DEBT OBLIGATIONS AND CREDIT FACILITIES (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Debt Obligations

The offering closed on June 8, 2022, and Oaktree Capital I received proceeds of €200 million on the closing date.

	As of
	March 31, 2024		December 31, 2023
Senior unsecured notes
€50,000, 2.20%, issued in June 2022, payable on June 8, 2032	$	54,566	$	55,233
€75,000, 2.40%, issued in June 2022, payable on June 8, 2034	81,847		82,849
€75,000, 2.58%, issued in June 2022, payable on June 8, 2037	81,847		82,849
Total remaining principal	218,260		220,931
Less: Debt issuance costs	(1,220)		(1,249)
Total debt obligations, net	$	217,040	$	219,682

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

	As of
	March 31, 2024		December 31, 2023
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		200,000
Total remaining principal	$	1,050,000	$	1,050,000

Schedule of Collateralized Loan Obligation

The consolidated funds had the following debt obligations outstanding:

	Outstanding Amount as of				Key terms as of March 31, 2024
Credit Agreement	March 31, 2024		December 31, 2023		Facility Capacity		Effective Interest Rate	Weighted Average Remaining Maturity (years)	Commitment Fee Rate	L/C Fee
Revolving credit facilities (1)	$	1,056,293	$	951,950	$	1,678,970	7.59%	1.2	0.25%	2.20%
Total debt obligations	$	1,056,293	$	951,950
Less: Debt issuance costs (2)	(6,925)		(6,155)
Total debt obligations, net	$	1,049,368	$	945,795

(1)    The credit facility capacity is calculated on a pro rata basis using fund commitments as of March 31, 2024.

(2)    Debt issuance costs are included in other assets as of March 31, 2024 and December 31, 2023.

Debt obligations of CLOs represent amounts due to holders of debt securities issued by the CLOs, as well as term loans of CLOs that had not priced as of period end. Outstanding debt obligations of CLOs were as follows:

	As of March 31, 2024				As of December 31, 2023
	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	381,666		7.32	12.9	—		—%	—
Total CLO debt obligations	$	381,666			$	—

(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 note 2 for more information.

Schedule 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, 2024:

Investment Type	Fair Value		Valuation Technique	Significant Unobservable Inputs (1)(2)	Range	Weighted Average (3)
Credit-oriented investments:
Consumer discretionary:	$	51,724	Discounted cash flow (6)	Discount rate	13% - 17%	16%
	29,664		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	29,434		Recent transaction price (7)	Quoted prices	Not applicable	Not applicable
Energy:	67,564		Discounted cash flow (6)	Discount rate	18% - 18%	18%
	2,282		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Financials:	29,467		Discounted cash flow (6)	Discount rate	9% - 15%	15%
	30,929		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	21,252		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.5x - 1.0x	0.9x
	197		Expected Recovery (11)	Not applicable	Not applicable	Not applicable
Industrials	154,026		Discounted cash flow (6)	Discount rate	10% - 15%	13%
	7,870		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	4,160		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Materials:	366,923		Discounted cash flow (6)	Discount rate	10% - 15%	13%
	3,708		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	67,056		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Real estate:	204,909		Discounted cash flow (6)	Discount rate	4% - 19%	15%
	32,174		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	186,479		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	1.0x - 1.0x	1.0x
	36,477		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Other:	576,440		Discounted cash flow (6)	Discount rate	6% - 19%	17%
	24,390		Market approach (comparable companies) (7)	Earnings multiple (10)	6.0x - 9.0x	6.5x
	7,668		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	972		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
Equity investments:
	150,186		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	98,616		Discounted cash flow (6)	Discount rate	12% - 18%	15%
	22,364		Discounted cash flow (6) / market approach (comparable companies) (7)	Discount rate	11% - 11%	11%
				Earnings multiple (10)	10.0x - 12.0x	11.0x
	372,859		Market approach (comparable companies) (7)	Earnings multiple (10)	6.0x - 13.0x	9.4x
	31,742		Market approach (comparable companies) (7)	Revenue multiple (8)	2.0x - 2.0x	2.0x
	10,731		Expected Recovery (11)	Not applicable	Not applicable	Not applicable
	1,084		Black Scholes (12)	Not applicable	Not applicable	Not applicable
	24,831		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	840,279		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.5x - 1.0x	1.0x
Real estate-oriented investments:
Consumer discretionary:	60,800		Discounted cash flow (6)	Discount rate	20% - 20%	20%
Real estate:	125,881		Discounted cash flow (6)	Discount rate	4% - 23%	15%
Total Level III    investments	$	3,675,138

