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FAIR VALUE (Tables)
 3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]
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, 2013:
Investment Type
 
Fair Value
 
Valuation Technique
 
Significant Unobservable Inputs (10)(11)(12)
Credit-oriented investments:
 
 
 
 
 
 
 
 
$
1,222,858

 
Discounted cash flow (1)
 
Discount rate
(range: 7% - 16%)
 
 
1,182,300

 
Market approach (comparable companies) (2)
 
Earnings multiple (3)
(range: 4x - 12x)
 
 
201,469

 
Market approach (value of underlying assets) (2)(4)
 
Underlying asset multiple
(range: 0.9x - 1.1x)
 
 
1,465,340

 
Recent transaction price (5)
 
Not applicable
 
 
962,983

 
Recent market information (6)
 
Broker quotations
Equity investments:
 
 
 
 
 
 
 
 
5,974,128

 
Market approach (comparable companies) (2)
 
Earnings multiple (3)
(range: 3x - 13x)
 
 
384,353

 
Market approach (value of underlying assets) (2)(4)
 
Underlying asset multiple
(range: 1x - 1.2x)
 
 
974,537

 
Recent transaction price (5)
 
Not applicable
 
 
562,660

 
Recent market information (6)
 
Broker quotations
Real estate-oriented
investments:
 
 
 
 
 
 
 
 
1,497,390

 
Discounted cash flow (1)(7)
 
Discount rate
(range: 8% - 40%)
 
 
 
 
 
 
Terminal capitalization rate
(range: 6% - 11%)
 
 
 
 
 
 
Direct capitalization rate
(range: 7% - 8%)
 
 
 
 
 
 
Net operating income growth rate
(range: 3% - 34%)
 
 
 
 
 
 
Absorption rate
(range: 13% - 33%)
 
 
947,724

 
Market approach (comparable companies) (2)
 
Earnings multiple (3) 
(range: 6x - 14x)
 
 
946,529

 
Market approach (value of underlying assets) (2)(4)
 
Underlying asset multiple
(range: 1.7x - 1.8x)
 
 
662,009

 
Recent transaction price (5)
 
Not applicable
 
 
289,187

 
Sales approach (8)
 
Market transactions
 
 
156,087

 
Recent market information (6)
 
Broker quotations
Real estate loan portfolios:
 
 
 
 
 
 
 
 
699,061

 
Recent transaction price (5)
 
Not applicable
 
 
640,897

 
Discounted cash flow (1)
 
Discount rate
(range: 13% - 20%)
 
 
390,426

 
Recent market information / sales approach (9)
 
Broker quotations /
market transactions
Other
 
15,490

 
 
 
 
Total Level III investments
 
$
19,175,428

 
 
 
 
 
 
 
 
 
(1)
A discounted cash flow method is generally used to value performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, certain real estate-oriented investments and certain real estate loan portfolios.
(2)
A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying issuer.
(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. The Company typically applies the multiple to trailing twelve month EBITDA. However, in certain cases other earnings measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant.
(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. The Company typically obtains the value of underlying assets from the underlying portfolio company's financial statements or from pricing vendors. In some cases, the Company may value the underlying assets by using prices and other relevant information generated by market transactions involving comparable assets.
(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 a pending transaction expected to occur after the valuation date.
(6)
Certain investments are valued using broker quotes for the subject security and/or similar securities.
(7)
The discounted cash flow model for certain real estate-oriented investments contains a sell-out analysis. In these cases, the discounted cash flow is based on the expected timing and prices of sales of the underlying properties. The Company's determination of the sales prices of these properties typically includes consideration of prices and other relevant information generated by market transactions involving comparable properties.
(8)
The sales approach uses prices and other relevant information generated by market transactions involving comparable assets. The significant unobservable inputs used in the sales approach generally include adjustments to transactions involving comparable properties, adjustments to external or internal appraised values and the Company's assumptions regarding market trends or other relevant factors.
(9)
Certain real estate loan portfolios are valued utilizing a combination of recent market information for similar loan pools as well as an evaluation of the underlying collateral, which is typically performed using a sales approach. In evaluating the loan pools as a whole, inputs can include recent market transactions and/or broker quotations involving similar loan pools. In evaluating the value of the underlying collateral, the sales approach uses prices and other relevant information generated by market transactions involving comparable assets. The significant unobservable inputs used in the sales approach generally include adjustments to transactions involving comparable properties, adjustments to external or internal appraised values and the Company's assumptions regarding market trends or other relevant factors.
(10)
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.
(11)
The significant unobservable input used in the market approach for the fair-value measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling interest in the underlying issuer, equity investments and certain real estate-oriented investments 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.
(12)
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, direct capitalization rate, net operating income growth rate and/or absorption rate. A significant increase (decrease) in a discount rate, terminal capitalization rate or direct capitalization rate would result in a significantly lower (higher) fair-value measurement. A significant increase (decrease) in a net operating income growth rate or absorption rate would result in a significantly higher (lower) fair-value measurement. Generally, a change in a net operating income growth rate or absorption rate would be accompanied by a directionally similar change in the discount rate.
Valuation of Investments and Other Financial Instruments
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, 2013:
Level I
 
