INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2019

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



	As of December 31,
Statements of Financial Condition	2019		2018
Assets:
Cash and cash-equivalents	$	1,892,353	$	3,875,072
Investments, at fair value	25,213,422		39,711,382
Other assets	635,277		2,832,960
Total assets	$	27,741,052	$	46,419,414
Liabilities and Capital:
Debt obligations	$	3,558,139	$	7,234,596
Other liabilities	3,779,527		2,662,850
Total liabilities	7,337,666		9,897,446
Total capital	20,403,386		36,521,968
Total liabilities and capital	$	27,741,052	$	46,419,414



	Year Ended December 31,
	2019			2018			2017
Statements of Operations
Revenues / investment income	$	766,096		$	1,861,551		$	1,982,828
Interest expense	(150,078		)	(276,779		)	(235,266		)
Other expenses	(402,814		)	(876,627		)	(821,083		)
Net realized and unrealized gain on investments	1,077,761			1,087,345			3,795,102
Net income	$	1,290,965		$	1,795,490		$	4,721,581

Corporate investments consisted of the following:



	As of December 31,
Corporate Investments	2019		2018
Equity-method investments:
Funds	$	670,348	$	1,089,068
Companies	3,855		45,797
Other investments, at fair value	34,934		74,899
Total corporate investments	$	709,137	$	1,209,764

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



	Year Ended December 31,
	2019		2018			2017

Realized gain (loss)	$	7,763	$	18,208		$	8,439
Net change in unrealized gain (loss)	13,186		(1,888		)	(16,926		)
Total gain (loss)	$	20,949	$	16,320		$	(8,487	)

The components of investment income are set forth below:



	Year Ended December 31,
Investment Income	2019		2018		2017
Equity-method investments:
Funds	$	68,145	$	66,922	$	138,465
Companies	57,475		73,868		71,311
Other investments, at fair value	20,949		16,320		(8,487		)
Total investment income	$	146,569	$	157,110	$	201,289

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



	Fair Value as of December 31,				Fair Value as a Percentage of Investments of Consolidated Funds as of December 31,
Investments	2019		2018		2019		2018
United States:
Debt securities:
Communication services	$	464,356	$	543,948	6.4	%	8.4	%
Consumer discretionary	508,701		506,551		6.9		7.8
Consumer staples	92,102		112,197		1.3		1.7
Energy	223,671		204,568		3.0		3.1
Financials	355,113		332,240		4.8		5.1
Health care	512,864		537,592		7.0		8.2
Industrials	563,920		443,406		7.7		6.8
Information technology	524,390		536,000		7.1		8.2
Materials	294,300		289,499		4.0		4.4
Real estate	204,933		217,633		2.8		3.3
Utilities	216,053		137,031		2.9		2.1
Total debt securities (cost: $3,981,956 and $4,019,823 as of December 31, 2019 and 2018, respectively)	3,960,403		3,860,665		53.9		59.1
Equity securities:
Communication services	312		—		0.0		0.0
Consumer discretionary	658		1,915		0.0		0.1
Energy	256		131		0.0		0.0
Financials	—		837		0.0		0.0
Health care	—		1,348		0.0		0.0
Industrials	—		88		0.0		0.0
Utilities	130,671		1,107		1.8		0.0
Total equity securities (cost: $137,149 and $6,117 as of December 31, 2019 and 2018, respectively)	131,897		5,426		1.8		0.1
Real estate:
Real estate	230,741		—		3.1		—
Total real estate (cost: $230,741 and $0 as of December 31, 2019 and 2018, respectively)	230,741		—		3.1		—



	Fair Value as of December 31,				Fair Value as a Percentage of Investments of Consolidated Funds as of December 31,
Investments	2019		2018		2019		2018
Europe:
Debt securities:
Communication services	$	469,822	$	530,337	6.4	%	8.1	%
Consumer discretionary	659,001		545,324		9.0		8.3
Consumer staples	178,609		160,406		2.4		2.5
Energy	11,316		15,260		0.2		0.2
Financials	101,933		48,545		1.4		0.7
Health care	579,765		418,516		7.9		6.4
Industrials	362,120		246,640		4.9		3.8
Information technology	177,152		194,988		2.4		3.0
Materials	230,289		221,660		3.1		3.4
Real estate	96,315		30,045		1.3		0.5
Utilities	3,852		1,559		0.1		0.0
Total debt securities (cost: $2,876,531 and $2,477,821 as of December 31, 2019 and 2018, respectively)	2,870,174		2,413,280		39.0		36.9
Equity securities:
Consumer Discretionary	94		—		0.0		—
Consumer staples	—		38		—		0.0
Health care	—		948		—		0.1
Total equity securities (cost: $1,227 and $320 as of December 31, 2019 and 2018, respectively)	94		986		0.0		0.1
Asia and other:
Debt securities:
Communication services	15,750		12,069		0.2		0.2
Consumer discretionary	40,073		36,822		0.5		0.6
Consumer staples	11,545		11,867		0.2		0.2
Energy	13,471		20,594		0.1		0.3
Financials	10,313		13,995		0.1		0.2
Government	917		12,155		0.0		0.2
Health care	8,923		9,633		0.1		0.1
Industrials	31,814		40,468		0.4		0.7
Information technology	5,639		1,887		0.1		0.0
Materials	5,604		15,516		0.1		0.2
Real estate	751		38,592		0.0		0.6
Utilities	20,300		14,870		0.3		0.2
Total debt securities (cost: $164,650 and $233,603 as of December 31, 2019 and 2018, respectively)	165,100		228,468		2.2		3.5



	Fair Value as of December 31,					Fair Value as a Percentage of Investments of Consolidated Funds as of December 31,
Investments	2019		2018			2019		2018
Asia and other:
Equity securities:
Consumer discretionary	—		874			—		0.0
Consumer staples	—		997			—		0.0
Energy	—		382			—		0.0
Financials	—		2,935			—		0.0
Industrials	—		11,265			—		0.2
Information technology	—		1,725			—		0.0
Materials	—		4,382			—		0.1
Total equity securities (cost: $0 and $22,977 as of December 31, 2019 and 2018, respectively)	—		22,560			—		0.3
Total debt securities	6,995,677		6,502,413			95.1		99.5
Total equity securities	131,991		28,972			1.8		0.5
Total real estate	230,741		—			3.1		—
Total investments, at fair value	$	7,358,409	$	6,531,385		100.0	%	100.0	%
Securities Sold Short
Equity securities (proceeds: $0 and $2,644 as of December 31, 2019 and 2018, respectively)	$	—	$	(2,609	)

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



	Year Ended December 31,
	2019						2018						2017
	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			Net Realized Gain (Loss) on Investments			Net Change in Unrealized Appreciation (Depreciation) on Investments
Investments and other financial instruments	$	(11,227	)	$	137,521		$	(26,109	)	$	(252,038	)	$	27,910		$	(1,151	)
CLO liabilities ⁽¹⁾	—			(131,948		)	—			85,014			—			53,351
Foreign-currency forward contracts ⁽²⁾	(6,546		)	4,364			513			2,327			(2,917		)	1,909
Total-return and interest-rate swaps ⁽²⁾	—			—			858			29			232			378
Options and futures ⁽²⁾	—			—			1,210			76			(4,825		)	574
Total	$	(17,773	)	$	9,937		$	(23,528	)	$	(164,592	)	$	20,400		$	55,061


(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 8 for additional information.