10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Amendment No. 1

to

Form 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2012

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from                      to                     .

Commission File Number 001-35500

Oaktree Capital Group, LLC

(Exact name of registrant as specified in its charter)

Delaware	26-0174894
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

333 South Grand Avenue, 28th Floor

Los Angeles, CA 90071

Telephone: (213) 830-6300

(Address, zip code, and telephone number, including

area code, of registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 and 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ¨    No  x

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

	Large accelerated filer  ¨	Accelerated filer  ¨
	Non-accelerated filer  x	Smaller reporting company  ¨
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ¨    No  x

As of May 14, 2012, there were 30,579,510 Class A units and 120,250,753 Class B units of the registrant outstanding.

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 to Oaktree Capital Group, LLC’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed with the Securities and Exchange Commission on May 14, 2012 (the “Form 10-Q”), is to furnish the Interactive Data Files as Exhibit 101 to the Form 10-Q in accordance with Rule 405 and Rule 406T of Regulation S-T.

No other changes have been made to the Form 10-Q. This Amendment No. 1 continues to speak as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date and does not modify or update in any way disclosures made in the original Form 10-Q.

Item 6. Exhibits

For a list of exhibits filed with this report, refer to the Exhibits Index on the page immediately preceding the exhibits, which Exhibit Index is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: June 5, 2012

Oaktree Capital Group, LLC
By:	/s/    David M. Kirchheimer
	Name:	David M. Kirchheimer
	Title:	Principal, Chief Financial Officer and Chief Administrative Officer and Authorized Signatory

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EXHIBITS INDEX

Exhibit No.	Description of Exhibit
31.1*	Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS†	XBRL Instance Document.
101.SCH†	XBRL Taxonomy Extension Schema Document.
101.CAL†	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB†	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE†	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF†	XBRL Taxonomy Extension Definition Linkbase Document.

* Previously filed as an exhibit to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed with the Securities and Exchange Commission on May 14, 2012.

** Previously furnished as an exhibit to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed with the Securities and Exchange Commission on May 14, 2012.

† In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed for purposes of Section 18 of the Exchange Act and otherwise is not subject to liability under such section.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fair value of financial instruments

GAAP establishes a hierarchal disclosure framework which 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, including 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.

• 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 prices in markets for which there are few transactions, the prices are not current, little public information exists or prices vary substantially over time or among brokered market makers. Other inputs include interest rates, yield curves, volatilities, prepayment risks, loss severities, credit risks and default rates.

• Level III—Model-derived 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.

In some instances, an instrument may fall into different 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. The Company accounts for the transfer of assets into or out of each fair value hierarchy level as of the beginning of the reporting period.

In the absence of observable market prices, the Company values Level III investments using valuation methodologies applied on a consistent basis. The quarterly valuation process for Level III investments begins with each portfolio company or security being initially valued by the investment and valuation teams. The valuations are then reviewed by the valuation committee of each investment strategy, which consists of senior members of the investment team. All Level III investment values are ultimately approved by the valuation committees and designated investment professionals, as well as the valuation officer, who is independent of the investment teams and reports directly to the Company’s Managing Principal. The valuation process also includes a review by independent valuation parties, at least annually, for certain investments 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 evaluates changes in fair value measurements from period to period for reasonableness, considering items such as industry trends, general economic and market conditions, and factors specific to the investment.

Investments, at fair value

The consolidated funds are investment companies that reflect their investments, including majority-owned and controlled investments (the “portfolio companies”), at fair value. The Company has retained the specialized investment company accounting guidance under GAAP for the consolidated funds with respect to consolidated investments. Thus, the consolidated investments are reflected on 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 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. These securities may initially be valued at the acquisition price as the best indicator of fair value. Subsequent valuations will depend on facts and circumstances known as of the valuation date and the application of valuation methodologies further described below under “—Non-publicly traded equity and real estate investments.”

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 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 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 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

Investments in corporate and government debt which are not listed or admitted to trading on any securities exchange are valued at the average 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, 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 borrowers.

Non-publicly traded equity and real estate investments

The fair values of private equity and real estate investments are determined by using a market approach or income approach. A market approach utilizes valuations of comparable public companies and transactions and generally seeks to establish the enterprise value of the portfolio company using a market multiple approach. This approach takes into account a specific 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. Consideration may also be given to such factors as acquisition price of the security, historical and projected operational and financial results for the portfolio company, the strengths and weaknesses of the portfolio company relative to its comparable companies, industry trends, general economic and market conditions and other factors 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 period of time elapsed 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 which may eventually 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.

Revision to consolidated statements of cash flows

The Company has corrected amounts related to distributions to non-controlling redeemable interests in consolidated funds and purchases of securities. For the three-month period ended March 31, 2011, the impact was $105,013, increasing net cash used in financing activities from the previously reported $(3,283,110) to $(3,388,123) and increasing net cash provided by operating activities from the previously reported $1,650,000 to $1,755,013. This revision had no impact on the net change in cash and cash-equivalents as previously reported. Management has determined that this change was not material and, accordingly, management has revised the condensed consolidated statement of cash flows for the three months ended March 31, 2011.

Reclassifications

Certain amounts reported in the prior year have been reclassified to conform to the current year presentation.

Recent accounting developments

In May 2011, the Financial Accounting Standards Board (“FASB”) issued amended guidance on fair value measurements specifying that the concepts of highest and best use and valuation premise in a fair value measurement are only relevant when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. The guidance clarified that a reporting entity should disclose quantitative information about the unobservable inputs used in a fair value measurement that is categorized within Level III of the fair value hierarchy and also required additional disclosure regarding the valuation processes used by the reporting entity and the sensitivity of fair value measurements to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any, for fair value measurements categorized within Level III. The guidance was effective for interim and annual periods beginning after December 15, 2011. The Company adopted this guidance in the first quarter of 2012 and determined that the adoption did not have a material impact on its condensed consolidated financial statements. Please see Note 4 for additional information.

In June 2011, the FASB issued amended guidance on the presentation of comprehensive income. The guidance allows an entity to present the components of net income, the components of other comprehensive income and the total of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Regardless of the option chosen, the entity is required to present items that are reclassified between net income and other comprehensive income on the face of the financial statements where the components of net income and the components of other comprehensive income are presented. This amendment eliminated the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. For public entities, the amendments were effective for fiscal years and interim periods within those years beginning after December 15, 2011. The amendments should be applied retrospectively and early adoption is permitted. In December 2011, the FASB delayed indefinitely the effective date for a portion of this guidance related to the presentation of reclassifications of items out of accumulated other comprehensive income. The Company adopted this guidance in the first quarter of 2012 and determined that the adoption did not have a material impact on its financial condition or results of operations as the guidance only changes the presentation of other comprehensive income and total comprehensive income. No changes were made to the existing guidance regarding which items are reported in other comprehensive income. Please see the condensed consolidated statements of comprehensive income (loss) for the required disclosures.

In December 2011, the FASB issued amended guidance requiring enhanced disclosures that will enable users to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The amendments are effective for fiscal years and interim periods within those years beginning after December 31, 2012. The Company is currently evaluating the effect that the guidance may have on its condensed consolidated financial statements.

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Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2012

Organization and Basis of Presentation [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

1. ORGANIZATION AND BASIS OF PRESENTATION

Oaktree Capital Group, LLC (together with its subsidiaries, “Oaktree” or the “Company”) is a leading global investment management firm focused on alternative markets. Oaktree manages funds (the “Oaktree funds”) in investment strategies that fall into the following six asset classes: distressed debt, corporate debt, control investing, convertible securities, real estate and listed equities. Funds managed by Oaktree include both separate accounts and commingled funds. The commingled funds include open-end and closed-end limited partnerships, for which the Company makes an investment in and serves as the general partner or, in certain limited cases, co-general partner.

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, the consolidated entities which are considered to be variable interest entities and for which the Company is considered the primary beneficiary, and certain entities which are not considered variable interest entities but in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated through consolidation. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2011 included in the Company’s prospectus dated April 11, 2012, as filed with the Securities and Exchange Commission on April 12, 2012.

Reorganization of Oaktree Capital Management, LLC

Oaktree Capital Group, LLC was formed on April 13, 2007 for the purpose of effecting a private over-the-counter equity offering. On May 21, 2007, the Company sold 23,000,000 Class A Units to qualified institutional buyers, as such term is defined under Rule 144A of the U.S. Securities Act of 1933 as amended, (the “2007 Private Offering”) for net proceeds of $944.2 million. Prior to the 2007 Private Offering, our business was operated through Oaktree Capital Management, LLC (“OCM” or the “Predecessor Company”), formed in April 1995, which was owned by its principals, senior employees and certain other investors. In connection with the 2007 Private Offering, OCM caused all of its business to be contributed to a group of operating entities collectively referred to as the Oaktree Operating Group. In addition to the contribution and assignment of OCM’s business to the Oaktree Operating Group, the owners who held interests in OCM immediately prior to the 2007 Private Offering exchanged those interests for units of Oaktree Capital Group Holdings, L.P. (“OCGH”) and became limited partners of OCGH (together with any subsequently admitted limited partners, the “OCGH Unitholders”). In exchange for the assignment and contribution of OCM’s business to the Oaktree Operating Group, OCGH received limited partnership units in each Oaktree Operating Group entity. These series of transactions are collectively referred to as the May 2007 Restructuring. An Oaktree Operating Group unit is not a legal interest but represents one limited partnership interest in each of the Oaktree Operating Group entities.

