INVESTMENTS

3 Months Ended

Mar. 31, 2023

Corporate Investments

Corporate investments consisted of the following:


	As of
Corporate Investments	March 31, 2023		December 31, 2022

Equity-method investments:
Funds	$	1,102,622	$	1,082,069
Companies	1,272		1,276
Other investments, at fair value	93,462		108,159
Total corporate investments	$	1,197,356	$	1,191,504

The components of investment income (loss) are set forth below:


	Three months ended March 31,
Investment Income (Loss)	2023		2022

Equity-method investments:
Funds	$	26,122	$	14,253
Companies	(3)		(646)
Other investments, at fair value	25,603		(1,866)
Total investment income	$	51,722	$	11,741

Equity-method Investments

The Company’s equity-method investments include its investments in Oaktree funds for which it serves as general partner, and other third-party funds and companies that are not consolidated, but for which the Company is deemed to exert significant influence. The Company’s share of income or loss generated by these investments is recorded within investment income in the condensed consolidated statements of operations. The Company’s equity-method investments in Oaktree funds principally reflect the Company’s general partner interests in those funds, which typically does not exceed 2.5% in each fund. The Oaktree funds are investment companies that follow a specialized basis of accounting established by GAAP.

Each reporting period, the Company evaluates each of its equity-method investments to determine if any are considered significant, as defined by the SEC. For the three months ended March 31, 2023, no individual equity-method investment met the significance criteria.

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


	Three months ended March 31,
Statements of Operations		2023		2022
Revenues / investment income		$	1,176,631	$	840,605
Interest expense		(147,966)		(54,290)
Other expenses		(239,798)		(220,991)
Net realized and unrealized gain on investments		325,585		986,800
Net income		$	1,114,452	$	1,552,124

Other Investments, at Fair Value

Other investments, at fair value primarily consist of (a) investments in certain Oaktree and non-Oaktree funds, (b) non-investment grade debt securities, (c) equities received as part of our sponsorship of SPACs, and (d) derivatives utilized to hedge the Company’s exposure to investment income earned from its funds.

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


	Three months ended March 31,
		2023		2022

Realized gain (loss)		$	1,069	$	(91)
Net change in unrealized gain (loss)		24,534		(1,775)
Total gain (loss)		$	25,603	$	(1,866)

Investments of Consolidated Funds

Investments, at Fair Value

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	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
United States:
Debt securities:
Communication services	$	67,981	$	100,995	1.6	%	2.6	%
Consumer discretionary	129,065		127,170		3.1		3.3
Consumer staples	22,127		23,542		0.5		0.6
Energy	174,682		79,573		4.1		2.0
Financials	300,523		217,878		7.1		5.6
Health care	113,307		111,005		2.7		2.8
Industrials	223,450		206,479		5.3		5.3
Information technology	107,790		136,714		2.6		3.5
Materials	111,986		118,578		2.7		3.0
Real estate	162,536		182,643		3.9		4.7
Utilities	11,384		11,850		0.3		0.3
Other	197,708		1,890		4.7		—
Total debt securities (cost:$1,746,319 and $1,437,262 as of March 31, 2023 and December 31, 2022, respectively)	1,622,539		1,318,317		38.5		33.7
Equity securities:
Communication services	68,814		64,621		1.6		1.7
Consumer discretionary	133,902		133,104		3.2		3.4
Energy	454,797		482,984		10.8		12.4
Financials	179,256		181,980		4.3		4.7
Health care	26,120		26,191		0.6		0.7
Industrials	322,192		308,514		7.7		7.9
Information technology	14,702		14,107		0.3		0.4
Materials	899		899		0.0		—
Utilities	93,632		98,335		2.2		2.5
Total equity securities (cost: $1,022,980 and $1,000,922 as of March 31, 2023 and December 31, 2022, respectively)	1,294,314		1,310,735		30.7		33.5
Real estate:
Real estate	3,103		1,796		0.1		—
Financials	—		—		—		—
Total real estate securities (cost: $3,014 and $1,797 as of March 31, 2023 and December 31, 2022, respectively)	3,103		1,796		0.1		—


