XML 35 R14.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Fair Value Measurement | 12 Months Ended
--- | ---
Dec. 31, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurement | 4. Fair Value Measurement The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy levels disclosed in Note 2 as of December 31, 2023:
| Level I |  | Level II |  | Level III |  | Total
Assets | (Dollars in millions)
Investments of Consolidated Funds(1): |  |  |  |  |  |  |
Equity securities(2) | $— |  | $— |  | $377.6 |  | $377.6
Bonds | — |  | — |  | 522.5 |  | 522.5
Loans | — |  | — |  | 5,862.1 |  | 5,862.1
| — |  | — |  | 6,762.2 |  | 6,762.2
Investments in CLOs and other: |  |  |  |  |  |  |
Investments in CLOs | — |  | — |  | 532.6 |  | 532.6
Other investments(3) | 38.7 |  | 42.8 |  | 84.6 |  | 166.1
| 38.7 |  | 42.8 |  | 617.2 |  | 698.7
Subtotal | $38.7 |  | $42.8 |  | $7,379.4 |  | $7,460.9
Investments measured at net asset value |  |  |  |  |  |  | 502.0
Total |  |  |  |  |  |  | $7,962.9
Liabilities |  |  |  |  |  |  |
Loans payable of Consolidated Funds(4)(5) | $— |  | $— |  | $6,298.6 |  | $6,298.6
Total | $— |  | $— |  | $6,298.6 |  | $6,298.6
(1)This balance excludes $490.9 million related to investments of Consolidated Funds that are included in investments measured at net asset value. (2)This balance includes $322.0 million related to investments that have been bridged by the Company to investment funds and are accounted for as consolidated VIEs as of December 31, 2023. (3)The Level III balance excludes $50.4 million related to three corporate investments in equity securities which the Company has elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to ASC 321, Investments – Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is excluded from the tabular Level III rollforward disclosures. (4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that represent compensation for services. (5)Loans payable of Consolidated Funds balance excludes a $177.9 million revolving credit balance and $10.0 million of senior and subordinated notes, which are not measured at fair value. The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the above fair value hierarchy levels as of December 31, 2022:
(Dollars in millions) | Level I |  | Level II |  | Level III |  | Total
Assets | (Dollars in millions)
Investments of Consolidated Funds(1): |  |  |  |  |  |  |
Equity securities(2) | $— |  | $— |  | $430.6 |  | $430.6
Bonds | — |  | — |  | 594.9 |  | 594.9
Loans | — |  | — |  | 5,352.9 |  | 5,352.9
| — |  | — |  | 6,378.4 |  | 6,378.4
Investments in CLOs and other: |  |  |  |  |  |  |
Investments in CLOs | — |  | — |  | 526.1 |  | 526.1
Other investments(3) | 1.6 |  | 41.6 |  | 79.4 |  | 122.6
| 1.6 |  | 41.6 |  | 605.5 |  | 648.7
Corporate treasury investments |  |  |  |  |  |  |
Commercial paper and other | — |  | 20.0 |  | — |  | 20.0
| — |  | 20.0 |  | — |  | 20.0
Foreign currency forward contracts | — |  | 2.2 |  | — |  | 2.2
Subtotal | $1.6 |  | $63.8 |  | $6,983.9 |  | $7,049.3
Investments measured at net asset value |  |  |  |  |  |  | 528.5
Total |  |  |  |  |  |  | $7,577.8
Liabilities |  |  |  |  |  |  |
Loans payable of Consolidated Funds(4) | $— |  | $— |  | $5,491.6 |  | $5,491.6
Foreign currency forward contracts | — |  | 3.2 |  | — |  | 3.2
Total | $— |  | $3.2 |  | $5,491.6 |  | $5,494.8
