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INVESTMENTS
 3 Months Ended
Mar. 31, 2024
Investments [Abstract]  
INVESTMENTS INVESTMENTS
Corporate Investments
Corporate investments consisted of the following:
As of
Corporate InvestmentsMarch 31, 2024December 31, 2023
Equity-method investments:
Funds$1,342,340 $1,434,988 
Companies11,524 11,901 
Other investments, at fair value85,127 85,319 
Total corporate investments$1,438,991 $1,532,208 
The components of investment income (loss) are set forth below:
Three months ended March 31,
Investment Income (Loss)20242023
Equity-method investments:
Funds$4,612 $26,122 
Companies(377)(3)
Other investments, at fair value14,005 25,603 
Total investment income$18,240 $51,722 
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. The fair value option has been elected to simplify the accounting for the investment in OCG NTR Holdings, LLC, a wholly owned subsidiary of the Company (“NTR”). Changes in the fair value and cash dividends received from the investment in NTR are included in investment income. During the three months ended March 31, 2024, the Company recognized an equity investment loss of $17.7 million. 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. As of March 31, 2024, or for the three months ended March 31, 2024 and 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 Operations20242023
Revenues / investment income$1,041,837 $1,176,631 
Interest expense(141,221)(147,966)
Other expenses(270,030)(239,798)
Net realized and unrealized gain on investments1,146,042 325,585 
Net income$1,776,628 $1,114,452 
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 at fair value:
Three months ended March 31,
20242023
Realized gain (loss)$7,535 $1,069 
Net change in unrealized gain (loss)6,470 24,534 
Total gain (loss)$14,005 $25,603 
Investments of Consolidated Funds
Investments, at Fair Value
Investments held and securities sold short by the consolidated funds are summarized below:
Fair Value as ofFair Value as a Percentage of Investments of Consolidated Funds as of
InvestmentsMarch 31, 2024December 31, 2023March 31, 2024December 31, 2023
United States:    
Debt securities:    
Communication services$148,272 $69,509 2.6 %1.4 %
Consumer discretionary291,691 202,355 5.1 3.9 
Consumer staples54,040 28,149 0.9 0.5 
Energy114,814 110,990 2.0 2.2 
Financials283,612 223,794 4.9 4.4 
Health care310,429 226,554 5.4 4.4 
Industrials462,602 379,538 8.0 7.5 
Information technology125,611 87,355 2.2 1.7 
Materials371,007 333,459 6.4 6.5 
Real estate100,215 97,621 1.7 1.9 
Utilities43,772 19,954 0.8 0.4 
Other514,516 549,164 8.9 10.6 
Total debt securities (cost:$2,816,424 and $2,341,421 as of March 31, 2024 and December 31, 2023, respectively)
2,820,581 2,328,442 48.9 45.4 
Equity securities:    
Communication services84,675 79,522 1.5 1.5 
Consumer discretionary40,063 68,056 0.7 1.3 
Energy430,082 427,034 7.5 8.3 
Financials234,302 171,924 4.1 3.3 
Health care33,294 32,418 0.6 0.6 
Industrials421,733 369,019 7.3 7.2 
Information technology43,997 44,350 0.8 0.9 
Utilities70,118 89,427 1.2 1.7 
Total equity securities (cost: $1,086,131 and $1,095,721 as of March 31, 2024 and December 31, 2023, respectively)
1,358,264 1,281,750 23.7 24.8 
Real estate:    
Real estate13,952 13,780 0.2 0.3 
Total real estate securities (cost: $23,160 and $22,716 as of March 31, 2024 and December 31, 2023, respectively)
13,952 13,780 0.2 0.3 
Fair Value as ofFair Value as a Percentage of Investments of Consolidated Funds as of
InvestmentsMarch 31, 2024December 31, 2023March 31, 2024December 31, 2023
Europe:  
Debt securities:    
Communication services$103,870 $111,898 1.8 %2.1 %
Consumer discretionary27,120 18,560 0.5 0.4 
Consumer staples8,379 3,107 0.1 0.1 
Energy5,231 1,185 0.1 — 
Financials23,151 18,381 0.4 0.4 
Health care11,760 12,136 0.2 0.2 
Industrials18,965 15,993 0.3 0.3 
Information technology6,141 5,402 0.1 0.1 
Materials11,734 13,487 0.2 0.3 
Real estate14,339 13,424 0.2 0.3 
Utilities1,241 5,417 — 0.1 
Other34,989 34,686 0.6 0.6 
Total debt securities (cost: $246,604 and $231,315 as of March 31, 2024 and December 31, 2023, respectively)
266,920 253,676 4.5 4.9 
Equity securities:    
Consumer discretionary53,933 52,468 0.9 1.0 
Financials48,808 49,496 0.8 1.0 
Health care122 19 — — 
Industrials101,724 93,662 1.8 1.7 
Materials24,282 24,282 0.4 0.5 
Real estate39,985 44,637 0.7 0.9 
Total equity securities (cost: $207,847 and $208,130 as of March 31, 2024 and December 31, 2023, respectively)
268,854 264,564 4.6 5.1 
Real estate:
Consumer discretionary60,800 61,357 1.1 1.2 
Real estate111,929 100,216 2.0 1.9 
Total real estate securities (cost: $171,035 and $159,423 as of March 31, 2024 and December 31, 2023, respectively)
172,729 161,573 3.1 3.1 
Asia and other:
Debt securities:    
Communication services509 803 — — 
Consumer discretionary25,428 17,195 0.4 0.3 
Consumer staples19,999 19,820 0.3 0.4 
Energy2,381 1,307 — — 
Financials8,094 8,192 0.1 0.2 
Health care400 402 — — 
Industrials5,127 4,181 0.1 0.1 
Information technology46 5 — — 
Materials282,392 249,492 5.0 4.9 
Real estate414,490 435,799 7.2 8.5 
Utilities28 3,244 — 0.1 
Total debt securities (cost: $773,093 and $761,394 as of March 31, 2024 and December 31, 2023, respectively)
758,894 740,440 13.1 14.5 
Fair Value as ofFair Value as a Percentage of Investments of Consolidated Funds as of
InvestmentsMarch 31, 2024December 31, 2023March 31, 2024December 31, 2023
Asia and other:
Equity securities:    
Industrials$76,960 $63,161 1.3 %1.2 %
Real estate32,916 32,916 0.6 0.6 
Utilities1,706 3,375 — 0.1 
Total equity securities (cost: $101,880 and $90,638 as of March 31, 2024 and December 31, 2023, respectively)
111,582 99,452 1.9 1.9 
Total debt securities3,846,395 3,322,558 66.6 64.8 
Total equity securities1,738,700 1,645,766 30.1 31.8 
Total real estate186,681 175,353 3.3 3.4 
Total investments, at fair value$5,771,776 $5,143,677 100.0 %100.0 %
As of March 31, 2024 and December 31, 2023, no single issuer or investment had a fair value that exceeded 5% of the Company’s 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,
 20242023
Net Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on InvestmentsNet Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on Investments
Investments and other financial instruments
$(55,747)$111,713 $30,259 $(35,958)
CLO liabilities (1)
35 1,362 — — 
Foreign-currency forward contracts (2)
(351)5,735 (1,614)(3,984)
Total return, interest rate and credit default swaps (2)
— 633 (5)(12)
Options and futures (2)
(206)(388)432 (398)
Commodity swaps (2)
4,493 (1,581)2,608 15,170 
Total$(51,776)$117,474 $31,680 $(25,182)
(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 7 for additional information.