	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Europe:
Debt securities:
Communication services	$	109,740	$	103,068	2.6	%	2.7	%
Consumer discretionary	19,398		13,997		0.5		0.4
Consumer staples	8,355		8,024		0.2		0.2
Energy	1,539		1,097		0.0		0.0
Financials	27,865		35,091		0.7		0.9
Health care	7,009		8,178		0.2		0.2
Industrials	14,547		12,384		0.3		0.3
Information technology	4,167		4,583		0.1		0.1
Materials	11,028		10,920		0.3		0.3
Real estate	14,385		12,888		0.3		0.3
Utilities	5,220		5,102		0.1		0.1
Other	2,513		2,484		0.1		0.1
Total debt securities (cost: $229,088 and $230,090 as of March 31, 2023 and December 31, 2022, respectively)	225,766		217,816		5.4		5.6
Equity securities:
Consumer discretionary	134,031		130,868		3.2		3.3

Financials	33,189		31,701		0.8		0.8
Health care	3		9		0.0		—
Industrials	56,893		53,790		1.4		1.4
Materials	24,282		24,282		0.6		0.6
Real estate	33,193		25,622		0.8		0.7
Total equity securities (cost: $250,259 and $241,129 as of March 31, 2023 and December 31, 2022, respectively)	281,591		266,272		6.8		6.8
Real estate:
Real estate	82,202		72,675		2.0		1.9
Total real estate securities (cost: $75,167 and $69,100 as of March 31, 2023 and December 31, 2022, respectively)	82,202		72,675		2.0		1.9
Asia and other:
Debt securities:
Communication services	3,075		5,419		0.1		0.1
Consumer discretionary	4,347		5,641		0.1		0.1
Consumer staples	19,399		19,125		0.5		0.5
Energy	12,598		9,163		0.3		0.2
Financials	7,159		8,344		0.2		0.2

Health care	2,899		2,837		0.1		0.1
Industrials	3,650		3,754		0.1		0.1
Information technology	1,067		695		0.0		0.0
Materials	113,278		113,784		2.7		2.9
Real estate	403,630		328,343		9.6		8.4
Utilities	4,324		5,602		0.1		0.1
Other	1,439		59,998		0.0		1.5
Total debt securities (cost: $602,056 and $581,467 as of March 31, 2023 and December 31, 2022, respectively)	576,865		562,705		13.9		14.4


	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Asia and other:
Equity securities:


Energy	$	5,867	$	7,581	0.1	%	0.2	%

Industrials	80,885		113,270		1.9		2.9


Real estate	32,916		32,916		0.8		0.8
Utilities	4,530		4,530		0.1		0.1
Total equity securities (cost: $712,835 and $722,128 as of March 31, 2023 and December 31, 2022, respectively)	124,198		158,297		2.8		4.0

Total debt securities	2,425,170		2,098,838		57.6		53.7
Total equity securities	1,700,103		1,735,304		40.3		44.4
Total real estate	85,305		74,471		2.1		1.9
Total investments, at fair value	$	4,210,578	$	3,908,613	100.0	%	100.0	%

As of March 31, 2023 and December 31, 2022, no single issuer or investment had a fair value that exceeded 5% of our total consolidated net assets.

Net Gains (Losses) From Investment Activities of Consolidated Funds

Net gains (losses) from investment activities in the condensed consolidated statements of operations consist primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments. Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.

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


	Three months ended March 31,
	2023				2022
	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	$	30,259	$	(35,958)	$	(90,055)	$	201,267
CLO liabilities (1)	—		—		(2,115)		(45,844)
Foreign-currency forward contracts (2)	(1,614)		(3,984)		956		2,928
Total-return and interest-rate swaps (2)	(5)		(12)		(3,984)		(32,833)
Options and futures (2)	432		(398)		5,973		1,983
Commodity swaps (2)	2,608		15,170		—		—
Warrants (2)	—		—		—		858
Total	$	31,680	$	(25,182)	$	(89,225)	$	128,359

(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. Subsequent to the 2022 Restructuring, the assets and liabilities of the CLOs are no longer consolidated by the Company.

(2) Please see note 7 for additional information.