, 2022 and December 31, 2021, respectively) 5,710,345 5,301,713 46.5 46.3 Equity securities: Communication services 63,485 54,635 0.5 0.5 Consumer discretionary 148,153 126,978 1.2 1.1 Energy 438,506 369,912 3.6 3.2 Financials 191,637 151,501 1.6 1.3 Health care 42,397 33,475 0.3 0.3 Industrials 237,983 246,856 1.9 2.2 Materials 82,273 82,273 0.7 0.7 Utilities 85,994 81,989 0.7 0.7 Total equity securities (cost: $1,007,406 and $1,086,667 as of March 31, 2022 and December 31, 2021, respectively) 1,290,428 1,147,619 10.5 10.0 Real estate: Real estate — — — — Financials — — — — Total real estate securities (cost: $— and $— as of March 31, 2022 and December 31, 2021, respectively) — — — — Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Europe: Debt securities: Communication services $ 749,449 $ 756,728 6.1 % 6.6 % Consumer discretionary 846,533 915,535 6.9 8.0 Consumer staples 215,726 206,590 1.8 1.8 Energy 1,024 1,251 0.0 0.0 Financials 97,529 98,126 0.8 0.9 Health care 703,823 751,936 5.7 6.6 Industrials 659,808 656,033 5.4 5.7 Information technology 372,578 383,041 3.0 3.3 Materials 496,064 466,181 4.0 4.1 Real estate 32,766 34,116 0.3 0.3 Utilities 2,192 1,777 0.0 0.0 Other 12,324 15,049 0.1 0.1 Total debt securities (cost: $4,256,220 and $4,289,708 as of March 31, 2022 and December 31, 2021, respectively) 4,189,816 4,286,363 34.1 37.4 Equity securities: Consumer discretionary 114,679 102,919 0.9 0.9 Materials 28,729 — 0.2 — Financials 29,178 19,987 0.2 0.2 Health care 89 — 0.0 — Industrials 78,883 27,475 0.6 0.2 Total equity securities (cost: $219,444 and $119,114 as of March 31, 2022 and December 31, 2021, respectively) 251,558 150,381 2.1 1.3 Real estate: Real estate 36,887 33,834 0.3 0.3 Total real estate securities (cost: $38,874 and $34,927 as of March 31, 2022 and December 31, 2021, respectively) 36,887 33,834 0.3 0.3 Asia and other: Debt securities: Communication services 7,410 6,087 0.1 0.1 Consumer discretionary 77,447 71,082 0.6 0.6 Consumer staples 13,014 13,378 0.1 0.1 Energy 27,375 24,325 0.2 0.2 Financials 13,985 14,739 0.1 0.1 Health care 2,980 4,084 0.0 0.0 Industrials 10,642 7,084 0.1 0.1 Information technology 572 714 0.0 0.0 Materials 120,201 121,151 1.0 1.1 Real estate 325,643 131,155 2.7 1.1 Utilities 3,680 3,743 0.0 0.0 Other 10,670 9,482 0.1 0.1 Total debt securities (cost: $626,545 and $417,825 as of March 31, 2022 and December 31, 2021, respectively) 613,619 407,024 5.1 3.6 Fair Value as of Fair Value as a Percentage of Investments of Consolidated Funds as of Investments March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Asia and other: Equity securities: Consumer discretionary $ 1,108 $ 1,057 0.0 % 0.0 % Energy 8,555 8,332 0.1 0.1 Industrials 110,558 81,782 0.9 0.7 Real estate 42,960 38,614 0.4 0.3 Utilities 242 176 0.0 — Total equity securities (cost: $146,930 and $120,308 as of March 31, 2022 and December 31, 2021, respectively) 163,423 129,961 1.4 1.1 Total debt securities 10,513,780 9,995,100 85.8 87.2 Total equity securities 1,705,431 1,427,961 13.9 12.5 Total real estate 36,887 33,834 0.3 0.3 Total investments, at fair value $ 12,256,098 $ 11,456,895 100.0 % 100.0 % |
Net Gains (Losses) from Investment Activities of Consolidated Funds | The following table summarizes net gains (losses) from investment activities: Three months ended March 31, 2022 2021 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 $ (90,055) $ 201,267 $ 4,967 $ 47,372 CLO liabilities (1) (2,115) (45,844) 1,928 4,563 Foreign-currency forward contracts (2) 956 2,928 (1,373) 2,706 Total-return and interest-rate swaps (2) (3,984) (32,833) — (34) Options and futures (2) 5,973 1,983 522 199 Warrants (2) — 858 — (938) Total $ (89,225) $ 128,359 $ 6,044 $ 53,868 (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) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below. Please see notes 8 and 16 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively. As of March 31, 2022 As of December 31, 2021 Level I Level II Level III Total Level I Level II Level III Total Assets U.S. Treasury and other securities (1) $ 6,603 $ — $ — $ 6,603 $ 2,086 $ — $ — $ 2,086 Corporate investments 47,413 8,693 — 56,106 62,124 7,316 1,714 71,154 Foreign-currency forward contracts (2) — 5,095 — 5,095 — 11,213 — 11,213 Total assets $ 54,016 $ 13,788 $ — $ 67,804 $ 64,210 $ 18,529 $ 1,714 $ 84,453 Liabilities Foreign-currency forward contracts (3) $ — $ (407) $ — $ (407) $ — $ (536) $ — $ (536) (1) For U.S. Treasury securities the carrying value approximates fair value due to their short-term nature and are classified as Level I investments within the fair value hierarchy detailed above. (2) Amounts are included in other assets, except for $2,345 as of March 31, 2022, which is included within corporate investments in the condensed consolidated statements of financial condition. (3) Amounts are included in accounts payable, accrued expenses and other liabilities in the condensed consolidated statements of financial condition, except for $147 and $494 as of March 31, 2022 and December 31, 2021, respectively, which are included within corporate investments in the condensed 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: Three months ended March 31, 2022 2021 Corporate Investments: Beginning balance $ 1,714 $ 27,045 Contributions or additions — — Distributions and sales (1,590) (692) Net gain (loss) included in earnings (124) 1,571 Ending balance $ — $ 27,924 Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 411 $ 879 |
Summary of Changes in Fair Value of Level III Investments | The table below sets forth a summary of changes in the fair value of Level III financial instruments: Three months ended March 31, 2022 2021 Corporate Investments: Beginning balance $ 1,714 $ 27,045 Contributions or additions — — Distributions and sales (1,590) (692) Net gain (loss) included in earnings (124) 1,571 Ending balance $ — $ 27,924 Net change in unrealized gains (losses) attributable to financial instruments still held at end of period $ 411 $ 879 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 Three months ended March 31, 2022 Beginning balance $ 597,188 $ 229,576 $ 581,748 $ 486,030 $ 33,834 $ 1,928,376 Deconsolidation of funds — — — — — — Transfers into Level III 4,407 1,412 — — — 5,819 Transfers out of Level III (20,683) (2,475) (6) — — (23,164) Purchases 351,155 1,962 100,462 91,378 3,947 548,904 Sales (65,804) (7) (43,063) — — (108,874) Realized gain (losses), net 2,888 (22) (128,379) — — (125,513) Unrealized appreciation (depreciation), net (1,857) (5,956) 179,516 16,344 (894) 187,153 Ending balance $ 867,294 $ 224,490 $ 690,278 $ 593,752 $ 36,887 $ 2,412,701 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ (486) $ (67) $ 37 $ (7) $ 2 $ (521) Three months ended March 31, 2021 Beginning balance $ 255,283 $ 79,085 $ 187,370 $ 23,219 $ — $ 544,957 Deconsolidation of funds (3,065) — — — — (3,065) Transfers into Level III 36,022 305 5 — — 36,332 Transfers out of Level III (26,318) (4,044) — — — (30,362) Purchases 177,279 35,071 69,794 128,490 — 410,634 Sales (14,005) (3,932) (215) — — (18,152) Realized gains (losses), net 1,131 386 — — — 1,517 Unrealized appreciation (depreciation), net 2,704 5,676 208 5,313 — 13,901 Ending balance $ 429,031 $ 112,547 $ 257,162 $ 157,022 $ — $ 955,762 Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period $ 2,972 $ 5,717 $ 219 $ 5,312 $ — $ 14,220 |
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 March 31, 2022 As of December 31, 2021 Level I Level II Level III Total Level I Level II Level III Total Assets Investments: Corporate debt – bank debt $ — $ 8,054,042 $ 867,294 $ 8,921,336 $ — $ 7,867,741 $ 597,188 $ 8,464,929 Corporate debt – all other — 1,367,954 224,490 1,592,444 — 1,300,595 229,576 1,530,171 Equities – common stock 321,797 23,320 690,278 1,035,395 206,133 76,751 581,748 864,632 Equities – preferred stock 76,284 — 593,752 670,036 77,299 — 486,030 563,329 Real estate — — 36,887 36,887 — — 33,834 33,834 Total investments 398,081 9,445,316 2,412,701 12,256,098 283,432 9,245,087 1,928,376 11,456,895 Derivatives: Foreign-currency forward contracts — 9,063 — 9,063 — 5,062 — 5,062 Swaps — 718 — 718 — 1,162 — — Options and futures 2,478 — — 2,478 509 — — 509 Total derivatives (1) 2,478 9,781 — 12,259 509 6,224 — 5,571 Total assets $ 400,559 $ 9,455,097 $ 2,412,701 $ 12,268,357 $ 283,941 $ 9,251,311 $ 1,928,376 $ 11,462,466 Liabilities CLO debt obligations: Senior secured notes $ — $ (7,649,601) $ — $ (7,649,601) $ — $ (7,472,521) $ — $ (7,472,521) Subordinated notes — (322,504) — (322,504) — (333,742) — (333,742) Total CLO debt obligations (2) — (7,972,105) — (7,972,105) — (7,806,263) — (7,806,263) Derivatives: Foreign-currency forward contracts — (1,563) — (1,563) — (886) — (886) Swaps (36,997) (936) — (37,933) (4,100) (235) — (4,335) Options and futures (36) — — (36) — — — — Warrants — (4,062) — (4,062) — (6,626) — (6,626) Total derivatives (3) (37,033) (6,561) — (43,594) (4,100) (7,747) — (11,847) Total liabilities $ (37,033) $ (7,978,666) $ — $ (8,015,699) $ (4,100) $ (7,814,010) $ — $ (7,818,110) (1) Amounts are included in other assets under “assets of consolidated funds” in the condensed consolidated statements of financial condition. (2) The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 8 for more information. (3) Amounts are included in accounts payable, accrued expenses and other liabilities under “liabilities of consolidated funds” in the condensed consolidated statements of financial condition |
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 March 31, 2022: Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (1)(2) Range Weighted Average (3) Credit-oriented investments: Communication services 60,892 Discounted cash flow (8) Discount rate 12% - 14% 13% 37,527 Recent market information (6) Quoted prices Not applicable Not applicable 3,497 Recent transaction price (7) Quoted prices Not applicable Not applicable Consumer discretionary: 26,998 Discounted cash flow (8) Discount rate 11% - 12% 11% 5,626 Recent market information (6) Quoted prices Not applicable Not applicable Energy: 97,658 Discounted cash flow (8) Discount rate 12% - 22% 14% 867 Recent market information (6) Quoted prices Not applicable Not applicable Financials: 36,734 Discounted cash flow (8) Discount rate 12% - 17% 13% 47,607 Recent market information (6) Quoted prices Not applicable Not applicable 8,216 Recent transaction price (7) Quoted prices Not applicable Not applicable Industrials 108,713 Discounted cash flow (8) Discount rate 9% - 13% 10% 3,213 Recent market information (6) Quoted prices Not applicable Not applicable 30,845 Market approach (value of underlying assets) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x Materials: 135,479 Discounted cash flow (8) Discount rate 9% - 15% 12% 24,420 Recent transaction price (7) Quoted prices Not applicable Not applicable Real estate: 269,806 Recent transaction price (7) Quoted prices Not applicable Not applicable 60,644 Market approach (value of underlying assets) Multiple of underlying assets (9) 0.7x - 0.9x 0.8x 24,149 Recent market information (6) Quoted prices Not applicable Not applicable 48,348 Discounted cash flow (8) Discount rate 9% - 15% 11% Other: 49,119 Recent market information (6) Quoted prices Not applicable Not applicable 11,422 Recent transaction price (7) Quoted prices Not applicable Not applicable Equity investments: 397,556 Recent transaction price (7) Quoted prices Not applicable Not applicable 132,088 Discounted cash flow (8) Discount rate 0.9% - 24% 13% 192,358 Market approach (comparable companies) (4) Revenue multiple (8) 6x - 70x 12x 67,995 Market approach (comparable companies) (4) Revenue multiple (8) 0.3x - 11x 2x 90,308 Recent market information (6) Quoted prices Not applicable Not applicable 403,729 Market approach (comparable companies) (4) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x Real estate-oriented investments: 33,973 Discounted cash flow (8) Discount rate 23% - 25% 24% 2,914 Recent transaction price (7) Quoted prices Not applicable Not applicable Total Level III 2,412,701 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, 2021: Investment Type Fair Value Valuation Technique Significant Unobservable (1)(2) Range Weighted Average (3) Credit-oriented investments: Consumer discretionary: $ 20,954 Recent transaction price (4) Quoted prices Not applicable Not applicable 12,677 Recent market information (5) Quoted prices Not applicable Not applicable 6,864 Discounted cash flow (6) Discount rate 9% – 11% 10% Communication services: 60,384 Market approach (comparable companies) (7) Revenue multiple (8) 2x - 4x 3x 38,352 Recent market information (5) Quoted prices Not applicable Not applicable 3,402 Recent transaction price (4) Quoted prices Not applicable Not applicable Energy: 51,012 Discounted cash flow (6) Discount rate 12% – 13% 12% 33,987 Recent transaction price (4) Quoted prices Not applicable Not applicable 13,640 Recent market information (5) Quoted prices Not applicable Not applicable Financials: 29,519 Discounted cash flow (6) Discount rate 10% – 12% 11% 23,129 Recent market information (5) Quoted prices Not applicable Not applicable 13,187 Recent transaction price (4) Quoted prices Not applicable Not applicable Industrials: 87,727 Discounted cash flow (6) Discount rate 8% – 13% 10% 1,852 Recent market information (5) Quoted prices Not applicable Not applicable Materials: 136,117 Discounted cash flow (6) Discount rate 8% – 14% 9% 24,420 Recent transaction price (4) Quoted prices Not applicable Not applicable 6,674 Recent market information (5) Quoted prices Not applicable Not applicable Real estate: 76,503 Recent transaction price (4) Quoted prices Not applicable Not applicable 60,643 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.7x - 0.9x 0.8x 27,235 Recent market information (5) Quoted prices Not applicable Not applicable Other: 78,631 Recent market information (5) Quoted prices Not applicable Not applicable 11,425 Recent transaction price (4) Quoted prices Not applicable Not applicable 8,430 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.9x - 1.1x 1.0x Equity investments: 411,574 Recent transaction price (4) Quoted prices Not applicable Not applicable 364,851 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x 110,973 Market approach (comparable companies) (7) Earnings multiple (10) 6x - 16x 11x 83,999 Discounted cash flow (6) Discount rate 7% – 16% 16% 59,805 Market approach (comparable companies) (7) Revenue multiple (8) 3x - 11x 9x 36,576 Recent market information (5) Quoted prices Not applicable Not applicable Real estate-oriented: 18,526 Recent transaction price (4) Quoted prices Not applicable Not applicable 15,308 Discounted cash flow (6) Discount rate 24% – 26% 25% Total Level III $ 1,928,376 (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) 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. (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 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. (7) A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying. (8) Revenue multiples are based on comparable public companies and transactions with comparable companies. The Company typically applies the multiple to trailing twelve-months’ revenue. However, in certain cases other revenue measures, such as pro forma revenue, may be utilized if deemed to be more relevant. (9) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company. The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors. The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets. (10) 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. Valuation Input Low High Weighted Average Rate Discount rates 11.0% 18.0% 14.0% Constant default rates 2.0% 2.0% 2.0% Recovery rates 65.0% 70.0% 67.9% |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Net Forward Currency Sell Contracts Under Freestanding Derivatives | The fair value of freestanding derivatives consisted of the following: Assets Liabilities Notional Fair Value Notional Fair Value As of March 31, 2022 Foreign-currency forward contracts $ 318,313 $ 5,095 $ (21,500) $ (407) As of December 31, 2021 Foreign-currency forward contracts $ 324,322 $ 11,213 $ (24,735) $ (536) |