As a result of the May 2007 Restructuring and other transactions associated with the 2007 Private Offering, the Company became the owner of, and our Class A unitholders therefore had, a 15.86% indirect economic interest in the Oaktree Operating Group, while OCGH retained an 84.14% direct economic interest in the Oaktree Operating Group. Additionally, the Company issued all of its outstanding Class B units to OCGH. The Class B units are entitled to ten votes per unit whereas the Class A units are only entitled to one vote per unit. Therefore, the Class B units initially held 98.15% of the voting interest of the Company.

OCM is considered the predecessor of the Company for accounting purposes and its financial statements are the historical financial statements of the Company. The May 2007 Restructuring was accounted for as a reorganization of entities under common control. Accordingly, the value of assets and liabilities recognized in OCM’s financial statements were unchanged when those assets and liabilities were carried forward into the Company’s financial statements. When the Company indirectly purchased Oaktree Operating Group units from OCGH and directly from the Oaktree Operating Group, it recorded the proportion of Oaktree Operating Group net assets acquired at their historical carrying value and proportionately reduced the OCGH non-controlling interest in consolidated subsidiaries. Subsequent to the completion of the May 2007 Restructuring, the OCGH Unitholders’ economic interest in the Oaktree Operating Group is reflected as OCGH non-controlling interest in consolidated subsidiaries in the accompanying condensed consolidated financial statements.

Initial public offering

On April 12, 2012, the Company listed its Class A units on the New York Stock Exchange (“NYSE”). In connection with the listing, the Company sold 7,888,864 Class A units and selling unitholders sold 954,159 Class A units. Upon the completion of the initial public offering, the Company owned approximately 20% of the Oaktree Operating Group and the Company’s principals controlled 98% of the total combined voting power of the Company’s units entitled to vote. The Company did not retain any of the proceeds from the sale of Class A units by the selling unitholders and used the offering proceeds to acquire interests in the Company’s business from its principals, employees and other investors.

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Condensed Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Assets
Cash and cash-equivalents	$ 276,420	$ 297,230
U.S. Treasury and government agency securities	371,552	381,697
Investments in limited partnerships	125,714	121,825
Due from affiliates	39,213	31,826
Deferred tax assets	72,986	72,986
Other assets	123,342	110,181
Total assets	45,498,028	44,294,156
Liabilities:
Accrued compensation expense	95,382	185,597
Accounts payable, other accrued expenses and other liabilities	70,073	63,108
Due to affiliates	58,601	57,574
Debt obligations	644,643	652,143
Total liabilities	2,534,625	2,121,549
Commitments and contingencies
Non-controlling redeemable interests in consolidated funds	41,761,164	41,048,607
Unitholders' capital:
Paid-in capital	624,578	634,739
Accumulated deficit	(426,105)	(444,713)
Accumulated other comprehensive loss	(1,731)	(1,884)
Class A and Class C unitholders' capital	196,742	188,142
OCGH non-controlling interest in consolidated subsidiaries	1,005,497	935,858
Total unitholders' capital	1,202,239	1,124,000
Total liabilities and unitholders' capital	45,498,028	44,294,156
Consolidated funds
Assets
Cash and cash-equivalents	3,660,355	3,208,429
Investments, at fair value	39,338,767	38,614,226
Dividends and interest receivable	248,065	268,162
Due from brokers	822,214	903,685
Receivable for securities sold	242,143	59,678
Derivative assets, at fair value	79,747	115,980
Other assets	97,510	108,251
Liabilities:
Accounts payable, other accrued expenses and other liabilities	16,255	52,600
Payables for securities purchased	793,550	398,714
Securities sold short, at fair value	254,926	213,727
Derivative liabilities, at fair value	154,503	68,414
Distributions payable	197,849	379,555
Borrowings under revolving credit facilities	248,843	50,117
Class A Units
Unitholders' capital:
Common stock
Class B Units
Unitholders' capital:
Common stock
Class C Units
Unitholders' capital:
Common stock

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities:
Net income	$ 2,278,270	$ 1,789,404
Adjustments to reconcile net income to net cash provided by operating activities:
Investment income	(5,680)	(2,695)
Depreciation and amortization	1,787	1,600
Compensation expense for vesting of OCGH units	12,189	237,157
Net realized and unrealized gains from consolidated funds' investments	(1,879,961)	(1,438,889)
Amortization of original issue and market discount of consolidated funds' investments	(27,948)	(52,485)
Cash flows due to changes in operating assets and liabilities:
Increase in other assets	(1,254)	(72,331)
(Decrease) increase in net due to affiliates	(6,360)	604
Decrease in accounts payable, other accrued expenses and other liabilities	(78,528)	(85,273)
Net cash provided by operating activities	2,029,108	1,755,013
Cash flows from investing activities:
Purchases of U.S. Treasury and government agency securities	(69,855)	(50,061)
Proceeds from maturities and sales of U.S. Treasury and government agency securities	80,000	20,000
Investments in limited partnerships	(2,100)	(70)
Distributions from investment limited partnerships	3,891	10,351
Purchases of fixed assets	(2,872)	(1,456)
Net cash provided by (used in) investing activities	9,064	(21,236)
Cash flows from financing activities:
Proceeds from issuance of debt obligations		300,000
Payment of debt issuance costs		(2,611)
Repayments of debt obligations	(7,500)	(7,500)
Purchases of Oaktree Operating Group units	(675)	(39,623)
Distributions to Class A and Class C unitholders	(9,528)	(20,409)
Distributions to OCGH unitholders	(78,239)	(181,875)
Net cash used in financing activities	(1,609,219)	(3,388,123)
Effect of exchange rate changes on cash	2,163	8,585
Net increase (decrease) in cash and cash-equivalents	431,116	(1,645,761)
Cash and cash-equivalents at beginning of period	3,505,659	6,305,754
Cash and cash-equivalents at end of period	3,936,775	4,659,993
Consolidated funds
Cash flows due to changes in operating assets and liabilities:
Decrease (increase) in dividends and interest receivable	20,081	(40,338)
Decrease (increase) in due from brokers	81,469	(28,413)
Increase in receivables for securities sold	(182,465)	(160,297)
Increase (decrease) in payables for securities purchased	394,837	(45,288)
Purchases of securities	(3,327,170)	(3,950,783)
Proceeds from maturities and sales of securities	4,749,841	5,603,040
Cash flows from financing activities:
Contributions from non-controlling interests	1,257,508	1,263,584
Distributions to Non-controlling Interests	(2,968,352)	(4,751,553)
Borrowings on revolving credit facilities	250,948	98,164
Repayments on revolving credit facilities	$ (53,381)	$ (46,300)

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Subsequent Events

3 Months Ended

Mar. 31, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

15. SUBSEQUENT EVENTS

Distribution

On May 10, 2012, the Company declared a distribution of $0.55 per Class A unit. This distribution, which is related to the first quarter of 2012, will be paid on May 25, 2012 to Class A holders of record as of the close of business on May 21, 2012.

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Condensed Consolidated Statements of Changes in Unitholders' Capital (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Unitholders' capital, value	$ 1,124,000	$ 1,236,716
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Repurchase and cancellation of OCGH Units	(675)	(39,623)
Capital increase related to equity-based compensation	12,189	237,157
Distributions declared	(87,767)	(202,284)
Net income (loss)	153,498	(36,997)
Foreign currency translation adjustment, net of tax	849	1,074
Unrealized gain on interest rate swap designated as cash flow hedge, net of tax	145	1,599
Unitholders' capital, value	1,202,239	1,197,642
Class A Units
Unitholders' capital, shares	22,664	22,664
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Issuance of units	14
Forfeitures of units
Repurchase and cancellation of units
Unitholders' capital, shares	22,678	22,664
Class B Units
Unitholders' capital, shares	125,847	125,431
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Issuance of units	2,313	1,443
Forfeitures of units	(5)	(13)
Repurchase and cancellation of units	(15)	(1,075)
Unitholders' capital, shares	128,140	125,786
Class C Units
Unitholders' capital, shares	13	13
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Issuance of units
Forfeitures of units
Repurchase and cancellation of units
Unitholders' capital, shares	13	13
Paid-in Capital
Unitholders' capital, value	634,739	549,466
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Equity reallocation between controlling and non-controlling interests	(2,472)	(6,339)
Capital increase related to equity-based compensation	1,839	36,108
Distributions declared	(9,528)	(20,409)
Unitholders' capital, value	624,578	558,826
Accumulated Deficit
Unitholders' capital, value	(444,713)	(348,741)
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Net income (loss)	18,608	(10,127)
Unitholders' capital, value	(426,105)	(358,868)
Accumulated Other Comprehensive Income (Loss)
Unitholders' capital, value	(1,884)	(372)
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Foreign currency translation adjustment, net of tax	131	163
Unrealized gain on interest rate swap designated as cash flow hedge, net of tax	22	243
Unitholders' capital, value	(1,731)	34
OCGH Non-Controlling Interest in Consolidated Subsidiaries
Unitholders' capital, value	935,858	1,036,363
Activity for the three months ended March 31, 2012 and March 31, 2011, respectively:
Repurchase and cancellation of OCGH Units	(675)	(39,623)
Equity reallocation between controlling and non-controlling interests	2,472	6,339
Capital increase related to equity-based compensation	10,350	201,049
Distributions declared	(78,239)	(181,875)
Net income (loss)	134,890	(26,870)
Foreign currency translation adjustment, net of tax	718	911
Unrealized gain on interest rate swap designated as cash flow hedge, net of tax	123	1,356
Unitholders' capital, value	$ 1,005,497	$ 997,650

