FAIR VALUE

Fair Value of Financial Assets and Liabilities

The short-term nature of cash and cash-equivalents, receivables and accounts payable causes each of their carrying values to approximate fair value. The fair value of short-term investments included in cash and cash-equivalents is a Level I valuation. The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below. Please see notes 9 and 16 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively.



	As of June 30, 2016											As of December 31, 2015
	Level I		Level II			Level III			Total			Level I		Level II			Level III			Total
Assets
U.S. Treasury securities ⁽¹⁾	$	684,224	$	—		$	—		$	684,224		$	661,116	$	—		$	—		$	661,116
Corporate investments	—		74,035			26,581			100,616			—		41,876			25,750			67,626
Foreign-currency forward contracts ⁽²⁾	—		4,649			—			4,649			—		5,875			—			5,875
Total assets	$	684,224	$	78,684		$	26,581		$	789,489		$	661,116	$	47,751		$	25,750		$	734,617

Liabilities
Contingent consideration ⁽³⁾	$	—	$	—		$	(24,995	)	$	(24,995	)	$	—	$	—		$	(28,494	)	$	(28,494	)
Foreign-currency forward contracts ⁽³⁾	—		(14,916		)	—			(14,916		)	—		(3,286		)	—			(3,286		)
Interest-rate swaps ⁽³⁾	—		(712		)	—			(712		)	—		(943		)	—			(943		)
Total liabilities	$	—	$	(15,628	)	$	(24,995	)	$	(40,623	)	$	—	$	(4,229	)	$	(28,494	)	$	(32,723	)


(1)	Carrying value approximates fair value due to the short-term nature.


(2)	Amounts are included in other assets in the condensed consolidated statements of financial condition.


(3)	Amounts are included in accounts payable, accrued expenses and other liabilities in the condensed consolidated statements of financial condition.

There were no transfers between Level I and Level II positions for the six months ended June 30, 2016 and 2015.

The table below sets forth a summary of changes in the fair value of Level III financial instruments:



	Three Months Ended June 30,
	2016					2015
	Corporate Investments		Contingent Consideration Liability			Corporate Investments		Contingent Consideration Liability

Beginning balance	$	25,624	$	(27,884	)	$	—	$	(28,052	)
Net gain (loss) included in earnings	957		2,889			—		(694		)
Ending balance	$	26,581	$	(24,995	)	$	—	$	(28,746	)

Net change in unrealized gains (losses) attributable to financial instruments still held at end of period	$	957	$	2,889		$	—	$	(694	)



	Six Months Ended June 30,
	2016					2015
	Corporate Investments		Contingent Consideration Liability			Corporate Investments		Contingent Consideration Liability

Beginning balance	$	25,750	$	(28,494	)	$	—	$	(27,245	)
Net gain (loss) included in earnings	831		3,499			—		(1,501		)
Ending balance	$	26,581	$	(24,995	)	$	—	$	(28,746	)

Net change in unrealized gains (losses) attributable to financial instruments still held at end of period	$	831	$	3,499		$	—	$	(1,501	)

The table below sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the Company’s Level III financial instruments:

Fair Value as of

Significant Unobservable Input

Financial Instrument

June 30,
2016

December 31, 2015

Valuation Technique

Range

Weighted Average

Corporate investment – Limited partnership interests

26,581

25,750

Market approach
(value of underlying assets)

Not applicable

Contingent consideration liability

(24,995

)

(28,494

)

Discounted cash flow

Assumed % of total potential contingent payments

0% – 100%

48%

Fair Value of Financial Instruments Held By Consolidated Funds

The short-term nature of cash and cash-equivalents held at the consolidated funds causes their carrying value to approximate fair value. The fair value of cash-equivalents is a Level I valuation. Derivatives may relate to a mix of Level I, II or III investments, and therefore their fair-value hierarchy level may not correspond to the fair-value hierarchy level of the economically hedged investment. The table below summarizes the investments and other financial instruments of the consolidated funds by fair-value hierarchy level:



	As of June 30, 2016												As of December 31, 2015
	Level I			Level II			Level III			Total			Level I			Level II			Level III			Total
Assets
Investments:
Corporate debt – bank debt	$	—		$	2,562,192		$	189,909		$	2,752,101		$	—		$	7,891,929		$	1,871,375		$	9,763,304
Corporate debt – all other	—			375,435			1,890			377,325			5,450			4,902,226			3,009,164			7,916,840
Equities – common stock	149,658			17,361			3,991			171,010			4,836,422			256,604			8,729,202			13,822,228
Equities – preferred stock	1,752			—			—			1,752			—			—			1,363,542			1,363,542
Real estate	—			—			—			—			61,317			—			9,655,270			9,716,587
Real estate loan portfolios	—			—			—			—			—			—			2,597,405			2,597,405
Total investments	151,410			2,954,988			195,790			3,302,188			4,903,189			13,050,759			27,225,958			45,179,906
Derivatives:
Foreign-currency forward contracts	—			416			—			416			—			156,234			—			156,234
Swaps	—			—			—			—			—			16,544			—			16,544
Options and futures	4			—			—			4			—			25,559			—			25,559
Swaptions	—			—			—			—			—			14			—			14
Total derivatives	4			416			—			420			—			198,351			—			198,351
Total assets	$	151,414		$	2,955,404		$	195,790		$	3,302,608		$	4,903,189		$	13,249,110		$	27,225,958		$	45,378,257

Liabilities
CLO debt obligations:
Senior secured notes ⁽¹⁾	$	—		$	(2,594,841	)	$	—		$	(2,594,841	)	$	—		$	—		$	—		$	—
Subordinated notes ⁽¹⁾	—			(83,725		)	—			(83,725		)	—			—			—			—
Total CLO debt obligations	—			(2,678,566		)	—			(2,678,566		)	—			—			—			—
Securities sold short:
Equity securities	(61,821		)	—			(17		)	(61,838		)	(91,246		)	—			—			(91,246		)
Derivatives:
Foreign-currency forward contracts	—			(11		)	—			(11		)	—			(64,364		)	—			(64,364		)
Swaps	—			(921		)	—			(921		)	—			(223,359		)	(8,251		)	(231,610		)
Options and futures	(443		)	—			—			(443		)	(88		)	(4,146		)	—			(4,234		)
Total derivatives	(443		)	(932		)	—			(1,375		)	(88		)	(291,869		)	(8,251		)	(300,208		)
Total liabilities	$	(62,264	)	$	(2,679,498	)	$	(17	)	$	(2,741,779	)	$	(91,334	)	$	(291,869	)	$	(8,251	)	$	(391,454	)


(1)	The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 9 for more information.

The following tables set forth a summary of changes in the fair value of Level III investments:



	Corporate Debt – Bank Debt			Corporate Debt – All Other			Equities – Common Stock			Equities – Preferred Stock			Real Estate			Real Estate Loan Portfolios			Swaps			Other		Total
Three Months Ended June 30, 2016
Beginning balance	$	200,811		$	1,853		$	4,326		$	—		$	—		$	—		$	—		$	—	$	206,990
Transfers into Level III	—			—			—			—			—			—			—			—		—
Transfers out of Level III	(1,962		)	—			—			—			—			—			—			—		(1,962		)
Purchases	2,239			1			157			—			—			—			—			—		2,397
Sales	(10,886		)	—			(525		)	—			—			—			—			—		(11,411		)
Realized gains (losses), net	89			—			—			—			—			—			—			—		89
Unrealized appreciation (depreciation), net	(382		)	36			16			—			—			—			—			—		(330		)
Ending balance	$	189,909		$	1,890		$	3,974		$	—		$	—		$	—		$	—		$	—	$	195,773
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(2,103	)	$	36		$	16		$	—		$	—		$	—		$	—		$	—	$	(2,051	)
Three Months Ended June 30, 2015
Beginning balance	$	1,573,508		$	2,772,859		$	10,156,394		$	1,381,135		$	9,728,967		$	2,406,252		$	(6,988	)	$	3,576	$	28,015,703
Transfers into Level III	9,598			17,208			50,976			11,199			—			—			—			—		88,981
Transfers out of Level III	(42,396		)	(78,250		)	(523,407		)	(20,382		)	—			—			—			—		(664,435		)
Purchases	42,721			314,898			341,691			147,396			658,056			476,637			—			—		1,981,399
Sales	(185,407		)	(84,407		)	(349,498		)	(2,760		)	(890,418		)	(213,495		)	—			—		(1,725,985		)
Realized gains (losses), net	10,604			(35,773		)	73,211			(1,153		)	432,658			67,817			—			—		547,364
Unrealized appreciation (depreciation), net	(9,351		)	8,839			(46,358		)	144,303			(356,361		)	42,261			(1,656		)	820		(217,503		)
Ending balance	$	1,399,277		$	2,915,374		$	9,703,009		$	1,659,738		$	9,572,902		$	2,779,472		$	(8,644	)	$	4,396	$	28,025,524
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(12,235	)	$	(76,879	)	$	(12,504	)	$	1,253		$	(335,645	)	$	27,778		$	(225	)	$	820	$	(407,637	)



