Consolidated Investment Entities

The Company provides investment management services to, and has transactions with, various collateralized loan obligations, private equity funds, single strategy hedge funds, insurance entities, securitizations and other investment entities in the normal course of business. In certain instances, the Company serves as the investment manager, making day-to-day investment decisions concerning the assets of these entities. These entities are considered to be either VIEs or VOEs and the Company evaluates its involvement with each entity to determine whether consolidation is required.

Certain investment entities are consolidated under consolidation guidance. The Company consolidates certain entities under the VIE guidance when it is determined that the Company is the primary beneficiary. The Company consolidates certain entities under the VOE guidance when it acts as the controlling general partner and the limited partners have no substantive rights to impact ongoing governance and operating activities of the entity, or when it otherwise has control through voting rights. In February 2015, the FASB issued ASU 2015-02, which significantly amends the consolidation analysis required under current consolidation guidance. The provisions of ASU 2015-02 are effective for the Company on January 1, 2016, with either a retrospective or modified retrospective approach required. See the Business, Basis of Presentation and Significant Accounting Policies Note for estimated impact of future adoption of this accounting pronouncement.

The Company has no right to the benefits from, nor does it bear the risks associated with these investments beyond the Company’s direct equity and debt investments in and management fees generated from these investment products. Such direct investments amounted to approximately $722.8 and $694.4 as of December 31, 2015 and 2014, respectively. If the Company were to liquidate, the assets held by consolidated investment entities would not be available to the general creditors of the Company as a result of the liquidation.

Consolidated Investments

Collateral Loan Obligations ("CLO") Entities

Certain subsidiaries of the Company structure and manage CLO entities created for the sole purpose of offering investors various maturity and risk characteristics by issuing multiple tranches of collateralized debt. The notes issued by the CLO entities are backed by diversified portfolios consisting primarily of senior secured floating rate leveraged loans.

The Company provides collateral management services to the CLO entities. In return for providing management services, the Company earns investment management fees and contingent performance fees. The Company has invested in certain of the entities, generally taking an ownership position in the unrated junior subordinated tranches. The CLO entities are structured and managed similarly but have differing fee structures and initial capital investments made by the Company. The Company’s ownership interests and management and contingent performance fees were assessed to determine if the Company is the primary beneficiary of these entities.

As of December 31, 2015 and 2014, the Company consolidated 17 CLOs and 16 CLOs, respectively.

Private Equity Funds and Single Strategy Hedge Funds (Limited Partnerships)

The Company invests in and manages various limited partnerships, including private equity funds and single strategy hedge funds. The Company, as a general partner or managing member of certain sponsored investment funds, is generally presumed to control the limited partnerships unless the limited partners have the substantive ability to remove the general partner without cause based upon a simple majority vote, or can otherwise dissolve the partnership, or have substantive participating rights over decision-making of the partnerships.

As of December 31, 2015 and 2014, the Company consolidated 33 and 35 funds respectively, which were structured as partnerships.

Registered Investment Companies

On May 7, 2015, the Company launched the Pomona Investment Fund (the "PIF") which is a private equity mutual fund. The PIF is a non-diversified, closed-end registered investment company that invests in a variety of private equity investment types and strategies. Formed as a Delaware statutory trust, investors in the PIF will receive fund shares, representing proportional interests in the assets of the PIF and voting rights on matters submitted to vote by shareholders. As of December 31, 2015, the Company is a majority investor in the PIF, and as such has a controlling financial interest in the fund.

The Company is invested in the Voya Strategic Income Opportunities Fund, which is a separately managed series fund. The Voya Strategic Income Opportunities Fund is a multi-credit unconstrained Fixed Income Mutual Fund that invests in a combination of underlying funds and direct fixed income investments. Investors in the fund receive fund shares, representing proportional interests in the assets of the fund and voting rights on matters submitted to vote by shareholders. As of December 31, 2015, the Company is a majority investor in the Voya Strategic Income Opportunities Fund, and as such has a controlling financial interest in the fund.

Collateral Support for Reinsurance Contracts

Beginning in December 2009, the Company entered into various guarantee agreements involving Karson Capital Limited ("Karson"). Karson is an unaffiliated company that provides collateral alternatives to LOCs for reinsurance transactions. Karson established the KCL Master Trust ("Master Trust" or "Borrower"), which is a Delaware statutory series trust. The Master Trust enters into securities lending agreements as borrower with various unaffiliated banks ("Securities Lenders") as lenders. All transactions with Karson were terminated as of September 30, 2015. Fair value of the loaned securities was $750.0 as of December 31, 2014.