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Condensed Consolidated Statements of Financial Condition (Parenthetical) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Class A Units
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	22,677,646	22,664,100
Common stock, shares outstanding	22,677,646	22,664,100
Class B Units
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	128,139,617	125,847,115
Common stock, shares outstanding	128,139,617	125,847,115
Class C Units
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	13,000	13,000
Common stock, shares outstanding	13,000	13,000

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Equity-Based Compensation

3 Months Ended

Mar. 31, 2012

Equity-Based Compensation [Abstract]

EQUITY-BASED COMPENSATION

10. EQUITY-BASED COMPENSATION

As a part of the May 2007 Restructuring, the OCGH Unitholders exchanged their interests in the Predecessor Company for units in OCGH. Pursuant to the Company’s exchange agreement, as amended, the general partner of OCGH may elect in its discretion to declare an open period during which an OCGH Unitholder may exchange its unrestricted vested OCGH units for, at the option of the Company’s board of directors, Class A units of the Company, an equivalent amount of cash based on then-prevailing market prices, other consideration of equal value, or any combination of the foregoing. The general partner determines the number of units eligible for exchange within a given open period and, if the OCGH Unitholders request to exchange a number of units in excess of the amount eligible for exchange, the general partner determines which units to exchange taking into account such factors as appropriate. Upon approval by our board of directors, OCGH units that are selected for exchange in accordance with the foregoing will be exchanged, at the option of our board of directors, into Class A units of the Company, an equivalent amount of cash based on then-prevailing market prices, other consideration of equal value or any combination of the foregoing pursuant to the terms of the exchange agreement.

The exchange agreement generally provides that (a) such OCGH units will be acquired by the Intermediate Holding Companies in exchange for, at the option of the Company’s board of directors, Class A units, an equivalent amount of cash based on then-prevailing market prices, other consideration of equal value, or any combination of the foregoing; (b) the OCGH units acquired by the Intermediate Holding Companies may then be redeemed by OCGH in exchange for Oaktree Operating Group units; (c) the Intermediate Holding Companies may exchange Oaktree Operating Group units with each other such that, immediately after such exchange, each Intermediate Holding Company holds Oaktree Operating Group units only in the Oaktree Operating Group entity for which such Intermediate Holding Company serves as the general partner and (d) the Company will cancel a corresponding number of Class B units. The partnership agreement of OCGH generally provides that, in the event an employee’s employment with the Oaktree Operating Group is terminated for any reason, the unvested portion of his or her OCGH units will be forfeited, unless the termination is due to his or her death or disability. As a result of the service requirement, the OCGH units subject to the risk of forfeiture, equal to $4,644.8 million based on the fair value of Class A units sold in the 2007 Private Offering, were charged to compensation expense over the service period from May 25, 2007 through January 2, 2012. These units vested 20% on each of January 2, 2008, 2009, 2010, 2011 and 2012. When the Company records this equity-based compensation expense, it also records a corresponding increase in capital.

As of April 1, 2012, the Company will recognize compensation expense on its non-vested equity-based awards of $122.6 million over a weighted average recognition period of 6.0 years.

A maximum of 22,278,632 OCGH units were authorized for issuance pursuant to the 2007 Oaktree Capital Group Equity Incentive Plan (the “2007 Plan”) and 4,954,976 units were issued as of March 31, 2012 under the 2007 Plan. The Company’s board of directors has resolved that the administrator of the 2007 Plan will no longer grant awards under the 2007 Plan. A maximum of 22,300,000 units have been authorized for issuance pursuant to the 2011 Oaktree Capital Group Equity Incentive Plan (the “2011 Plan”) and 2,326,048 units were issued as of March 31, 2012 under the 2011 Plan. These units, each of which represents an indirect interest in one Oaktree Operating Group unit, can be awarded in the form of options, unit appreciation rights, restricted unit award, or other unit-based awards. Total vested and unvested outstanding units, including Class A Units, Class C Units and OCGH Units, were 150,830,263 as of March 31, 2012.

A summary of the status of the Company’s unvested equity-based awards as of March 31, 2012 and a summary of changes for the three months ended March 31, 2012, are presented below (actual dollars per unit):

	Class A Units					Class C Units					OCGH Units
	Number of Units			Weighted average grant date fair value		Number of Units			Weighted average grant date fair value		Number of Units			Weighted average grant date fair value
Balance, December 31, 2011		—		$	—		1,200		$	24.75		24,130,569		$	41.13
Granted		13,546			44.00		—			—		2,312,502	(1)		33.00
Vested		(3,900	)		44.00		(600	)		24.75		(21,519,734	)		43.20
Exchanged		—			—		—			—		—			—
Forfeited		—			—		—			—		(5,000	)		19.67
Balance, March 31, 2012		9,646		$	44.00		600		$	24.75		4,918,337		$	28.28

(1) As part of the year-end 2011 personnel and compensation review process, 1,966,302 restricted OCGH units were issued with a grant date during the first quarter of 2012, subject to equal annual vesting over periods of five or ten years. Additionally, 346,200 units were issued to replace phantom equity plan grants awarded in the prior year that were subsequently cancelled. The aggregate grant date fair value of $76.3 million for all units issued in the quarter was determined by applying a 25% discount to the Class A unit price on the private over-the-counter market developed by Goldman, Sachs & Co. for Tradeable Unregistered Equity Securities on which the Class A units traded before the initial public offering (the “GSTrUE OTC market”). Additionally, 13,546 Class A units were awarded in January 2012, of which 3,900 were vested upon grant, 4,546 vest in equal annual installments over 5 years and 5,100 vest in increments over a 4-year period.

As of March 31, 2012, unvested units were expected to vest as follows:

	Number of Units		Weighted average remaining service term (years)
Class A Units		9,646		4.3
Class C Units		600		0.7
OCGH Units		4,918,337		6.0

In April 2012, all of the then-outstanding Class C units were converted into 13,000 Class A units on a one-for-one basis.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2012	May 14, 2012 Class A Units	May 14, 2012 Class B Units
Entity Registrant Name	Oaktree Capital Group, LLC
Entity Central Index Key	0001403528
Document Type	10-Q
Document Period End Date	Mar. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		30,579,510	120,250,753

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Income Taxes and Related Payments

3 Months Ended

Mar. 31, 2012

Income Taxes and Related Payments [Abstract]

INCOME TAXES AND RELATED PAYMENTS

11. INCOME TAXES AND RELATED PAYMENTS

In connection with the 2007 Private Offering, Oaktree was established as a publicly traded partnership and Oaktree Holdings, Inc. and Oaktree AIF Holdings, Inc., two of its Intermediate Holding Companies, were established as wholly-owned corporate subsidiaries. Accordingly, income earned by these corporate subsidiaries is subject to U.S. federal and state income taxation and taxed at prevailing rates. Income earned by non-corporate subsidiaries is not subject to U.S. federal corporate income tax and is allocated to the Oaktree Operating Group’s unitholders. For the periods beginning prior to January 1, 2012, Oaktree incurred income tax expense despite reporting losses before income taxes for financial reporting purposes because the non-cash compensation expense arising from the 2007 Private Offering that caused the reported losses was generally not deductible for income tax purposes. The final portion of the non-cash compensation expense associated with the 2007 Private Offering was charged against pre-tax income in January 2012 and did not create a loss before taxes for financial reporting purposes for the quarter ended March 31, 2012. The Company’s effective income tax rate is dependent on many factors, including the estimated nature of many amounts and the mix of revenues and expenses between the two corporate subsidiaries that are subject to income taxes and the three other subsidiaries that are not; consequently, the effective income tax rate is subject to significant variation from period to period.

Tax receivable agreement

No amounts were paid under the tax receivable agreement for the three months ended March 31, 2012.