(1)This balance includes $377.4 million related to investments that have been bridged by the Company to investment funds and are accounted for as consolidated VIEs as of December 31, 2022. (2)The Level III balance excludes a $58.2 million related to two corporate investments in equity securities which the Company has elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to ASC 321, Investments – Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is excluded from the tabular Level III rollforward disclosures. (3)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent compensation for services. (4) Loans payable of Consolidated Funds balance excludes a $235.6 million of senior notes measured at amortized cost and a $178.0 million revolving credit balance, which is not measured at fair value. The changes in financial instruments measured at fair value for which the Company has used Level III inputs to determine fair value are as follows (Dollars in millions):
| Financial Assets Year Ended December 31, 2023
Investments of Consolidated Funds | Investments in CLOs |  |  |  | Total
Equity securities |  | Bonds |  | Loans |  | Other investments |
Balance, beginning of period | $430.6 |  | $594.9 |  | $5,352.9 |  | $526.1 |  | $79.4 |  | $6,983.9
Deconsolidation of funds(1) | (20.0) |  | — |  | (429.5) |  | — |  | — |  | (449.5)
Purchases | 85.8 |  | 168.9 |  | 2,549.5 |  | 2.0 |  | — |  | 2,806.2
Sales and distributions | (104.5) |  | (269.0) |  | (1,151.2) |  | (58.0) |  | (3.5) |  | (1,586.2)
Settlements | — |  | (8.2) |  | (740.4) |  | — |  | — |  | (748.6)
Realized and unrealized gains (losses), net |  |  |  |  |  |  |  |  |  |  |
Included in earnings | (14.4) |  | 21.0 |  | 182.7 |  | 43.4 |  | 8.7 |  | 241.4
Included in other comprehensive income | 0.1 |  | 14.9 |  | 98.1 |  | 19.1 |  | — |  | 132.2
Balance, end of period | $377.6 |  | $522.5 |  | $5,862.1 |  | $532.6 |  | $84.6 |  | $7,379.4
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date | $(15.7) |  | $13.8 |  | $131.5 |  | $43.3 |  | $5.2 |  | $178.1
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date | $0.1 |  | $12.4 |  | $93.4 |  | $19.1 |  | $— |  | $125.0
| Financial Assets Year Ended December 31, 2022
| Investments of Consolidated Funds | Investments in CLOs |  |  |  | Total
| Equity securities |  | Bonds |  | Loans |  | Other investments |
Balance, beginning of period | $17.9 |  | $599.5 |  | $5,898.1 |  | $361.1 |  | $78.7 |  | $6,955.3
Deconsolidation of funds(2) | (47.7) |  | — |  | — |  | — |  | — |  | (47.7)
Purchases | 486.5 |  | 515.4 |  | 2,485.0 |  | 263.4 |  | 0.9 |  | 3,751.2
Sales and distributions | (14.5) |  | (419.6) |  | (1,738.7) |  | (41.9) |  | (4.7) |  | (2,219.4)
Settlements | — |  | (1.6) |  | (649.8) |  | — |  | — |  | (651.4)
Realized and unrealized gains (losses), net |  |  |  |  |  |  |  |  |  |  |
Included in earnings | (10.9) |  | (60.5) |  | (392.7) |  | (25.6) |  | 4.5 |  | (485.2)
Included in other comprehensive income | (0.7) |  | (38.3) |  | (249.0) |  | (30.9) |  | — |  | (318.9)
Balance, end of period | $430.6 |  | $594.9 |  | $5,352.9 |  | $526.1 |  | $79.4 |  | $6,983.9
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date | $(16.4) |  | $(56.9) |  | $(380.6) |  | $(25.6) |  | $1.0 |  | $(478.5)
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date | $(0.6) |  | $(16.5) |  | $(162.5) |  | $(30.9) |  | $— |  | $(210.5)
(1) As a result of the deconsolidation of three funds during the year ended December 31, 2023. (2) As a result of the deconsolidation of one fund during the year ended December 31, 2022.
