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Fair Value Measurement | 3 Months Ended
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Mar. 31, 2017
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Fair Value Measurement The fair value measurement accounting guidance establishes a hierarchal disclosure framework which ranks the observability of market price inputs used in measuring financial instruments at fair value. The observability of inputs is impacted by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices, or for which fair value can be measured from quoted prices in active markets, will generally have a higher degree of market price observability and a lesser degree of judgment applied in determining fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: Level I – inputs to the valuation methodology are quoted prices available in active markets for identical instruments as of the reporting date. The type of financial instruments included in Level I include unrestricted securities, including equities and derivatives, listed in active markets. The Partnership does not adjust the quoted price for these instruments, even in situations where the Partnership holds a large position and a sale could reasonably impact the quoted price. Level II – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date. The type of financial instruments in this category includes less liquid and restricted securities listed in active markets, securities traded in other than active markets, government and agency securities, and certain over-the-counter derivatives where the fair value is based on observable inputs. Level III – inputs to the valuation methodology are unobservable and significant to overall fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category include investments in privately-held entities, non-investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter derivatives where the fair value is based on unobservable inputs. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. In certain cases, debt and equity securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in comparable investments and various relationships between investments. The following table summarizes the Partnership’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of March 31, 2017:
(Dollars in millions) | Level I |  | Level II |  | Level III |  | Total
Assets |  |  |  |  |  |  |
Investments of Consolidated Funds: |  |  |  |  |  |  |
Equity securities | $ | — |  |  | $ | — |  |  | $ | 10.8 |  |  | $ | 10.8 |
Bonds | — |  |  | — |  |  | 417.6 |  |  | 417.6 |
Loans | — |  |  | — |  |  | 3,473.2 |  |  | 3,473.2 |
Other | — |  |  | — |  |  | 1.5 |  |  | 1.5 |
| — |  |  | — |  |  | 3,903.1 |  |  | 3,903.1 |
Investments in CLOs and other | — |  |  | — |  |  | 155.9 |  |  | 155.9 |
Corporate treasury investments |  |  |  |  |  |  |
Bonds | — |  |  | 87.8 |  |  | — |  |  | 87.8 |
Commercial paper and other | — |  |  | 61.1 |  |  | — |  |  | 61.1 |
| — |  |  | 148.9 |  |  | — |  |  | 148.9 |
Foreign currency forward contracts | — |  |  | 3.4 |  |  | — |  |  | 3.4 |
Total | $ | — |  |  | $ | 152.3 |  |  | $ | 4,059.0 |  |  | $ | 4,211.3 |
Liabilities |  |  |  |  |  |  |
Loans payable of Consolidated Funds(1) | $ | — |  |  | $ | — |  |  | $ | 3,587.5 |  |  | $ | 3,587.5 |
Contingent consideration(2) | — |  |  | — |  |  | 1.5 |  |  | 1.5 |
Loans payable of a consolidated real estate VIE | — |  |  | — |  |  | 77.8 |  |  | 77.8 |
Foreign currency forward contracts | — |  |  | 6.0 |  |  | — |  |  | 6.0 |
Total | $ | — |  |  | $ | 6.0 |  |  | $ | 3,666.8 |  |  | $ | 3,672.8 |
(1) | Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interests held by the Partnership and (ii) the carrying value of any beneficial interests that represent compensation for services.
(2) | Related to contingent consideration associated with the Partnership's acquisitions, excluding employment-based contingent consideration (see Note 8).