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenues:
Management fees	$ 32,020	$ 38,638
Incentive income	5,048	5,811
Total revenues	37,068	44,449
Expenses:
Compensation and benefits	(84,464)	(78,312)
Incentive income compensation expense	(27,757)	(53,766)
Compensation expense for vesting of OCGH units	(12,189)	(237,157)
Total compensation and benefits expense	(124,410)	(369,235)
General, administrative and other expenses	(25,935)	(22,478)
Consolidated fund expenses	(17,222)	(18,934)
Total expenses	(167,567)	(410,647)
Other income (loss):
Interest expense	(10,990)	(12,891)
Interest and dividend income	539,618	734,682
Net realized gain on consolidated funds' investments	1,074,138	760,261
Net change in unrealized appreciation on consolidated funds' investments	805,823	678,628
Investment income	5,680	2,695
Other income (expense), net	2,267	(763)
Total other income	2,416,536	2,162,612
Income before income taxes	2,286,037	1,796,414
Income taxes	(7,767)	(7,010)
Net income	2,278,270	1,789,404
Less:
Net (income) loss attributable to non-controlling redeemable interests in consolidated funds	(2,124,772)	(1,826,401)
Net (income) loss attributable to OCGH non-controlling interest in consolidated subsidiaries	(134,890)	26,870
Net income (loss) attributable to Oaktree Capital Group, LLC	$ 18,608	$ (10,127)
Distributions declared per Class A and Class C unit	$ 0.42	$ 0.90
Income (loss) per unit (basic and diluted):
Net income (loss) per Class A and Class C unit	$ 0.82	$ (0.45)
Weighted average number of Class A and Class C units outstanding	22,688	22,677

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2012

Derivative Financial Instruments [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Company enters into derivative contracts in the normal course of business to achieve certain risk management objectives. As a result of the use of derivative contracts, the Company is exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, the Company enters into contracts with certain major financial institutions that have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.

Cash flow hedges

The Company uses interest rate swaps to hedge all or a portion of the interest rate risk associated with its variable rate borrowings. The Company has designated these financial instruments as cash flow hedges. Changes in the fair value of a highly effective derivative that is designated and qualifies as a cash flow hedge, to the extent that the hedge is effective, are recorded in other comprehensive income until earnings are affected by the variability of cash flows of the hedged transaction. Any hedge ineffectiveness is recorded in current-period earnings. Amounts reclassified from other comprehensive income to earnings are recorded within interest expense in the condensed consolidated statements of operations. In the condensed consolidated statements of financial condition, the fair value of the derivative instrument is reflected within other assets when it represents an asset and within other liabilities when it represents a liability.

The Company had one derivative designated as a cash flow hedge at March 31, 2012 and December 31, 2011. This interest rate swap had a notional value of $262.5 million and $270.0 million as of March 31, 2012 and December 31, 2011, respectively. The hedge continued to be effective as of March 31, 2012.

Derivatives held by consolidated funds

Certain consolidated funds utilize derivative instruments in ongoing investment operations. These derivatives primarily consist of foreign currency forward contracts utilized to manage currency risks, options used to hedge exposure for specific securities, and total return swaps and credit default swaps utilized mainly to obtain exposure to leveraged loans or to participate in foreign markets not readily accessible to the consolidated funds. None of the derivative instruments is accounted for as a hedging instrument utilizing hedge accounting.

The impact of derivative instruments held by the consolidated funds on the condensed consolidated statements of operations for the three months ended March 31, 2012 and 2011 was as follows:

	Three Months Ended March 31,
	2012						2011
	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
Total return and credit default swaps	$	10,926		$	17,184		$	5,345		$	25,663
Foreign currency forward contracts		64,817			(100,818	)		(411,377	)		133,085
Options and futures		(2,263	)		(264	)		(1,765	)		(27,333	)
Total	$	73,480		$	(83,898	)	$	(407,797	)	$	131,415

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Fair Value

3 Months Ended

Mar. 31, 2012

Fair Value [Abstract]

FAIR VALUE

4. FAIR VALUE

Fair value of financial assets and liabilities

Carrying value approximates fair value for cash and cash-equivalents, U.S. Treasury and government agency securities, receivables, consolidated fund credit facilities and accounts payable and accrued expenses, due to the short-term nature of these items. The fair value of senior notes and borrowings under revolving credit facilities is a Level III valuation that is estimated based on the current rates offered to Oaktree for debt of similar terms and maturities. The fair value of debt obligations was $681.6 million and $684.2 million as of March 31, 2012 and December 31, 2011, respectively, utilizing average borrowing rates of 3.6% and 3.5%, respectively. A 10% increase in the average borrowing rate assumption would lower the fair value as of March 31, 2012 to $671.3 million, while a 10% decrease would increase the fair value to $692.4 million. The fair value of the Company’s interest rate swap, a Level II valuation, is included in accounts payable, other accrued expenses and other liabilities and was ($7.5) million as of March 31, 2012 and ($7.6) million as of December 31, 2011.

Fair value of financial instruments held by consolidated funds

The table below summarizes the valuation of investments and other financial instruments of the consolidated funds by fair value hierarchy levels as of March 31, 2012:

	Level I			Level II			Level III		Total
Corporate debt—bank debt	$	—		$	9,366,926		$	2,720,357	$	12,087,283
Corporate debt—all other		—			7,753,809			3,570,969		11,324,778
Equities—common stock		4,287,859			511,482			6,312,245		11,111,586
Equities—preferred stock		2,109			5,757			1,401,836		1,409,702
Real estate		—			5,353			3,376,428		3,381,781
Other		2,225			2,573			18,839		23,637
Total investment securities	$	4,292,193		$	17,645,900		$	17,400,674	$	39,338,767
Securities sold short—equities	$	(254,580	)	$	(346	)	$	—	$	(254,926	)
Options written	$	—		$	(390	)	$	—	$	(390	)
Swaps (net)—corporate debt		—			9,909			—		9,909
Forward contracts (net)		—			(82,296	)		—		(82,296	)
Futures		(1,979	)		—			—		(1,979	)

The table below summarizes the valuation of investments and other financial instruments of the consolidated funds by fair value hierarchy levels as of December 31, 2011:

	Level I			Level II			Level III		Total
Corporate debt—bank debt	$	—		$	10,173,773		$	1,978,637	$	12,152,410
Corporate debt—all other		—			7,899,118			3,155,241		11,054,359
Equities—common stock		4,383,599			472,796			6,047,887		10,904,282
Equities—preferred stock		1,869			3,608			1,435,173		1,440,650
Real estate		—			—			3,037,624		3,037,624
Other		1,594			4,483			18,824		24,901
Total investment securities	$	4,387,062		$	18,553,778		$	15,673,386	$	38,614,226
Corporate debt	$	—		$	(12,450	)	$	—	$	(12,450	)
Equities		(201,277	)		—			—		(201,277	)
Total securities sold short	$	(201,277	)	$	(12,450	)	$	—	$	(213,727	)
Options written	$	—		$	(2,468	)	$	—	$	(2,468	)
Swaps (net)—corporate debt		—			(1,569	)		—		(1,569	)
Forward contracts (net)		—			53,738			—		53,738
Futures		(2,135	)		—			—		(2,135	)

The following tables set forth a summary of changes in the fair value of the Level III investments for the three months ended March 31, 2012 and 2011:

	Corporate debt – bank debt		Corporate debt – all other		Equities – common stock		Equities – preferred stock		Real estate		Other		Total
March 31, 2012
Balance, beginning of period	$	1,978,637	$	3,155,241	$	6,047,887	$	1,435,173	$	3,037,624	$	18,824	$	15,673,386
Transfers in or out of Level III, net		274,343		208,230		(173,490)		(82,965)		(5,353)		—		220,765
Purchases		514,000		118,573		228,159		11,452		247,332		—		1,119,516
Sales		(30,389)		(10,829)		(56,634)		(446)		(33,619)		—		(131,917)
Realized gains (losses), net		383		5,223		(28,339)		(4,188)		5,332		—		(21,589)
Unrealized appreciation (depreciation), net		(16,617)		94,531		294,662		42,810		125,112		15		540,513
Balance, end of period	$	2,720,357	$	3,570,969	$	6,312,245	$	1,401,836	$	3,376,428	$	18,839	$	17,400,674
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(125,075)	$	111,646	$	130,808	$	38,935	$	125,111	$	15	$	281,440

	Corporate debt – bank debt		Corporate debt – all other		Equities – common stock		Equities – preferred stock		Real Estate		Other		Total
March 31, 2011
Balance, beginning of period	$	1,330,000	$	3,321,051	$	5,774,231	$	735,855	$	985,051	$	16,176	$	12,162,364
Transfers in or out of Level III, net		38,305		65,140		(5,240)		95		935		1		99,236
Purchases		379,291		672,300		273,825		7,621		132,602		498		1,466,137
Sales		(409,591)		(814,642)		(151,661)		(54,267)		(21,410)		—		(1,451,571)
Realized gains (losses), net		18,683		(5,789)		(5,013)		(11,416)		2,561		—		(974)
Unrealized appreciation (depreciation), net		(689)		85,639		118,599		37,349		8,344		(2,130)		247,112
Balance, end of period	$	1,355,999	$	3,323,699	$	6,004,741	$	715,237	$	1,108,083	$	14,545	$	12,522,304
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(4,315)	$	38,929	$	102,415	$	15,745	$	8,344	$	(2,130)	$	158,988

Total realized and unrealized gains and losses recorded for Level III investments are included in net realized gain on consolidated funds’ investments or net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations.

There were no significant transfers between Level I and Level II for the periods presented.