Level II
 
Level III
 
Total
Corporate debt – bank debt
$
—

 
$
7,398,616

 
$
2,067,438

 
$
9,466,054

Corporate debt – all other
—

 
6,657,081

 
2,912,838

 
9,569,919

Equities – common stock
4,101,845

 
330,561

 
7,247,846

 
11,680,252

Equities – preferred stock
3,459

 
2,793

 
647,832

 
654,084

Real estate
174,434

 
—

 
4,498,926

 
4,673,360

Real estate loan portfolio
—

 
—

 
1,730,384

 
1,730,384

Other
1,852

 
1,518

 
15,490

 
18,860

Total investments
$
4,281,590

 
$
14,390,569

 
$
19,120,754

 
$
37,792,913

Securities sold short – equities
$
(122,865
)
 
$
—

 
$
—

 
$
(122,865
)
Options written (net)
$
—

 
$
3,161

 
$
—

 
$
3,161

Swaps (net)
—

 
(4,465
)
 
54,674

 
50,209

Forward contracts (net)
—

 
62,007

 
—

 
62,007

Futures (net)
(739
)
 
—

 
—

 
(739
)
As of December 31, 2012:
Level I
 
Level II
 
Level III
 
Total
Corporate debt – bank debt
$
—

 
$
7,412,691

 
$
2,253,476

 
$
9,666,167

Corporate debt – all other
—

 
6,663,519

 
3,159,051

 
9,822,570

Equities – common stock
3,362,742

 
1,055,465

 
8,101,051

 
12,519,258

Equities – preferred stock
2,520

 
2,133

 
650,096

 
654,749

Real estate
—

 
—

 
3,946,142

 
3,946,142

Real estate loan portfolio
—

 
—

 
1,737,822

 
1,737,822

Other
1,933

 
8,438

 
15,547

 
25,918

Total investments
$
3,367,195

 
$
15,142,246

 
$
19,863,185

 
$
38,372,626

Securities sold short – equities
$
(126,530
)
 
$
—

 
$
—

 
$
(126,530
)
Options written (net)
$
—

 
$
5,520

 
$
—

 
$
5,520

Swaps (net)
—

 
(5,539
)
 
44,705

 
39,166

Forward contracts (net)
—

 
(93,863
)
 
—

 
(93,863
)
Futures (net)
90

 
—

 
—

 
90
Summary of Changes in Fair Value of Level III Investments
The following tables set forth a summary of changes in the fair value of the Level III investments:  
 
 
Corporate Debt – Bank Debt
 
Corporate Debt – All Other
 
Equities – Common Stock
 
Equities – Preferred Stock
 
Real Estate
 
Real Estate Loan Portfolio
 
Swaps
 
Other
 
Total
Three Months Ended March 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,253,476

 
$
3,159,051

 
$
8,101,051

 
$
650,096

 
$
3,946,142

 
$
1,737,822

 
$
44,705

 
$
15,547

 
$
19,907,890

Transfers into Level III
49,731

 
6,131

 
528,314

 
125,470

 
—

 
—

 
—

 
—

 
709,646

Transfers out of Level III
(193,810
)
 
(97,875
)
 
(398,778
)
 
—

 
—

 
—

 
—

 
—

 
(690,463
)
Purchases
134,839

 
33,584

 
51,039

 
29,300

 
307,269

 
224,425

 
—

 
—

 
780,456

Sales
(183,236
)
 
(198,596
)
 
(1,127,763
)
 
(178,320
)
 
(26,834
)
 
(283,182
)
 
—

 
—

 
(1,997,931
)
Realized gains (losses), net
(17,014
)
 
23,255

 
426,537

 
29,034

 
(9,325
)
 
7,074

 
—

 
—

 
459,561

Unrealized appreciation (depreciation), net
23,452

 
(12,712
)
 
(332,554
)
 
(7,748
)
 
281,674

 
44,245

 
9,969

 
(57
)
 
6,269

Ending balance
$
2,067,438

 
$
2,912,838

 
$
7,247,846

 
$
647,832

 
$
4,498,926

 
$
1,730,384

 
$
54,674

 
$
15,490

 
$
19,175,428

Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period
$
33,359

 
$
27,735

 
$
145,621

 
$
32,491

 
$
279,223

 
$
44,245

 
$
9,970

 
$
(58
)
 
$
572,586

Three Months Ended March 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,978,637

 
$
3,155,241

 
$
6,164,025

 
$
1,090,107

 
$
2,786,862

 
$
479,690

 
$
—

 
$
18,824

 
$
15,673,386

Transfers into Level III
307,574

 
327,640

 
178,104

 
5,226

 
—

 
—

 
—

 
—

 
818,544

Transfers out of Level III
(33,231
)
 
(119,410
)
 
(351,594
)
 
(88,191
)
 
(5,353
)
 
—

 
—

 
—

 
(597,779
)
Purchases
514,000

 
118,573

 
183,328

 
11,452

 
133,889

 
158,274

 
—

 
—

 
1,119,516

Sales
(30,389
)
 
(10,829
)
 
(56,634
)
 
(446
)
 
(8,655
)
 
(24,964
)
 
—

 
—

 
(131,917
)
Realized gains (losses), net
383

 
5,223

 
(28,326
)
 
(4,188
)
 
(136
)
 
5,455

 
—

 
—

 
(21,589
)
Unrealized appreciation (depreciation), net
(16,617
)
 
94,531

 
270,427

 
42,810

 
149,347

 
—

 
—

 
15

 
540,513

Ending balance
$
2,720,357

 
$
3,570,969

 
$
6,359,330

 
$
1,056,770

 
$
3,055,954

 
$
618,455

 
$
—

 
$
18,839

 
$
17,400,674

Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period
$
(125,075
)
 
$
111,646

 
$
111,589

 
$
38,935

 
$
144,330

 
$
—

 
$
—

 
$
15

 
$
281,440