Collateral notes backed by the borrowed securities, with a face value of $750.0 as of December 31, 2014, were issued by the Master Trust and placed in reinsurance trusts established for the benefit of the Company’s insurance subsidiaries, which were eliminated in the Company’s Consolidated Financial Statements.

The Company provided certain guarantees of the Borrower’s performance obligations to the Securities Lenders as collateral for the Borrower’s obligations under the securities lending agreements. Additional collateral in the form of liquidity obligations was provided by banks for $750.0 for the year ended December 31, 2014.

The Master Trust sponsored by Karson had minimal equity, and therefore fell under the VIE model. The Company held variable interests in this VIE relating to the guarantees of the obligations under the securities lending agreements. The Company considered its implicit and explicit financial responsibility to ensure that the Master Trust operated as designed and, thus, determined that the Company had the implied power to direct the activities that most significantly impacted the Master Trust’s economic performance under the VIE model. The Company also determined it had the obligation to absorb losses under the securities lending guarantees. Based on these conclusions, the Company determined it was the primary beneficiary under the VIE model and should consolidate the Master Trust. The Master Trust is no longer subject to consolidation following the September 30, 2015 termination noted above.

The following table summarizes the components of the consolidated investment entities, excluding collateral support for certain reinsurance contracts, as of the dates indicated:



	December 31, 2015		December 31, 2014
Assets of Consolidated Investment Entities
VIEs - CLO entities:
Cash and cash equivalents	$	246.4	$	605.9
Corporate loans, at fair value using the fair value option	6,882.5		6,793.1
Other assets	115.3		67.3
Total CLO entities	7,244.2		7,466.3
VOEs - Private equity funds and single strategy hedge funds:
Cash and cash equivalents	221.2		104.5
Limited partnerships/corporations, at fair value	4,973.7		3,727.3
Other assets	39.0		25.1
Total investment funds	5,233.9		3,856.9
Total assets of consolidated investment entities	$	12,478.1	$	11,323.2

Liabilities of Consolidated Investment Entities
VIEs - CLO entities:
CLO notes, at fair value using the fair value option	$	6,956.2	$	6,838.1
Other liabilities	240.8		561.1
Total CLO entities	7,197.0		7,399.2
VOEs - Private equity funds and single strategy hedge funds:
Other liabilities	1,710.8		796.7
Total investment funds	1,710.8		796.7
Total liabilities of consolidated investment entities	$	8,907.8	$	8,195.9

The following tables summarize the impact of consolidation of investment entities into the Consolidated Balance Sheets as of the dates indicated:



	Before Consolidation⁽¹⁾		CLOs		VOEs		CLOs Adjustments⁽²⁾			VOEs Adjustments⁽²⁾			Total
December 31, 2015
Total investments and cash	$	91,727.4	$	—	$	—	$	(38.2	)	$	(684.6	)	$	91,004.6
Other assets	18,252.1		—		—		—			—			18,252.1
Assets held in consolidated investment entities	—		7,244.2		5,235.4		—			(1.5		)	12,478.1
Assets held in separate accounts	96,514.8		—		—		—			—			96,514.8
Total assets	$	206,494.3	$	7,244.2	$	5,235.4	$	(38.2	)	$	(686.1	)	$	218,249.6

Future policy benefits and contract owner account balances	$	88,172.1	$	—	$	—	$	—		$	—		$	88,172.1
Other liabilities	8,380.6		—		—		—			(1.5		)	8,379.1
Liabilities held in consolidated investment entities	—		7,235.2		1,710.8		(38.2		)	—			8,907.8
Liabilities related to separate accounts	96,514.8		—		—		—			—			96,514.8
Total liabilities	193,067.5		7,235.2		1,710.8		(38.2		)	(1.5		)	201,973.8
Equity attributable to common shareholders	13,426.8		—		3,524.6		—			(3,524.6		)	13,426.8
Retained earnings appropriated for investors in consolidated investment entities	—		9.0		—		—			—			9.0
Equity attributable to noncontrolling interest in consolidated investment entities	—		—		—		—			2,840.0			2,840.0
Total liabilities and equity	$	206,494.3	$	7,244.2	$	5,235.4	$	(38.2	)	$	(686.1	)	$	218,249.6

⁽¹⁾ The Before Consolidation column includes the Company's equity interest in the investment products subsequently consolidated, accounted for as equity method and available-for-sale investments.

