DEBT OBLIGATIONS AND CREDIT FACILITIES (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt Obligations

The Company’s maximum exposure to these debt obligations is set forth below:

	As of
	March 31, 2022		December 31, 2021
Senior unsecured notes
$50,000, 3.91%, issued in September 2014, payable on September 3, 2024	$	50,000	50,000
$100,000, 4.01%, issued in September 2014, payable on September 3, 2026	100,000		100,000
$100,000, 4.21%, issued in September 2014, payable on September 3, 2029	100,000		100,000
$100,000, 3.69%, issued in July 2016, payable on July 12, 2031	100,000		100,000
$250,000, 3.78%, issued in December 2017, payable on December 18, 2032	250,000		250,000
$200,000, 3.64%, issued in July 2020, payable on July 22, 2030	200,000		200,000
$50,000, 3.84%, issued in July 2020, payable on July 22, 2035	50,000		50,000
$200,000, 3.06%, issued in January 2022, payable on January 12, 2037	200,000		—
Credit facility, issued in March 2014, variable rate obligations payable on September 14, 2026	—		55,000
Total remaining principal	$	1,050,000	$	905,000

Schedule of Collateralized Loan Obligation

The consolidated funds had the following debt obligations outstanding:

	Outstanding Amount as of				Key terms as of March 31, 2022
Credit Agreement	March 31, 2022		December 31, 2021		Facility Capacity		Effective Interest Rate	Weighted Average Remaining Maturity (years)	Commitment Fee Rate	L/C Fee
Revolving credit facility (1)	$	1,154,030	$	1,119,178	$	1,319,030	2.09%	0.4	0.25%	N/A
Secured borrowings	$	—	$	12,740
Total debt obligations	$	1,154,030	$	1,131,918
Less: Debt issuance costs	(1,458)		(2,552)
Total debt obligations, net (2)	$	2,306,602	$	2,261,284

(1)    The credit facility capacity is calculated on a pro rata basis using fund commitments as of March 31, 2022.

(2)    For the revolving credit facilities, amount is shown net of debt issuance costs of $1,458 and $2,552 that are included in other assets, net at March 31, 2022 and December 31, 2021.

Outstanding debt obligations of CLOs were as follows:

	As of March 31, 2022				As of December 31, 2021
	Fair Value (1)		Weighted Average Interest Rate	Weighted Average Remaining Maturity (years)	Fair Value (1)		Weighted Average Interest Rate	Weighted Average Remaining Maturity (years)
Senior secured notes	$	7,649,601	1.85%	11.0	$	7,472,521	1.75%	11.0
Subordinated notes (2)	322,504		N/A	11.5	333,742		N/A	11.2
Total CLO debt obligations	$	7,972,105			$	7,806,263

(1)    The fair value of CLO liabilities was measured as the fair value of CLO assets less the sum of (a) the fair value of any beneficial interests held by the Company and (b) the carrying value of any beneficial interests that represent compensation for services. The fair value of the beneficial interests was calculated using a discounted cash flow model specific to each investment structure. Please see notes 2 and 6 for more information, including the significant valuation inputs such as input range and weighted average rate.

(2)    The subordinated notes do not have a contractual interest rate; instead, they receive distributions from the excess cash flows generated by the CLO.

Summary of Valuation Techniques and Quantitative Information

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 March 31, 2022:

Investment Type	Fair Value	Valuation Technique	Significant Unobservable Inputs (1)(2)	Range	Weighted Average (3)
Credit-oriented investments:
Communication services	60,892	Discounted cash flow (8)	Discount rate	12% - 14%	13%
	37,527	Recent market information (6)	Quoted prices	Not applicable	Not applicable
	3,497	Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
Consumer discretionary:	26,998	Discounted cash flow (8)	Discount rate	11% - 12%	11%
	5,626	Recent market information (6)	Quoted prices	Not applicable	Not applicable
Energy:	97,658	Discounted cash flow (8)	Discount rate	12% - 22%	14%
	867	Recent market information (6)	Quoted prices	Not applicable	Not applicable
Financials:	36,734	Discounted cash flow (8)	Discount rate	12% - 17%	13%
	47,607	Recent market information (6)	Quoted prices	Not applicable	Not applicable
	8,216	Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
Industrials	108,713	Discounted cash flow (8)	Discount rate	9% - 13%	10%
	3,213	Recent market information (6)	Quoted prices	Not applicable	Not applicable
	30,845	Market approach (value of underlying assets)	Multiple of underlying assets (9)	0.9x - 1.0x	1.0x
Materials:	135,479	Discounted cash flow (8)	Discount rate	9% - 15%	12%
	24,420	Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
Real estate:	269,806	Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
	60,644	Market approach (value of underlying assets)	Multiple of underlying assets (9)	0.7x - 0.9x	0.8x
	24,149	Recent market information (6)	Quoted prices	Not applicable	Not applicable
	48,348	Discounted cash flow (8)	Discount rate	9% - 15%	11%
Other:	49,119	Recent market information (6)	Quoted prices	Not applicable	Not applicable
	11,422	Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
Equity investments:
	397,556	Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
	132,088	Discounted cash flow (8)	Discount rate	0.9% - 24%	13%
	192,358	Market approach (comparable companies) (4)	Revenue multiple (8)	6x - 70x	12x
	67,995	Market approach (comparable companies) (4)	Revenue multiple (8)	0.3x - 11x	2x
	90,308	Recent market information (6)	Quoted prices	Not applicable	Not applicable
	403,729	Market approach (comparable companies) (4)	Multiple of underlying assets (9)	0.9x - 1.0x	1.0x
Real estate-oriented investments:
	33,973	Discounted cash flow (8)	Discount rate	23% - 25%	24%
	2,914	Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
Total Level III    investments	2,412,701

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 December 31, 2021:

Investment Type	Fair Value		Valuation Technique	Significant Unobservable Inputs (1)(2)	Range	Weighted Average (3)
Credit-oriented investments:
Consumer discretionary:	$	20,954	Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	12,677		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	6,864		Discounted cash flow (6)	Discount rate	9% – 11%	10%
Communication services:	60,384		Market approach (comparable companies) (7)	Revenue multiple (8)	2x - 4x	3x
	38,352		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	3,402		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Energy:	51,012		Discounted cash flow (6)	Discount rate	12% – 13%	12%
	33,987		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	13,640		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Financials:	29,519		Discounted cash flow (6)	Discount rate	10% – 12%	11%
	23,129		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	13,187		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Industrials:	87,727		Discounted cash flow (6)	Discount rate	8% – 13%	10%
	1,852		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Materials:	136,117		Discounted cash flow (6)	Discount rate	8% – 14%	9%
	24,420		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	6,674		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Real estate:	76,503		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	60,643		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.7x - 0.9x	0.8x
	27,235		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Other:	78,631		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	11,425		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	8,430		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x - 1.1x	1.0x
Equity investments:
	411,574		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	364,851		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x - 1.0x	1.0x
	110,973		Market approach (comparable companies) (7)	Earnings multiple (10)	6x - 16x	11x
	83,999		Discounted cash flow (6)	Discount rate	7% – 16%	16%
	59,805		Market approach (comparable companies) (7)	Revenue multiple (8)	3x - 11x	9x
	36,576		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Real estate-oriented:
	18,526		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	15,308		Discounted cash flow (6)	Discount rate	24% – 26%	25%
Total Level III    investments	$	1,928,376

(1)    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.

(2)    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.

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

(4)    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.

(5)    Certain investments are valued using vendor prices or broker quotes 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.

(6)    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.

(7)    A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying.

(8)    Revenue multiples are based on comparable public companies and transactions with comparable companies. The Company typically applies the multiple to trailing twelve-months’ revenue. However, in certain cases other revenue measures, such as pro forma revenue, may be utilized if deemed to be more relevant.

(9)    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.

(10)    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.

The significant valuation inputs, including the input range and weighted average rate, are as follows:

Valuation Input	Low	High	Weighted Average Rate
Discount rates	11.0%	18.0%	14.0%
Constant default rates	2.0%	2.0%	2.0%
Recovery rates	65.0%	70.0%	67.9%

Future Principal Payments of Debt Obligations

As of March 31, 2022, future scheduled principal or par value payments with respect to the debt obligations of CLOs were as follows:

Remainder of 2022	$	119,744
2023	—
2024	—
2025	—
2026	—
Thereafter	8,045,176
Total	$	8,164,920