Summary of Impact of Freestanding Derivative Instruments on Condensed Consolidated Statement of Operations | Realized and unrealized gains and losses arising from freestanding derivatives were recorded in the condensed consolidated statements of operations as follows: Three months ended March 31, 2022 2021 Investment income $ 1,384 $ 8,915 General and administrative expense (1) 988 3,668 Total gain (loss) $ 2,372 $ 12,583 (1) To the extent that the Company’s freestanding derivatives are utilized to hedge its foreign-currency exposure to investment income and management fees earned from consolidated funds, the related hedged items are eliminated in consolidation, with the derivative impact (a positive number reflects a reduction in expenses) reflected in consolidated general and administrative expense. The impact of derivatives held by the consolidated funds in the consolidated statements of operations was as follows: Three months ended March 31, 2022 2021 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 $ 956 $ 2,928 $ (1,373) $ 2,706 Total-return and interest-rate and credit default swaps (3,984) (32,833) — (34) Options and futures 5,973 1,983 522 199 Warrants — 858 — 938 Total $ 2,945 $ (27,064) $ (851) $ 3,809 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivatives held by the consolidated funds consisted of the following: Assets Liabilities Notional Fair Value Notional Fair Value As of March 31, 2022 Foreign-currency forward contracts $ 381,809 $ 9,063 $ (18,099) $ (1,563) Total-return and interest-rate and credit default swaps 8,291 718 (182,441) (37,933) Options and futures 222,665 2,478 (64) (36) Warrants — — — (7,095) Total $ 612,765 $ 12,259 $ (200,604) $ (46,627) As of December 31, 2021 Foreign-currency forward contracts $ 210,868 $ 5,062 $ (24,845) $ (886) Total-return and interest-rate and credit default swaps 13,727 1,162 (27,254) (4,335) Options and futures 213,575 509 — — Warrants — — — (6,626) Total $ 438,170 $ 6,733 $ (52,099) $ (11,847) |
Balance Sheet Offsetting Assets | The “gross amounts not offset in statements of financial condition” columns represent derivatives that management has elected not to offset in the condensed consolidated statements of financial condition even though they are eligible to be offset in accordance with applicable accounting guidance. Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of March 31, 2022 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 5,095 $ 407 $ — $ 4,688 Derivative assets of consolidated funds: Foreign-currency forward contracts 9,063 — — 9,063 Total-return and interest-rate and credit default swaps 718 — — 718 Options and futures 2,478 — — 2,478 Subtotal 12,259 — — 12,259 Total $ 17,354 $ 407 $ — $ 16,947 Derivative Liabilities: Foreign-currency forward contracts $ (407) $ (407) $ — $ — Derivative liabilities of consolidated funds: Foreign-currency forward contracts (1,563) — — (1,563) Total-return and interest-rate and credit default swaps (37,933) — — (37,933) Options and futures (36) — — (36) Warrants (6,626) — — (6,626) Subtotal (46,158) — — (46,158) Total $ (46,565) $ (407) $ — $ (46,158) Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2021 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 11,213 $ 404 $ — $ 10,809 Derivative assets of consolidated funds: Foreign-currency forward contracts 5,062 — — 5,062 Total-return and interest-rate and credit default swaps 1,162 — — 1,162 Options and futures 509 — — 509 Subtotal 6,733 — — 6,733 Total $ 17,946 $ 404 $ — $ 17,542 Derivative Liabilities: Foreign-currency forward contracts $ (536) $ (404) $ — $ (132) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (886) — — (886) Total-return and interest-rate and credit default swaps (4,335) — — (4,335) Warrants (6,626) — (6,626) Subtotal (11,847) — — (11,847) Total $ (12,383) $ (404) $ — $ (11,979) |
Balance Sheet Offsetting Liabilities | The “gross amounts not offset in statements of financial condition” columns represent derivatives that management has elected not to offset in the condensed consolidated statements of financial condition even though they are eligible to be offset in accordance with applicable accounting guidance. Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of March 31, 2022 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 5,095 $ 407 $ — $ 4,688 Derivative assets of consolidated funds: Foreign-currency forward contracts 9,063 — — 9,063 Total-return and interest-rate and credit default swaps 718 — — 718 Options and futures 2,478 — — 2,478 Subtotal 12,259 — — 12,259 Total $ 17,354 $ 407 $ — $ 16,947 Derivative Liabilities: Foreign-currency forward contracts $ (407) $ (407) $ — $ — Derivative liabilities of consolidated funds: Foreign-currency forward contracts (1,563) — — (1,563) Total-return and interest-rate and credit default swaps (37,933) — — (37,933) Options and futures (36) — — (36) Warrants (6,626) — — (6,626) Subtotal (46,158) — — (46,158) Total $ (46,565) $ (407) $ — $ (46,158) Gross Amounts of Assets (Liabilities) Presented Gross Amounts Not Offset in Statements of Financial Condition Net Amount As of December 31, 2021 Derivative Assets (Liabilities) Cash Collateral Received (Pledged) Derivative Assets: Foreign-currency forward contracts $ 11,213 $ 404 $ — $ 10,809 Derivative assets of consolidated funds: Foreign-currency forward contracts 5,062 — — 5,062 Total-return and interest-rate and credit default swaps 1,162 — — 1,162 Options and futures 509 — — 509 Subtotal 6,733 — — 6,733 Total $ 17,946 $ 404 $ — $ 17,542 Derivative Liabilities: Foreign-currency forward contracts $ (536) $ (404) $ — $ (132) Derivative liabilities of consolidated funds: Foreign-currency forward contracts (886) — — (886) Total-return and interest-rate and credit default swaps (4,335) — — (4,335) Warrants (6,626) — (6,626) Subtotal (11,847) — — (11,847) Total $ (12,383) $ (404) $ — $ (11,979) |
DEBT OBLIGATIONS AND CREDIT F_2
DEBT OBLIGATIONS AND CREDIT FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Obligations | The Company’s maximum exposure to these debt obligations is set forth below: As of March 31, 2022 December 31, 2021 Senior unsecured notes $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 $ 50,000 50,000 $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 100,000 100,000 $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 100,000 100,000 $100,000, 3.69%, issued in July 2016, payable on July 12, 2031 100,000 100,000 $250,000, 3.78%, issued in December 2017, payable on December 18, 2032 250,000 250,000 $200,000, 3.64%, issued in July 2020, payable on July 22, 2030 200,000 200,000 $50,000, 3.84%, issued in July 2020, payable on July 22, 2035 50,000 50,000 $200,000, 3.06%, issued in January 2022, payable on January 12, 2037 200,000 — Credit facility, issued in March 2014, variable rate obligations payable on September 14, 2026 — 55,000 Total remaining principal $ 1,050,000 $ 905,000 |
Schedule of Collateralized Loan Obligation | The consolidated funds had the following debt obligations outstanding: Outstanding Amount as of Key terms as of March 31, 2022 Credit Agreement March 31, 2022 December 31, 2021 Facility Capacity Effective Interest Rate Weighted Average Remaining Maturity (years) Commitment Fee Rate L/C Fee Revolving credit facility (1) $ 1,154,030 $ 1,119,178 $ 1,319,030 2.09% 0.4 0.25% N/A Secured borrowings $ — $ 12,740 Total debt obligations $ 1,154,030 $ 1,131,918 Less: Debt issuance costs (1,458) (2,552) Total debt obligations, net (2) $ 2,306,602 $ 2,261,284 (1) The credit facility capacity is calculated on a pro rata basis using fund commitments as of March 31, 2022. (2) For the revolving credit facilities, amount is shown net of debt issuance costs of $1,458 and $2,552 that are included in other assets, net at March 31, 2022 and December 31, 2021. As of March 31, 2022 As of December 31, 2021 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 $ 7,649,601 1.85% 11.0 $ 7,472,521 1.75% 11.0 Subordinated notes (2) 322,504 N/A 11.5 333,742 N/A 11.2 Total CLO debt obligations $ 7,972,105 $ 7,806,263 (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. The fair value of the beneficial interests was calculated using a discounted cash flow model specific to each investment structure. Please see notes 2 and 6 for more information, including the significant valuation inputs such as input range and weighted average rate. (2) The subordinated notes do not have a contractual interest rate; instead, they receive distributions from the excess cash flows generated by the CLO. |
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 March 31, 2022: Investment Type Fair Value Valuation Technique Significant Unobservable Inputs (1)(2) Range Weighted Average (3) Credit-oriented investments: Communication services 60,892 Discounted cash flow (8) Discount rate 12% - 14% 13% 37,527 Recent market information (6) Quoted prices Not applicable Not applicable 3,497 Recent transaction price (7) Quoted prices Not applicable Not applicable Consumer discretionary: 26,998 Discounted cash flow (8) Discount rate 11% - 12% 11% 5,626 Recent market information (6) Quoted prices Not applicable Not applicable Energy: 97,658 Discounted cash flow (8) Discount rate 12% - 22% 14% 867 Recent market information (6) Quoted prices Not applicable Not applicable Financials: 36,734 Discounted cash flow (8) Discount rate 12% - 17% 13% 47,607 Recent market information (6) Quoted prices Not applicable Not applicable 8,216 Recent transaction price (7) Quoted prices Not applicable Not applicable Industrials 108,713 Discounted cash flow (8) Discount rate 9% - 13% 10% 3,213 Recent market information (6) Quoted prices Not applicable Not applicable 30,845 Market approach (value of underlying assets) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x Materials: 135,479 Discounted cash flow (8) Discount rate 9% - 15% 12% 24,420 Recent transaction price (7) Quoted prices Not applicable Not applicable Real estate: 269,806 Recent transaction price (7) Quoted prices Not applicable Not applicable 60,644 Market approach (value of underlying assets) Multiple of underlying assets (9) 0.7x - 0.9x 0.8x 24,149 Recent market information (6) Quoted prices Not applicable Not applicable 48,348 Discounted cash flow (8) Discount rate 9% - 15% 11% Other: 49,119 Recent market information (6) Quoted prices Not applicable Not applicable 11,422 Recent transaction price (7) Quoted prices Not applicable Not applicable Equity investments: 397,556 Recent transaction price (7) Quoted prices Not applicable Not applicable 132,088 Discounted cash flow (8) Discount rate 0.9% - 24% 13% 192,358 Market approach (comparable companies) (4) Revenue multiple (8) 6x - 70x 12x 67,995 Market approach (comparable companies) (4) Revenue multiple (8) 0.3x - 11x 2x 90,308 Recent market information (6) Quoted prices Not applicable Not applicable 403,729 Market approach (comparable companies) (4) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x Real estate-oriented investments: 33,973 Discounted cash flow (8) Discount rate 23% - 25% 24% 2,914 Recent transaction price (7) Quoted prices Not applicable Not applicable Total Level III 2,412,701 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, 2021: Investment Type Fair Value Valuation Technique Significant Unobservable (1)(2) Range Weighted Average (3) Credit-oriented investments: Consumer discretionary: $ 20,954 Recent transaction price (4) Quoted prices Not applicable Not applicable 12,677 Recent market information (5) Quoted prices Not applicable Not applicable 6,864 Discounted cash flow (6) Discount rate 9% – 11% 10% Communication services: 60,384 Market approach (comparable companies) (7) Revenue multiple (8) 2x - 4x 3x 38,352 Recent market information (5) Quoted prices Not applicable Not applicable 3,402 Recent transaction price (4) Quoted prices Not applicable Not applicable Energy: 51,012 Discounted cash flow (6) Discount rate 12% – 13% 12% 33,987 Recent transaction price (4) Quoted prices Not applicable Not applicable 13,640 Recent market information (5) Quoted prices Not applicable Not applicable Financials: 29,519 Discounted cash flow (6) Discount rate 10% – 12% 11% 23,129 Recent market information (5) Quoted prices Not applicable Not applicable 13,187 Recent transaction price (4) Quoted prices Not applicable Not applicable Industrials: 87,727 Discounted cash flow (6) Discount rate 8% – 13% 10% 1,852 Recent market information (5) Quoted prices Not applicable Not applicable Materials: 136,117 Discounted cash flow (6) Discount rate 8% – 14% 9% 24,420 Recent transaction price (4) Quoted prices Not applicable Not applicable 6,674 Recent market information (5) Quoted prices Not applicable Not applicable