Transfers out of Level III were generally attributable to certain investments that experienced a more significant level of market activity during the period and thus were valued using observable inputs. Transfers into Level III were typically due to certain investments that experienced a less significant level of market 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 valuation techniques and quantitative information utilized in determining the fair value of the Company’s Level III investments as of March 31, 2012.

Investment Type	Fair Value		Valuation Technique	Significant Unobservable Inputs (7)(8)(9)
Credit-oriented
investments:
		$1,463,067	Discounted cash flow(1)	Discount rate (range: 7% – 16%)
		1,616,036	Market approach (comparable companies)(2)	Earnings multiple(3) (range: 4x – 13x)
		631,304	Market approach (value of underlying assets) (2),(4)	Underlying asset multiple (range: 0.9x – 1.2x)
		1,656,065	Recent transaction price (5)	Not applicable
		924,854	Broker quotations(6)	Not applicable
Equity investments:
		5,577,316	Market approach (comparable companies)(2)	Earnings multiple(3) (range: 4x – 14x)
		1,442,521	Market approach (value of underlying assets) (2),(4)	Underlying asset multiple (range: 0.9x – 1.2x)
		694,244	Recent transaction price (5)	Not applicable
Real estate-oriented
investments:
		1,735,093	Discounted cash flow (1)	Discount rate (range: 8% – 38%)
				Terminal capitalization rate (range: 6% – 12%)
				Direct capitalization rate (range: 8% – 9%)
		375,613	Market approach (value of underlying assets) (2),(4)	Underlying asset multiple (range: 0.9x – 1.2x)
		1,265,722	Recent transaction price (5)	Not applicable
Other		18,839
Total Level III investments		$17,400,674

(1) A discounted cash flow method is generally used for performing investments in which the consolidated funds do not have a controlling interest in the underlying issuer.

(2) A market approach is generally used for distressed investments and investments in which the consolidated funds have a controlling interest in the underlying issuer.

(3) Earnings multiples are based on comparable public companies and transactions with comparable companies. The Company typically utilizes multiples of EBITDA, however in certain cases the Company may use other earnings multiples believed to be most relevant for the investment.

(4) A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company.

(5) Certain investments are valued based on recent transactions, generally defined as investments purchased or sold within six months of the valuation date, adjusted when appropriate based on consideration of any changes in significant unobservable inputs, valuations of comparable companies and other similar transactions. In other cases, the fair value may be based on pending transaction expected to occur after the valuation date.

(6) Certain investments are valued using broker quotes for similar securities.

(7) 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 is the discount rate. A significant increase (decrease) in the discount rate would result in a significantly lower (higher) fair value measurement.

(8) 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, and equity investments is a multiple of earnings or a multiple of underlying assets. A significant increase (decrease) in these multiples would result in a significantly higher (lower) fair value measurement.

(9) The significant unobservable inputs used in the fair value measurement of real estate investments valued using a discounted cash flow analysis can include a discount rate, terminal capitalization rate and/or a direct capitalization rate. A significant increase (decrease) in any of these rates would result in a significantly lower (higher) fair value measurement.

The use of unobservable inputs, including assessing the accuracy of source data, and the results of pricing models, require a significant degree of judgment. The Company assesses the accuracy and reliability of the sources it uses to obtain unobservable inputs; these sources may include third-party vendors that the Company believes are reliable and commonly utilized by other market place participants. In addition to the unobservable inputs described above, other factors, as described in Note 2, have a significant impact on investment valuations.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

12. 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

Periodically, the Company is a party to legal actions arising in the ordinary course of business. The Company is currently not subject to any actions that either individually or in the aggregate are expected to have a material impact on its results of operations, cash flows or financial condition.

On June 8, 2011, Kaplan Industry, Inc. v. Oaktree Capital Management, L.P. was filed in the U.S. District Court for the Southern District of Florida. In Kaplan, the plaintiff alleges that Oaktree Capital Management, L.P. tortiously interfered with a business relationship and engaged in a civil conspiracy through the actions of Gulmar Offshore Middle East, LLC (“Gulmar”), a business recently acquired by subsidiaries of OCM European Principal Opportunities Fund II, L.P. (“EPOF II”). Oaktree Capital Management, L.P. serves as investment manager to EPOF II. The complaint alleges that Gulmar breached a consortium agreement between Gulmar and Kaplan Industry, Inc. relating to the consortium’s performance of services to Petróleos de Venezuela, S.A., the state-owned oil producer of Venezuela. The plaintiff alleges that Oaktree is responsible for these breaches by Gulmar. The complaint seeks damages in excess of $800 million. The substance of the claim relates almost exclusively to actions by Gulmar prior to EPOF II’s acquisition and the basis of the claim is currently subject to an ongoing arbitration in the United Kingdom between Kaplan and Gulmar. On August 18, 2011, the court granted Oaktree Capital Management, L.P.’s motion to stay pending the completion of a related arbitration proceeding in London. Oaktree Capital Management, L.P. believes the case is without merit and that any exposure to loss is remote.

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 NAV. Inasmuch as this incentive income is contingent upon future investment activity and other factors, it is not recognized by the Company until it is fixed or otherwise determinable. As of March 31, 2012 and December 31, 2011, the aggregate of such amounts recorded at the fund level in excess of incentive income recognized by the Company was $1,889,460 and $1,686,967, respectively, for which related incentive income compensation expense was estimated to be $756,990 and $659,256, respectively.

Commitments to funds

As of March 31, 2012 and December 31, 2011, the Company, generally in the capacity as general partner, had undrawn capital commitments of $297,115 and $266,541, respectively, including commitments to both non-consolidated and consolidated funds.

Investment commitments of consolidated funds

The consolidated funds are parties to certain credit agreements, providing for the issuance of letters of credit and revolving loans, which may require the consolidated funds to extend additional loans to investee companies. The consolidated funds use the same investment criteria in making these unrecorded commitments as they do for investments that are included in the condensed consolidated statements of financial condition. The unfunded liability associated with these credit agreements is equal to the amount by which the contractual loan commitment exceeds the sum of the amount of funded debt and cash held in escrow, if any. As of March 31, 2012 and December 31, 2011, these commitments were $209,607 and $521,994, respectively.

As of March 31, 2012 and December 31, 2011, the consolidated funds had aggregate potential investment commitments of $547,628 and $367,930, respectively. These commitments will be funded by the funds’ aggregate cash balance, asset sales proceeds or drawdowns against existing capital commitments.

A consolidated fund may agree to guarantee the repayment obligations of certain investee companies. The aggregate guaranteed amounts were not material to the condensed consolidated financial statements as of March 31, 2012 and December 31, 2011.

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Unitholders' Capital

3 Months Ended

Mar. 31, 2012

Unitholders' Capital [Abstract]

UNITHOLDERS' CAPITAL

8. UNITHOLDERS’ CAPITAL

The OCGH Unitholders’ economic interest in the Oaktree Operating Group is reflected as OCGH non-controlling interest in consolidated subsidiaries and is based on the proportionate share of Oaktree Operating Group units held by the OCGH Unitholders. As of March 31, 2012 and December 31, 2011, respectively, OCGH units represented 128,139,617 of the total 150,830,263 Oaktree Operating Group units and 125,847,115 units of the total 148,524,215 Oaktree Operating Group units. Based on total Oaktree Operating Group capital of $1,183,548 and $1,104,493 as of March 31, 2012 and December 31, 2011, respectively, the OCGH non-controlling interest was $1,005,497 and $935,858.

The net income (loss) attributable to OCGH non-controlling interest in consolidated subsidiaries is determined at the Oaktree Operating Group level, based on the weighted average proportionate share of Oaktree Operating Group units held by the OCGH Unitholders. Certain expenses, such as income tax and related administrative expenses of Oaktree Capital Group, LLC and its Intermediate Holding Companies, are solely attributable to the Class A and Class C unitholders (please see Note 11).

The following table sets forth a summary of the net income (loss) attributable to the OCGH non-controlling interest and to the Class A and Class C unitholders:

	Three Months Ended March 31,
	2012			2011
Weighted average Oaktree Operating Group units outstanding (in thousands):
OCGH non-controlling interest		127,753			126,265
Class A and Class C unitholders		22,688			22,677
Total weighted average units outstanding		150,441			148,942
Oaktree Operating Group net income (loss):
Net income (loss) attributable to OCGH non-controlling interest	$	134,890		$	(26,870	)
Net income (loss) attributable to Class A and Class C unitholders		23,955			(4,827	)
Oaktree Operating Group net income (loss)	$	158,845		$	(31,697	)
Net income (loss) attributable to Oaktree Capital Group, LLC:
Oaktree Operating Group net income (loss) attributable to Class A and Class C unitholders	$	23,955		$	(4,827	)
Non-Oaktree Operating Group expenses		(178	)		(184	)
Income tax expense of Intermediate Holding Companies		(5,169	)		(5,116	)
Net income (loss) attributable to Oaktree Capital Group, LLC	$	18,608		$	(10,127	)

Set forth below are the effects of changes in the Company’s ownership interest in the Oaktree Operating Group on the Company’s capital:

	Three Months Ended March 31,
	2012			2011
Net income (loss) attributable to Oaktree Capital Group, LLC	$	18,608		$	(10,127	)
Equity reallocation between controlling and non-controlling interests		(2,472	)		(6,339	)
Change from net income (loss) attributable to Oaktree Capital Group, LLC and transfers to non-controlling interest	$	16,136		$	(16,466	)

Please see Note 10 for additional information regarding transactions that impacted unitholders’ capital.