⁽²⁾Adjustments include the elimination of intercompany transactions between the Company and its consolidated investment entities, primarily the elimination of the Company's equity at risk recorded as investments by the Company (before consolidation) against either equity (private equity and real estate partnership funds) or senior and subordinated debt (CLOs) of the funds.



	Before Consolidation⁽¹⁾		CLOs		VOEs		CLOs Adjustments⁽²⁾			VOEs Adjustments⁽²⁾			Total
December 31, 2014
Total investments and cash	$	94,059.1	$	—	$	—	$	(46.6	)	$	(647.8	)	$	93,364.7
Other assets	16,235.0		—		—		—			—			16,235.0
Assets held in consolidated investment entities	—		7,466.2		3,859.7		—			(2.7		)	11,323.2
Assets held in separate accounts	106,007.8		—		—		—			—			106,007.8
Total assets	$	216,301.9	$	7,466.2	$	3,859.7	$	(46.6	)	$	(650.5	)	$	226,930.7

Future policy benefits and contract owner account balances	$	84,951.7	$	—	$	—	$	—		$	—		$	84,951.7
Other liabilities	9,216.5		—		—		—			(2.7		)	9,213.8
Liabilities held in consolidated investment entities	0.1		7,445.8		796.6		(46.6		)	—			8,195.9
Liabilities related to separate accounts	106,007.8		—		—		—			—			106,007.8
Total liabilities	200,176.1		7,445.8		796.6		(46.6		)	(2.7		)	208,369.2
Equity attributable to common shareholder	16,125.8		—		3,063.1		—			(3,063.1		)	16,125.8
Retained earnings appropriated for investors in consolidated investment entities	—		20.4		—		—			—			20.4
Equity attributable to noncontrolling interest in consolidated investment entities	—		—		—		—			2,415.3			2,415.3
Total liabilities and equity	$	216,301.9	$	7,466.2	$	3,859.7	$	(46.6	)	$	(650.5	)	$	226,930.7

The following tables summarize the impact of consolidation of investment entities into the Consolidated Statements of Operations for the periods indicated:



	Before Consolidation⁽¹⁾			CLOs			VOEs		CLOs Adjustments⁽²⁾			VOEs Adjustments⁽²⁾			Total
December 31, 2015
Revenues:
Net investment income	$	4,667.5		$	—		$	—	$	2.4		$	(32.1	)	$	4,637.8
Fee income	3,555.3			—			—		(36.0		)	(38.2		)	3,481.1
Premiums	3,024.5			—			—		—			—			3,024.5
Net realized capital losses	(733.3		)	—			—		—			—			(733.3		)
Other income	413.1			—			—		(5.5		)	(0.7		)	406.9
Income related to consolidated investment entities	—			311.9			227.8		(15.5		)	—			524.2
Total revenues	10,927.1			311.9			227.8		(54.6		)	(71.0		)	11,341.2
Benefits and expenses:
Policyholder benefits and Interest credited and other benefits to contract owners	6,510.0			—			—		—			—			6,510.0
Other expense	3,962.9			—			—		—			—			3,962.9
Operating expenses related to consolidated investment entities	—			323.3			54.1		(54.6		)	(39.0		)	283.8
Total benefits and expenses	10,472.9			323.3			54.1		(54.6		)	(39.0		)	10,756.7
Income (loss) before income taxes	454.2			(11.4		)	173.7		—			(32.0		)	584.5
Income tax expense (benefit)	45.9			—			—		—			—			45.9
Net income (loss)	408.3			(11.4		)	173.7		—			(32.0		)	538.6
Less: Net income (loss) attributable to noncontrolling interest	—			(11.4		)	—		—			141.7			130.3
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	408.3		$	—		$	173.7	$	—		$	(173.7	)	$	408.3

⁽¹⁾The Before Consolidation column includes the Company's equity interest in the investment products accounted for as equity method (private equity and real estate partnership funds) and available-for-sale investments (CLOs). The net income arising from consolidation of CLOs is completely attributable to other investors in these CLOs, as the Company's share has been eliminated through consolidation.

⁽²⁾Adjustments include the elimination of intercompany transactions between the Company and its consolidated investment products, primarily the elimination of the Company's management fees expensed by the funds and recorded as operating revenues (before consolidation) by the Company.



