INVESTMENTS |
5. INVESTMENTS
The Company’s investments are comprised of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | Percentage of total investments | | December 31, | | December 31, | | | | | | 2022 | | 2021 | | 2022 | | 2021 | Equity method investments: | | | | | | | | Equity method - carried interest | $ | 3,106,577 | | | $ | 2,998,421 | | | 78.2% | | 81.4% | Equity method private investment partnership interests - principal | 543,592 | | | 473,887 | | | 13.7 | | 12.9 | Equity method private investment partnership interests and other (held at fair value) | 123,170 | | | 117,539 | | | 3.1 | | 3.2 | Equity method private investment partnership interests and other | 47,439 | | | 40,580 | | | 1.2 | | 1.1 | Total equity method investments | 3,820,778 | | | 3,630,427 | | | 96.2 | | 98.6 | | | | | | | | | Collateralized loan obligations | 25,163 | | | 30,815 | | | 0.6 | | 0.8 | Other fixed income | 51,771 | | | 21,582 | | | 1.2 | | 0.5 | Collateralized loan obligations and other fixed income, at fair value | 76,934 | | | 52,397 | | | 1.8 | | 1.3 | | | | | | | | | Common stock, at fair value | 77,022 | | | 1,440 | | | 2.0 | | 0.1 | Total investments | $ | 3,974,734 | | | $ | 3,684,264 | | | | | | | | | | | | | |
Equity Method Investments
The Company’s equity method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the SEC. As of and for the years ended December 31, 2022, 2021 and 2020, no individual equity method investment held by the Company met the significance criteria. The following tables present summarized financial information for the Company’s equity method investments, which are primarily funds managed by the Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of and Year Ended December 31, 2022 | | Credit Group | | Private Equity Group | | Real Assets Group | | Secondaries Group | | Strategic Initiatives | | Total | Statement of Financial Condition | | | | | | | | | | | | Investments | $ | 15,704,463 | | | $ | 9,376,032 | | | $ | 13,052,820 | | | $ | 12,719,333 | | | $ | 1,980,690 | | | $ | 52,833,338 | | Total assets | 18,841,376 | | | 9,947,821 | | | 14,440,914 | | | 12,931,082 | | | 2,094,008 | | | 58,255,201 | | Total liabilities | 4,848,872 | | | 937,326 | | | 5,007,250 | | | 3,716,111 | | | 927,813 | | | 15,437,372 | | Total equity | 13,992,504 | | | 9,010,495 | | | 9,433,664 | | | 9,214,971 | | | 1,166,195 | | | 42,817,829 | | | | | | | | | | | | | | Statement of Operations | | | | | | | | | | | | Revenues | $ | 1,333,204 | | | $ | 271,873 | | | $ | 618,796 | | | $ | 2,874 | | | $ | 8,164 | | | $ | 2,234,911 | | Expenses | (375,506) | | | (153,372) | | | (357,845) | | | (289,741) | | | (64,684) | | | (1,241,148) | | Net realized and unrealized gains (losses) from investments | (172,527) | | | (482,260) | | | 304,068 | | | (11,173) | | | 186,356 | | | (175,536) | | Income tax benefit (expense) | (4,723) | | | 92 | | | (36,501) | | | — | | | (11) | | | (41,143) | | Net income (loss) | $ | 780,448 | | | $ | (363,667) | | | $ | 528,518 | | | $ | (298,040) | | | $ | 129,825 | | | $ | 777,084 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of and Year Ended December 31, 2021 | | Credit Group | | Private Equity Group | | Real Assets Group | | Secondaries Group | | Strategic Initiatives | | Total | Statement of Financial Condition | | | | | | | | | | | | Investments | $ | 16,919,068 | | | $ | 9,143,164 | | | $ | 9,555,266 | | | $ | 7,096,073 | | | $ | 484,969 | | | $ | 43,198,540 | | Total assets | 18,316,775 | | | 9,548,551 | | | 10,146,133 | | | 7,220,604 | | | 490,246 | | | 45,722,309 | | Total