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Debt Obligations and Credit Facilities

3 Months Ended

Mar. 31, 2012

Debt Obligations and Credit Facilities [Abstract]

DEBT OBLIGATIONS AND CREDIT FACILITIES

6. DEBT OBLIGATIONS AND CREDIT FACILITIES

As of March 31, 2012 and December 31, 2011, the Company had the following debt obligations:

	March 31, 2012		December 31, 2011
$75,000, 5.03%, issued in June 2004, payable in seven equal annual installments starting June 14, 2008	$	32,143	$	32,143
$50,000, 6.09%, issued in June 2006, payable on June 6, 2016		50,000		50,000
$50,000, 5.82%, issued in November 2006, payable on November 8, 2016		50,000		50,000
$250,000, 6.75%, issued in November 2009, payable on December 2, 2019		250,000		250,000
$300,000, 3.19% rate as described below, term loan issued in January 2011, payable 2.5% per quarter through December 31, 2015, final $150,000 payment on January 6, 2016		262,500		270,000
Total remaining principal	$	644,643	$	652,143

Future principal payments of senior notes are as follows:

Remainder of 2012	$	33,215
2013		40,714
2014		40,714
2015		30,000
2016		250,000
Thereafter		250,000
Total	$	644,643

As of March 31, 2012 and December 31, 2011, the Company was in compliance with all financial covenants associated with its senior notes and credit facilities.

As of January 7, 2011, the Company terminated the previously existing credit facility and executed a credit agreement for senior unsecured credit facilities (collectively, the “Credit Facilities”), consisting of a $300 million funded term loan (the “Term Loan”) and a $250 million revolving credit facility (the “Revolving Credit Facility”). At the Company’s election, outstanding borrowings bear interest equal to LIBOR or the alternate base rate, as defined, plus a ratings-based margin. At the Company’s current rating, the Eurodollar margin equals 1.50%. The Company entered into an interest rate swap that, together with the margin for Eurodollar loans of 1.50% at the Company’s current rating, fixed the term loan’s annual interest rate at 3.19%. The Term Loan matures in January 2016, with quarterly amortization of 2.5% that commenced March 31, 2011, and a final principal payment of $150 million at maturity. The Revolving Credit Facility, which remains undrawn, expires in January 2014, and has a commitment fee payable at an annual rate of 0.20% on unused funds. The Credit Facilities contain typical financial covenants, including ones regarding a maximum leverage ratio of 2.5-to-1, minimum fixed charge coverage ratio of 2.5-to-1 and minimum required levels of assets under management and net worth (as defined) of $50 billion and $400 million, respectively.

Oaktree Finance, LLC (“Oaktree Finance”) was formed on May 3, 2011 as an adjacency to the Company’s mezzanine strategy. Oaktree Finance is an indirect wholly-owned subsidiary of the Company, focused on providing financing for larger middle-market companies. On May 11, 2011, Oaktree Finance filed a Form N-2 with the SEC to register an initial public offering of its shares. In connection with such an offering, Oaktree Finance plans to convert from a limited liability company to a corporation and elect to be treated as a business development company under the Investment Company Act. On October 7, 2011, Oaktree Finance entered into a senior secured revolving credit facility (the “Senior Secured Revolving Credit Facility”) with a consortium of lenders that provides an initial borrowing capacity of $75 million and the ability to borrow an additional $150 million if certain specified conditions are met, including the completion of a public offering by Oaktree Finance. The Senior Secured Revolving Credit Facility also contains an accordion feature to potentially increase the borrowing capacity after an initial public offering of Oaktree Finance, if certain specified conditions are met, including the payment of additional fees. The Senior Secured Revolving Credit Facility is guaranteed by the Company and OCGH, until such time that Oaktree Finance’s public offering is completed, certain documents are delivered and certain other conditions are met. The commitments under the Senior Secured Revolving Credit Facility will expire in 2014, while the Senior Secured Revolving Credit Facility will mature in 2015. LIBOR rate borrowings under the Senior Secured Revolving Credit Facility will bear interest at LIBOR plus 1.75% prior to the completion of the planned public offering and 2.75% after the completion of the offering. Unused funds bear a commitment fee payable at an annual rate of 0.20% and 0.375% prior to and after the planned public offering, respectively. The Senior Secured Revolving Credit Facility includes customary financial and operating covenants. As of March 31, 2012 and December 31, 2011, there were no outstanding amounts under the Senior Secured Revolving Credit Facility.

Credit facilities of the consolidated funds

Certain of the consolidated funds maintain credit facilities to fund investments between capital drawdowns. These facilities generally: (a) are collateralized by the unfunded capital commitments of the consolidated funds’ limited partners, (b) bear an annual commitment fee based on unfunded commitments, and (c) contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments, and portfolio asset dispositions. The obligations of the consolidated funds are nonrecourse to the Company. As of March 31, 2012, the consolidated funds were in compliance with all covenants.

The consolidated funds had the following revolving bank credit facilities and term loans outstanding as of March 31, 2012 and December 31, 2011:

Credit agreement	Outstanding amount				Facility capacity		LIBOR margin  (1)			Maturity		Commitment fee rate		LOC fee  (2)
	March 31, 2012		December 31, 2011
Multi-currency term loan (3)	$	49,851	$	50,117	$	275,000		3.00	%		12/23/13		N.A.		N.A.
Revolving credit facility		18,000		—	$	150,000		1.75	%		12/15/13		0.35%		N.A.
Revolving credit facility		112,500		—	$	125,000		1.75	%		5/20/14		0.35%		N.A.
Revolving credit facility		—		—	$	55,000		2.00	%		9/15/13		0.35%		2.00%
Euro denominated revolving credit facility		—		—	€	55,000		1.50	%		12/11/12		0.30%		1.50%
Euro denominated revolving credit facility		66,052		—	€	55,000		1.75	%		12/17/13		0.30%		1.75% or 2.00%
Revolving credit facility		2,440		—	$	10,000		2.25	%		9/01/12		0.38%		0.38%
Revolving credit facility		—		—	$	75,000		1.75	%		9/06/13		0.35%		2.30%
	$	248,843	$	50,117

(1) The facilities bear interest at the borrower’s option of (a) an annual rate of LIBOR plus the applicable margin or (b) an alternate base rate, as defined in the respective credit agreement.

(2) Certain facilities allow for the issuance of letters of credit at an applicable annual fee. As of March 31, 2012 and December 31, 2011, outstanding standby letters of credit totaled $76,884 and $75,884, respectively.

(3) A four-year $275,000 aggregate principal amount term loan that consists of (a) a U.S. Dollar-denominated loan in an aggregate principal amount of $221,451, (b) a Euro-denominated loan in an aggregate principal amount of €26,492 and (c) an Australian Dollar-denominated loan in an aggregate principal amount of AU$17,660. The loan is guaranteed by the fund and, with certain limited exceptions, all of the subsidiaries of the fund, and is collateralized by both the unfunded capital commitments of the partners and, with certain exceptions, the portfolio investments of the fund and its subsidiaries. In connection with the term loan, $4,125 was paid to the administrative agent as a structuring fee and is being amortized over the 4-year life of the term loan.

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Non-Controlling Redeemable Interests in Consolidated Funds

3 Months Ended

Mar. 31, 2012

Non-Controlling Redeemable Interests in Consolidated Funds [Abstract]

NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDATED FUNDS

7. 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:

	Three Months Ended March 31,
	2012			2011
Balance, beginning of period	$	41,048,607		$	44,466,116
Contributions		1,257,508			1,263,584
Distributions		(2,968,352	)		(4,751,553	)
Net income		2,124,772			1,826,401
Change in distributions payable		181,706			(158,389	)
Change in deferred contributions		41,000			—
Foreign currency translation and other		75,923			149,289
Balance, end of period	$	41,761,164		$	42,795,448

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Earnings Per Unit

3 Months Ended

Mar. 31, 2012

Earnings Per Unit [Abstract]

EARNINGS PER UNIT

9. EARNINGS PER UNIT

The weighted average units outstanding include both the Class A units and Class C units because both classes have the same economic interest on a per unit basis. The computations of net income (loss) per unit are set forth below (in thousands, except per unit amounts):

	Three Months Ended March 31,
	2012		2011
Weighted average units outstanding:
Class A and Class C units outstanding		22,688		22,677
OCGH units exchangeable into Class A units  (1)		—		—
Total weighted average units outstanding		22,688		22,677
Net income (loss) per Class A and Class C unit:
Net income (loss)	$	18,608	$	(10,127	)
Weighted average units outstanding		22,688		22,677
Basic and diluted net income (loss) per unit	$	0.82	$	(0.45	)

(1) OCGH units are potentially exchangeable on a one-for-one basis into Class A units. As of March 31, 2012, there were 128,139,617 OCGH units outstanding, accordingly, the Company may cumulatively issue up to 128,139,617 additional Class A units through March 1, 2022, including more than 123,000,000 additional Class A units in 2012, in connection with the possible exchange of OCGH units by the OCGH Unitholders pursuant to the Company’s exchange agreement. For the three months ended March 31, 2012 and 2011, OCGH units have been excluded from the calculation of diluted earnings per unit given that the exchange of these units would proportionally increase Oaktree Capital Group, LLC’s interests in the Oaktree Operating Group and may have an anti-dilutive effect on earnings per unit to the extent that additional expenses, particularly tax-related expenses, are incurred by the Company as a result of the exchange.