	Before Consolidation⁽¹⁾			CLOs		VOEs		CLOs Adjustments⁽²⁾			VOEs Adjustments⁽²⁾			Total
December 31, 2014
Revenues:
Net investment income	$	4,731.4		$	—	$	—	$	(3.0	)	$	(113.6	)	$	4,614.8
Fee income	3,711.0			—		—		(30.2		)	(48.3		)	3,632.5
Premiums	2,626.4			—		—		—			—			2,626.4
Net realized capital losses	(878.4		)	—		—		—			—			(878.4		)
Other income	441.7			—		—		(7.5		)	(1.4		)	432.8
Income related to consolidated investment entities	—			257.3		410.3		(8.8		)	—			658.8
Total revenues	10,632.1			257.3		410.3		(49.5		)	(163.3		)	11,086.9
Benefits and expenses:
Policyholder benefits and Interest credited and other benefits to contract owners	5,937.9			—		—		—			—			5,937.9
Other expense	4,130.7			—		—		—			—			4,130.7
Operating expenses related to consolidated investment entities	—			255.3		61.0		(49.5		)	(49.7		)	217.1
Total benefits and expenses	10,068.6			255.3		61.0		(49.5		)	(49.7		)	10,285.7
Income (loss) before income taxes	563.5			2.0		349.3		—			(113.6		)	801.2
Income tax expense (benefit)	(1,731.5		)	—		—		—			—			(1,731.5		)
Net income (loss)	2,295.0			2.0		349.3		—			(113.6		)	2,532.7
Less: Net income (loss) attributable to noncontrolling interest	—			2.0		—		—			235.7			237.7
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	2,295.0		$	—	$	349.3	$	—		$	(349.3	)	$	2,295.0



	Before Consolidation⁽¹⁾			CLOs		VOEs		CLOs Adjustments⁽²⁾			VOEs Adjustments⁽²⁾			Total
December 31, 2013
Revenues:
Net investment income	$	4,791.2		$	—	$	—	$	(5.7	)	$	(96.5	)	$	4,689.0
Fee income	3,723.8			—		—		(23.2		)	(34.3		)	3,666.3
Premiums	1,956.3			—		—		—			—			1,956.3
Net realized capital losses	(2,536.8		)	—		—		—			—			(2,536.8		)
Other income	443.6			—		—		(10.0		)	(0.6		)	433.0
Income related to consolidated investment entities	—			234.6		322.6		(8.5		)	—			548.7
Total revenues	8,378.1			234.6		322.6		(47.4		)	(131.4		)	8,756.5
Benefits and expenses:
Policyholder benefits and Interest credited and other benefits to contract owners	4,497.8			—		—		—			—			4,497.8
Other expense	3,314.3			—		—		—			—			3,314.3
Operating expenses related to consolidated investment entities	—			222.6		48.0		(47.4		)	(34.9		)	188.3
Total benefits and expenses	7,812.1			222.6		48.0		(47.4		)	(34.9		)	8,000.4
Income (loss) before income taxes	566.0			12.0		274.6		—			(96.5		)	756.1
Income tax expense (benefit)	(32.5		)	—		—		—			—			(32.5		)
Net income (loss)	598.5			12.0		274.6		—			(96.5		)	788.6
Less: Net income (loss) attributable to noncontrolling interest	—			12.0		—		—			178.1			190.1
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	598.5		$	—	$	274.6	$	—		$	(274.6	)	$	598.5

⁽²⁾ Adjustments include the elimination of intercompany transactions between the Company and its consolidated investment products, primarily the elimination of the Company's management fees expensed by the funds and recorded as operating revenues (before consolidation) by the Company.

Fair Value Measurement

Upon consolidation of CLO entities, the Company elected to apply the FVO for financial assets and financial liabilities held by these entities and continued to measure these assets (primarily corporate loans) and liabilities (debt obligations issued by CLO entities) at fair value in subsequent periods. The Company has elected the FVO to more closely align its accounting with the economics of its transactions and allows the Company to more effectively align changes in the fair value of CLO assets with a commensurate change in the fair value of CLO liabilities.

Investments held by consolidated private equity funds and single strategy hedge funds are measured and reported at fair value in the Company's Consolidated Financial Statements. Changes in the fair value of consolidated investment entities are recorded as a separate line item within Income (loss) related to consolidated investment entities in the Company's Consolidated Statements of Operations.

The methodology for measuring the fair value and fair value hierarchy classification of financial assets and liabilities of consolidated investment entities is consistent with the methodology and fair value hierarchy rules applied by the Company to its investment portfolio. See the Business, Basis of Presentation and Significant Accounting Policies Note to these Consolidated Financial Statements for further information.

