FAIR VALUE

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

Fair Value of Financial Assets and Liabilities

The short-term nature of cash and cash-equivalents, receivables and accounts payable causes each of their carrying values to approximate fair value. The fair value of short-term investments included in cash and cash-equivalents is a Level I valuation. The Company’s other financial assets and financial liabilities by fair-value hierarchy level are set forth below. Please see notes 8 and 14 for the fair value of the Company’s outstanding debt obligations and amounts due from/to affiliates, respectively.

	As of June 30, 2023								As of December 31, 2022
	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Assets
Corporate investments	$	63,225	$	319,735	$	19,717	$	402,677	$	109,078	$	1,172	$	8,470	$	118,720
SPAC common stock and earn-out shares included in other assets	27,159		—		1,041		28,200		—		—		—		—
Foreign-currency forward contracts - included in corporate investments	—		1,898		—		1,898		—		1,279		—		1,279
Foreign-currency forward contracts - included in other assets	—		—		—		—		—		12,061		—		12,061
Total assets	$	90,384	$	321,633	$	20,758	$	432,775	$	109,078	$	14,512	$	8,470	$	132,060
Liabilities
Foreign-currency forward contracts - included in corporate investments	$	—	$	(115)	$	—	$	(115)	$	—	$	(11,840)	$	—	$	(11,840)
Foreign-currency forward contracts - included in other liabilities	—		(2,022)		—		(2,022)		—		—		—		—
Total liabilities	$	—	$	(2,137)	$	—	$	(2,137)	$	—	$	(11,840)	$	—	$	(11,840)

The Company’s Level III financial instrument held as of June 30, 2023 consists of earn-out shares received in connection with the deconsolidation of a SPAC and a mezzanine loan purchased during the second quarter of 2023.

The table below sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the Company’s Level III financial instruments at June 30, 2023:

	Fair Value as of			Significant Unobservable Input
Financial Instrument	June 30, 2023		Valuation Technique		Input Value
Mezzanine loan	$	18,155	Recent market information	Broker quotations	N/A
Earn-out shares	2,603		Black-Scholes option pricing model	Volatility	55%
Total Level III Financial Instruments	$	20,758

Fair Value of Financial Instruments Held By Consolidated Funds

The short-term nature of cash and cash-equivalents held at the consolidated funds causes their carrying value to approximate fair value. The fair value of cash-equivalents is a Level I valuation. Derivatives may relate to a mix of Level I, II or III investments, and therefore their fair-value hierarchy level may not correspond to the fair-value hierarchy level of the economically hedged investment. The table below summarizes the investments and other financial instruments of the consolidated funds by fair-value hierarchy level:

	As of June 30, 2023								As of December 31, 2022
	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Assets
Investments:
Corporate debt – bank debt	$	—	$	459,775	$	1,262,634	$	1,722,409	$	—	$	411,997	$	702,497	$	1,114,494
Corporate debt – all other	—		873,035		177,323		1,050,358		—		764,841		219,503		984,344
Equities – common stock	206,134		30,366		809,676		1,046,176		226,862		34,389		777,198		1,038,449
Equities – preferred stock	1,140		—		618,684		619,824		80,251		—		616,604		696,855
Real estate	—		—		88,675		88,675		—		—		74,471		74,471
Total investments	207,274		1,363,176		2,956,992		4,527,442		307,113		1,211,227		2,390,273		3,908,613
Derivatives:
Foreign-currency forward contracts	—		2,189		—		2,189		—		9,758		—		9,758
Swaps	5,543		587		—		6,130		—		700		—		700
Options and futures	797		—		—		797		279		—		—		279
Total derivatives (1)	6,340		2,776		—		9,116		279		10,458		—		10,737
Total assets	$	213,614	$	1,365,952	$	2,956,992	$	4,536,558	$	307,392	$	1,221,685	$	2,390,273	$	3,919,350
Liabilities
Derivatives:
Foreign-currency forward contracts	$	—	$	(19,486)	$	—	$	(19,486)	$	—	$	(16,356)	$	—	$	(16,356)
Swaps	—		(328)		—		(328)		(7,666)		—		—		(7,666)
Options and futures	(1,428)		—		—		(1,428)		—		—		—		—
Total derivatives (3)	(1,428)		(19,814)		—		(21,242)		(7,666)		(16,356)		—		(24,022)
Total liabilities	$	(1,428)	$	(19,814)	$	—	$	(21,242)	$	(7,666)	$	(16,356)	$	—	$	(24,022)

The following tables set forth a summary of changes in the fair value of Level III investments:

	Corporate Debt – Bank Debt		Corporate Debt – All Other		Equities – Common Stock		Equities – Preferred Stock		Real Estate		Total
Three months ended June 30, 2023
Beginning balance	$	962,316	$	227,164	$	809,809	$	582,600	$	85,305	$	2,667,194
Transfers into Level III	770		3,482		17,267		—		—		21,519
Transfers out of Level III	(168)		—		—		—		—		(168)
Purchases	342,977		1,066		5,966		36,228		6,435		392,672
Sales	(40,758)		(56,176)		(17,967)		(314)		—		(115,215)
Realized gain (losses), net	117		(199)		8,382		23		(1)		8,322
Unrealized appreciation (depreciation), net	(2,620)		1,986		(13,781)		147		(3,064)		(17,332)
Ending balance	$	1,262,634	$	177,323	$	809,676	$	618,684	$	88,675	$	2,956,992
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(2,498)	$	1,964	$	(13,729)	$	32	$	(3,064)	$	(17,295)
Three months ended June 30, 2022
Beginning balance	$	867,294	$	224,490	$	690,278	$	593,752	$	36,887	$	2,412,701
Deconsolidation of funds	(33,428)		—		(456)		—		—		(33,884)
Transfers into Level III	82,845		3,942		—		—		—		86,787
Transfers out of Level III	(20,766)		(1,475)		—		—		—		(22,241)
Purchases	62,126		6,207		9,179		79,781		20,194		177,487
Sales	(98,436)		(24,425)		(63,306)		(91,191)		—		(277,358)
Realized losses, net	(422)		3		6,396		4		(827)		5,154
Unrealized appreciation (depreciation), net	(8,534)		(7,118)		40,371		3,084		2,887		30,690
Ending balance	$	850,679	$	201,624	$	682,462	$	585,430	$	59,141	$	2,379,336
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(3,828)	$	(87)	$	(319)	$	(2)	$	—	$	(4,236)

	Corporate Debt – Bank Debt		Corporate Debt – All Other		Equities – Common Stock		Equities – Preferred Stock		Real Estate		Total
Six months ended June 30, 2023
Beginning balance	$	702,497	$	219,503	$	777,198	$	616,604	$	74,471	$	2,390,273
Transfers into Level III	929		8,903		17,267		—		—		27,099
Transfers out of Level III	(4,641)		(978)		—		—		—		(5,619)
Purchases	621,785		1,723		50,958		40,419		13,721		728,606
Sales	(43,621)		(56,176)		(43,168)		(35,537)		—		(178,502)
Realized gain, net	148		(427)		21,250		9,010		(3)		29,978
Unrealized appreciation (depreciation), net	(14,463)		4,775		(13,829)		(11,812)		486		(34,843)
Ending balance	$	1,262,634	$	177,323	$	809,676	$	618,684	$	88,675	$	2,956,992
Net change in unrealized appreciation attributable to assets still held at end of period	$	(14,485)	$	4,753	$	(13,778)	$	(11,927)	$	488	$	(34,949)
Six months ended June 30, 2022
Beginning balance	$	597,188	$	229,576	$	581,748	$	486,030	$	33,834	$	1,928,376
Deconsolidation of funds	(33,428)		—		(456)		—		—		(33,884)
Transfers into Level III	87,252		5,354		—		—		—		92,606
Transfers out of Level III	(41,449)		(3,950)		(6)		—		—		(45,405)
Purchases	413,281		8,169		109,641		171,159		24,141		726,391
Sales	(164,240)		(24,432)		(106,369)		(91,191)		—		(386,232)
Realized losses, net	2,466		(19)		(121,983)		4		(827)		(120,359)
Unrealized depreciation, net	(10,391)		(13,074)		219,887		19,428		1,993		217,843
Ending balance	$	850,679	$	201,624	$	682,462	$	585,430	$	59,141	$	2,379,336
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period	$	(4,314)	$	(154)	$	(282)	$	(9)	$	2	$	(4,757)

Total realized and unrealized gains and losses recorded for Level III investments are included in net realized gain on consolidated funds’ investments or net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations.

Transfers out of Level III are generally attributable to certain investments that experienced a more significant level of market trading activity or completed an initial public offering during the respective period and thus were valued using observable inputs. Transfers into Level III typically reflect either investments that experienced a less significant level of market trading activity during the period or portfolio companies that undertook restructurings or bankruptcy proceedings and thus were valued in the absence of observable inputs.

