XML 77 R10.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
ACQUISITIONS
12 Months Ended
Dec. 31, 2019
Asset Acquisitions [Abstract]  
ACQUISITIONS ACQUISITIONS
On October 17, 2017, OCM completed a transaction in which it became the new investment adviser to two business development companies (the “BDCs”): Oaktree Specialty Lending Corporation (NASDAQ: OCSL) and Oaktree Strategic Income Corporation (NASDAQ: OCSI). Upon the closing of the transaction (the “BDC acquisition”), the Company paid $320.0 million in cash to Fifth Street Management LLC (“FSM”), net of certain transaction-related expenses, for all of FSM’s right, title and interest in specified business records related to FSM’s then-existing investment advisory agreements with each BDC. The transaction was accounted for as an asset acquisition. The net purchase price was $319.4 million, consisting of the $320.0 million cash payment, net of certain transaction-related expenses and reimbursements received from the seller. Substantially all of the purchase price was allocated to finite-lived contractual rights. While FSM pledged cash and other assets with an estimated fair value of $56.2 million to indemnify the Company or the BDCs against potential claims or assessments, the Company determined that the amount of the potential liability associated with these claims could not be reasonably estimated as of the acquisition date so no amounts were recognized in purchase accounting related to the indemnification agreement. As a result of the Restructuring, the assets acquired in the BDC acquisition and the net income associated with managing the BDCs are no longer included in these consolidated financial statements. Please see note 18 for more information.