As discussed in more detail below, the Company utilizes valuations obtained from third-party commercial pricing services, brokers and investment sponsors or third-party administrators that supply NAV (or its equivalent) per share used as a practical expedient. The valuations obtained from brokers and third-party commercial pricing services are non-binding. These valuations are reviewed on a monthly or quarterly basis (dependent on the type of fund or product). Procedures include, but are not limited to, a review of underlying fund investor reports, review of top and worst performing funds requiring further scrutiny, review of variance from prior periods and review of variance from benchmarks, where applicable. In addition, the Company considers both macro and fund specific events that may impact the latest NAV supplied and determines if further adjustments of value should be made. Such changes, if any, are subject to senior management review.

When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3. Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes.

Cash and Cash Equivalents

The carrying amounts for cash reflect the assets’ fair values. The fair value for cash equivalents is determined based on quoted market prices. These assets are classified as Level 1.

VIEs - CLO Entities

Corporate loans: Corporate loan investments, which comprise the majority of consolidated CLO portfolio collateral, are senior secured corporate loans maturing at various dates between 2016 and 2024, paying interest at LIBOR, EURIBOR or PRIME plus a spread of up to 10.0% and typically range in credit rating categories from AAA down to unrated. As of December 31, 2015 and 2014, the unpaid principal balance exceeded the fair value of the corporate loans by approximately $325.5 and $75.9, respectively. Less than 1.0% of the collateral assets were in default as of December 31, 2015 and 2014.

The fair values for corporate loans are determined using independent commercial pricing services. Fair value measurement based on pricing services may be classified in Level 2 or Level 3 depending on the type, complexity, observability and liquidity of the asset being measured. The inputs used by independent commercial pricing services, such as benchmark yields and credit risk adjustments, are those that are derived principally from, or corroborated by, observable market data. Hence, the fair value measurement of corporate loans priced by independent pricing service providers is classified within Level 2 of the fair value hierarchy. In addition, there are assets held with CLO portfolios that represent senior level debt of other third party CLOs. These CLO investments are classified within Level 3 of the fair value hierarchy. See description of fair value process for CLO notes below.

CLO notes: The CLO notes are backed by a diversified loan portfolio consisting primarily of senior secured floating rate leveraged loans. Repayment risk is segmented into tranches with credit ratings of these tranches reflecting both the credit quality of underlying collateral as well as how much protection a given tranche is afforded by tranches that are subordinate to it. The most subordinated tranche bears the first loss and receives the residual payments, if any. The interest rates are generally variable rates based on LIBOR plus a pre-defined spread, which varies from 0.22% for the more senior tranches to 7.00% for the more subordinated tranches. CLO notes mature at various dates between 2020 and 2027 and have a weighted average maturity of 8.9 years as of December 31, 2015. The outstanding balance on the notes issued by consolidated CLOs exceeds their fair value by approximately $499.9 and $239.6 as of December 31, 2015 and 2014, respectively. The investors in this debt are not affiliated with the Company and have no recourse to the general credit of the Company for this debt.

The fair values of the CLO notes including subordinated tranches in which the Company retains an ownership interest are obtained from a third-party commercial pricing service. The service combines the modeling of projected cash flow activity and the calibration of modeled results with transactions that have taken place in the specific debt issue as well as debt issues with similar characteristics. Several of the more significant inputs to the models including default rate, recovery rate, prepayment rate and discount margin, are determined primarily based on the nature of the investments in the underlying collateral pools and cannot be corroborated by observable market data. Accordingly, CLO notes are classified within Level 3 of the fair value hierarchy.

The Company reviews the detailed prices, including comparisons to prior periods, for reasonableness. The Company utilizes a formal pricing challenge process to request a review of any price during which time the vendor examines its assumptions and relevant market inputs to determine if a price change is warranted.