The following table summarizes the Partnership’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of December 31, 2016:
(Dollars in millions) | Level I |  | Level II |  | Level III |  | Total
Assets |  |  |  |  |  |  |
Investments of Consolidated Funds: |  |  |  |  |  |  |
Equity securities | $ | — |  |  | $ | — |  |  | $ | 10.3 |  |  | $ | 10.3 |
Bonds | — |  |  | — |  |  | 396.4 |  |  | 396.4 |
Loans | — |  |  | — |  |  | 3,485.6 |  |  | 3,485.6 |
Other | — |  |  | — |  |  | 1.4 |  |  | 1.4 |
| — |  |  | — |  |  | 3,893.7 |  |  | 3,893.7 |
Investments in CLOs and other | — |  |  | — |  |  | 152.6 |  |  | 152.6 |
Corporate treasury investments |  |  |  |  |  |  |
Bonds | — |  |  | 91.3 |  |  | — |  |  | 91.3 |
Commercial paper and other | — |  |  | 98.9 |  |  | — |  |  | 98.9 |
| — |  |  | 190.2 |  |  | — |  |  | 190.2 |
Foreign currency forward contracts | — |  |  | 2.5 |  |  | — |  |  | 2.5 |
Total | $ | — |  |  | $ | 192.7 |  |  | $ | 4,046.3 |  |  | $ | 4,239.0 |
Liabilities |  |  |  |  |  |  |
Loans payable of Consolidated Funds(1) | $ | — |  |  | $ | — |  |  | $ | 3,866.3 |  |  | $ | 3,866.3 |
Contingent consideration(2) | — |  |  | — |  |  | 1.5 |  |  | 1.5 |
Loans payable of a consolidated real estate VIE | — |  |  | — |  |  | 79.4 |  |  | 79.4 |
Foreign currency forward contracts | — |  |  | 10.0 |  |  | — |  |  | 10.0 |
Total | $ | — |  |  | $ | 10.0 |  |  | $ | 3,947.2 |  |  | $ | 3,957.2 |
(1) | Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interests held by the Partnership and (ii) the carrying value of any beneficial interests that represent compensation for services.
(2) | Related to contingent consideration associated with the Partnership's acquisitions, excluding employment-based contingent consideration (see Note 8).
There were no transfers from Level II to Level I during the three months ended March 31, 2017 and March 31, 2016. Investment professionals with responsibility for the underlying investments are responsible for preparing the investment valuations pursuant to the policies, methodologies and templates prepared by the Partnership’s valuation group, which is a team made up of dedicated valuation professionals reporting to the Partnership’s chief accounting officer. The valuation group is responsible for maintaining the Partnership’s valuation policy and related guidance, templates and systems that are designed to be consistent with the guidance found in ASC 820, Fair Value Measurement. These valuations, inputs and preliminary conclusions are reviewed by the fund accounting teams. The valuations are then reviewed and approved by the respective fund valuation subcommittees, which are comprised of the respective fund head(s), segment head, chief financial officer and chief accounting officer, as well as members of the valuation group. The valuation group compiles the aggregate results and significant matters and presents them for review and approval by the global valuation committee, which is comprised of the Partnership’s co-chief executive officers, president and chief operating officer, chief risk officer, chief financial officer, chief accounting officer, deputy chief investment officers for Corporate Private Equity, the business segment heads, and observed by the chief compliance officer, the director of internal audit and the Partnership’s audit committee. Additionally, each quarter a sample of valuations is reviewed by external valuation firms. In the absence of observable market prices, the Partnership values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist. Management’s determination of fair value is then based on the best information available in the circumstances and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for which market prices are not observable include private investments in the equity of operating companies and real estate properties, and certain debt positions. The valuation technique for each of these investments is described below: Private Equity and Real Estate Investments – The fair values of private equity investments are determined by reference to projected net earnings, earnings before interest, taxes, depreciation and amortization (“EBITDA”), the discounted cash flow method, public market or private transactions, valuations for comparable companies or sales of comparable assets, and other measures which, in many cases, are unaudited at the time received. The methods used to estimate the fair value of real estate investments include the discounted cash flow method and/or