Real estate: 76,503 Recent transaction price (4) Quoted prices Not applicable Not applicable 60,643 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.7x - 0.9x 0.8x 27,235 Recent market information (5) Quoted prices Not applicable Not applicable Other: 78,631 Recent market information (5) Quoted prices Not applicable Not applicable 11,425 Recent transaction price (4) Quoted prices Not applicable Not applicable 8,430 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.9x - 1.1x 1.0x Equity investments: 411,574 Recent transaction price (4) Quoted prices Not applicable Not applicable 364,851 Market approach (comparable companies) (7) Multiple of underlying assets (9) 0.9x - 1.0x 1.0x 110,973 Market approach (comparable companies) (7) Earnings multiple (10) 6x - 16x 11x 83,999 Discounted cash flow (6) Discount rate 7% – 16% 16% 59,805 Market approach (comparable companies) (7) Revenue multiple (8) 3x - 11x 9x 36,576 Recent market information (5) Quoted prices Not applicable Not applicable Real estate-oriented: 18,526 Recent transaction price (4) Quoted prices Not applicable Not applicable 15,308 Discounted cash flow (6) Discount rate 24% – 26% 25% Total Level III $ 1,928,376 (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) 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. (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 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. (7) A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying. (8) Revenue multiples are based on comparable public companies and transactions with comparable companies. The Company typically applies the multiple to trailing twelve-months’ revenue. However, in certain cases other revenue measures, such as pro forma revenue, may be utilized if deemed to be more relevant. (9) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company. The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors. The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets. (10) 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. Valuation Input Low High Weighted Average Rate Discount rates 11.0% 18.0% 14.0% Constant default rates 2.0% 2.0% 2.0% Recovery rates 65.0% 70.0% 67.9% |
Future Principal Payments of Debt Obligations | As of March 31, 2022, future scheduled principal or par value payments with respect to the debt obligations of CLOs were as follows: Remainder of 2022 $ 119,744 2023 — 2024 — 2025 — 2026 — Thereafter 8,045,176 Total $ 8,164,920 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense included in general and administrative expense were as follows: Three months ended March 31, 2022 2021 Operating lease cost $ 1,779 $ 2,005 Sublease income (13) (102) Total lease cost $ 1,766 $ 1,903 Supplemental cash flow information related to leases was as follows: Three months ended March 31, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $1,603 Weighted average remaining lease term for operating leases (in years) 8.9 Weighted average discount rate for operating leases 4.4% |
Maturities of Operating Lease Liabilities | As of March 31, 2022, maturities of operating lease liabilities were as follows: Remainder of 2022 $ 4,834 2023 5,686 2024 4,655 2025 4,510 2026 4,510 Thereafter 20,779 Total lease payments 44,974 Less: imputed interest (7,606) Total operating lease liabilities $ 37,368 |
NON-CONTROLLING REDEEMABLE IN_2
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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. Three months ended March 31, 2022 2021 Beginning balance $ 1,723,294 $ 715,347 Deconsolidation of funds — (192,837) Contributions 533,419 256,391 Distributions (89,928) (22,582) Net income 98,943 51,305 Change in distributions payable (3) 10,073 Foreign currency translation and other, net 1,216 (12,676) Ending balance $ 2,266,941 $ 805,021 |
UNITHOLDERS' CAPITAL (Tables)
UNITHOLDERS' CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Summary of Net Income | 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: Three months ended March 31, 2022 2021 Weighted average Oaktree Operating Group units outstanding (in thousands): OCGH non-controlling interest 60,779 61,342 Class A unitholders 99,137 98,708 Total weighted average units outstanding 159,916 160,050 Oaktree Operating Group net income (loss): Net income attributable to preferred unitholders (1) $ 6,829 $ 6,829 Net income (loss) attributable to OCGH non-controlling interest (3,002) 164,635 Net income (loss) attributable to OCG Class A unitholders (7,849) 264,917 Oaktree Operating Group net income (loss) $ (4,022) $ 436,381 Net income (loss) attributable to OCG Class A unitholders: Oaktree Operating Group net income (loss) attributable to OCG Class A unitholders $ (7,849) $ 264,917 Non-Operating Group income and expense 18,702 13,802 Net income attributable to OCG Class A unitholders $ 10,853 $ 278,719 (1) Represents distributions declared, if any, on the preferred units. |
Changes in Company Ownership Interest | The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below: Three months ended March 31, 2022 2021 Net income attributable to OCG Class A unitholders $ 10,853 $ 278,719 Equity reallocation between controlling and non-controlling interests 14,275 3,678 Change from net income attributable to OCG Class A unitholders and transfers from non-controlling interests $ 25,128 $ 282,397 |
EARNINGS PER UNIT (Tables)
EARNINGS PER UNIT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computations of Net Income (Loss) Per Unit | The computation of net income (loss) per Class A unit is set forth below: Three months ended March 31, 2022 2021 (in thousands, except per unit amounts) Net income per Class A unit (basic and diluted): Net income attributable to OCG Class A unitholders $ 10,853 $ 278,719 Weighted average number of Class A units outstanding (basic and diluted) 99,137 98,708 Basic and diluted net income per Class A unit $ 0.11 $ 2.82 |
EQUITY-BASED AND OTHER DEFERR_2
EQUITY-BASED AND OTHER DEFERRED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [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 changes for the period 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 as of December 31, 2021 (2) 277,464 $ 46.79 338,530 $ 37.64 Vested (137,875) 45.38 (135,723) 31.01 Forfeited (1,723) 49.52 — — Balance as of March 31, 2022 137,866 $ 48.20 202,807 $ 42.07 (1) 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 thereafter became subject to the terms and conditions of the OCGH limited partnership agreement. The Converted OCGH Units (i) are subject to the same vesting terms that were applicable to such units prior to the completion of the Merger, (ii) are 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. Through 2021, Converted OCGH Units were 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 condensed consolidated financial statements. |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Amounts Due from and Due to Affiliates | 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. As of March 31, 2022 December 31, 2021 Due from affiliates: Loans to affiliates and employees $ — $ 44,088 Amounts due from unconsolidated funds 2,507 2,829 Management fees and incentive income due from unconsolidated funds and affiliates 39,208 289,795 Receivable from unconsolidated entities 25,419 36,001 Non-interest bearing advances made to certain non-controlling interest holders and employees 142 148 Total due from affiliates $ 67,276 $ 372,861 Due to affiliates: Amounts due to unconsolidated entities $ 9,049 $ 4,198 Amounts due to senior executives, certain non-controlling interest holders and employees — — Total due to affiliates $ 9,049 $ 4,198 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Billions | Sep. 30, 2019USD ($)$ / sharesshares | Mar. 31, 2022votepartnership_interestentity | Oct. 01, 2019entity |
Subsidiary, Sale of Stock [Line Items] | |||
Number of votes per class A unit | vote | 1 | ||
Number of votes per class B unit | vote | 10 | ||
Number operating entities | entity | 6 | 6 | |
Number of indirect subsidiaries | entity | 2 | 2 | |
Number of limited partnership interests | partnership_interest | 1 | ||
Number of former indirect subsidiaries | entity | 4 | ||
Brookfield Asset Management Inc. Merger Agreement, OCGH Unitholders | |||
Subsidiary, Sale of Stock [Line Items] | |||
OSC class A, cash consideration (in dollars 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 | ||
Brookfield Asset Management Inc. Merger Agreement, OCGH Unitholders | Class A Units | |||
Subsidiary, Sale of Stock [Line Items] | |||
Share pro ration | 20.00% | ||
Number of shares issued during mergers (in shares) | shares | 52,800,000 | ||
Brookfield Asset Management Inc. Merger Agreement, OCGH Unitholders | Converted OCGH Units | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of unvested shares converted during mergers (in shares) | shares | 1 | ||
OCGH | |||
Subsidiary, Sale of Stock [Line Items] | |||
Ownership interest percentage | 100.00% | ||
OCGH | Brookfield Merger Agreement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Percentage of business owned by OCGH | 38.80% | ||
Brookfield | Brookfield Merger Agreement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Percentage of business acquired by Brookfield | 61.20% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Incentive income compensation vesting period | 5 years |
Closed-end Incentive Income | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Percentage of fund profits | 20.00% |
Percentage of preferred return on funds | 8.00% |
Evergreen Incentive Income | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Percentage of fund profits | 20.00% |
Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Withdrawal period | 1 month |
Minimum | Furniture and Equipment | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Estimated useful life (in years) | 3 years |
Minimum | Management fees | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Management fees payment term | 10 years |
Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Withdrawal period | 3 years |
Maximum | Furniture and Equipment | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Estimated useful life (in years) | 5 years |
Maximum | Management fees | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Management fees payment term | 11 years |
REVENUES- Narrative (Details)
REVENUES- Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Incentive income related to deconsolidation of SPAC | $ 72.3 |
REVENUES - Revenues Disaggregat
REVENUES - Revenues Disaggregated by Fund Structure (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 63,030 | $ 607,751 |
Management Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 60,431 | 56,326 |
Closed-end | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,382 | 1,017 |
Open-end | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,370 | 1,344 |
Sub-advisory fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 57,679 | 53,965 |
Closed-end and Evergreen | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,599 | $ 551,424 |
REVENUES - Contract Balances (D
REVENUES - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 38,108 | $ 138,435 |
Contract assets | $ 344 | $ 151,360 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) $ in Thousands | Mar. 31, 2022USD ($)entity | Dec. 31, 2021USD ($)entity | Mar. 31, 2022USD ($)entity |
Variable Interest Entity [Line Items] | |||
Assets | $ 15,041,694 | $ 14,397,849 | $ 15,041,694 |
Liabilities | $ 10,534,475 | $ 10,401,953 | 10,534,475 |
Consolidated Funds | |||
Variable Interest Entity [Line Items] | |||
Number of VIE's consolidated (in entity) | entity | 27 | 25 | |
Assets | $ 13,700,000 | 13,700,000 | |
Liabilities | 10,300,000 | 10,300,000 | |
Maximum exposure to loss | $ 1,200,000 | $ 1,200,000 | |
Number of fund managed by Oaktree | Consolidated Funds | |||
Variable Interest Entity [Line Items] | |||
Number of VIE's consolidated (in entity) | entity | 11 | ||
Number of CLO's for which Oaktree acts as collateral manager | Consolidated Funds | |||
Variable Interest Entity [Line Items] | |||
Number of VIE's consolidated (in entity) | entity | 16 | ||
Number of remaining variable interest entities | Consolidated Funds | |||
Variable Interest Entity [Line Items] | |||
Number of VIE's consolidated (in entity) | entity | 27 |
VARIABLE INTEREST ENTITIES - VI
VARIABLE INTEREST ENTITIES - VIEs Not Consolidated (Details) - Unconsolidated VIEs - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 946,540 | $ 1,083,353 |
Corporate investments | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 943,564 | 895,116 |
Due from affiliates | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 2,976 | $ 188,237 |
INVESTMENTS - Corporate Investm
INVESTMENTS - Corporate Investments (Details) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Other investments, at fair value | $ 56,106 | $ 71,154 |
Total corporate investments | 1,021,487 | 1,022,564 |
Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments: | 955,784 | 915,185 |
Companies | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments: | $ 9,597 | $ 36,225 |
INVESTMENTS - Investment Income
INVESTMENTS - Investment Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Other investments, at fair value | $ (1,866) | $ 6,693 |
Total investment income | 11,741 | 113,239 |
Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments: | 14,253 | 106,524 |
Companies | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-method investments: | $ (646) | $ 22 |
INVESTMENTS - Equity-method Inv
INVESTMENTS - Equity-method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statements of Operations | ||
Interest expense | $ (39,191) | $ (36,876) |
Net realized and unrealized gain on investments | 39,134 | 59,912 |
Net income (loss) | 113,623 | 503,281 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Statements of Operations | ||
Revenues / investment income | 840,605 | 413,311 |
Interest expense | (54,290) | (38,941) |
Other expenses | (220,991) | (199,258) |
Net realized and unrealized gain on investments | 986,800 | 4,336,081 |
Net income (loss) | $ 1,552,124 | $ 4,511,193 |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 2.50% |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Investments [Line Items] | ||
Realized (loss) gain | $ (89,225) | $ 6,044 |
Net change in unrealized loss | 128,359 | 53,868 |
Total (loss) gain | 39,134 | 59,912 |
Other Investments at Fair Value | ||