The following table summarizes significant unobservable inputs for Level 3 fair value measurements as of the dates indicated:



	Fair Value		Valuation Technique	Unobservable Inputs
December 31, 2015
Assets:
CLO Investments	$	18.3	Discounted Cash Flow	Default Rate
				Recovery Rate
				Prepayment Rate
				Discount Margin
Liabilities:
CLO Notes	$	6,956.2	Discounted Cash Flow	Default Rate
				Recovery Rate
				Prepayment Rate
				Discount Margin



	Fair Value		Valuation Technique	Unobservable Inputs
December 31, 2014
Assets:
CLO Investments	$	19.2	Discounted Cash Flow	Default Rate
				Recovery Rate
				Prepayment Rate
				Discount Margin
Liabilities:
CLO Notes	$	6,838.1	Discounted Cash Flow	Default Rate
				Recovery Rate
				Prepayment Rate
				Discount Margin

The following narrative indicates the sensitivity of inputs:


•	Default Rate: An increase (decrease) in the expected default rate would likely increase (decrease) the discount margin (increase risk premium) used to value the CLO investments and CLO notes and, as a result, would potentially decrease the value of the CLO investments and CLO notes.


•	Recovery Rate: A decrease (increase) in the expected recovery of defaulted assets would potentially decrease (increase) the valuation of CLO investments and CLO notes.


•	Prepayment Rate: A decrease (increase) in the expected rate of collateral prepayments would potentially decrease (increase) the valuation of CLO investments and CLO notes as the expected weighted average life ("WAL") would increase.


•	Discount Margin (spread over LIBOR): An increase (decrease) in the discount margin used to value the CLO investments and CLO notes and would decrease (increase) the value of the CLO investments and CLO notes.

VOEs - Private Equity Funds, Single Strategy Hedge Funds, and Registered Investment Companies

Limited partnerships, at fair value, and the PIF, at fair value, primarily represent the Company's investments in private equity funds. At times, the limited partnerships and the PIF make strategic co-investments directly into private equity companies, including, but not limited to, buyout, venture capital, distressed and mezzanine. The Company’s investment in a single strategy hedge fund is also at fair value. The fair value for these investments is estimated based on the NAV from the latest financial statements of these funds, provided by the fund's investment manager or third party administrator.

The Voya Strategic Income Opportunities Fund, at fair value, represents the Company’s investment in a fixed income series fund, and the fair value for the investment is based on quoted market price.

Private Equity Funds

As prescribed in ASC Topic 820, the unit of account for these investments is the interest in the investee fund. The Company owns an undivided interest in the fund portfolio and does not have the ability to dispose of individual assets and liabilities in the fund portfolio. Rather, the Company would be required to redeem or dispose of its entire interest in the investee fund. There is no current active market for interests in underlying private equity funds.

Valuation is generally based on the valuations provided by the fund's general partner or investment manager. The valuations typically reflect the fair value of the Company's capital account balance of each fund investment, including unrealized capital gains (losses), as reported in the financial statements of the respective investee fund as of the respective year end or the latest available date. In circumstances where fair values are not provided, the Company seeks to determine the fair value of fund investments based upon other information provided by the fund's general partner or investment manager or from other sources.

The fair value of securities received in-kind from fund investments is determined based on the restrictions around the securities.


•	Unrestricted, publicly traded securities are valued at the closing public market price on the reporting date;


•	Restricted, publicly traded securities may be valued at a discount from the closing public market price on the reporting date, depending on the circumstances; and


•	Privately held securities are valued by the directors/general partner of the investee fund, based on a variety of factors, including the price of recent transactions in the company's securities and the company's earnings, revenue and book value.

In the case of direct investments or co-investments in private equity companies, the Company initially recognizes investments at cost and subsequently adjusts investments to fair value. On a quarterly basis, the Company reviews the general partner or lead investor's valuation of the investee company, taking into account other available information, such as indications of a market value through subsequent issues of capital or transactions between third parties, performance of the investee company during the period and public, comparable companies' analysis, where appropriate.

Investments in these funds typically may not be fully redeemed at NAV within 90 days because of inherent restriction on near term redemptions. Therefore, these investments are classified within Level 3 of the fair value hierarchy.

As of December 31, 2015 and 2014, certain private equity funds maintained revolving lines of credit of $597.0 and $550.0, respectively, which renew annually and bear interest at LIBOR/EURIBOR plus 150 and 160 bps, respectively. The lines of credit are used for funding transactions before capital is called from investors, as well as for the financing of certain purchases. The private equity funds generally may borrow an amount that does not exceed the lesser of a certain percentage of the funds' undrawn commitments or a certain percentage of the funds' undrawn commitments plus 250% asset coverage from the invested assets of the funds as of December 31, 2015 and 2014. As of December 31, 2015 and 2014, outstanding borrowings amount to $553.7 and $261.4,respectively. The borrowings are reflected in Liabilities related to consolidated investment entities - other liabilities on the Consolidated Balance Sheets. The borrowings are carried at an amount equal to the unpaid principal balance.