capitalization rate (“cap rate”) analysis. Valuations may be derived by reference to observable valuation measures for comparable companies or transactions (e.g., applying a key performance metric of the investment such as EBITDA or net operating income to a relevant valuation multiple or cap rate observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar models. Adjustments to observable valuation measures are frequently made upon the initial investment to calibrate the initial investment valuation to industry observable inputs. Such adjustments are made to align the investment to observable industry inputs for differences in size, profitability, projected growth rates, geography and capital structure if applicable. The adjustments are reviewed with each subsequent valuation to assess how the investment has evolved relative to the observable inputs. Additionally, the investment may be subject to certain specific risks and/or development milestones which are also taken into account in the valuation assessment. Option pricing models and similar tools do not currently drive a significant portion of private equity or real estate valuations and are used primarily to value warrants, derivatives, certain restrictions and other atypical investment instruments. Credit-Oriented Investments – The fair values of credit-oriented investments (including corporate treasury investments) are generally determined on the basis of prices between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in comparable investments and various relationships between investments. Specifically, for investments in distressed debt and corporate loans and bonds, the fair values are generally determined by valuations of comparable investments. In some instances, the Partnership may utilize other valuation techniques, including the discounted cash flow method. CLO Investments and CLO Loans Payable – The Partnership measures the financial liabilities of its consolidated CLOs based on the fair value of the financial assets of its consolidated CLOs, as the Partnership believes the fair value of the financial assets are more observable. The fair values of the CLO loan and bond assets are primarily based on quotations from reputable dealers or relevant pricing services. In situations where valuation quotations are unavailable, the assets are valued based on similar securities, market index changes, and other factors. The Partnership corroborates quotations from pricing services either with other available pricing data or with its own models. Generally, the loan and bond assets of the CLOs are not actively traded and are classified as Level III. The fair values of the CLO structured asset positions are determined based on both discounted cash flow analyses and third party quotes. Those analyses consider the position size, liquidity, current financial condition of the CLOs, the third party financing environment, reinvestment rates, recovery lags, discount rates and default forecasts and are compared to broker quotations from market makers and third party dealers. The Partnership measures the CLO loan payables held by third party beneficial interest holders on the basis of the fair value of the financial assets of the CLO and the beneficial interests held by the Partnership. The Partnership continues to measure the CLO loans payable that it holds at fair value based on both discounted cash flow analyses and third-party quotes, as described above. Loans Payable of a Consolidated Real Estate VIE – The Partnership has elected the fair value option to measure the loans payable of a consolidated real estate VIE at fair value. The fair values of the loans are primarily based on discounted cash flows analyses, which consider the liquidity and current financial condition of the consolidated real estate VIE. These loans are classified as Level III. Fund Investments – The Partnership’s investments in external funds are valued based on its proportionate share of the net assets provided by the third party general partners of the underlying fund partnerships based on the most recent available information which typically has a lag of up to 90 days. The terms of the investments generally preclude the ability to redeem the investment. Distributions from these investments will be received as the underlying assets in the funds are liquidated, the timing of which cannot be readily determined. The changes in financial instruments measured at fair value for which the Partnership has used Level III inputs to determine fair value are as follows (Dollars in millions):