Schedule of Investments [Line Items] | ||
Realized (loss) gain | (91) | 8,672 |
Net change in unrealized loss | (1,775) | (1,979) |
Total (loss) gain | $ (1,866) | $ 6,693 |
INVESTMENTS - Fair Value (Detai
INVESTMENTS - Fair Value (Details) $ in Thousands | Mar. 31, 2022USD ($)investment | Dec. 31, 2021USD ($)investment |
Schedule Of Investments In Marketable Securities [Line Items] | ||
Investments, fair value that exceeds threshold | investment | 0 | 0 |
Investments, percentage of net assets, threshold percentage | 5.00% | 5.00% |
Consolidated Funds | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 10,513,780 | $ 9,995,100 |
Debt securities, fair value as a percentage of investments of consolidated funds | 85.80% | 87.20% |
Equity securities, fair value | $ 1,705,431 | $ 1,427,961 |
Equity securities, fair value as a percentage of investments of consolidated funds | 13.90% | 12.50% |
Real estate investments, at fair value | $ 36,887 | $ 33,834 |
Real estate, fair value as a percentage of investments of consolidated funds | 0.30% | 0.30% |
Investments, at fair value | $ 12,256,098 | $ 11,456,895 |
Total investments, fair value as a percentage of investments of consolidated funds | 100.00% | 100.00% |
Consolidated Funds | United States: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 5,710,345 | $ 5,301,713 |
Debt securities, fair value as a percentage of investments of consolidated funds | 46.50% | 46.30% |
Total debt securities, cost | $ 5,781,052 | $ 5,303,858 |
Equity securities, fair value | $ 1,290,428 | $ 1,147,619 |
Equity securities, fair value as a percentage of investments of consolidated funds | 10.50% | 10.00% |
Total equity securities, cost | $ 1,007,406 | $ 1,086,667 |
Real estate investments, at fair value | $ 0 | $ 0 |
Real estate, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Real estate securities, cost | $ 0 | $ 0 |
Consolidated Funds | United States: | Communication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 632,188 | $ 635,930 |
Debt securities, fair value as a percentage of investments of consolidated funds | 5.20% | 5.60% |
Equity securities, fair value | $ 63,485 | $ 54,635 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.50% | 0.50% |
Consolidated Funds | United States: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 755,434 | $ 665,405 |
Debt securities, fair value as a percentage of investments of consolidated funds | 6.20% | 5.80% |
Equity securities, fair value | $ 148,153 | $ 126,978 |
Equity securities, fair value as a percentage of investments of consolidated funds | 1.20% | 1.10% |
Consolidated Funds | United States: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 258,509 | $ 190,391 |
Debt securities, fair value as a percentage of investments of consolidated funds | 2.10% | 1.70% |
Consolidated Funds | United States: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 358,067 | $ 354,585 |
Debt securities, fair value as a percentage of investments of consolidated funds | 2.90% | 3.10% |
Equity securities, fair value | $ 438,506 | $ 369,912 |
Equity securities, fair value as a percentage of investments of consolidated funds | 3.60% | 3.20% |
Consolidated Funds | United States: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 507,025 | $ 463,412 |
Debt securities, fair value as a percentage of investments of consolidated funds | 4.10% | 4.00% |
Equity securities, fair value | $ 191,637 | $ 151,501 |
Equity securities, fair value as a percentage of investments of consolidated funds | 1.60% | 1.30% |
Real estate investments, at fair value | $ 0 | $ 0 |
Real estate, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | United States: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 452,332 | $ 459,713 |
Debt securities, fair value as a percentage of investments of consolidated funds | 3.70% | 4.00% |
Equity securities, fair value | $ 42,397 | $ 33,475 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.30% | 0.30% |
Consolidated Funds | United States: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 1,033,990 | $ 891,850 |
Debt securities, fair value as a percentage of investments of consolidated funds | 8.40% | 7.80% |
Equity securities, fair value | $ 237,983 | $ 246,856 |
Equity securities, fair value as a percentage of investments of consolidated funds | 1.90% | 2.20% |
Consolidated Funds | United States: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 664,185 | $ 685,959 |
Debt securities, fair value as a percentage of investments of consolidated funds | 5.40% | 6.00% |
Consolidated Funds | United States: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 504,009 | $ 436,434 |
Debt securities, fair value as a percentage of investments of consolidated funds | 4.10% | 3.80% |
Equity securities, fair value | $ 82,273 | $ 82,273 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.70% | 0.70% |
Consolidated Funds | United States: | Real estate | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 215,600 | $ 202,131 |
Debt securities, fair value as a percentage of investments of consolidated funds | 1.80% | 1.80% |
Real estate investments, at fair value | $ 0 | $ 0 |
Real estate, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | United States: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 315,793 | $ 305,220 |
Debt securities, fair value as a percentage of investments of consolidated funds | 2.60% | 2.70% |
Equity securities, fair value | $ 85,994 | $ 81,989 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.70% | 0.70% |
Consolidated Funds | United States: | Other | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 13,213 | $ 10,683 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Consolidated Funds | Europe: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 4,189,816 | $ 4,286,363 |
Debt securities, fair value as a percentage of investments of consolidated funds | 34.10% | 37.40% |
Total debt securities, cost | $ 4,256,220 | $ 4,289,708 |
Equity securities, fair value | $ 251,558 | $ 150,381 |
Equity securities, fair value as a percentage of investments of consolidated funds | 2.10% | 1.30% |
Total equity securities, cost | $ 219,444 | $ 119,114 |
Real estate investments, at fair value | $ 36,887 | $ 33,834 |
Real estate, fair value as a percentage of investments of consolidated funds | 0.30% | 0.30% |
Real estate securities, cost | $ 38,874 | $ 34,927 |
Consolidated Funds | Europe: | Communication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 749,449 | $ 756,728 |
Debt securities, fair value as a percentage of investments of consolidated funds | 6.10% | 6.60% |
Consolidated Funds | Europe: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 846,533 | $ 915,535 |
Debt securities, fair value as a percentage of investments of consolidated funds | 6.90% | 8.00% |
Equity securities, fair value | $ 114,679 | $ 102,919 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.90% | 0.90% |
Consolidated Funds | Europe: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 215,726 | $ 206,590 |
Debt securities, fair value as a percentage of investments of consolidated funds | 1.80% | 1.80% |
Equity securities, fair value | $ 28,729 | $ 0 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.20% | 0.00% |
Consolidated Funds | Europe: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 1,024 | $ 1,251 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | Europe: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 97,529 | $ 98,126 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.80% | 0.90% |
Equity securities, fair value | $ 29,178 | $ 19,987 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.20% | 0.20% |
Consolidated Funds | Europe: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 703,823 | $ 751,936 |
Debt securities, fair value as a percentage of investments of consolidated funds | 5.70% | 6.60% |
Equity securities, fair value | $ 89 | $ 0 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | Europe: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 659,808 | $ 656,033 |
Debt securities, fair value as a percentage of investments of consolidated funds | 5.40% | 5.70% |
Equity securities, fair value | $ 78,883 | $ 27,475 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.60% | 0.20% |
Consolidated Funds | Europe: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 372,578 | $ 383,041 |
Debt securities, fair value as a percentage of investments of consolidated funds | 3.00% | 3.30% |
Consolidated Funds | Europe: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 496,064 | $ 466,181 |
Debt securities, fair value as a percentage of investments of consolidated funds | 4.00% | 4.10% |
Consolidated Funds | Europe: | Real estate | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 32,766 | $ 34,116 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.30% | 0.30% |
Real estate investments, at fair value | $ 36,887 | $ 33,834 |
Real estate, fair value as a percentage of investments of consolidated funds | 0.30% | 0.30% |
Consolidated Funds | Europe: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 2,192 | $ 1,777 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | Europe: | Other | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 12,324 | $ 15,049 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Consolidated Funds | Asia and other: | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 613,619 | $ 407,024 |
Debt securities, fair value as a percentage of investments of consolidated funds | 5.10% | 3.60% |
Total debt securities, cost | $ 626,545 | $ 417,825 |
Equity securities, fair value | $ 163,423 | $ 129,961 |
Equity securities, fair value as a percentage of investments of consolidated funds | 1.40% | 1.10% |
Total equity securities, cost | $ 146,930 | $ 120,308 |
Consolidated Funds | Asia and other: | Communication services | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 7,410 | $ 6,087 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Consolidated Funds | Asia and other: | Consumer discretionary | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 77,447 | $ 71,082 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.60% | 0.60% |
Equity securities, fair value | $ 1,108 | $ 1,057 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | Asia and other: | Consumer staples | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 13,014 | $ 13,378 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Consolidated Funds | Asia and other: | Energy | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 27,375 | $ 24,325 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.20% | 0.20% |
Equity securities, fair value | $ 8,555 | $ 8,332 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Consolidated Funds | Asia and other: | Financials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 13,985 | $ 14,739 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Consolidated Funds | Asia and other: | Health care | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 2,980 | $ 4,084 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | Asia and other: | Industrials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 10,642 | $ 7,084 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
Equity securities, fair value | $ 110,558 | $ 81,782 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.90% | 0.70% |
Consolidated Funds | Asia and other: | Information technology | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 572 | $ 714 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | Asia and other: | Materials | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 120,201 | $ 121,151 |
Debt securities, fair value as a percentage of investments of consolidated funds | 1.00% | 1.10% |
Consolidated Funds | Asia and other: | Real estate | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 325,643 | $ 131,155 |
Debt securities, fair value as a percentage of investments of consolidated funds | 2.70% | 1.10% |
Equity securities, fair value | $ 42,960 | $ 38,614 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.40% | 0.30% |
Consolidated Funds | Asia and other: | Utilities | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 3,680 | $ 3,743 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Equity securities, fair value | $ 242 | $ 176 |
Equity securities, fair value as a percentage of investments of consolidated funds | 0.00% | 0.00% |
Consolidated Funds | Asia and other: | Other | ||
Schedule Of Investments In Marketable Securities [Line Items] | ||
Debt securities, fair value | $ 10,670 | $ 9,482 |
Debt securities, fair value as a percentage of investments of consolidated funds | 0.10% | 0.10% |
INVESTMENTS - Net Gains (Losses
INVESTMENTS - Net Gains (Losses) from Investment Activities of Consolidated Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | $ (89,225) | $ 6,044 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 128,359 | 53,868 |
Consolidated Funds | Not Designated as Hedging Instrument | ||
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | (89,225) | 6,044 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 128,359 | 53,868 |
Consolidated Funds | Investments and other financial instruments | Not Designated as Hedging Instrument | ||
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | (90,055) | 4,967 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 201,267 | 47,372 |
Consolidated Funds | CLO liabilities | Not Designated as Hedging Instrument | ||
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | (2,115) | 1,928 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (45,844) | 4,563 |
Consolidated Funds | Foreign-currency forward contracts | Not Designated as Hedging Instrument | ||
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | 956 | (1,373) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 2,928 | 2,706 |
Consolidated Funds | Total-return and interest-rate swaps | Not Designated as Hedging Instrument | ||
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | (3,984) | 0 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (32,833) | (34) |
Consolidated Funds | Options and futures | Not Designated as Hedging Instrument | ||
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | 5,973 | 522 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 1,983 | 199 |
Consolidated Funds | Warrants | Not Designated as Hedging Instrument | ||
Gain (Loss) on Securities [Line Items] | ||
Net Realized Gain (Loss) on Investments | 0 | 0 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | $ 858 | $ (938) |
