CONSOLIDATED INVESTMENT PRODUCTS

3 Months Ended

Mar. 31, 2024

Consolidated Investment Products [Abstract]

The balances related to CIP are identified on the Consolidated Balance Sheets. At March 31, 2024, the company’s net investment in and net receivables from CIP were $521.9 million (December 31, 2023: $546.2 million). The consolidation of CIP had no impact on net income attributable to the company during the three months ended March 31, 2024.

The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of March 31, 2024 and December 31, 2023:


	As of March 31, 2024
(in millions)	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV as a practical expedient
Assets:

Bank loans	$	7,133.8	$	—	$	6,143.3	$	990.5	$	—
Bonds	624.5		11.9		612.3		0.3		—
Equity securities	172.9		30.1		19.4		123.4		—


Equity and fixed income mutual funds	112.9		0.2		112.7		—		—

Investments in other private equity funds	412.6		—		—		—		412.6

Real estate investments	445.5		—		—		—		445.5


Total assets at fair value	$	8,902.2	$	42.2	$	6,887.7	$	1,114.2	$	858.1


	As of December 31, 2023
(in millions)	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Investments Measured at NAV as a practical expedient
Assets:

Bank loans	$	6,837.2	$	—	$	6,140.1	$	697.1	$	—
Bonds	669.8		13.3		656.2		0.3		—
Equity securities	231.9		85.2		18.3		128.4		—


Equity and fixed income mutual funds	137.9		8.0		129.9		—		—

Investments in other private equity funds	425.5		—		—		—		425.5

Real estate investments	463.6		—		—		—		463.6


Total assets at fair value	$	8,765.9	$	106.5	$	6,944.5	$	825.8	$	889.1

At March 31, 2024, CIP borrowings with a fair value of $565.0 million (December 31, 2023: $353.7 million) are classified as level 3 in the valuation hierarchy.

The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs:


	Three months ended March 31,
	2024		2023
(in millions)	Level 3 Assets		Level 3 Assets


Beginning Balance as of January 1	$	825.8	$	368.6






CIP Purchases	275.0		0.1



CIP Sales	(2.3)		(13.4)
Deconsolidation of CIP	—		(0.6)
Gains and losses included in the Consolidated Statements of Income	(1.9)		(7.6)
Transfers from Level 3 into Levels 1 or 2	(16.2)		(130.2)
Transfers into Level 3 from Levels 1 or 2	34.0		132.2
Foreign exchange	(0.2)		2.2
Ending Balance as of March 31	$	1,114.2	$	351.3

Non-consolidated Variable interest entities (VIEs)

At March 31, 2024, the company's risk of loss with respect to VIEs in which the company is not the primary beneficiary included our investment carrying value of $141.4 million (December 31, 2023: $122.9 million) and unfunded capital commitments of $153.2 million (December 31, 2023: $142.5 million).

See the company’s most recently filed Form 10-K for additional disclosures on valuation methodology and fair value.