| Financial Assets
| Three Months Ended March 31, 2017
| Investments of Consolidated Funds |  |  |  |
| Equity securities |  | Bonds |  | Loans |  | Other |  | Investments in CLOs and other |  | Total
Balance, beginning of period | $ | 10.3 |  |  | $ | 396.4 |  |  | $ | 3,485.6 |  |  | $ | 1.4 |  |  | $ | 152.6 |  |  | $ | 4,046.3 |
Purchases | — |  |  | 66.1 |  |  | 625.4 |  |  | — |  |  | — |  |  | 691.5 |
Sales and distributions | — |  |  | (56.4 | ) |  | (408.1 | ) |  | — |  |  | (2.1 | ) |  | (466.6 | )
Settlements | — |  |  | — |  |  | (291.1 | ) |  | — |  |  | — |  |  | (291.1 | )
Realized and unrealized gains (losses), net |  |  |  |  |  |  |  |  |  |  |
Included in earnings | 0.3 |  |  | 5.3 |  |  | 31.0 |  |  | 0.1 |  |  | 2.9 |  |  | 39.6 |
Included in other comprehensive income | 0.2 |  |  | 6.2 |  |  | 30.4 |  |  | — |  |  | 2.5 |  |  | 39.3 |
Balance, end of period | $ | 10.8 |  |  | $ | 417.6 |  |  | $ | 3,473.2 |  |  | $ | 1.5 |  |  | $ | 155.9 |  |  | $ | 4,059.0 |
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date | $ | 0.3 |  |  | $ | 5.1 |  |  | $ | 28.4 |  |  | $ | 0.1 |  |  | $ | 2.9 |  |  | $ | 36.8 |
| Financial Assets
| Three Months Ended March 31, 2016
| Investments of Consolidated Funds |  |  |  |  |  |
| Equity securities |  | Bonds |  | Loans |  | Partnership and LLC interests(2) |  | Other |  | Investments in CLOs and other |  | Restricted securities of Consolidated Funds |  | Total
Balance, beginning of period | $ | 575.3 |  |  | $ | 1,180.9 |  |  | $ | 15,686.7 |  |  | $ | 59.6 |  |  | $ | 5.0 |  |  | $ | 1.4 |  |  | $ | 8.7 |  |  | $ | 17,517.6 |
Deconsolidation of funds(1) | (562.1 | ) |  | (890.7 | ) |  | (13,506.9 | ) |  | — |  |  | (5.0 | ) |  | 123.8 |  |  | (8.7 | ) |  | (14,849.6 | )
Purchases | 8.9 |  |  | 47.9 |  |  | 251.8 |  |  | 12.3 |  |  | — |  |  | — |  |  | — |  |  | 320.9 |
Sales and distributions | (5.1 | ) |  | (12.5 | ) |  | (59.3 | ) |  | — |  |  | — |  |  | (2.6 | ) |  | — |  |  | (79.5 | )
Settlements | — |  |  | — |  |  | (100.7 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (100.7 | )
Realized and unrealized gains (losses), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings | (6.0 | ) |  | (8.0 | ) |  | (61.7 | ) |  | 2.4 |  |  | 0.2 |  |  | 4.0 |  |  | — |  |  | (69.1 | )
Included in other comprehensive income | 0.5 |  |  | 14.3 |  |  | 54.0 |  |  | — |  |  | — |  |  | (2.4 | ) |  | — |  |  | 66.4 |
Balance, end of period | $ | 11.5 |  |  | $ | 331.9 |  |  | $ | 2,263.9 |  |  | $ | 74.3 |  |  | $ | 0.2 |  |  | $ | 124.2 |  |  | $ | — |  |  | $ | 2,806.0 |
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date | $ | (5.7 | ) |  | $ | (8.0 | ) |  | $ | (60.1 | ) |  | $ | 2.4 |  |  | $ | 0.3 |  |  | $ | 4.0 |  |  | $ | — |  |  | $ | (67.1 | )
(1) | As a result of the adoption of ASU 2015-2 and the deconsolidation of certain CLOs on January 1, 2016, $123.8 million of investments that the Partnership held in those CLOs are no longer eliminated in consolidation and are now included in investments in CLOs and other for the three months ended March 31, 2016.
(2) | As a result of the retrospective adoption of ASU 2015-7, the beginning balance of Partnership and LLC interests that are measured at fair value using the NAV per share practical expedient have been revised to reflect their exclusion from the fair value hierarchy.
| Financial Liabilities
| Three Months Ended March 31, 2017
| Loans Payable of Consolidated Funds |  | Contingent Consideration |  | Loans Payable of a consolidated real estate VIE |  | Total
Balance, beginning of period | $ | 3,866.3 |  |  | $ | 1.5 |  |  | $ | 79.4 |  |  | $ | 3,947.2 |
Borrowings | 431.5 |  |  | — |  |  | — |  |  | 431.5 |
Paydowns | (762.0 | ) |  | — |  |  | (7.4 | ) |  | (769.4 | )
Realized and unrealized (gains) losses, net |  |  |  |  |  |  |
Included in earnings | 18.1 |  |  | — |  |  | 5.3 |  |  | 23.4 |
Included in other comprehensive income | 33.6 |  |  | — |  |  | 0.5 |  |  | 34.1 |
Balance, end of period | $ | 3,587.5 |  |  | $ | 1.5 |  |  | $ | 77.8 |  |  | $ | 3,666.8 |
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date | $ | 26.4 |  |  | $ | — |  |  | $ | 5.3 |  |  | $ | 31.7 |
| Financial Liabilities
| Three Months Ended March 31, 2016
| Loans Payable of Consolidated Funds |  | Derivative Instruments of Consolidated Funds |  | Contingent Consideration |  | Loans Payable of a consolidated real estate VIE |  | Total