FAIR VALUE - Financial Instrume
FAIR VALUE - Financial Instruments by Fair-value Hierarchy Level (Details) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | $ 56,106 | $ 71,154 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 67,804 | 84,453 |
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 | 5,095 | 11,213 |
Derivative liabilities | (407) | (536) |
Fair Value, Measurements, Recurring | Foreign-currency forward contracts | Corporate Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets, at fair value | 2,345 | |
Derivative liabilities | (147) | (494) |
Fair Value, Measurements, Recurring | U.S. Treasury and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 6,603 | 2,086 |
Fair Value, Measurements, Recurring | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 56,106 | 71,154 |
Fair Value, Measurements, Recurring | Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 54,016 | 64,210 |
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 |
Fair Value, Measurements, Recurring | Level I | U.S. Treasury and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 6,603 | 2,086 |
Fair Value, Measurements, Recurring | Level I | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 47,413 | 62,124 |
Fair Value, Measurements, Recurring | Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 13,788 | 18,529 |
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 | 5,095 | 11,213 |
Derivative liabilities | (407) | (536) |
Fair Value, Measurements, Recurring | Level II | U.S. Treasury and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 8,693 | 7,316 |
Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 1,714 |
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 |
Fair Value, Measurements, Recurring | Level III | U.S. Treasury and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Corporate investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | $ 0 | $ 1,714 |
FAIR VALUE - Changes in Fair Va
FAIR VALUE - Changes in Fair Value (Details) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Corporate Investments | ||
Beginning balance | $ 1,714 | $ 27,045 |
Contributions or additions | 0 | 0 |
Distributions and sales | (1,590) | (692) |
Net gain (loss) included in earnings | (124) | 1,571 |
Ending balance | 0 | 27,924 |
Net change in unrealized gains (losses) attributable to financial instruments still held at end of period | $ 411 | $ 879 |
FAIR VALUE - Consolidated Funds
FAIR VALUE - Consolidated Funds Valuation of Investments and Other Financial Instruments (Details) - Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | $ 12,256,098 | $ 11,456,895 |
Total derivatives | 12,259 | 6,733 |
Deb obligations | (7,972,105) | (7,806,263) |
Derivative liabilities | (43,594) | (11,847) |
Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 2,412,701 | 1,928,376 |
Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 12,256,098 | 11,456,895 |
Total derivatives | 12,259 | 5,571 |
Total assets | 12,268,357 | 11,462,466 |
Derivative liabilities | (43,594) | (11,847) |
Total liabilities | (8,015,699) | (7,818,110) |
Fair Value, Measurements, Recurring | CLO debt obligations: | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | (7,972,105) | (7,806,263) |
Fair Value, Measurements, Recurring | CLO debt obligations: | Senior secured notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | (7,649,601) | (7,472,521) |
Fair Value, Measurements, Recurring | CLO debt obligations: | Subordinated notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | (322,504) | (333,742) |
Fair Value, Measurements, Recurring | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 9,063 | 5,062 |
Derivative liabilities | (1,563) | (886) |
Fair Value, Measurements, Recurring | Swaps | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 718 | 0 |
Derivative liabilities | (37,933) | (4,335) |
Fair Value, Measurements, Recurring | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 2,478 | 509 |
Derivative liabilities | (36) | 0 |
Fair Value, Measurements, Recurring | Warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | (4,062) | (6,626) |
Fair Value, Measurements, Recurring | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 8,921,336 | 8,464,929 |
Fair Value, Measurements, Recurring | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 1,592,444 | 1,530,171 |
Fair Value, Measurements, Recurring | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 1,035,395 | 864,632 |
Fair Value, Measurements, Recurring | Equities – preferred stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 670,036 | 563,329 |
Fair Value, Measurements, Recurring | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 36,887 | 33,834 |
Fair Value, Measurements, Recurring | Level I | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 398,081 | 283,432 |
Total derivatives | 2,478 | 509 |
Total assets | 400,559 | 283,941 |
Derivative liabilities | (37,033) | (4,100) |
Total liabilities | (37,033) | (4,100) |
Fair Value, Measurements, Recurring | Level I | CLO debt obligations: | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | CLO debt obligations: | Senior secured notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | CLO debt obligations: | Subordinated notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Swaps | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Derivative liabilities | (36,997) | (4,100) |
Fair Value, Measurements, Recurring | Level I | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 2,478 | 509 |
Derivative liabilities | (36) | 0 |
Fair Value, Measurements, Recurring | Level I | Warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level I | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 321,797 | 206,133 |
Fair Value, Measurements, Recurring | Level I | Equities – preferred stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 76,284 | 77,299 |
Fair Value, Measurements, Recurring | Level I | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 9,445,316 | 9,245,087 |
Total derivatives | 9,781 | 6,224 |
Total assets | 9,455,097 | 9,251,311 |
Derivative liabilities | (6,561) | (7,747) |
Total liabilities | (7,978,666) | (7,814,010) |
Fair Value, Measurements, Recurring | Level II | CLO debt obligations: | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | (7,972,105) | (7,806,263) |
Fair Value, Measurements, Recurring | Level II | CLO debt obligations: | Senior secured notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | (7,649,601) | (7,472,521) |
Fair Value, Measurements, Recurring | Level II | CLO debt obligations: | Subordinated notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | (322,504) | (333,742) |
Fair Value, Measurements, Recurring | Level II | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 9,063 | 5,062 |
Derivative liabilities | (1,563) | (886) |
Fair Value, Measurements, Recurring | Level II | Swaps | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 718 | 1,162 |
Derivative liabilities | (936) | (235) |
Fair Value, Measurements, Recurring | Level II | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | Warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | (4,062) | (6,626) |
Fair Value, Measurements, Recurring | Level II | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 8,054,042 | 7,867,741 |
Fair Value, Measurements, Recurring | Level II | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 1,367,954 | 1,300,595 |
Fair Value, Measurements, Recurring | Level II | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 23,320 | 76,751 |
Fair Value, Measurements, Recurring | Level II | Equities – preferred stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level II | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 2,412,701 | 1,928,376 |
Total derivatives | 0 | 0 |
Total assets | 2,412,701 | 1,928,376 |
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | CLO debt obligations: | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | CLO debt obligations: | Senior secured notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | CLO debt obligations: | Subordinated notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Deb obligations | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Foreign-currency forward contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Swaps | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Options and futures | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total derivatives | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level III | Corporate debt – bank debt | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 867,294 | 597,188 |
Fair Value, Measurements, Recurring | Level III | Corporate debt – all other | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 224,490 | 229,576 |
Fair Value, Measurements, Recurring | Level III | Equities – common stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 690,278 | 581,748 |
Fair Value, Measurements, Recurring | Level III | Equities – preferred stock | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | 593,752 | 486,030 |
Fair Value, Measurements, Recurring | Level III | Real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total investments | $ 36,887 | $ 33,834 |
FAIR VALUE - Consolidated Fun_2
FAIR VALUE - Consolidated Funds Summary of Changes in Fair Value of Level III Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,928,376 | $ 544,957 |
Deconsolidation of funds | 0 | (3,065) |
Transfers into Level III | 5,819 | 36,332 |
Transfers out of Level III | (23,164) | (30,362) |
Purchases | 548,904 | 410,634 |
Sales | (108,874) | (18,152) |
Realized gain (losses), net | (125,513) | 1,517 |
Unrealized appreciation (depreciation), net | 187,153 | 13,901 |
Ending balance | 2,412,701 | 955,762 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | (521) | 14,220 |
Oaktree Capital Group Excluding Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,714 | 27,045 |
Purchases | 0 | 0 |
Sales | (1,590) | (692) |
Ending balance | 0 | 27,924 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 411 | 879 |
Corporate debt – bank debt | Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 597,188 | 255,283 |
Deconsolidation of funds | 0 | (3,065) |
Transfers into Level III | 4,407 | 36,022 |
Transfers out of Level III | (20,683) | (26,318) |
Purchases | 351,155 | 177,279 |
Sales | (65,804) | (14,005) |
Realized gain (losses), net | 2,888 | 1,131 |
Unrealized appreciation (depreciation), net | (1,857) | 2,704 |
Ending balance | 867,294 | 429,031 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | (486) | 2,972 |
Corporate debt – all other | Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 229,576 | 79,085 |
Deconsolidation of funds | 0 | 0 |
Transfers into Level III | 1,412 | 305 |
Transfers out of Level III | (2,475) | (4,044) |
Purchases | 1,962 | 35,071 |
Sales | (7) | (3,932) |
Realized gain (losses), net | (22) | 386 |
Unrealized appreciation (depreciation), net | (5,956) | 5,676 |
Ending balance | 224,490 | 112,547 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | (67) | 5,717 |
Equities – common stock | Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 581,748 | 187,370 |
Deconsolidation of funds | 0 | 0 |
Transfers into Level III | 0 | 5 |
Transfers out of Level III | (6) | 0 |
Purchases | 100,462 | 69,794 |
Sales | (43,063) | (215) |
Realized gain (losses), net | (128,379) | 0 |
Unrealized appreciation (depreciation), net | 179,516 | 208 |
Ending balance | 690,278 | 257,162 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | 37 | 219 |
Equities – Preferred Stock | Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 486,030 | 23,219 |
Deconsolidation of funds | 0 | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Purchases | 91,378 | 128,490 |
Sales | 0 | 0 |
Realized gain (losses), net | 0 | 0 |
Unrealized appreciation (depreciation), net | 16,344 | 5,313 |
Ending balance | 593,752 | 157,022 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | (7) | 5,312 |
Real estate | Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 33,834 | 0 |
Deconsolidation of funds | 0 | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Purchases | 3,947 | 0 |
Sales | 0 | 0 |
Realized gain (losses), net | 0 | 0 |
Unrealized appreciation (depreciation), net | (894) | 0 |
Ending balance | 36,887 | 0 |
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period | $ 2 | $ 0 |
FAIR VALUE - Consolidated Fun_3
FAIR VALUE - Consolidated Funds Summary of Valuation Techniques and Quantitative Information (Details) - Consolidated Funds $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate investments, at fair value | $ 36,887 | $ 33,834 |
Investments, at fair value | 12,256,098 | 11,456,895 |
Level III | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investments, at fair value | 2,412,701 | 1,928,376 |
Level III | Communication services | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 37,527 | 38,352 |
Level III | Communication services | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 3,497 | 3,402 |
Level III | Consumer discretionary | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 6,864 | |
Level III | Consumer discretionary | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.09 | |
Level III | Consumer discretionary | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.11 | |
Level III | Consumer discretionary | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.10 | |
Level III | Consumer discretionary | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 20,954 | |
Level III | Consumer discretionary | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 12,677 | |
Level III | Energy | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 867 | |
Level III | Energy | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 33,987 | |
Level III | Energy | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 13,640 | |
Level III | Financials | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 47,607 | 23,129 |
Level III | Financials | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 8,216 | 13,187 |
Level III | Industrials | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 3,213 | 1,852 |
Level III | Industrials | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 30,845 | |
Level III | Materials | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 6,674 | |
Level III | Materials | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 24,420 | 24,420 |