Single Strategy Hedge Funds

As of December 31, 2015 and 2014, the Company acts as investment manager of a certain single strategy hedge fund (the "Fund") that seeks to achieve its investment objective by investing in many forms of U.S. residential mortgage-backed securities, government securities and related derivative instruments, including without limitation, U.S. Treasury debt, government sponsored enterprise ("Agency") backed securities and fixed or adjustable rate collateralized mortgage obligations and Real Estate Mortgage Investment Conduits ("REMICs"). The Fund may also enter into repurchase and reverse repurchase agreements.

Investments in this Fund are priced in accordance with the Fund's pricing hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities that rely upon a vendor supplied price are classified as Level 2. Securities priced using independent broker quotes are classified as Level 3.

During the years ended December 31, 2015 and 2014, this Fund sold securities under an agreement to repurchase at a specified future date. Securities sold under an agreement to repurchase are not de-recognized on the Consolidated Balance Sheets, as the single strategy hedge fund retains substantially all the risks and rewards of ownership. The obligation to repay the corresponding cash received is recognized in the Consolidated Balance Sheets in Liabilities related to consolidated investment entities - Other liabilities. As of December 31, 2015 and 2014, outstanding financings amount to $1,009.2 and $417.1, respectively.

Voya Strategic Income Opportunities Fund

Voya Strategic Income Opportunities Fund seeks to achieve its investment strategy by investing primarily in fixed-income corporate, government, and agency securities. Investments in this fund are priced in accordance with the procedures adopted by the Fund’s Board, and such procedures provide that the fair value of debt securities are valued using an evaluated price provided by an independent pricing service. Evaluated prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect factors such as institution-size trading in similar groups of securities, developments related to specific securities, benchmark yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Securities that rely upon a vendor supplied price are classified as Level 2.

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2015:



	Level 1		Level 2		Level 3		Total
Assets
VIEs - CLO entities:
Cash and cash equivalents	$	246.4	$	—	$	—	$	246.4
Corporate loans, at fair value using the fair value option	—		6,864.2		18.3		6,882.5
VOEs - Private equity funds and single strategy hedge funds:
Cash and cash equivalents	221.2		—		—		221.2
Limited partnerships/corporations, at fair value	—		2,092.6		2,881.1		4,973.7
Total assets, at fair value	$	467.6	$	8,956.8	$	2,899.4	$	12,323.8
Liabilities
VIEs - CLO entities:
CLO notes, at fair value using the fair value option	$	—	$	—	$	6,956.2	$	6,956.2
Total liabilities, at fair value	$	—	$	—	$	6,956.2	$	6,956.2

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2014:



	Level 1		Level 2		Level 3		Total
Assets
VIEs - CLO entities:
Cash and cash equivalents	$	605.9	$	—	$	—	$	605.9
Corporate loans, at fair value using the fair value option	—		6,773.9		19.2		6,793.1
VOEs - Private equity funds and single strategy hedge funds:
Cash and cash equivalents	104.5		—		—		104.5
Limited partnerships/corporations, at fair value	—		1,035.6		2,691.7		3,727.3
Total assets, at fair value	$	710.4	$	7,809.5	$	2,710.9	$	11,230.8
Liabilities
VIEs - CLO entities:
CLO notes, at fair value using the fair value option	$	—	$	—	$	6,838.1	$	6,838.1
Total liabilities, at fair value	$	—	$	—	$	6,838.1	$	6,838.1

Level 3 assets primarily include investments in private equity funds and single strategy hedge funds held by the consolidated VOEs, while the Level 3 liabilities consist of CLO notes. Transfers of investments out of Level 3 and into Level 2 or Level 1, if any, are recorded as of the beginning of the period in which the transfer occurred.

For the year ended December 31, 2015, there were no transfers in or out of Level 3 or transfers between Level 1 and Level 2. For the year ended December 31, 2014, $13.9 of investments held in single strategy hedge funds were transferred from Level 2 to Level 3 based upon the use of broker quotes to price certain underlying securities held by the single strategy hedge fund. There were no transfers between Level 1 and Level 2.

