INVESTMENTS

6 Months Ended

Jun. 30, 2023

Corporate Investments

Corporate investments consisted of the following:


	As of
Corporate Investments	June 30, 2023		December 31, 2022

Equity-method investments:
Funds	$	1,424,160	$	1,082,069
Companies	1,280		1,276
Other investments, at fair value	84,978		108,159
Total corporate investments	$	1,510,418	$	1,191,504

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


	Three months ended June 30,				Six months ended June 30,
Investment Income (Loss)	2023		2022		2023		2022

Equity-method investments:
Funds	$	(11,230)	$	(34,591)	$	14,892	$	(20,338)
Companies	—		(590)		(3)		(1,236)
Other investments, at fair value	(30,611)		4,507		(5,008)		2,641
Total investment income (loss)	$	(41,841)	$	(30,674)	$	9,881	$	(18,933)

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.

On June 27, 2023, the Company entered into a contribution agreement with Brookfield Corporate Treasury Ltd. and acquired the equity ownership in certain entities which beneficially own shares in Brookfield Real Estate Income Trust. The Company accounted for the acquired interests as equity method investments with fair value election. Given the transaction was closed on June 30, 2023, the Company did not record any equity investment income for the six months ended June 30, 2023. Please refer to note 14 for the detailed description of the transaction.

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 six months ended June 30, 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 June 30,				Six months ended June 30,
Statements of Operations	2023		2022		2023		2022
Revenues / investment income	$	1,064,494	$	789,232	$	2,241,125	$	1,629,837
Interest expense	(136,034)		(70,880)		(284,000)		(125,170)
Other expenses	(231,153)		(181,318)		(470,951)		(402,309)
Net realized and unrealized gain (loss) on investments	(440,319)		(896,459)		(114,734)		90,341
Net income (loss)	$	256,988	$	(359,425)	$	1,371,440	$	1,192,699

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 June 30,				Six months ended June 30,
	2023		2022		2023		2022

Realized gain	$	1,082	$	835	$	2,151	$	744
Net change in unrealized gain (loss)	(31,693)		3,672		(7,159)		1,897
Total gain (loss)	$	(30,611)	$	4,507	$	(5,008)	$	2,641

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	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
United States:
Debt securities:
Communication services	$	108,658	$	100,995	2.4	%	2.6	%
Consumer discretionary	228,762		127,170		5.1		3.3
Consumer staples	20,122		23,542		0.4		0.6
Energy	180,288		79,573		4.0		2.0
Financials	339,478		217,878		7.5		5.6
Health care	125,019		111,005		2.8		2.8
Industrials	254,194		206,479		5.6		5.3
Information technology	118,845		136,714		2.6		3.5
Materials	131,962		118,578		2.9		3.0
Real estate	137,109		182,643		3.0		4.7
Utilities	16,405		11,850		0.4		0.3
Other	225,078		1,890		5.0		0.0
Total debt securities (cost: $1,975,206 and $1,437,262 as of June 30, 2023 and December 31, 2022, respectively)	1,885,920		1,318,317		41.7		33.6
Equity securities:
Communication services	69,661		64,621		1.5		1.7
Consumer discretionary	134,894		133,104		3.0		3.4
Energy	433,746		482,984		9.6		12.4
Financials	185,092		181,980		4.1		4.7
Health care	26,164		26,191		0.6		0.7
Industrials	346,900		308,514		7.7		7.9
Information technology	14,914		14,107		0.3		0.4
Materials	899		899		0.0		0.0
Utilities	88,013		98,335		1.9		2.5
Total equity securities (cost: $1,061,469 and $1,000,922 as of June 30, 2023 and December 31, 2022, respectively)	1,300,283		1,310,735		28.7		33.7
Real estate:
Real estate	3,475		1,796		0.1		0.0

Total real estate securities (cost: $3,017 and $1,797 as of June 30, 2023 and December 31, 2022, respectively)	3,475		1,796		0.1		0.0