Level III | Real estate | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 24,149 | 27,235 |
Level III | Real estate | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 269,806 | 76,503 |
Level III | Other: | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 49,119 | 78,631 |
Level III | Other: | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | 11,422 | 11,425 |
Level III | Equity investments: | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | 90,308 | 36,576 |
Level III | Equity investments: | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | $ 397,556 | 411,574 |
Level III | Real estate-oriented investments | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.23 | |
Level III | Real estate-oriented investments | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.25 | |
Level III | Real estate-oriented investments | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.24 | |
Level III | Real estate-oriented investments | Recent transaction price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate investments, at fair value | $ 2,914 | 18,526 |
Revenue multiple | Level III | Communication services | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 60,384 | |
Revenue multiple | Level III | Communication services | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 2 | |
Revenue multiple | Level III | Communication services | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 4 | |
Revenue multiple | Level III | Communication services | Market approach (comparable companies) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 3 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | $ 59,805 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Equity Investment One | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | 192,358 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Equity Investment Two | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | $ 67,995 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 3 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Minimum | Equity Investment One | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 6 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Minimum | Equity Investment Two | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.3 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 11 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Maximum | Equity Investment One | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 70 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Maximum | Equity Investment Two | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 11 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 9 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Weighted Average | Equity Investment One | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 12 | |
Revenue multiple | Level III | Equity investments: | Market approach (comparable companies) | Weighted Average | Equity Investment Two | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 2 | |
Discount rates | Level III | Communication services | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 60,892 | |
Discount rates | 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 rates | 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 rates | 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 rates | Level III | Consumer discretionary | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 26,998 | |
Discount rates | Level III | Consumer discretionary | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.11 | |
Discount rates | Level III | Consumer discretionary | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.12 | |
Discount rates | Level III | Consumer discretionary | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.11 | |
Discount rates | Level III | Consumer discretionary | Recent market information | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 5,626 | |
Discount rates | Level III | Energy | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 97,658 | $ 51,012 |
Discount rates | Level III | Energy | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.12 | 0.12 |
Discount rates | Level III | Energy | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.22 | 0.13 |
Discount rates | Level III | Energy | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.14 | 0.12 |
Discount rates | Level III | Financials | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 36,734 | $ 29,519 |
Discount rates | Level III | Financials | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.12 | 0.10 |
Discount rates | Level III | Financials | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.17 | 0.12 |
Discount rates | Level III | Financials | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.13 | 0.11 |
Discount rates | Level III | Industrials | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 108,713 | $ 87,727 |
Discount rates | Level III | Industrials | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.09 | 0.08 |
Discount rates | Level III | Industrials | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.13 | 0.13 |
Discount rates | Level III | Industrials | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.10 | 0.10 |
Discount rates | Level III | Materials | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 135,479 | $ 136,117 |
Discount rates | Level III | Materials | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.09 | 0.08 |
Discount rates | Level III | Materials | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.15 | 0.14 |
Discount rates | Level III | Materials | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.12 | 0.09 |
Discount rates | Level III | Real estate | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 48,348 | |
Discount rates | Level III | Real estate | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.09 | |
Discount rates | Level III | Real estate | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.15 | |
Discount rates | Level III | Real estate | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.11 | |
Discount rates | Level III | Equity investments: | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | $ 132,088 | $ 83,999 |
Discount rates | Level III | Equity investments: | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.009 | 0.07 |
Discount rates | Level III | Equity investments: | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.24 | 0.16 |
Discount rates | Level III | Equity investments: | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.13 | 0.16 |
Discount rates | Level III | Real estate-oriented investments | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate investments, at fair value | $ 33,973 | $ 15,308 |
Discount rates | Level III | Real estate-oriented investments | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.24 | |
Discount rates | Level III | Real estate-oriented investments | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.26 | |
Discount rates | Level III | Real estate-oriented investments | Discounted cash flow | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.25 | |
Multiple of underlying assets | Level III | Industrials | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.9 | |
Multiple of underlying assets | Level III | Industrials | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 1 | |
Multiple of underlying assets | Level III | Industrials | Market approach (comparable companies) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 1 | |
Multiple of underlying assets | Level III | Real estate | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 60,644 | $ 60,643 |
Multiple of underlying assets | Level III | Real estate | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.7 | 0.7 |
Multiple of underlying assets | Level III | Real estate | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.9 | 0.9 |
Multiple of underlying assets | Level III | Real estate | Market approach (comparable companies) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.8 | 0.8 |
Multiple of underlying assets | Level III | Other: | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, at fair value | $ 8,430 | |
Multiple of underlying assets | Level III | Other: | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 0.9 | |
Multiple of underlying assets | Level III | Other: | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 1.1 | |
Multiple of underlying assets | Level III | Other: | Market approach (comparable companies) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Credit-oriented investments, measurement inputs | 1 | |
Multiple of underlying assets | Level III | Equity investments: | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | $ 403,729 | $ 364,851 |
Multiple of underlying assets | Level III | Equity investments: | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 0.9 | 0.9 |
Multiple of underlying assets | Level III | Equity investments: | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 1 | 1 |
Multiple of underlying assets | Level III | Equity investments: | Market approach (comparable companies) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 1 | 1 |
Earning Multiple | Level III | Equity investments: | Market approach (comparable companies) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, at fair value | $ 110,973 | |
Earning Multiple | Level III | Equity investments: | Market approach (comparable companies) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 6 | |
Earning Multiple | Level III | Equity investments: | Market approach (comparable companies) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 16 | |
Earning Multiple | Level III | Equity investments: | Market approach (comparable companies) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Equity investments, measurement inputs | 11 |
DERIVATIVES AND HEDGING - Fair
DERIVATIVES AND HEDGING - Fair Value of Freestanding Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Fair Value | $ 17,354 | $ 17,946 |
Liabilities | ||
Fair Value | (46,565) | (12,383) |
Oaktree Capital Group Excluding Consolidated Funds | Foreign-currency forward contracts | ||
Assets | ||
Fair Value | 5,095 | 11,213 |
Liabilities | ||
Fair Value | (407) | (536) |
Not Designated as Hedging Instrument | Oaktree Capital Group Excluding Consolidated Funds | Foreign-currency forward contracts | ||
Assets | ||
Notional | 318,313 | 324,322 |
Fair Value | 5,095 | 11,213 |
Liabilities | ||
Notional | (21,500) | (24,735) |
Fair Value | $ (407) | $ (536) |
DERIVATIVES AND HEDGING - Summa
DERIVATIVES AND HEDGING - Summary of Freestanding Derivative Instruments on Income (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains and losses from freestanding derivative instruments | $ 2,372 | $ 12,583 |
Investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains and losses from freestanding derivative instruments | 1,384 | 8,915 |
General and administrative expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains and losses from freestanding derivative instruments | $ 988 | $ 3,668 |
DERIVATIVES AND HEDGING - Fai_2
DERIVATIVES AND HEDGING - Fair Value of Derivatives of Consolidated Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Fair Value | $ 17,354 | $ 17,946 |
Liabilities | ||
Fair Value | (46,565) | (12,383) |
Consolidated Funds | ||
Assets | ||
Fair Value | 12,259 | 6,733 |
Liabilities | ||
Fair Value | (46,158) | (11,847) |
Foreign-currency forward contracts | Consolidated Funds | ||
Assets | ||
Fair Value | 9,063 | 5,062 |
Liabilities | ||
Fair Value | (1,563) | (886) |
Total-return and interest-rate and credit default swaps | Consolidated Funds | ||
Assets | ||
Fair Value | 718 | 1,162 |
Liabilities | ||
Fair Value | (37,933) | (4,335) |
Options and futures | Consolidated Funds | ||
Assets | ||
Fair Value | 2,478 | 509 |
Liabilities | ||
Fair Value | (36) | |
Warrants | Consolidated Funds | ||
Liabilities | ||
Fair Value | (6,626) | (6,626) |
Not Designated as Hedging Instrument | Consolidated Funds | ||
Assets | ||
Notional | 612,765 | 438,170 |
Fair Value | 12,259 | 6,733 |
Liabilities | ||
Notional | (200,604) | (52,099) |
Fair Value | (46,627) | (11,847) |
Not Designated as Hedging Instrument | Foreign-currency forward contracts | Consolidated Funds | ||
Assets | ||
Notional | 381,809 | 210,868 |
Fair Value | 9,063 | 5,062 |
Liabilities | ||
Notional | (18,099) | (24,845) |
Fair Value | (1,563) | (886) |
Not Designated as Hedging Instrument | Total-return and interest-rate and credit default swaps | Consolidated Funds | ||
Assets | ||
Notional | 8,291 | 13,727 |
Fair Value | 718 | 1,162 |
Liabilities | ||
Notional | (182,441) | (27,254) |
Fair Value | (37,933) | (4,335) |
Not Designated as Hedging Instrument | Options and futures | Consolidated Funds | ||
Assets | ||
Notional | 222,665 | 213,575 |
Fair Value | 2,478 | 509 |
Liabilities | ||
Notional | (64) | 0 |
Fair Value | (36) | 0 |
Not Designated as Hedging Instrument | Warrants | Consolidated Funds | ||
Assets | ||
Notional | 0 | 0 |
Fair Value | 0 | 0 |
Liabilities | ||
Notional | 0 | 0 |
Fair Value | $ (7,095) | $ (6,626) |
DERIVATIVES AND HEDGING - Impac
DERIVATIVES AND HEDGING - Impact of Derivatives Held by Consolidated Funds on Income (Details) - Not Designated as Hedging Instrument - Consolidated Funds - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||
Net Realized Gain (Loss) on Investments | $ 2,945 | $ (851) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (27,064) | 3,809 |
Foreign-currency forward contracts | ||
Derivatives, Fair Value [Line Items] | ||
Net Realized Gain (Loss) on Investments | 956 | (1,373) |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 2,928 | 2,706 |
Total-return and interest-rate and credit default swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Realized Gain (Loss) on Investments | (3,984) | 0 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | (32,833) | (34) |
Options and futures | ||
Derivatives, Fair Value [Line Items] | ||
Net Realized Gain (Loss) on Investments | 5,973 | 522 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | 1,983 | 199 |
Warrants | ||
Derivatives, Fair Value [Line Items] | ||
Net Realized Gain (Loss) on Investments | 0 | 0 |
Net Change in Unrealized Appreciation (Depreciation) on Investments | $ 858 | $ 938 |
DERIVATIVES AND HEDGING - Balan
DERIVATIVES AND HEDGING - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Assets: | ||
Gross Amounts of Assets Presented | $ 17,354 | $ 17,946 |