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, 2023:

Investment Type	Fair Value		Valuation Technique	Significant Unobservable Inputs (1)(2)	Range	Weighted Average (3)
Credit-oriented investments:
Consumer discretionary:	$	11,311	Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	351		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	55,326		Discounted cash flow (6)	Discount rate	13% – 17%	16%
Energy:	15,873		Discounted cash flow (6)	Discount rate	14% – 14%	14%
	69,871		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	2,325		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Financials:	26,689		Discounted cash flow (6)	Discount rate	12% – 15%	15%
	3,646		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	26,102		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	20,520		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.5x – 1.0x	0.7x
Industrials:	79,824		Discounted cash flow (6)	Discount rate	11% – 15%	13%
	62,544		Market approach (comparable companies) (7)	Earnings multiple (10)	9.8x – 9.8x	9.8x
	51,788		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	452		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Materials:	306,319		Discounted cash flow (6)	Discount rate	10% – 15%	12%
	193,614		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	—		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Real estate:	35,084		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	211,211		Discounted cash flow (6)	Discount rate	13% – 15%	15%
	193,771		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	1.0x – 1.0x	1.0x
	37,419		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Other:	4,316		Recent market information (5)	Quoted prices	Not applicable	Not applicable
	19,820		Market approach (comparable companies) (7)	Earnings multiple (10)	6.0x – 6.0x	6.0x
	1,345		Market approach (comparable companies) (7)	Revenue multiple (8)	0.3x – 0.3x	0.3x
	1,612		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	551,047		Discounted cash flow (6)	Discount rate	9% – 19%	18%
Equity investments:
	179,009		Recent transaction price (4)	Quoted prices	Not applicable	Not applicable
	670,215		Market approach (comparable companies) (7)	Multiple of underlying assets (9)	0.9x – 1.0x	1.0x
	396,688		Market approach (comparable companies) (7)	Earnings multiple (10)	2.0x – 11.0x	8.5x
	102,981		Discounted cash flow (6)	Discount rate	12% – 20%	15%
	60,841		Market approach (comparable companies) (7)	Revenue multiple (8)	1.0x – 2.0x	1.5x
	22,573		Discounted cash flow (6) / market approach (comparable companies) (7)	Discount rate	12% – 12%	12%
				Earnings multiple (10)	9.0x – 11.0x	10.0x
	14,102		Recent market information (5)	Quoted prices	Not applicable	Not applicable
Real estate-oriented:
Consumer discretionary:	61,357		Discounted cash flow (6)	Discount rate	20% – 20%	20%
Real estate:	113,996		Discounted cash flow (6)	Discount rate	4% – 27%	14%
Total Level III    investments	$	3,603,942

(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.

(11)    Certain investments are valued based on expected recovery, generally representing the estimated value that can be recovered in the event of liquidation or winding down.

(12)     The fair value of options/warrants is estimated using the Black-Scholes-Merton valuation model. The company uses the following methods to determine the underlying assumptions: expected volatilities are based on the historical and implied volatilities of comparable companies or the subject company if the subject company is publicly traded; expected term is based on the shorter of the expected hold period for the option or the contractual term; and the risk-free rate is based on the yields on U.S. Treasury bills or bonds issued with similar terms to the expected term of the option.

The following table set forth the significant valuation inputs, including the input range and weighted average rate utilized in determining the fair value of the Company’s CLO beneficial interests held at March 31, 2024:

Valuation Input	Low	High	Weighted Average Rate
Discount rates	16.0%	37.0%	22.6%
Constant default rates	2.0%	2.0%	2.0%
Recovery rates	60.0%	65.0%	62.8%

Schedule of Principal Value with Debt Obligations

As of March 31, 2024, future scheduled principal or par value payments with respect to the debt obligations of CLOs were as follows:

Remainder of 2024	$	—
2025	—
2026	11,872
2027	—
2028	—
Thereafter	370,000
Total	$	381,872