	Corporate Debt – Bank Debt			Corporate Debt – All Other			Equities – Common Stock			Equities – Preferred Stock			Real Estate			Real Estate Loan Portfolios			Swaps			Other		Total
Six Months Ended June 30, 2016
Beginning balance	$	1,871,375		$	3,009,164		$	8,729,202		$	1,363,542		$	9,655,270		$	2,597,405		$	(8,251	)	$	—	$	27,217,707
Cumulative-effect adjustment from adoption of accounting guidance	(1,672,305		)	(3,007,287		)	(8,725,026		)	(1,363,542		)	(9,655,270		)	(2,597,405		)	8,251			—		(27,012,584		)
Transfers into Level III	37,535			—			398			—			—			—			—			—		37,933
Transfers out of Level III	(42,670		)	—			—			—			—			—			—			—		(42,670		)
Purchases	9,378			2			157			—			—			—			—			—		9,537
Sales	(12,872		)	—			(821		)	—			—			—			—			—		(13,693		)
Realized gains (losses), net	115			—			—			—			—			—			—			—		115
Unrealized appreciation (depreciation), net	(647		)	11			64			—			—			—			—			—		(572		)
Ending balance	$	189,909		$	1,890		$	3,974		$	—		$	—		$	—		$	—		$	—	$	195,773
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(647	)	$	11		$	64		$	—		$	—		$	—		$	—		$	—	$	(572	)
Six Months Ended June 30, 2015
Beginning balance	$	1,555,656		$	2,750,661		$	9,056,579		$	1,320,752		$	9,216,056		$	2,399,105		$	(10,687	)	$	3,576	$	26,291,698
Transfers into Level III	116,533			17,208			377,563			15,835			—			—			—			—		527,139
Transfers out of Level III	(145,998		)	(110,084		)	(523,423		)	(32,583		)	—			—			—			—		(812,088		)
Purchases	224,751			566,463			1,194,127			205,128			949,574			605,915			—			—		3,745,958
Sales	(340,767		)	(163,351		)	(442,219		)	(54,947		)	(985,355		)	(303,387		)	—			—		(2,290,026		)
Realized gains (losses), net	25,407			(32,499		)	(66,126		)	37,384			479,057			98,628			—			—		541,851
Unrealized appreciation (depreciation), net	(36,305		)	(113,024		)	106,508			168,169			(86,430		)	(20,789		)	2,043			820		20,992
Ending balance	$	1,399,277		$	2,915,374		$	9,703,009		$	1,659,738		$	9,572,902		$	2,779,472		$	(8,644	)	$	4,396	$	28,025,524
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(17,619	)	$	(43,928	)	$	192,837		$	109,462		$	92,476		$	(35,272	)	$	2,043		$	820	$	300,819

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 transfers between Level I and Level II positions for the six months ended June 30, 2016 and 2015.

Transfers out of Level III are generally attributable to certain investments that experienced a more significant level of market trading activity or completed an initial public offering during the respective period and thus were valued using observable inputs. Transfers into Level III typically reflect either investments that experienced a less significant level of market trading activity during the period or portfolio companies that undertook restructurings or bankruptcy proceedings and thus were valued in the absence of observable inputs.