Gross amounts not offset in statements of financial condition, derivative assets | 407 | 404 |
Gross amounts not offset in statements of financial condition, cash collateral received | 0 | 0 |
Net Amount | 16,947 | 17,542 |
Derivative Liabilities: | ||
Fair Value | (46,565) | (12,383) |
Gross amounts not offset in statements of financial condition, derivative (liabilities) | (407) | (404) |
Gross amounts not offset in statements of financial condition, cash (pledged) | 0 | 0 |
Net Amount | (46,158) | (11,979) |
Oaktree Capital Group Excluding Consolidated Funds | Foreign-currency forward contracts | ||
Derivative Assets: | ||
Gross Amounts of Assets Presented | 5,095 | 11,213 |
Gross amounts not offset in statements of financial condition, derivative assets | 407 | 404 |
Gross amounts not offset in statements of financial condition, cash collateral received | 0 | 0 |
Net Amount | 4,688 | 10,809 |
Derivative Liabilities: | ||
Fair Value | (407) | (536) |
Gross amounts not offset in statements of financial condition, derivative (liabilities) | (407) | (404) |
Gross amounts not offset in statements of financial condition, cash (pledged) | 0 | 0 |
Net Amount | 0 | (132) |
Consolidated Funds | ||
Derivative Assets: | ||
Gross Amounts of Assets Presented | 12,259 | 6,733 |
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 | 12,259 | 6,733 |
Derivative Liabilities: | ||
Fair Value | (46,158) | (11,847) |
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 | (46,158) | (11,847) |
Consolidated Funds | Foreign-currency forward contracts | ||
Derivative Assets: | ||
Gross Amounts of Assets Presented | 9,063 | 5,062 |
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 | 9,063 | 5,062 |
Derivative Liabilities: | ||
Fair Value | (1,563) | (886) |
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 | (1,563) | (886) |
Consolidated Funds | Total-return and interest-rate and credit default swaps | ||
Derivative Assets: | ||
Gross Amounts of Assets Presented | 718 | 1,162 |
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 | 718 | 1,162 |
Derivative Liabilities: | ||
Fair Value | (37,933) | (4,335) |
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 | (37,933) | (4,335) |
Consolidated Funds | Options and futures | ||
Derivative Assets: | ||
Gross Amounts of Assets Presented | 2,478 | 509 |
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 | 2,478 | 509 |
Derivative Liabilities: | ||
Fair Value | (36) | |
Gross amounts not offset in statements of financial condition, derivative (liabilities) | 0 | |
Gross amounts not offset in statements of financial condition, cash (pledged) | 0 | |
Net Amount | (36) | |
Consolidated Funds | Warrants | ||
Derivative Liabilities: | ||
Fair Value | (6,626) | (6,626) |
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 | |
Net Amount | $ (6,626) | $ (6,626) |
DEBT OBLIGATIONS AND CREDIT F_3
DEBT OBLIGATIONS AND CREDIT FACILITIES - Additional Information (Details) | Jan. 12, 2022USD ($) | Jul. 22, 2020USD ($) | May 19, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 30, 2022EUR (€) | Dec. 31, 2021USD ($) | Nov. 04, 2021USD ($) | Sep. 23, 2021USD ($) | Sep. 14, 2021USD ($) | May 20, 2020USD ($) | Dec. 13, 2019USD ($) | Dec. 12, 2019USD ($) | Oct. 01, 2019USD ($) |
Oaktree Capital Group Excluding Consolidated Funds | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 0 | $ 0 | |||||||||||
Outstanding amount | 1,050,000,000 | 905,000,000 | |||||||||||
Consolidated VIEs | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 7,972,105,000 | 7,806,263,000 | |||||||||||
Borrowings under credit facilities | 1,154,030,000 | 1,131,918,000 | |||||||||||
Outstanding amount | 8,164,920,000 | ||||||||||||
Securities owned and pledged as collateral | 8,500,000,000 | 9,100,000,000 | |||||||||||
Revolving credit facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility | $ 250,000,000 | ||||||||||||
Borrowings under credit facilities | $ 0 | ||||||||||||
Senior Unsecured Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility | $ 250,000,000 | ||||||||||||
Stated percentage | 3.68% | ||||||||||||
Proceeds from senior unsecured notes | $ 250,000,000 | ||||||||||||
Senior unsecured notes purchase commitment | $ 250,000,000 | ||||||||||||
Senior Unsecured Notes | Senior Unsecured Notes Due 2037 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 3.06% | ||||||||||||
Proceeds from senior unsecured notes | $ 200,000,000 | ||||||||||||
Credit Agreement | Oaktree Capital Group Excluding Consolidated Funds | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Spread on variable rate | 1.00% | ||||||||||||
Credit Agreement | Consolidated VIEs | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount | $ 1,154,030,000 | 1,131,918,000 | |||||||||||
Credit Agreement | Consolidated VIEs | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term (up to) | 10 years | ||||||||||||
Credit Agreement | Revolving credit facility | Oaktree Capital Group Excluding Consolidated Funds | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Credit facility | $ 650,000,000 | $ 500,000,000 | |||||||||||
Borrowings under credit facilities | $ 0 | ||||||||||||
Unused capacity, commitment fee percentage | 0.10% | ||||||||||||
Credit Agreement | Revolving credit facility | Consolidated VIEs | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 2,306,602,000 | 2,261,284,000 | |||||||||||
Credit facility | 1,319,030,000 | ||||||||||||
Outstanding amount | 1,154,030,000 | 1,119,178,000 | |||||||||||
Credit Agreement | Term Loan | Oaktree Capital Group Excluding Consolidated Funds | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Assets under management, carrying amount | $ 65,000,000,000 | $ 57,500,000,000 | |||||||||||
Leverage ratio, maximum | 4 | ||||||||||||
Outstanding amount | $ 0 | $ 55,000,000 | |||||||||||
Senior variable rate notes | Senior Unsecured Notes Due 2037 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face amount | $ 200,000,000 | ||||||||||||
Senior variable rate notes | Senior Notes, Series A, due 2032 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 2.20% | ||||||||||||
Face amount | € | € 50,000,000 | ||||||||||||
Senior variable rate notes | Senior Notes, Series B, due 2034 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 2.40% | ||||||||||||
Face amount | € | € 75,000,000 | ||||||||||||
Senior variable rate notes | Senior Notes, Series C, due 2037 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated percentage | 2.58% | ||||||||||||
Face amount | € | € 75,000,000 | ||||||||||||
Indirect Subsidiaries Of Brookfield Asset Management, Inc. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 746,300,000 |
DEBT OBLIGATIONS AND CREDIT F_4
DEBT OBLIGATIONS AND CREDIT FACILITIES - Debt Obligations (Details) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total remaining principal | $ 1,050,000,000 | $ 905,000,000 |
Senior secured notes | $50,000, 3.91%, issued in September 2014, payable on September 3, 2024 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 50,000 | |
Stated percentage | 3.91% | |
Total remaining principal | $ 50,000,000 | 50,000,000 |
Senior secured notes | $100,000, 4.01%, issued in September 2014, payable on September 3, 2026 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 100,000 | |
Stated percentage | 4.01% | |
Total remaining principal | $ 100,000,000 | 100,000,000 |
Senior secured notes | $100,000, 4.21%, issued in September 2014, payable on September 3, 2029 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 100,000 | |
Stated percentage | 4.21% | |
Total remaining principal | $ 100,000,000 | 100,000,000 |
Senior secured notes | $100,000, 3.69%, issued in July 2016, payable on July 12, 2031 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 100,000 | |
Stated percentage | 3.69% | |
Total remaining principal | $ 100,000,000 | 100,000,000 |
Senior secured notes | $250,000, 3.78%, issued in December 2017, payable on December 18, 2032 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 250,000 | |
Stated percentage | 3.78% | |
Total remaining principal | $ 250,000,000 | 250,000,000 |
Senior secured notes | $200,000, 3.64%, issued in July 2020, payable on July 22, 2030 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 200,000 | |
Stated percentage | 3.64% | |
Total remaining principal | $ 200,000,000 | 200,000,000 |
Senior secured notes | $50,000, 3.84%, issued in July 2020, payable on July 22, 2035 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 50,000 | |
Stated percentage | 3.84% | |
Total remaining principal | $ 50,000,000 | 50,000,000 |
Senior secured notes | $200,000, 3.06%, issued in January 2022, payable on January 12, 2037 | ||
Debt Instrument [Line Items] | ||
Face amount | $ 200,000 | |
Stated percentage | 3.06% | |
Total remaining principal | $ 200,000,000 | 0 |
Credit Agreement | Term Loan | ||
Debt Instrument [Line Items] | ||
Total remaining principal | $ 0 | $ 55,000,000 |
DEBT OBLIGATIONS AND CREDIT F_5
DEBT OBLIGATIONS AND CREDIT FACILITIES - Credit Facilities of Consolidated Funds (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | May 19, 2020 | |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Facility Capacity | $ 250,000,000 | ||
Consolidated Funds | |||
Debt Instrument [Line Items] | |||
Outstanding amount | $ 8,164,920,000 | ||
Total debt obligations, net | 7,972,105,000 | $ 7,806,263,000 | |
Credit Agreement | Consolidated Funds | |||
Debt Instrument [Line Items] | |||
Outstanding amount | 1,154,030,000 | 1,131,918,000 | |
Less: Debt issuance costs | (1,458,000) | (2,552,000) | |
Debt issuance costs | 1,458,000 | 2,552,000 | |
Credit Agreement | Consolidated Funds | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Outstanding amount | 1,154,030,000 | 1,119,178,000 | |
Total debt obligations, net | 2,306,602,000 | 2,261,284,000 | |
Facility Capacity | $ 1,319,030,000 | ||
Effective Interest Rate | 2.09% | ||
Weighted Average Remaining Maturity (years) | 4 months 24 days | ||
Commitment Fee Rate | 0.25% | ||
Credit Agreement | Consolidated Funds | Senior variable rate notes | |||
Debt Instrument [Line Items] | |||
Outstanding amount | $ 0 | $ 12,740,000 | |
Facility Capacity | |||
Effective Interest Rate | |||
Weighted Average Remaining Maturity (years) |
DEBT OBLIGATIONS AND CREDIT F_6
DEBT OBLIGATIONS AND CREDIT FACILITIES - Debt Obligations of CLOs (Details) - Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Fair Value | $ 7,972,105 | $ 7,806,263 |
Senior secured notes | ||
Debt Instrument [Line Items] | ||
Fair Value | $ 7,649,601 | $ 7,472,521 |
Weighted Average Interest Rate | 1.85% | 1.75% |
Weighted Average Remaining Maturity (years) | 11 years | 11 years |
Subordinated note | ||
Debt Instrument [Line Items] | ||
Fair Value | $ 322,504 | $ 333,742 |
Weighted Average Remaining Maturity (years) | 11 years 6 months | 11 years 2 months 12 days |
DEBT OBLIGATIONS AND CREDIT F_7
DEBT OBLIGATIONS AND CREDIT FACILITIES - Significant Valuation Inputs (Details) | Mar. 31, 2022 |
Discount rates | Low | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.110 |
Discount rates | High | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.180 |
Discount rates | Weighted Average Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.140 |
Constant default rates | Low | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.020 |
Constant default rates | High | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.020 |
Constant default rates | Weighted Average Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.020 |
Recovery rates | Low | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.650 |
Recovery rates | High | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.700 |
Recovery rates | Weighted Average Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Debt instrument, measurement input | 0.679 |
DEBT OBLIGATIONS AND CREDIT F_8
DEBT OBLIGATIONS AND CREDIT FACILITIES - Future Principal Payments with Respect to the CLO Loans Payable (Details) - Consolidated Funds $ in Thousands | Mar. 31, 2022USD ($) |
Debt Instrument [Line Items] | |
Remainder of 2022 | $ 119,744 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 8,045,176 |
Total | $ 8,164,920 |
LEASES - Additional Information
LEASES - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Remaining lease term | 1 year |
Lease extension option term | 5 years |
Termination period | 1 year |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,779 | $ 2,005 |
Sublease income | (13) | (102) |
Total lease cost | $ 1,766 | $ 1,903 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows used for operating leases | $ 1,603 |
Weighted average remaining lease term for operating leases (in years) | 8 years 10 months 24 days |
Weighted average discount rate for operating leases | 4.40% |
LEASES - Maturity of Operating
LEASES - Maturity of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
Remainder of 2022 | $ 4,834 |
2023 | 5,686 |
2024 | 4,655 |
2025 | 4,510 |
2026 | 4,510 |
Thereafter | 20,779 |
Total lease payments | 44,974 |
Less: imputed interest | (7,606) |
Total operating lease liabilities | $ 37,368 |
NON-CONTROLLING REDEEMABLE IN_3
NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Non-Controlling Redeemable Interests in Consolidated Funds [Roll Forward] | ||
Beginning balance | $ 1,723,294 | $ 715,347 |
Deconsolidation of funds | 0 | (192,837) |
Contributions | 533,419 | 256,391 |
Distributions | (89,928) | (22,582) |
Net income | 98,943 | 51,305 |
Change in distributions payable | (3) | 10,073 |
Foreign currency translation and other, net | 1,216 | (12,676) |
Ending balance | $ 2,266,941 | $ 805,021 |
UNITHOLDERS' CAPITAL - Addition
UNITHOLDERS' CAPITAL - Additional Information (Details) - USD ($) | Aug. 09, 2018 | May 17, 2018 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||||||
Total unitholders’ capital | $ 2,240,278,000 | $ 2,272,602,000 | $ 2,183,874,000 | $ 1,879,988,000 | ||
Non-controlling interests in consolidated subsidiaries | $ 538,305,000 | $ 612,228,000 | ||||
Preferred redemption price (in dollars per share) | $ 25 | |||||
Preferred redemption notice period | 30 days | |||||
Preferred redemption period, change in control event | 60 days | |||||
Preferred redemption price, change in control event (in dollars per share) | $ 25.25 | |||||
Redemption period after tax redemption event | 60 days | |||||
Preferred redemption price, tax redemption event (in dollars per share) | $ 25.50 | |||||
Series A Preferred Units | ||||||
Class of Stock [Line Items] | ||||||