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Segment Reporting

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

14. SEGMENT REPORTING

The Company’s business is comprised of one segment, the investment management segment. As a leading global investment manager, the Company provides investment management services to a largely institutional client base through closed-end, open-end and evergreen funds. Management makes operating decisions and assesses business performance based on financial and operating metrics and data that are presented without the consolidation of any funds.

Oaktree conducts its investment management business primarily in the United States, where substantially all of its revenues are generated.

Adjusted net income

Our chief operating decision maker uses adjusted net income (“ANI”) to evaluate the financial performance of, and make resource allocations and other operating decisions for, the investment management segment. The components of revenues and expenses used in the determination of ANI do not give effect to the consolidation of the funds that the Company manages. In addition, ANI excludes the effect of: (a) non-cash compensation charges related to the vesting of OCGH units, (b) income taxes, (c) expenses that Oaktree Capital Group, LLC or its Intermediate Holding Companies bear directly and (d) the adjustment for the OCGH non-controlling interest. ANI is calculated at the Oaktree Operating Group level. The Company expects that ANI will include non-cash equity compensation charges related to unit grants made after our initial public offering. ANI was as follows:

	Three Months Ended March 31,
	2012			2011
Revenues:
Management fees	$	191,262		$	185,259
Incentive income		62,669			130,889
Investment income		64,340			53,017
Total revenues		318,271			369,165
Expenses:
Compensation and benefits		(84,404	)		(78,312	)
Incentive income compensation expense		(27,757	)		(53,766	)
General, administrative and other expenses		(26,581	)		(20,250	)
Total expenses		(138,742	)		(152,328	)
Adjusted net income before interest and other income (expense)		179,529			216,837
Other income (expense), net		2,267			(763	)
Interest expense, net of interest income		(8,164	)		(8,720	)
Adjusted net income	$	173,632		$	207,354

A reconciliation of net loss attributable to Oaktree Capital Group, LLC to ANI of the investment management segment is presented below.

	Three Months Ended March 31,
	2012		2011
Net income (loss) attributable to Oaktree Capital Group, LLC	$	18,608	$	(10,127	)
Compensation expense for vesting of OCGH units		12,189		237,157
Income taxes		7,767		7,010
Non-Operating Group expenses		178		184
OCGH non-controlling interest		134,890		(26,870	)
Adjusted net income	$	173,632	$	207,354

The following tables reconcile the Company’s segment information to the condensed consolidated financial statements:

	As of or for the Three Months Ended March 31, 2012
	Segment			Adjustments			Consolidated
Management fees (1)	$	191,262		$	(159,242	)	$	32,020
Incentive income (1)		62,669			(57,621	)		5,048
Investment income (1)		64,340			(58,660	)		5,680
Total expenses (2)		(138,742	)		(28,825	)		(167,567	)
Other income, net		2,267			—			2,267
Interest expense, net (3)		(8,164	)		(2,826	)		(10,990	)
Other income of consolidated funds (4)		—			2,419,579			2,419,579
Income taxes		—			(7,767	)		(7,767	)
Net income attributable to non-controlling redeemable interests in consolidated funds		—			(2,124,772	)		(2,124,772	)
Net income attributable to OCGH non-controlling interest in consolidated subsidiaries		—			(134,890	)		(134,890	)
Adjusted net income/net income attributable to Oaktree Capital Group, LLC	$	173,632		$	(155,024	)	$	18,608
Investments in limited partnerships, at equity (5)	$	1,178,784		$	(1,053,070	)	$	125,714
Total assets (6)	$	2,072,424		$	43,425,604		$	45,498,028

(1) The adjustment represents the elimination of amounts attributable to the consolidated funds.

(2) The expense adjustment consists of the inclusion of $12,189 of compensation expense for vesting of OCGH units, $16,458 of consolidated fund expenses and $178 of expenses incurred by the Intermediate Holding Companies.

(3) The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income.

(4) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds.

(5) The adjustment to investments in limited partnerships is to remove from segment assets the consolidated funds that are treated as equity method investments for segment reporting purposes.

(6) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily investments in limited partnerships and incentive income receivable.

	As of or for the Three Months Ended March 31, 2011
	Segment			Adjustments			Consolidated
Management fees (1)	$	185,259		$	(146,621	)	$	38,638
Incentive income (1)		130,889			(125,078	)		5,811
Investment income (1)		53,017			(50,322	)		2,695
Total expenses (2)		(152,328	)		(258,319	)		(410,647	)
Other expense, net		(763	)		—			(763	)
Interest expense, net (3)		(8,720	)		(4,171	)		(12,891	)
Other income of consolidated funds (4)		—			2,173,571			2,173,571
Income taxes		—			(7,010	)		(7,010	)
Net income attributable to non-controlling redeemable interests in consolidated funds		—			(1,826,401	)		(1,826,401	)
Net loss attributable to OCGH non-controlling interest in consolidated subsidiaries		—			26,870			26,870
Adjusted net income/net income (loss) attributable to Oaktree Capital Group, LLC	$	207,354		$	(217,481	)	$	(10,127	)
Investments in limited partnerships, at equity (5)	$	1,060,227		$	(992,031	)	$	68,196
Total assets (6)	$	2,111,708		$	44,334,153		$	46,445,861

(1) The adjustment represents the elimination of amounts attributable to the consolidated funds.

(2) The expense adjustment consists of the inclusion of $237,157 of compensation expense for vesting of OCGH units, $20,978 of consolidated fund expenses and $184 of expenses incurred by the Intermediate Holding Companies.

(3) The interest expense adjustment represents the inclusion of interest expense attributable to non-controlling interests of the consolidated funds and the exclusion of segment interest income.

(4) The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other investment income attributable to non-controlling interests of the consolidated funds.

(5) The adjustment to investments in limited partnerships is to remove from segment assets the consolidated funds that are treated as equity method investments for segment reporting purposes.

(6) The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of segment assets eliminated in consolidation, which are primarily investments in limited partnerships and incentive income receivable.

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract]
Net income (loss) attributable to Oaktree Capital Group, LLC	$ 18,608	$ (10,127)
Other comprehensive income (loss) attributable to Oaktree Capital Group LLC, net of tax:
Foreign currency translation adjustment attributable to Oaktree Capital Group LLC	131	163
Unrealized gain on interest rate swap designated as cash flow hedge attributable to Oaktree Capital Group LLC	22	243
Other comprehensive income attributable to Oaktree Capital Group LLC, net of tax	153	406
Total comprehensive income attributable to Oaktree Capital Group, LLC	18,761	(9,721)
Comprehensive income (loss) attributable to Oaktree Capital Group, LLC	18,761	(9,721)
Net (income) loss attributable to OCGH non-controlling interest in consolidated subsidiaries	134,890	(26,870)
Other comprehensive income, attributable to OCGH non-controlling interest in consolidated subsidiaries, net of tax:
Foreign currency translation adjustment, attributable to OCGH non-controlling interest in consolidated subsidiaries, net of tax	718	911
Unrealized gain on interest rate swap designated as cash flow hedge, attributable to OCGH non-controlling interest in consolidated subsidiaries	123	1,356
Other comprehensive income (loss) attributable to OCGH non-controlling interest in consolidated subsidiaries, net of tax	841	2,267
Total comprehensive income (loss) attributable to OCGH non-controlling interest in consolidated subsidiaries	135,731	(24,603)
Less: Comprehensive loss (income) attributable to OCGH non-controlling interest in consolidated subsidiaries	(135,731)	24,603
Net income attributable to non-controlling redeemable interests in consolidated funds	2,124,772	1,826,401
Total other comprehensive income (loss), attributable to non-controlling redeemable interests in consolidated funds, net of tax:	2,124,772	1,826,401
Less: Comprehensive loss (income) attributable to non-controlling redeemable interests in consolidated funds	(2,124,772)	(1,826,401)
Net income	2,278,270	1,789,404
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustment, net of tax	849	1,074
Unrealized gain on interest rate swap designated as cash flow hedge, net of tax	145	1,599
Other comprehensive income (loss), net of tax	994	2,673
Total comprehensive income (loss)	2,279,264	1,792,077
Less: Comprehensive loss (income) attributable to non-controlling interests	(2,260,503)	(1,801,798)
Comprehensive income (loss) attributable to Oaktree Capital Group, LLC	$ 18,761	$ (9,721)

