Unitholders' Capital

6 Months Ended

Jun. 30, 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 June 30, 2012 and December 31, 2011, respectively, OCGH units represented 120,250,753 of the total 150,431,686 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 $1,220,844 and $1,104,493 as of June 30, 2012 and December 31, 2011, respectively, the OCGH non-controlling interest was $975,908 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 unitholders (please see note 11).

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. In June 2012, the Company repurchased and subsequently cancelled 400,000 Class A units from an unrelated third party broker-dealer in a privately negotiated transaction. The aggregate purchase price was $14.1 million excluding commissions, which represents a per unit price of $35.30. The Company repurchased the Class A units using cash on hand.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Weighted average Oaktree Operating Group units outstanding (in thousands):
OCGH non-controlling interest		121,205			125,847			124,479			126,057
Class A unitholders		29,586			22,677			26,137			22,677
Total weighted average units outstanding		150,791			148,524			150,616			148,734
Oaktree Operating Group net income (loss):
Net income (loss) attributable to OCGH non-controlling interest	$	125,231		$	(81,851	)	$	260,121		$	(108,721	)
Net income (loss) attributable to Class A unitholders		30,569			(14,748	)		54,524			(19,575	)
Oaktree Operating Group net income (loss)	$	155,800		$	(96,599	)	$	314,645		$	(128,296	)
Net income (loss) attributable to Oaktree Capital Group, LLC:
Oaktree Operating Group net income (loss) attributable to Class A unitholders	$	30,569		$	(14,748	)	$	54,524		$	(19,575	)
Non-Operating Group other income		6,260			—			6,260			—
Non-Operating Group expenses		(100	)		(257	)		(278	)		(441	)
Income tax expense of Intermediate Holding Companies		(12,010	)		(5,354	)		(17,179	)		(10,470	)
Net income (loss) attributable to Oaktree Capital Group, LLC	$	24,719		$	(20,359	)	$	43,327		$	(30,486	)

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 June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Net income (loss) attributable to Oaktree Capital Group, LLC	$	24,719	$	(20,359	)	$	43,327	$	(30,486	)
Equity reallocation between controlling and non-controlling interests		71,647		(80	)		69,175		(6,419	)
Change from net income (loss) attributable to Oaktree Capital Group, LLC and transfers to non-controlling interest	$	96,366	$	(20,439	)	$	112,502	$	(36,905	)

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