liabilities | 5,268,103 | | | 1,539,522 | | | 3,155,826 | | | 2,960,748 | | | 392,347 | | | 13,316,546 | | Total equity | 13,048,672 | | | 8,009,029 | | | 6,990,307 | | | 4,259,856 | | | 97,899 | | | 32,405,763 | | | | | | | | | | | | | | Statement of Operations | | | | | | | | | | | | Revenues | $ | 1,318,517 | | | $ | 229,539 | | | $ | 326,507 | | | $ | 911 | | | $ | 23,910 | | | $ | 1,899,384 | | Expenses | (316,134) | | | (177,380) | | | (170,008) | | | (89,281) | | | (11,927) | | | (764,730) | | Net realized and unrealized gains (losses) from investments | 457,943 | | | 2,161,730 | | | 1,179,698 | | | 1,399,009 | | | (24,758) | | | 5,173,622 | | Income tax expense | (4,511) | | | (19,125) | | | (1,167) | | | — | | | — | | | (24,803) | | Net income (loss) | $ | 1,455,815 | | | $ | 2,194,764 | | | $ | 1,335,030 | | | $ | 1,310,639 | | | $ | (12,775) | | | $ | 6,283,473 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2020 | | Credit Group | | Private Equity Group | | Real Assets Group | | Secondaries Group | | Strategic Initiatives | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Statement of Operations | | | | | | | | | | | | Revenues | $ | 940,450 | | | $ | 263,335 | | | $ | 191,543 | | | $ | — | | | $ | 2,656 | | | $ | 1,397,984 | | Expenses | (221,083) | | | (112,325) | | | (81,071) | | | — | | | (5,585) | | | (420,064) | | Net realized and unrealized gains (losses) from investments | (210,881) | | | 1,218,362 | | | 11,923 | | | — | | | 2,324 | | | 1,021,728 | | Income tax benefit (expense) | (1,693) | | | 57,935 | | | 346 | | | — | | | — | | | 56,588 | | Net income (loss) | $ | 506,793 | | | $ | 1,427,307 | | | $ | 122,741 | | | $ | — | | | $ | (605) | | | $ | 2,056,236 | |
The Company recognized net gains related to its equity method investments of $21.7 million, $114.9 million and $22.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. The net gains were included within principal investment income, net realized and unrealized gains (losses) on investments, and interest and dividend income within the Consolidated Statements of Operations.
With respect to the Company’s equity method investments, the material assets are expected to generate either long term capital appreciation and/or interest income, the material liabilities are debt instruments collateralized by, or related to, the financing of the assets and net income is materially comprised of the changes in fair value of these net assets. Investments of the Consolidated Funds
Investments held in the Consolidated Funds are summarized below:
| | | | | | | | | | | | | | | | | | | | | | | | | Fair Value at | | Percentage of total investments as of | | December 31, | | December 31, | | | | | | | | | | 2022 | | 2021 | | 2022 | | 2021 | Fixed income investments: | | | | | | | | Bonds | $ | 786,961 | | | $ | 857,125 | | | 6.0% | | 6.7% | Loans | 9,280,522 | | | 9,910,689 | | | 70.3 | | 77.3 | Investments held in trust account | 1,013,382 | | | 1,000,285 | | | 7.7 | | 7.8 | | | | | | | | | Total fixed income investments | 11,080,865 | | | 11,768,099 | | | 84.0 | | 91.8 | Equity securities | 731,599 | | | 340,272 | | | 5.5 | | 2.7 | Partnership interests | 1,392,169 | | | 708,307 | | | 10.5 | | 5.5 | Total investments, at fair value | $ | 13,204,633 | | | $ | 12,816,678 | | | | | |
As of December 31, 2022 and 2021, no single issuer or investment, including derivative instruments and underlying portfolio investments of the Consolidated Funds, had a fair value that exceeded 5.0% of the Company’s total assets.
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