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Investments, at Fair Value

3 Months Ended

Mar. 31, 2012

Investments, at Fair Value [Abstract]

INVESTMENTS, AT FAIR VALUE

3. INVESTMENTS, AT FAIR VALUE

Investments held and securities sold short in the consolidated funds are summarized below:

	Fair value at				Fair value as a percentage of investments of consolidated funds at
Investments:	March 31,     2012		December 31,     2011		March 31,     2012			December 31,   2011
United States:
Fixed income securities:
Consumer discretionary	$	7,187,022	$	7,656,687		18.3	%		19.9	%
Consumer staples		419,305		394,897		1.1			1.0
Energy		620,083		551,850		1.6			1.4
Financials		1,389,429		1,398,771		3.5			3.6
Health care		558,054		508,947		1.4			1.3
Industrials		3,073,780		2,976,294		7.8			7.7
Information technology		730,681		764,642		1.9			2.0
Materials		770,079		1,050,651		1.9			2.7
Telecommunication services		227,185		262,830		0.6			0.7
Utilities		1,890,898		2,108,998		4.8			5.5
Total fixed income securities (cost: $15,885,230 and $16,966,996 at March 31, 2012 and December 31, 2011, respectively)		16,866,516		17,674,567		42.9			45.8
Equity securities:
Consumer discretionary		3,173,518		3,189,373		8.1			8.3
Consumer staples		299,055		299,673		0.7			0.8
Energy		421,754		542,490		1.1			1.4
Financials		3,999,092		3,296,925		10.2			8.5
Health care		140,420		140,509		0.4			0.4
Industrials		914,147		1,021,423		2.3			2.6
Information technology		76,277		72,613		0.2			0.2
Materials		1,209,904		1,490,285		3.1			3.9
Telecommunication services		621,192		458,033		1.6			1.2
Utilities		10,400		13,050		0.0			0.0
Total equity securities (cost: $9,956,730 and $10,088,110 at March 31, 2012 and December 31, 2011, respectively)		10,865,759		10,524,374		27.7			27.3

	Fair value at				Fair value as a percentage of investments of consolidated funds at
Investments:	March 31,     2012		December 31,     2011		March 31,     2012			December 31,   2011
Europe:
Fixed income securities:
Consumer discretionary	$	1,799,410	$	1,369,006		4.6	%		3.5	%
Consumer staples		312,976		366,268		0.8			1.0
Energy		165,266		68,689		0.4			0.2
Financials		552,396		458,177		1.4			1.2
Health care		23,924		52,098		0.0			0.1
Industrials		545,391		550,122		1.4			1.4
Information technology		26,322		40,348		0.1			0.1
Materials		1,185,024		697,314		3.0			1.8
Telecommunication services		39,134		28,835		0.1			0.1
Utilities		27,918		48,093		0.1			0.1
Total fixed income securities (cost: $4,495,950 and $3,723,747 at March 31, 2012 and December 31, 2011, respectively)		4,677,761		3,678,950		11.9			9.5
Equity securities:
Consumer discretionary		129,070		220,504		0.3			0.6
Consumer staples		1,318,490		1,258,840		3.4			3.3
Energy		95,952		—		0.2			—
Financials		976,653		896,977		2.5			2.3
Industrials		1,884		6,239		0.0			0.0
Materials		631,076		713,933		1.6			1.8
Information technology		258		—		0.0			—
Total equity securities (cost: $2,399,278 and $2,352,879 at March 31, 2012 and December 31, 2011, respectively)		3,153,383		3,096,493		8.0			8.0
Asia and other:
Fixed income securities:
Consumer discretionary		1,128,744		1,274,605		2.9			3.3
Consumer staples		8,480		6,821		0.0			0.0
Energy		74,073		221,786		0.2			0.6
Financials		268,393		31,726		0.7			0.1
Health care		4,854		—		0.0			—
Industrials		44,299		27,996		0.1			0.1
Information technology		125,616		94,727		0.3			0.2
Materials		76,868		64,049		0.2			0.2
Telecommunication services		2,940		2,186		0.0			0.0
Utilities		133,517		129,356		0.3			0.3
Total fixed income securities (cost: $1,807,183 and $1,789,520 at March 31, 2012 and December 31, 2011, respectively)		1,867,784		1,853,252		4.7			4.8

	Fair value at				Fair value as a percentage of investments of consolidated funds at
Investments:	March 31, 2012		December 31, 2011		March 31, 2012			December 31, 2011
Asia and other:
Equity securities:
Consumer discretionary	$	122,115	$	125,039		0.3	%		0.3	%
Consumer staples		81,445		80,728		0.2			0.2
Energy		34,154		55,973		0.1			0.1
Financials		759,026		801,538		1.9			2.1
Health care		81		76		0.0			0.0
Industrials		654,428		491,080		1.7			1.3
Information technology		85,189		63,949		0.2			0.2
Materials		75,260		54,714		0.2			0.1
Telecommunication services		5,910		16,073		0.0			0.0
Utilities		89,956		97,420		0.2			0.3
Total equity securities (cost: $1,705,248 and $1,607,983 at March 31, 2012 and December 31, 2011, respectively)		1,907,564		1,786,590		4.8			4.6
Total fixed income securities		23,412,061		23,206,769		59.5			60.1
Total equity securities		15,926,706		15,407,457		40.5			39.9
Total investments, at fair value	$	39,338,767	$	38,614,226		100.0	%		100.0	%
Securities sold short:
Fixed income securities	$	—	$	(12,450)
Equity securities		(254,926)		(201,277)
Total securities sold short, at fair value	$	(254,926)	$	(213,727)

At March 31, 2012 and December 31, 2011, no single issuer or investment, including derivative instruments, had a fair value which 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 the 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 during a period. Upon disposition of an investment, previously recognized 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, 2012						Three Months Ended March 31, 2011
	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	$	1,000,658		$	889,721		$	1,168,058		$	547,213
Total return and credit default swaps (a)		10,926			17,184			5,345			25,663
Foreign currency forward contracts (a)		64,817			(100,818	)		(411,377	)		133,085
Options and futures (a)		(2,263	)		(264	)		(1,765	)		(27,333	)
Total	$	1,074,138		$	805,823		$	760,261		$	678,628

(a) Please see Note 5 for additional information.

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Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

13. RELATED PARTY TRANSACTIONS

The Company considers its principals, employees and non-consolidated Oaktree funds to be affiliates. Amounts due from and to affiliates were comprised of the following as of March 31, 2012 and December 31, 2011:

	March 31, 2012		December 31, 2011
Due from affiliates:
Loans	$	32,199	$	23,888
Amounts due from non-consolidated funds		765		1,014
Payments made on behalf of non-consolidated entities		3,953		4,091
Non-interest bearing advances made to certain non-controlling interest holders and employees		2,296		2,833
Total due from affiliates	$	39,213	$	31,826
Due to affiliates:
Due to OCGH Unitholders in connection with the tax receivable agreement (please see Note 11)	$	56,787	$	56,787
Amounts due to principals, certain non-controlling interest holders and employees		1,814		787
Total due to affiliates	$	58,601	$	57,574

Loans

Loans primarily consist of interest-bearing advances made to certain non-controlling interest holders, primarily the Company’s employees, to meet tax obligations related to equity vesting compensation. The notes, which are generally recourse to the borrower or secured by vested equity and other collateral, bear interest at the Company’s cost of capital and generated interest income of $288 and $250 for the three months ended March 31, 2012 and 2011, respectively.

Due from Oaktree funds and portfolio companies

In the normal course of business, the Company pays certain expenses on behalf of the Oaktree funds, for which it is reimbursed. Amounts advanced on behalf of consolidated funds are eliminated in consolidation. Certain expenses initially paid by the Company, primarily employee travel and other costs associated with particular portfolio company holdings, are reimbursed by the portfolio companies.

Other investment transactions

The Company’s principals and senior professionals are permitted to invest their own capital in Oaktree funds, for which they pay the particular fund’s full management fee but not its carried interest. The Company waives any right to incentive income that would ordinarily be earned on such investments, but assesses the normal management fee. To facilitate the funding of capital calls by funds in which certain employees are invested, the Company advances on a short-term basis the capital calls on their behalves. These advances are generally reimbursed toward the end of the calendar quarter in which the capital calls occurred. Amounts temporarily advanced by the Company are included in non-interest bearing advances made to certain non-controlling interest holders and employees, and any amounts owed by the Company under these arrangements are included in the total distributions received on behalf of certain current and former employees.

Aircraft services

The Company leases an airplane for business purposes. Certain of our principals are permitted to charter this aircraft for personal use pursuant to a Company policy that requires such principals to reimburse us for the pro rata costs of using the aircraft for such personal travel. Additionally, the Company occasionally makes use of an airplane owned by one of its principals for business purposes at a negotiated cost that is based on market rates.

Special allocations

Certain principals 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 only for so long as they remain principals of the Company.

Transactions with Meyer Memorial Trust

One of the Company’s directors, Mr. Pierson, is the Chief Financial and Investment Officer of Meyer Memorial Trust. Meyer Memorial Trust invests in certain Oaktree funds on substantially the same terms as the other investors in those funds.