Balance, beginning of period | $ | 17,046.7 |  |  | $ | 29.1 |  |  | $ | 20.8 |  |  | $ | 75.4 |  |  | $ | 17,172.0 |
Deconsolidation of funds | (14,600.3 | ) |  | (29.0 | ) |  | — |  |  | — |  |  | (14,629.3 | )
Borrowings | 12.7 |  |  | — |  |  | — |  |  | — |  |  | 12.7 |
Paydowns | (5.1 | ) |  | — |  |  | (0.3 | ) |  | (9.4 | ) |  | (14.8 | )
Realized and unrealized (gains) losses, net |  |  |  |  |  |  |  |  |
Included in earnings | (59.3 | ) |  | (0.1 | ) |  | 3.8 |  |  | 7.1 |  |  | (48.5 | )
Included in other comprehensive income | 64.3 |  |  | — |  |  | — |  |  | 0.4 |  |  | 64.7 |
Balance, end of period | $ | 2,459.0 |  |  | $ | — |  |  | $ | 24.3 |  |  | $ | 73.5 |  |  | $ | 2,556.8 |
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date | $ | (70.5 | ) |  | $ | — |  |  | $ | 3.8 |  |  | $ | 7.1 |  |  | $ | (59.6 | )
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and trading securities are included in investment income (loss), and such gains and losses for investments of Consolidated Funds and loans payable and derivative instruments of the CLOs are included in net investment gains (losses) of Consolidated Funds in the condensed consolidated statements of operations. Realized and unrealized gains and losses included in earnings for Level III contingent consideration liabilities are included in other non-operating expense (income), and such gains and losses for loans payable of a consolidated real estate VIE are included in interest and other expenses of a consolidated real estate VIE in the condensed consolidated statement of operations. Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in accumulated other comprehensive loss, non-controlling interests in consolidated entities and non-controlling interests in Carlyle Holdings in the condensed consolidated balance sheets. The following table summarizes quantitative information about the Partnership’s Level III inputs as of March 31, 2017:
| Fair Value at |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
(Dollars in millions) | March 31, 2017 |  |  |
Assets |  |  |  |  |  |  |
Investments of Consolidated Funds: |  |  |  |  |  |  |
Equity securities | $ | 9.8 |  |  | Discounted Cash Flow |  | Discount Rates |  | 9% - 10% (9%)
|  |  |  |  | Exit Cap Rate |  | 7% - 10% (7%)
| 1.0 |  |  | Consensus Pricing |  | Indicative Quotes ($ per share) |  | 15 - 15 (15)
Bonds | 417.6 |  |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 78 - 109 (101)
Loans | 3,473.2 |  |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 49 - 103 (99)
Other | 1.5 |  |  | Counterparty Pricing |  | Indicative Quotes (% of Notional Amount) |  | 6 - 7 (7)
| 3,903.1 |  |  |  |  |  |  |
Investments in CLOs and other: |  |  |  |  |  |  |
Senior secured notes | 119.0 |  |  | Discounted Cash Flow with Consensus Pricing |  | Discount Rates |  | 1% - 10% (2%)
|  |  |  |  | Default Rates |  | 1% - 3% (2%)
|  |  |  |  | Recovery Rates |  | 45% - 75% (60%)
|  |  |  |  | Indicative Quotes (% of Par) |  | 88 - 102 (100)
Subordinated notes and preferred shares | 35.2 |  |  | Discounted Cash Flow with Consensus Pricing |  | Discount Rates |  | 8% - 13% (10%)
|  |  |  |  | Default Rates |  | 1% - 10% (2%)
|  |  |  |  | Recovery Rates |  | 20% - 75% (60%)
|  |  |  |  | Indicative Quotes (% of Par) |  | 0 - 98 (93)
Other | 1.7 |  |  | Comparable Multiple |  | LTM EBITDA Multiple |  | 5.7x - 5.7x (5.7x)
Total | $ | 4,059.0 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |
Loans payable of Consolidated Funds: |  |  |  |  |  |  |
Senior secured notes (1) | $ | 3,384.2 |  |  | Other |  | N/A |  | N/A
Subordinated notes and preferred shares (1) | 50.9 |  |  | Other |  | N/A |  | N/A
| 152.4 |  |  | Discounted Cash Flow with Consensus Pricing |  | Discount Rates |  | 8% - 13% (10%)
|  |  |  |  | Default Rates |  | 1% - 3% (2%)
|  |  |  |  | Recovery Rates |  | 45% - 75% (60%)
|  |  |  |  | Indicative Quotes (% of Par) |  | 7 - 97 (79)
Loans payable of a consolidated real estate VIE | 77.8 |  |  | Discounted Cash Flow |  | Discount to Expected Payment |  | 10% - 55% (35%)
|  |  |  |  | Discount Rate |  | 20% - 30% (23%)
Contingent consideration(2) | 1.5 |  |  | Other |  | N/A |  | N/A
Total | $ | 3,666.8 |  |  |  |  |  |  |
(1) | Beginning on January 1, 2016, CLO loan payables held by third party beneficial interest holders are measured on the basis of the fair value of the financial assets of the CLO and the beneficial interests held by the Partnership.
(2) | Relates to contingent consideration associated with the Partnership's acquisitions (see Note 8).