Preferred dividend rate | 6.625% | |||||
Preferred redemption price (in dollars per share) | $ 25 | |||||
Sale of stock, consideration received | $ 173,700,000 | |||||
Series A Preferred Units | Preferred Stock Issuance | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued during mergers (in shares) | 7,200,000 | |||||
Series B Preferred Units | ||||||
Class of Stock [Line Items] | ||||||
Preferred dividend rate | 6.55% | |||||
Preferred redemption price (in dollars per share) | $ 25 | |||||
Sale of stock, consideration received | $ 226,900,000 | |||||
Series B Preferred Units | Preferred Stock Issuance | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued during mergers (in shares) | 9,400,000 | |||||
OCGH | ||||||
Class of Stock [Line Items] | ||||||
Unitholders' capital (in shares) | 60,779,066 | 60,783,255 | ||||
Non-controlling interests in consolidated subsidiaries | $ 538,305,000 | $ 612,228,000 | ||||
Oaktree Operating Group | ||||||
Class of Stock [Line Items] | ||||||
Subsidiary units outstanding (in shares) | 159,919,875 | |||||
Total unitholders’ capital | $ 1,408,530,000 | $ 1,565,119,000 | ||||
Oaktree Operating Group | Converted OCGH Units and OCGH Units | ||||||
Class of Stock [Line Items] | ||||||
Subsidiary units outstanding (in shares) | 159,915,686 | |||||
Equity Held by Third Parties | ||||||
Class of Stock [Line Items] | ||||||
Non-controlling interests in consolidated subsidiaries | $ 0 | $ 0 |
UNITHOLDERS' CAPITAL - Summary
UNITHOLDERS' CAPITAL - Summary of Net Income (Loss) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||
Total weighted average units outstanding, diluted (in shares) | 159,916 | 160,050 |
Oaktree Operating Group net income (loss): | ||
Oaktree Operating Group net income (loss) | $ 113,623 | $ 503,281 |
Net income (loss) attributable to OCG Class A unitholders: | ||
Oaktree Operating Group net income (loss) attributable to OCG Class A unitholders | (7,849) | 264,917 |
Non-Operating Group income and expense | 18,702 | 13,802 |
Net income attributable to OCG Class A unitholders | $ 10,853 | $ 278,719 |
Oaktree Operating Group | ||
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||
Total weighted average units outstanding, basic (in shares) | 159,916 | 160,050 |
Oaktree Operating Group net income (loss): | ||
Oaktree Operating Group net income (loss) | $ (4,022) | $ 436,381 |
Series A Preferred Units | Oaktree Operating Group | ||
Oaktree Operating Group net income (loss): | ||
Oaktree Operating Group net income (loss) | $ 6,829 | $ 6,829 |
OCGH Units | Oaktree Operating Group | ||
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||
Total weighted average units outstanding, basic (in shares) | 60,779 | 61,342 |
Total weighted average units outstanding, diluted (in shares) | 60,779 | 61,342 |
Oaktree Operating Group net income (loss): | ||
Oaktree Operating Group net income (loss) | $ (3,002) | $ 164,635 |
Class A Units | ||
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||
Total weighted average units outstanding, basic (in shares) | 99,137 | 98,708 |
Total weighted average units outstanding, diluted (in shares) | 99,137 | 98,708 |
Net income (loss) attributable to OCG Class A unitholders: | ||
Net income attributable to OCG Class A unitholders | $ 10,853 | $ 278,719 |
Class A Units | Oaktree Operating Group | ||
Weighted average Oaktree Operating Group units outstanding (in thousands): | ||
Total weighted average units outstanding, basic (in shares) | 99,137 | 98,708 |
Total weighted average units outstanding, diluted (in shares) | 99,137 | 98,708 |
Oaktree Operating Group net income (loss): | ||
Oaktree Operating Group net income (loss) | $ (7,849) | $ 264,917 |
UNITHOLDERS' CAPITAL - Changes
UNITHOLDERS' CAPITAL - Changes in Company Ownership Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||
Net income attributable to OCG Class A unitholders | $ 10,853 | $ 278,719 |
Equity reallocation between controlling and non-controlling interests | 14,275 | 3,678 |
Change from net income attributable to OCG Class A unitholders and transfers from non-controlling interests | $ 25,128 | $ 282,397 |
EARNINGS PER UNIT - Computation
EARNINGS PER UNIT - Computations of Net Income (Loss) Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Line Items] | ||
Net income attributable to OCG Class A unitholders | $ 10,853 | $ 278,719 |
Weighted average number of Class A units outstanding, diluted (in shares) | 159,916 | 160,050 |
Class A Units | ||
Earnings Per Share [Line Items] | ||
Net income attributable to OCG Class A unitholders, diluted | $ 10,853 | $ 278,719 |
Net income attributable to OCG Class A unitholders | $ 10,853 | $ 278,719 |
Weighted average number of Class A units outstanding, basic (in shares) | 99,137 | 98,708 |
Weighted average number of Class A units outstanding, diluted (in shares) | 99,137 | 98,708 |
Basic net income per Class A unit (in dollars per share) | $ 0.11 | $ 2.82 |
Diluted net income per Class A unit (in dollars per share) | $ 0.11 | $ 2.82 |
EARNINGS PER UNIT - Computati_2
EARNINGS PER UNIT - Computations of Net Income (Loss) Per Unit (Additional Information) (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Performance Share Awards | ||
Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share computation (in shares) | 0 | 0 |
OCGH Units | ||
Earnings Per Share [Line Items] | ||
OCGH issued (in shares) | 0 | 0 |
OCGH Units | Performance Share Awards | Minimum | ||
Earnings Per Share [Line Items] | ||
Vesting period | 4 years | |
OCGH Units | Performance Share Awards | Maximum | ||
Earnings Per Share [Line Items] | ||
Vesting period | 10 years |
EQUITY-BASED AND OTHER DEFERR_3
EQUITY-BASED AND OTHER DEFERRED COMPENSATION - Long Term Incentive Plan Awards (Details) - Employees and Directors - LTIP Awards - Long-Term Incentive Plan $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted | $ 13.6 |
Vesting period | 4 years |
Compensation expense, expected | $ 40.2 |
Weighted average period of recognition non-vested equity-based awards | 2 years 9 months 18 days |
Compensation expense, recognized | $ 4.6 |
EQUITY-BASED AND OTHER DEFERR_4
EQUITY-BASED AND OTHER DEFERRED COMPENSATION - Equity-Based Compensation (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Oaktree Operating Group | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Subsidiary units outstanding (in shares) | 159,919,875 | |
Converted OCGH Units and OCGH Units | Oaktree Operating Group | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Subsidiary units outstanding (in shares) | 159,915,686 | |
Two Thousand Eleven Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of unit authorized (in shares) | 23,988,048 | |
Number of units awarded (in shares) | 15,705,531 |
EQUITY-BASED AND OTHER DEFERR_5
EQUITY-BASED AND OTHER DEFERRED COMPENSATION - Restated Exchange Agreement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 36 Months Ended | 72 Months Ended | |||||
Mar. 31, 2022 | Dec. 31, 2029 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2025 | Dec. 31, 2028 | |
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% | ||||||||
Plan modification, incremental cost | $ 0 | ||||||||
OCGH Units | Forecast | |||||||||
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% | |||||
OCGH Units | Messrs. Howard Marks, Bruce Karsh, Jay Wintrob, John Frank, Sheldon Stone, Richard Masson And Larry Keele | Forecast | |||||||||
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% | ||||||||
OCGH Units | Current employees not separately named | Forecast | |||||||||
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% | ||||||||
Converted Class A Units and Phantom Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
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% |
EQUITY-BASED AND OTHER DEFERR_6
EQUITY-BASED AND OTHER DEFERRED COMPENSATION - OCGH Unit Awards (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 21 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2022USD ($)companyshares | Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2021$ / shares | |
OCGH Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | shares | 0 | |||||
Unrecognized compensation expense on non-vested equity-based awards | $ | $ 15.3 | |||||
Weighted average period of recognition non-vested equity-based awards | 3 years 9 months 18 days | |||||
Estimated liquidity period (in years) | 7 years | 6 years 4 months 24 days | ||||
Share exchange rate | 1 | |||||
Number of comparable companies used in volatility calculation | company | 5 | |||||
Discount percentage | 17.50% | 20.00% | ||||
Class A Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share exchange rate | 1 | |||||
Converted Class A Units and Phantom Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Valuation assumptions, price per unit (in dollars per share) | $ / shares | $ 49 |
EQUITY-BASED AND OTHER DEFERR_7
EQUITY-BASED AND OTHER DEFERRED COMPENSATION - Summary of Unvested Equity-Based Awards and Changes (Details) | 3 Months Ended | |||
Mar. 31, 2022$ / sharesshares | Dec. 31, 2022$ / shares | Dec. 31, 2021$ / shares | Mar. 31, 2021 | |
Converted OCGH Units | ||||
Number of Units | ||||
Beginning balance (in shares) | shares | 277,464 | |||
Vested (in shares) | shares | (137,875) | |||
Forfeited (in shares) | shares | (1,723) | |||
Ending balance (in shares) | shares | 137,866 | |||
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 46.79 | |||
Vested (in dollars per share) | 45.38 | |||
Forfeited (in dollars per share) | 49.52 | |||
Ending balance (in dollars per share) | $ 48.20 | |||
Stock conversion ratio | 1 | |||
Shares issued, price per share (in dollars per share) | $ 49 | |||
OCGH Units | ||||
Number of Units | ||||
Beginning balance (in shares) | shares | 338,530 | |||
Vested (in shares) | shares | (135,723) | |||
Forfeited (in shares) | shares | 0 | |||
Ending balance (in shares) | shares | 202,807 | |||
Weighted Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 37.64 | |||
Vested (in dollars per share) | 31.01 | |||
Forfeited (in dollars per share) | 0 | |||
Ending balance (in dollars per share) | $ 42.07 | |||
Forecast | Converted OCGH Units | ||||
Weighted Average Grant Date Fair Value | ||||
Shares issued, price per share (in dollars per share) | $ 49 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Contingencies And Commitments [Line Items] | ||
Accrued incentives (fund level) | $ 1,666,346 | $ 1,668,839 |
Compensation expense related to accrued incentives (fund level) | 865,529 | 868,408 |
Capital commitments | 288,400 | 325,800 |
Consolidated Funds | ||
Contingencies And Commitments [Line Items] | ||
Aggregate potential credit and investment commitments | 14,600 | $ 13,500 |
Oaktree Opportunities Fund XI, L.P. | ||
Contingencies And Commitments [Line Items] | ||
Capital commitments | $ 412,500 |
RELATED-PARTY TRANSACTIONS - Am
RELATED-PARTY TRANSACTIONS - Amounts Due from and Due to Affiliates (Details) - Oaktree Capital Group Excluding Consolidated Funds - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Due from affiliates: | ||
Loans to affiliates and employees | $ 0 | $ 44,088 |
Amounts due from unconsolidated funds | 2,507 | 2,829 |
Management fees and incentive income due from unconsolidated funds and affiliates | 39,208 | 289,795 |
Receivable from unconsolidated entities | 25,419 | 36,001 |
Non-interest bearing advances made to certain non-controlling interest holders and employees | 142 | 148 |
Total due from affiliates | 67,276 | 372,861 |
Due to affiliates: | ||
Amounts due to unconsolidated entities | 9,049 | 4,198 |
Amounts due to senior executives, certain non-controlling interest holders and employees | 0 | 0 |
Total due to affiliates | $ 9,049 | $ 4,198 |
RELATED-PARTY TRANSACTIONS - Ad
RELATED-PARTY TRANSACTIONS - Additional Information (Details) | Oct. 01, 2019USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | May 07, 2021USD ($)instrument | May 19, 2020USD ($) | Dec. 13, 2019USD ($) | Dec. 12, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Capital commitment | $ 112,500,000 | |||||||
Oaktree Opportunities Fund XI, L.P. | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Capital commitment | 750,000,000 | |||||||
Contributions of committed capital | 338,000,000 | |||||||
Revolving credit facility | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Credit facility | $ 250,000,000 | |||||||
Borrowings under credit facilities | 0 | |||||||
Revolving credit facility | Credit Agreement | Oaktree Capital I, L.P | Oaktree Capital Management, L.P. | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Number of debt instruments | instrument | 2 | |||||||
Credit facility | $ 250,000,000 | |||||||
Oaktree Capital Group Excluding Consolidated Funds | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Loans to affiliates and employees | 0 | $ 44,088,000 | ||||||
Oaktree Capital Group Excluding Consolidated Funds | Revolving credit facility | Credit Agreement | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Credit facility | $ 650,000,000 | $ 500,000,000 | ||||||
Borrowings under credit facilities | 0 | |||||||
Affiliates | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Reimbursable expenses payable | $ 750,000 | |||||||
Termination period (in days) | 90 days | |||||||
Administrative expenses | 200,000 | $ 200,000 | ||||||
Administrative services reimbursement payable | 0 | $ 200,000 | ||||||
Affiliates | Revolving credit facility | Credit Agreement | Oaktree Capital I, L.P | Oaktree Capital Management, L.P. | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Interest income | 9,000 | 52,000 | ||||||
Affiliates | Oaktree Capital Group Excluding Consolidated Funds | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Management fees and incentive income | 5,400,000 | $ 553,000,000 | ||||||
Employee | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Loans to affiliates and employees | $ 0 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of segments | 1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Jun. 15, 2022 | May 10, 2022 |
Class A Units | Subsequent Event | ||
Class of Stock [Line Items] | ||
Class A unit dividends paid (in dollars per share) | $ 0.27 | |
Series A Preferred Units | Forecast | ||
Class of Stock [Line Items] | ||
Distributions declared per preferred unit (in dollars per share) | $ 0.414063 | |
Series B Preferred Units | Forecast | ||
Class of Stock [Line Items] | ||
Distributions declared per preferred unit (in dollars per share) | $ 0.409375 |