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 June 30, 2023:

Investment Type	Fair Value		Valuation Technique	Significant Unobservable Inputs (1)(2)	Range	Weighted Average (3)
Credit-oriented investments:
Consumer discretionary:	93,250		Discounted cash flow (4)	Discount rate	13% - 16%	14%
	319		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	40,371		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Energy	104,180		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	2,429		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	31,133		Discounted cash flow (4)	Discount rate	14% - 19%	17%
Financials	56,207		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.5x - 1x	0.95x
	26,663		Discounted cash flow (6)	Discount rate	12% - 15%	15%
	13,609		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Industrials	45,682		Discounted cash flow (6)	Discount rate	12% - 16%	13%
	26,185		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	35,540		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x - 1.1x	1.0x
Information technology	53,328		Discounted cash flow (6)	Discount rate	12% - 15%	13%
	(91)		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	41,252		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Materials	250,276		Discounted cash flow (6)	Discount rate	10% - 15%	12%
Real estate	42,372		Recent market information (7)	Quoted prices	Not applicable	Not applicable
	116,171		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	6,422		Discounted cash flow (6)	Discount rate	9% - 9%	9%
	323,389		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.4x - 1x	0.9x
Other	(1,379)		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	110,114		Discounted cash flow (6)	Discount rate	11% - 18%	13%
	2,921		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	19,615		Market approach (comparable companies) (7)	Earnings multiple (10)	5x - 5x	5x
Equity investments:
	93,182		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	31,169		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	229,470		Discounted cash flow (6)	Discount rate	12% - 21%	19%
	29,483		Discounted cash flow (6) / market approach (comparable companies) (7)	Discount rate	13% - 13%	13%
				Earnings multiple (10)	7.0x - 9.0x	8.0x
	75,163		Market approach (comparable companies) (7)	Revenue multiple (8)	2.0x - 5.0x	3.3x
	391,958		Market approach (comparable companies) (7)	Earnings multiple (10)	5.0x - 10.0x	7.7x
	577,934		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x - 1.1x	1.0x
Real estate-oriented investments:
	88,675		Discounted cash flow (6)	Discount rate	18% - 27%	21%
Total Level III    investments	$	2,956,992

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, 2022:

Investment Type	Fair Value		Valuation Technique	Significant Unobservable Inputs (1)(2)	Range	Weighted Average (3)
Credit-oriented investments:
Consumer discretionary	$	43,934	Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	293		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	16,062		Discounted cash flow (6)	Discount rate	12% – 15%	14%
Communication services	67,500		Discounted cash flow (6)	Discount rate	12% – 13%	13%
Energy	32,765		Discounted cash flow (6)	Discount rate	13% – 21%	18%
	2,676		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Financials	66,204		Discounted cash flow (6)	Discount rate	12% – 19%	15%
	12,880		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	6,143		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x - 1.0x	1.0x
Industrials	9,875		Discounted cash flow (6)	Discount rate	12% – 15%	14%
	35,124		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x - 1.0x	1.0x
	4,527		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Materials	197,427		Discounted cash flow (6)	Discount rate	10% – 14%	12%
Real estate	32,173		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	3,643		Discounted cash flow (6)	Discount rate	9% – 9%	9%
	302,179		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.8x -1.0x	0.95x
	35,525		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Other	(1,137)		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	22,732		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	31,474		Discounted cash flow (6)	Discount rate	10% – 18%	14%
Equity investments:
	74,329		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	582,299		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x - 1.1x	1.0x
	336,831		Market approach (comparable companies) (7)	Earnings multiple (10)	5x - 20x	9x
	214,172		Discounted cash flow (6)	Discount rate	12% – 21%	19%
	83,644		Market approach (comparable companies) (7)	Revenue multiple (8)	1x - 2x	2x
	27,347		Discounted cash flow (6) / Market approach (comparable companies) (7)	Discount rate	14% – 14%	14%
	75,181		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Real estate-oriented:
	7,695		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	66,776		Discounted cash flow (6)	Discount rate	14% – 25%	18%
Total Level III    investments	$	2,390,273

(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 issuer.

(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.

A significant amount of judgment may be required when using unobservable inputs, including assessing the accuracy of source data and the results of pricing models. The Company assesses the accuracy and reliability of the sources it uses to develop unobservable inputs. These sources may include third-party vendors that the Company believes are reliable and commonly utilized by other marketplace participants. As described in note 2, other factors beyond the unobservable inputs described above may have a significant impact on investment valuations.

During the six months ended June 30, 2023, the valuation technique for a credit-oriented investment was changed from discounted cash flow to market approach (value of underlying assets). During the six months ended June 30, 2022, there were no changes in the valuation techniques for Level III securities.