UNITHOLDERS' CAPITAL

6 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

UNITHOLDERS’ CAPITAL

Unitholders’ capital reflects the economic interests attributable to Class A unitholders, preferred unitholders, non-controlling interests in consolidated subsidiaries and non-controlling interests in consolidated funds. Non-controlling interests in consolidated subsidiaries represent the portion of unitholders’ capital attributable to the OCGH non-controlling interest and third parties. The OCGH non-controlling interest is determined at the Oaktree Operating Group level, after giving effect to distributions, if any, attributable to the preferred unitholders, based on the proportionate share of Oaktree Operating Group units held by the OCGH unitholders. Certain expenses, such as income taxes and related administrative expenses of Oaktree Capital Group, LLC and its Intermediate Holding Companies, are solely attributable to the Class A unitholders. As of June 30, 2019 and December 31, 2018, respectively, OCGH units represented 84,001,461 of the total 159,650,948 Oaktree Operating Group units and 85,471,937 of the total 157,133,560 Oaktree Operating Group units. Based on total allocable Oaktree Operating Group capital of $1,935,063 and $1,997,745 as of June 30, 2019 and December 31, 2018, respectively, the OCGH non-controlling interest was $1,018,173 and $1,086,693. As of June 30, 2019 and December 31, 2018, non-controlling interests attributable to third parties was $4,566 and $5,661, respectively.

The following table sets forth a summary of net income attributable to the preferred unitholders, the OCGH non-controlling interest and the Class A common unitholders:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Weighted average Oaktree Operating Group units outstanding (in thousands):
OCGH non-controlling interest	85,269			86,007			85,371			87,133
Class A unitholders	74,340			71,177			72,994			69,556
Total weighted average units outstanding	159,609			157,184			158,365			156,689
Oaktree Operating Group net income:
Net income attributable to preferred unitholders ⁽¹⁾	$	6,829		$	—		$	13,658		$	—
Net income attributable to OCGH non-controlling interest	49,397			41,296			114,869			114,551
Net income attributable to OCG Class A unitholders	43,068			34,177			97,934			90,539
Oaktree Operating Group net income ⁽²⁾	$	99,294		$	75,473		$	226,461		$	205,090
Net income attributable to OCG Class A unitholders:
Oaktree Operating Group net income attributable to OCG Class A unitholders	$	43,068		$	34,177		$	97,934		$	90,539
Non-Operating Group income (expense)	(676		)	(328		)	(4,320		)	(308		)
Income tax benefit (expense) of Intermediate Holding Companies	52			(2,728		)	(3,916		)	(6,378		)
Net income attributable to OCG Class A unitholders	$	42,444		$	31,121		$	89,698		$	83,853


(1)	Represents distributions declared, if any, on the preferred units.


(2)	Oaktree Operating Group net income does not include amounts attributable to other non-controlling interests, which amounted to $618 and $1,261 for the three and six months ended June 30, 2019, respectively and $697 and $1,389 for the three and six months ended June 30, 2018, respectively.

The change in the Company’s ownership interest in the Oaktree Operating Group is set forth below:



	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018

Net income attributable to OCG Class A unitholders	$	42,444	$	31,121		$	89,698	$	83,853
Equity reallocation between controlling and non-controlling interests	30,440		(75		)	36,565		73,755
Change from net income attributable to OCG Class A unitholders and transfers from non-controlling interests	$	72,884	$	31,046		$	126,263	$	157,608

Please see notes 14, 15 and 16 for additional information regarding transactions that impacted unitholders’ capital.