The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of June 30, 2016:

Investment Type

Fair Value

Valuation Technique

Significant Unobservable Inputs ^(9)(10)(11)

Range

Weighted Average ⁽¹²⁾

Credit-oriented investments:

Consumer

discretionary:

2,564

Discounted cash flow ⁽¹⁾

Discount rate

12% – 15%

13%

36,217

Recent market information ⁽⁶⁾

Quoted prices

Not applicable

Financials:

2,503

Discounted cash flow ⁽¹⁾

Discount rate

15% - 17%

16%

21,341

Recent market information ⁽⁶⁾

Quoted prices

Not applicable

Industrials:

30,458

Discounted cash flow ⁽¹⁾

Discount rate

5% – 16%

38,727

Recent market information ⁽⁶⁾

Quoted prices

Not applicable

Consumer Staples:

6,221

Discounted cash flow ⁽¹⁾

Discount rate

5% – 7%

19,042

Recent market information ⁽⁶⁾

Quoted prices

Not applicable

Other:

11,913

Discounted cash flow ⁽¹⁾

Discount rate

9% – 27%

12%

2,771

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

7x - 9x

20,042

Recent market information ⁽⁶⁾

Quoted prices

Not applicable

Equity investments:

601

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

4x – 13x

3,373

Recent market information ⁽⁶⁾

Quoted prices

Not applicable

Total Level III
investments

195,773

Investment Type

Fair Value

Valuation Technique

Significant Unobservable Inputs ^(9)(10)(11)

Range

Weighted Average ⁽¹²⁾

Credit-oriented investments:

Consumer
discretionary:

289,107

Discounted cash flow ⁽¹⁾

Discount rate

5% – 15%

12%

451,584

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

3x – 10x

232,995

Recent transaction price ⁽⁵⁾

Not applicable

156,160

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Financials:

595,066

Discounted cash flow ⁽¹⁾

Discount rate

6% – 14%

11%

259,669

Market approach
(value of underlying assets) ⁽²⁾⁽⁴⁾

Underlying asset multiple

1.1x – 1.5x

1.2x

232,958

Recent transaction price ⁽⁵⁾

Not applicable

241,667

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Industrials:

135,808

Discounted cash flow ⁽¹⁾

Discount rate

5% – 15%

13%

55,310

Discounted cash flow ⁽¹⁾ /
Sales approach ⁽⁸⁾

Discount rate / Market transactions

9% – 11%

10%

7,549

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

5x – 9x

219,121

Market approach
(value of underlying assets) ⁽²⁾⁽⁴⁾

Underlying asset multiple

0.7x – 1.0x

0.9x

45,647

Recent transaction price ⁽⁵⁾

Not applicable

24,247

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Materials:

417,749

Discounted cash flow ⁽¹⁾

Discount rate

11% – 14%

14%

128,230

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

7x – 9x

3,938

Recent transaction price ⁽⁵⁾

Not applicable

71,174

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Information
technology:

199,841

Discounted cash flow ⁽¹⁾

Discount rate

6% – 13%

12%

143,596

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

6x – 8x

63,594

Recent transaction price ⁽⁵⁾

Not applicable

62,353

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Other:

442,797

Discounted cash flow ⁽¹⁾

Discount rate

5% – 20%

12%

60,643

Recent transaction price ⁽⁵⁾

Not applicable

331,485

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Investment Type

Fair Value

Valuation Technique

Significant Unobservable Inputs ^(9)(10)(11)

Range

Weighted Average ⁽¹²⁾

Equity investments:

Financials:

58,352

Discounted cash flow ⁽¹⁾

Discount rate

14% – 16%

15%

1,029,904

Market approach
(value of underlying assets) ⁽²⁾⁽⁴⁾

Underlying asset multiple

1.0x – 1.5x

1.4x

189,714

Recent transaction price⁽⁵⁾

Not applicable

Industrials:

37,130

Discounted cash flow ⁽¹⁾

Discount rate

10% – 12%

11%

2,385,995

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

5x – 18x

1,287,791

Market approach
(value of underlying assets) ⁽²⁾⁽⁴⁾

Underlying asset multiple

0.9x – 1.0x

1.0x

248,894

Recent transaction price ⁽⁵⁾

Not applicable

53,005

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Materials:

1,238,760

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

7x – 9x

25,133

Recent transaction price ⁽⁵⁾

Not applicable

Utilities

616,596

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

8x – 11x

266,185

Other

Not applicable

200,112

Recent transaction price ⁽⁵⁾

Not applicable

Other:

1,898,334

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

6x – 18x

10x

164,026

Market approach
(value of underlying assets) ⁽²⁾⁽⁴⁾

Underlying asset multiple

1.1x – 1.3x

1.2x

221,350

Recent transaction price ⁽⁵⁾

Not applicable

171,463

Recent market information ⁽⁶⁾

Quoted prices / discount
(discount not applicable)

Not applicable

Real estate-oriented investments:

3,863,639

Discounted cash flow ⁽¹⁾⁽⁷⁾

Discount rate

6% – 44%

13%

Terminal capitalization rate

5% – 10%

Direct capitalization rate

5% – 10%

Net operating income growth rate

0% – 38%

10%

Absorption rate

25% – 44%

30%

132,640

Discounted cash flow ⁽¹⁾ /
Sales approach ⁽⁸⁾

Discount rate / Market transactions

6% – 8%

218,817

Market approach
(comparable companies) ⁽²⁾

Earnings multiple ⁽³⁾

9x – 11x

11x

992,695

Market approach
(value of underlying assets) ⁽²⁾⁽⁴⁾

Underlying asset multiple

1x – 1.8x

1.6x

512,120

Recent transaction price ⁽⁵⁾

Not applicable

2,385,895

Recent market information ⁽⁶⁾

Quoted prices / discount

0% – 5%

1,385,418

Sales approach ⁽⁸⁾

Market transactions

Not applicable

164,046

Other

Not applicable

Real estate loan portfolios:

2,101,463

Discounted cash flow ⁽¹⁾⁽⁷⁾

Discount rate

7% – 23%

13%

495,942

Recent transaction price ⁽⁵⁾

Not applicable

Total Level III
investments

27,217,707


(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, as well as certain equity investments, real estate-oriented investments and 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 to the investment. The Company typically applies the multiple to trailing twelve-months’ EBITDA. However, in certain cases other earnings measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant.

(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. The Company may value the underlying assets by using prices and other relevant information from 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. The fair value may also be based on a pending transaction expected to close after the valuation date.


(6)	Certain investments are valued using quoted prices for the subject or similar securities. Generally, investments valued in this manner are classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions.

(7)

The discounted cash flow model for certain real estate-oriented investments and certain real estate loan portfolios 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 from 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 assets or properties, adjustments to external or internal appraised values, and the Company’s assumptions regarding market trends or other relevant factors.


(9)	The discount rate is the significant unobservable input used in the fair-value measurement of performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments and real estate loan portfolios. An increase (decrease) in the discount rate would result in a lower (higher) fair-value measurement.

(10)

Multiple of either earnings or underlying assets is the significant unobservable input used in the market approach for the fair-value measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling interest in the underlying issuer, equity investments and certain real estate-oriented investments. An increase (decrease) in the multiple would result in a higher (lower) fair-value measurement.

(11)

The significant unobservable inputs used in the fair-value measurement of real estate investments utilizing a discounted cash flow analysis can include one or more of the following: discount rate, terminal capitalization rate, direct capitalization rate, net operating income growth rate or absorption rate. An increase (decrease) in a discount rate, terminal capitalization rate or direct capitalization rate would result in a lower (higher) fair-value measurement. An increase (decrease) in a net operating income growth rate or absorption rate would result in a 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.


(12)	The weighted average is based on the fair value of the investments included in the range.

A significant amount of judgment may be required when using unobservable inputs, including assessing the accuracy of source data and the results of pricing models. The Company assesses the accuracy and reliability of the sources it uses to develop unobservable inputs. These sources may include third-party vendors that the Company believes are reliable and commonly utilized by other marketplace participants. As described in note 2, other factors beyond the unobservable inputs described above may have a significant impact on investment valuations.

During the six months ended June 30, 2016, the valuation technique for one Level III credit-oriented investment changed from a discounted cash flow to a market approach based on comparable companies due to the anticipated restructuring of the portfolio company.

During the six months ended June 30, 2015, the valuation technique for eight Level III investments changed, as follows: (a) three credit-oriented investments and one equity investment changed from a market approach based on comparable companies to a market approach based on the value of underlying assets as a result of an increased focus on the value of the company’s physical assets, (b) one credit-oriented investment changed from a market approach based on comparable companies to a valuation based on recent market information due to increased availability of broker quotations, (c) one credit-oriented investment changed from a valuation technique that used both a discounted cash flow and sales approach to an approach based solely on a discounted cash flow technique due to a decreased focus on the value of the issuer’s assets, (d) one real estate-oriented investment changed from a valuation based on a market approach to a discounted cash flow as a result of the stabilization of the underlying property and (e) one real estate-oriented investment changed from a valuation based on a discounted cash flow to a sales approach as a result of receiving offers from potential buyers.