INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Summarized financial information of the Company’s equity-method investments is set forth below.



	Three Months Ended June 30,						Six Months Ended June 30,
Statements of Operations	2019			2018			2019			2018
Revenues / investment income	$	339,302		$	457,262		$	1,231,263		$	934,753
Interest expense	(60,041		)	(65,385		)	(130,898		)	(132,615		)
Other expenses	(119,402		)	(215,921		)	(481,302		)	(417,357		)
Net realized and unrealized gain on investments	115,770			815,438			1,120,917			1,345,799
Net income	$	275,629		$	991,394		$	1,739,980		$	1,730,580

Corporate investments consisted of the following:



	As of
Corporate Investments	June 30, 2019		December 31, 2018

Equity-method investments:
Funds	$	1,053,897	$	1,089,068
Companies	27,476		45,797
Other investments, at fair value	73,080		74,899
Total corporate investments	$	1,154,453	$	1,209,764

The components of investment income are set forth below:



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

Equity-method investments:
Funds	$	17,997		$	25,798	$	57,317	$	53,064
Companies	19,700			17,430		36,811		35,568
Other investments, at fair value	(4,862		)	13,695		857		2,854
Total investment income	$	32,835		$	56,923	$	94,985	$	91,486

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



	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
United States:
Debt securities:
Communication services	$	562,588	$	543,948	8.1	%	8.4	%
Consumer discretionary	463,591		506,551		6.7		7.8
Consumer staples	73,446		112,197		1.1		1.7
Energy	294,600		204,568		4.2		3.1
Financials	347,654		332,240		5.0		5.1
Health care	497,827		537,592		7.2		8.2
Industrials	506,454		443,406		7.3		6.8
Information technology	517,714		536,000		7.5		8.2
Materials	299,226		289,499		4.3		4.4
Real estate	261,778		217,633		3.8		3.3
Utilities	189,894		137,031		2.7		2.1
Total debt securities (cost: $4,046,820 and $4,019,823 as of June 30, 2019 and December 31, 2018, respectively)	4,014,772		3,860,665		57.9		59.1
Equity securities:
Consumer discretionary	2,314		1,915		0.1		0.1
Energy	122		131		0.0		0.0
Financials	415		837		0.0		0.0
Health care	1,383		1,348		0.0		0.0
Industrials	100		88		0.0		0.0
Utilities	1,072		1,107		0.0		0.0
Total equity securities (cost: $8,862 and $6,117 as of June 30, 2019 and December 31, 2018, respectively)	5,406		5,426		0.1		0.1
Real estate:
Real estate	57,080		—		0.8		—
Total real estate securities (cost: $57,080 and $0 as of June 30, 2019 and December 31, 2018, respectively)	57,080		—		0.8		—



	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Europe:
Debt securities:
Communication services	$	562,857	$	530,337	8.2	%	8.1	%
Consumer discretionary	570,296		545,324		8.2		8.3
Consumer staples	155,299		160,406		2.2		2.5
Energy	11,124		15,260		0.2		0.2
Financials	69,965		48,545		1.0		0.7
Health care	506,629		418,516		7.3		6.4
Industrials	280,831		246,640		4.0		3.8
Information technology	175,777		194,988		2.5		3.0
Materials	268,538		221,660		3.9		3.4
Real estate	27,598		30,045		0.4		0.5
Utilities	3,041		1,559		0.0		0.0
Total debt securities (cost: $2,642,902 and $2,477,821 as of June 30, 2019 and December 31, 2018, respectively)	2,631,955		2,413,280		37.9		36.9
Equity securities:
Consumer staples	—		38		—		0.0
Financials	39,860		—		0.6		—
Health care	923		948		0.0		0.1
Total equity securities (cost: $40,078 and $320 as of June 30, 2019 and December 31, 2018, respectively)	40,783		986		0.6		0.1
Asia and other:
Debt securities:
Communication services	18,528		12,069		0.3		0.2
Consumer discretionary	45,019		36,822		0.6		0.6
Consumer staples	3,765		11,867		0.1		0.2
Energy	18,786		20,594		0.3		0.3
Financials	5,464		13,995		0.1		0.2
Government	5,708		12,155		0.1		0.2
Health care	6,952		9,633		0.1		0.1
Industrials	45,829		40,468		0.5		0.7
Information technology	3,519		1,887		0.1		0.0
Materials	14,410		15,516		0.2		0.2
Real estate	721		38,592		0.0		0.6
Utilities	18,650		14,870		0.3		0.2
Total debt securities (cost: $184,948 and $233,603 as of June 30, 2019 and December 31, 2018, respectively)	187,351		228,468		2.7		3.5



	Fair Value as of					Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2019		December 31, 2018			June 30, 2019		December 31, 2018
Asia and other:
Equity securities:
Consumer discretionary	$	—	$	874		—	%	0.0	%
Consumer staples	15		997			0.0		0.0
Energy	355		382			0.0		0.0
Financials	—		2,935			—		0.0
Industrials	—		11,265			—		0.2
Information technology	—		1,725			—		0.0
Materials	1,787		4,382			0.0		0.1
Total equity securities (cost: $3,880 and $22,977 as of June 30, 2019 and December 31, 2018, respectively)	2,157		22,560			0.0		0.3
Total debt securities	6,834,078		6,502,413			98.5		99.5
Total equity securities	48,346		28,972			0.7		0.5
Total real estate	57,080		—			0.8		—
Total investments, at fair value	$	6,939,504	$	6,531,385		100.0	%	100.0	%
Securities Sold Short
Equity securities (proceeds: $0 and $2,644 as of June 30, 2019 and December 31, 2018, respectively)	$	—	$	(2,609	)

The following table summarizes net gains (losses) attributable to the Company’s other investments:



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

Realized gain (loss)	$	6,311		$	172	$	6,311		$	968
Net change in unrealized gain (loss)	(11,173		)	13,523		(5,454		)	1,886
Total gain (loss)	$	(4,862	)	$	13,695	$	857		$	2,854

The following table summarizes net gains (losses) from investment activities:



	Three Months Ended June 30,
	2019					2018
	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	$	233	$	22,562		$	(13,856	)	$	(46,500	)
CLO liabilities ⁽¹⁾	—		(21,906		)	—			14,785
Foreign-currency forward contracts ⁽²⁾	214		1,158			(2,507		)	(465		)
Total-return and interest-rate swaps ⁽²⁾	—		—			838			115
Options and futures ⁽²⁾	—		—			(1,771		)	960
Total	$	447	$	1,814		$	(17,296	)	$	(31,105	)



	Six Months Ended June 30,
	2019						2018
	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	$	(7,712	)	$	152,232		$	(2,534	)	$	(77,088	)
CLO liabilities ⁽¹⁾	—			(93,989		)	—			32,857
Foreign-currency forward contracts ⁽²⁾	2,340			688			(1,068		)	(1,176		)
Total-return and interest-rate swaps ⁽²⁾	—			—			858			29
Options and futures ⁽²⁾	—			—			47			(113		)
Total	$	(5,372	)	$	58,931		$	(2,697	)	$	(45,491	)


(1)	Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under the CLO measurement guidance. Please see note 2 for more information.

(2)

Please see note 7 for additional information.