	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Europe:
Debt securities:
Communication services	$	105,463	$	103,068	2.3	%	2.6	%
Consumer discretionary	15,929		13,997		0.4		0.4
Consumer staples	1,916		8,024		0.0		0.2
Energy	1,361		1,097		0.0		0.0
Financials	15,698		35,091		0.3		0.9
Health care	11,439		8,178		0.3		0.2
Industrials	14,385		12,384		0.3		0.3
Information technology	25,048		4,583		0.6		0.1
Materials	13,441		10,920		0.3		0.3
Real estate	16,494		12,888		0.4		0.3
Utilities	7,947		5,102		0.2		0.1
Other	2,551		2,484		0.1		0.1
Total debt securities (cost: $227,604 and $230,090 as of June 30, 2023 and December 31, 2022, respectively)	231,672		217,816		5.2		5.5
Equity securities:
Consumer discretionary	94,570		130,868		2.1		3.3
Materials	24,282		24,282		0.5		0.6
Financials	36,250		31,701		0.8		0.8
Health care	3		9		0.0		0.0
Industrials	58,661		53,790		1.3		1.4
Real estate	38,712		25,622		0.9		0.7
Total equity securities (cost: $233,883 and $241,129 as of June 30, 2023 and December 31, 2022, respectively)	252,478		266,272		5.6		6.8
Real estate:
Real estate	85,200		72,675		1.9		1.9
Total real estate securities (cost: $81,598 and $69,100 as of June 30, 2023 and December 31, 2022, respectively)	85,200		72,675		1.9		1.9
Asia and other:
Debt securities:
Communication services	853		5,419		0.0		0.1
Consumer discretionary	5,921		5,641		0.1		0.2
Consumer staples	19,615		19,125		0.4		0.5
Energy	8,432		9,163		0.2		0.2
Financials	7,742		8,344		0.2		0.2

Health care	2,649		2,837		0.1		0.1
Industrials	3,980		3,754		0.1		0.1
Information technology	953		695		0.0		0.0
Materials	161,356		113,784		3.6		2.9
Real estate	439,532		328,343		9.7		8.4
Utilities	4,142		5,602		0.1		0.1
Other	—		59,998		—		1.5
Total debt securities (cost: $680,512 and $581,467 as of June 30, 2023 and December 31, 2022, respectively)	655,175		562,705		14.4		14.4


	Fair Value as of				Fair Value as a Percentage of Investments of Consolidated Funds as of
Investments	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Asia and other:
Equity securities:



Energy	$	6,029	$	7,581	0.1	%	0.2	%
Industrials	70,031		113,270		1.5		2.9
Real estate	32,916		32,916		0.7		0.8
Utilities	4,263		4,530		0.1		0.1
Total equity securities (cost: $99,042 and $722,128 as of June 30, 2023 and December 31, 2022, respectively)	113,239		158,297		2.4		4.0















Total debt securities	2,772,767		2,098,838		61.2		53.7
Total equity securities	1,666,000		1,735,304		36.8		44.4
Total real estate	88,675		74,471		2.0		1.9
Total investments, at fair value	$	4,527,442	$	3,908,613	100.0	%	100.0	%

As of June 30, 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 June 30,
	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	$	27,208	$	(5,980)	$	21,673	$	(124,313)
CLO liabilities (1)	—		—		(12,319)		(40,956)
Foreign-currency forward contracts (2)	93		(6,596)		14,133		9,494
Total-return and interest-rate swaps (2)	122		468		4,266		32,939
Options and futures (2)	640		1,134		4,108		(2,088)
Commodity swaps (2)	2,638		(1,815)		(15,735)		(30,428)
Total	$	30,701	$	(12,789)	$	16,126	$	(155,352)


	Six months ended June 30,
	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	$	57,467	$	(41,938)	$	(68,382)	$	76,954
CLO liabilities (1)	—		—		(14,434)		(86,800)
Foreign-currency forward contracts (2)	(1,521)		(10,580)		15,089		12,422
Total-return and interest-rate swaps (2)	117		456		282		106
Options and futures (2)	1,072		736		10,081		(105)
Commodity swaps (2)	5,246		13,355		(15,735)		(29,570)
Total	$	62,381	$	(37,971)	$	(73,099)	$	(26,993)

(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.