The following table summarizes quantitative information about the Partnership’s Level III inputs as of December 31, 2016:
| Fair Value at |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range (Weighted Average)
(Dollars in millions) | December 31, 2016 |  |  |
Assets |  |  |  |  |  |  |
Investments of Consolidated Funds: |  |  |  |  |  |  |
Equity securities | $ | 9.6 |  |  | Discounted Cash Flow |  | Discount Rates |  | 9% - 10% (9%)
|  |  |  |  |  | Exit Cap Rate |  | 7% - 9% (7%)
| 0.7 |  |  | Consensus Pricing |  | Indicative Quotes ($ per share) |  | 10 - 10 (10)
Bonds | 396.4 |  |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 74 - 108 (99)
Loans | 3,485.6 |  |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 31 - 102 (99)
Other | 1.4 |  |  | Counterparty Pricing |  | Indicative Quotes (% of Notional Amount) |  | 6 - 8 (7)
| 3,893.7 |  |  |  |  |  |  |
Investments in CLOs and other |  |  |  |  |  |  |
Senior secured notes | 115.9 |  |  | Discounted Cash Flow with Consensus Pricing |  | Discount Rate |  | 1% - 11% (2%)
|  |  |  |  | Default Rates |  | 1% - 3% (2%)
|  |  |  |  | Recovery Rates |  | 50% - 74% (71%)
|  |  |  |  | Indicative Quotes (% of Par) |  | 82 - 102 (99)
Subordinated notes and preferred shares | 35.4 |  |  | Discounted Cash Flow with Consensus Pricing |  | Discount Rate |  | 9% - 14% (12%)
|  |  |  |  | Default Rates |  | 1% - 10% (2%)
|  |  |  |  | Recovery Rates |  | 50% - 74% (64%)
|  |  |  |  | Indicative Quotes (% of Par) |  | 2 - 101 (96)
Other | 1.3 |  |  | Comparable Multiple |  | LTM EBITDA Multiple |  | 5.7 x - 5.7x (5.7x)
Total | $ | 4,046.3 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |
Loans payable of Consolidated Funds: |  |  |  |  |  |  |
Senior secured notes(1) | $ | 3,672.5 |  |  | Other |  | N/A |  | N/A
Subordinated notes and preferred shares(1) | 26.9 |  |  | Other |  | N/A |  | N/A
| 166.9 |  |  | Discounted Cash Flow with Consensus Pricing |  | Discount Rates |  | 9% - 14% (12%)
|  |  |  |  | Default Rates |  | 1% - 3% (2%)
|  |  |  |  | Recovery Rates |  | 50% - 74% (66%)
|  |  |  |  | Indicative Quotes (% of Par) |  | 7 - 90 (68)
Loans payable of a consolidated real estate VIE | 79.4 |  |  | Discounted Cash Flow |  | Discount to Expected Payment |  | 10% - 55% (37%)
|  |  |  |  | Discount Rate |  | 20% - 30% (23%)
Contingent consideration(2) | 1.5 |  |  | Other |  | N/A |  | N/A
Total | $ | 3,947.2 |  |  |  |  |  |  |
(1) | Beginning on January 1, 2016, CLO loan payables held by third party beneficial interest holders are measured on the basis of the fair value of the financial assets of the CLOs and the beneficial interests held by the Partnership.
(2) | Relates to contingent consideration associated with the Partnership's acquisitions (see Note 8).
The significant unobservable inputs used in the fair value measurement of the Partnership’s investments in equity securities include EBITDA multiples, indicative quotes, discount rates and exit cap rates. Significant decreases in EBITDA multiples or indicative quotes in isolation would result in a significantly lower fair value measurement. Significant increases in discount rates or exit cap rates in isolation would result in a significantly lower fair value measurement. The significant unobservable inputs used in the fair value measurement of the Partnership’s investments in bonds and loans are market yields and indicative quotes. Significant increases in market yields in isolation would result in a significantly lower fair value measurement. Significant decreases in indicative quotes in isolation would result in a significantly lower fair value measurement. The significant unobservable inputs used in the fair value measurement of the Partnership’s investments in CLOs and other investments include EBITDA multiples, discount rates, default rates, recovery rates and indicative quotes. Significant decreases in EBITDA multiples, recovery rates or indicative quotes in isolation would result in a significantly lower fair value measurement. Significant increases in discount rates or default rates in isolation would result in a significantly lower fair value measurement. The significant unobservable inputs used in the fair value measurement of the Partnership’s loans payable of Consolidated Funds are discount rates, default rates, recovery rates and indicative quotes. Significant increases in discount rates or default rates in isolation would result in a significantly lower fair value measurement, while a significant increase in recovery rates or indicative quotes in isolation would result in a significantly higher fair value. The significant unobservable inputs used in the fair value measurement of the Partnership’s loans payable of a consolidated real estate VIE are discount to expected payment and discount rate. A significant increase in either of these inputs in isolation would result in a significantly lower fair value measurement.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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