The reconciliation of the beginning and ending fair value measurements for Level 3 assets and liabilities using significant unobservable inputs for the year ended December 31, 2015 is presented in the table below:



	Fair Value as of January 1		Gains (Losses) Included in the Consolidated Statement of Operations			Purchases		Sales			Transfer into Level 3		Transfer out of Level 3		Fair Value as of December 31
Assets
VIEs - CLO entities:
Corporate loans, at fair value using the fair value option	$	19.2	$	(0.2	)	$	—	$	(0.7	)	$	—	$	—	$	18.3
VOEs - Private equity funds and single strategy hedge funds:
Limited partnerships/corporations, at fair value	2,691.7		159.8			894.9		(865.3		)	—		—		2,881.1
Total assets, at fair value	$	2,710.9	$	159.6		$	894.9	$	(866.0	)	$	—	$	—	$	2,899.4
Liabilities
VIEs - CLO entities:
CLO notes, at fair value using the fair value option	$	6,838.1	$	(255.9	)	$	1,173.0	$	(799.0	)	$	—	$	—	$	6,956.2
Total liabilities, at fair value	$	6,838.1	$	(255.9	)	$	1,173.0	$	(799.0	)	$	—	$	—	$	6,956.2



	Fair Value as of January 1		Gains (Losses) Included in the Consolidated Statement of Operations			Purchases		Sales			Transfer into Level 3		Transfer out of Level 3		Fair Value as of December 31
Assets
VIEs - CLO entities:
Corporate loans, at fair value using the fair value option	$	25.5	$	0.4		$	—	$	(6.7	)	$	—	$	—	$	19.2
VOEs - Private equity funds and single strategy hedge funds:
Limited partnerships/corporations, at fair value	2,734.1		332.9			384.7		(773.9		)	13.9		—		2,691.7
Total assets, at fair value	$	2,759.6	$	333.3		$	384.7	$	(780.6	)	$	13.9	$	—	$	2,710.9
Liabilities
VIEs - CLO entities:
CLO notes, at fair value using the fair value option	$	5,161.6	$	(87.5	)	$	2,052.7	$	(288.7	)	$	—	$	—	$	6,838.1
Total liabilities, at fair value	$	5,161.6	$	(87.5	)	$	2,052.7	$	(288.7	)	$	—	$	—	$	6,838.1

Deconsolidation of Certain Investment Entities

The Company deconsolidated one investment entity during the year ended December 31, 2015, and did not deconsolidate any investment entities during the year ended December 31, 2014.

Nonconsolidated VIEs

CLO Entities

In addition to the consolidated CLO entities, the Company also holds variable interest in certain CLO entities that are not consolidated as it has been determined that the Company is not the primary beneficiary. With these CLO entities, the Company serves as the investment manager and receives investment management fees and contingent performance fees. Generally, the Company does not hold any interest in the nonconsolidated CLO entities but if it does, such ownership has been deemed to be insignificant. The Company has not provided, and is not obligated to provide, any financial or other support to these entities.

The Company reviews its assumptions on a periodic basis to determine if conditions have changed such that the projection of these contingent fees becomes significant enough to reconsider the Company's consolidation status as variable interest holder. As of December 31, 2015, the Company held a $1.4 ownership interest in an unconsolidated CLO. As of December 31, 2014, the Company did not hold any ownership interests in these unconsolidated CLOs.

The following table presents the carrying amounts of total assets and liabilities of the CLOs in which the Company concluded that it holds a variable interest, but is not the primary beneficiary as of the dates indicated. The Company determines its maximum exposure to loss to be: (i) the amount invested in the debt or equity of the CLO and (ii) other commitments and guarantees to the CLO.



	December 31, 2015		December 31, 2014
Carrying amount	$	1.4	$	—
Maximum exposure to loss	1.4		—
Assets of nonconsolidated investment entities	1,279.9		932.8
Liabilities of nonconsolidated investment entities	1,336.8		983.7

Investment Funds

The Company manages or holds investments in certain private equity funds and hedge funds. With these entities, the Company serves as the investment manager and is entitled to receive investment management fees and contingent performance fees that are generally expected to be insignificant. Although the Company has the power to direct the activities that significantly impact the economic performance of the funds, it is not considered the primary beneficiary and did not consolidate any of these investment funds.

In addition, the Company does not consolidate the funds in which its involvement takes a form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner's interest does not provide the Company with any substantive kick-out or participating rights, which would overcome the presumption of control by the general partner.

Securitizations

The Company invests in various tranches of securitization entities, including RMBS, CMBS and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and will not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements (excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS which are accounted for under the FVO whose change in fair value is reflected in Other net realized gains (losses) in the Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment. Refer to the Investments (excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements for details regarding the carrying amounts and classifications of these assets.