| Financial Liabilities
| Loans Payable of Consolidated Funds
| Year Ended December 31,
| 2023 |  | 2022
Balance, beginning of period | $5,491.6 |  | $5,811.0
Borrowings | 903.0 |  | 1,603.1
Paydowns | (159.6) |  | (421.0)
Sales | (290.8) |  | (892.4)
Realized and unrealized (gains) losses, net |  |  |
Included in earnings | 239.7 |  | (366.6)
Included in other comprehensive income | 114.7 |  | (242.5)
Balance, end of period | $6,298.6 |  | $5,491.6
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date | $250.1 |  | $(364.2)
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date | $112.4 |  | $(239.6)
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds and loans payable of the Consolidated Funds are included in net investment gains (losses) of Consolidated Funds in the consolidated statements 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 and non-controlling interests in consolidated entities. The following table summarizes quantitative information about the Company’s Level III inputs as of December 31, 2023:
| Fair Value at |  |  |  |  |  | Range (Weighted Average) |
(Dollars in millions) | December 31, 2023 |  | Valuation Technique(s) |  | Unobservable Input(s) |  |
Assets |  |  |  |  |  |  |  |
Investments of Consolidated Funds: |  |  |  |  |  |  |  |
Equity securities | $3.3 |  | Consensus Pricing |  | Indicative Quotes ($ per share) |  | 0.00 - 208.38 (0.11) |
| 322.1 |  | Discounted Cash Flow |  | Discount Rates |  | 10% - 11% (10%) |
|  |  |  |  | Terminal Growth Rate |  | 0% - 7% (5%) |
|  |  | Comparable Multiple |  | EBITDA Multiple |  | 12.7x - 12.7x (12.7x) |
|  |  |  |  | TCF Multiple |  | 24.3x - 24.3x (24.3x) |
| 44.4 |  | Discounted Cash Flow |  | Discount Rates |  | 10% - 10% (10%) |
|  |  |  |  | Terminal Growth Rate |  | 7% - 7% (7%) |
|  |  | Comparable Multiple |  | TCF Multiple |  | 24.3x - 24.3x (24.3x) |
| 7.8 |  | Other(1) |  | N/A |  | N/A |
Bonds | 522.5 |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 30 - 105 (90) |
Loans | 5,829.3 |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 0 - 102 (95) |
| 11.0 |  | Discounted Cash Flow |  | Discount Rates |  | 7% - 16% (15%) |
| 9.4 |  | Discounted Cash Flow |  | Discount Rates |  | 17% - 17% (17%) |
|  |  |  |  | Constant Prepayment Rate |  | 8% - 8% (8%) |
|  |  |  |  | Constant Default Rate |  | 1% - 1% (1%) |
|  |  |  |  | Recovery Rate |  | 0% - 0% (0%) |
| 12.4 |  | Other(1) |  | N/A |  | N/A |
| 6,762.2 |  |  |  |  |  |  |
Investments in CLOs |  |  |  |  |  |  |  |
Senior secured notes | 472.2 |  | Discounted Cash Flow with Consensus Pricing |  | Indicative Quotes (% of Par) |  | 72 - 101 (96) |
|  |  |  |  | Discount Margins (Basis Points) |  | 139 - 1,600 (319) |
|  |  |  |  | Default Rates |  | 2% - 2% (2%) |
|  |  |  |  | Recovery Rates |  | 60% - 60% (60%) |
Subordinated notes and preferred shares | 59.4 |  | Discounted Cash Flow with Consensus Pricing |  | Indicative Quotes (% of Par) |  | 6 - 90 (40) |
|  |  |  |  | Discount Rate |  | 11% - 40% (21%) |
|  |  |  |  | Default Rates |  | 1% - 2% (2%) |
|  |  |  |  | Recovery Rates |  | 60% - 60% (60%) |
| 1.0 |  | Other(1) |  | N/A |  | N/A |
Other investments: |  |  |  |  |  |  |  |
BDC preferred shares | 81.7 |  | Market Yield Analysis |  | Market Yields |  | 11% - 11% (11%) |
Aviation subordinated notes | 2.9 |  | Discounted Cash Flow |  | Discount Rates |  | 21% - 21% (21%) |
Total | $7,379.4 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |
Loans payable of Consolidated Funds: |  |  |  |  |  |  |  |
Senior secured notes | $6,090.1 |  | Other(2) |  | N/A |  | N/A |
Subordinated notes and preferred shares | 190.0 |  | Discounted Cash Flow with Consensus Pricing |  | Indicative Quotes (% of Par) |  | 16 - 103 (41) |
|  |  |  |  | Discount Rates |  | 14% - 30% (21%) |
|  |  |  |  | Default Rates |  | 2% - 2% (2%) |
|  |  |  |  | Recovery Rates |  | 60% - 60% (60%) |
| 18.5 |  | Other(1) |  | N/A |  | N/A |
Total | $6,298.6 |  |  |  |  |  |  |
(1) Fair value approximates transaction price that was in close proximity to the reporting date. (2) 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 Company and (ii) the carrying value of any beneficial interests that represent compensation for services. The following table summarizes quantitative information about the Company’s Level III inputs as of December 31, 2022:
| Fair Value at |  |  |  |  |  | Range (Weighted Average)
(Dollars in millions) | December 31, 2022 |  | Valuation Technique(s) |  | Unobservable Input(s) |
Assets |  |  |  |  |  |  |
Investments of Consolidated Funds: |  |  |  |  |  |  |
Equity securities | $3.1 |  | Consensus Pricing |  | Indicative Quotes ($ per share) |  | 0.00 - 4.73 (0.18)
| 363.5 |  | Discounted Cash Flow |  | Discount Rates |  | 10% - 10% (10%)
|  |  |  |  | Terminal Growth Rate |  | 0% - 7% (5%)
|  |  | Comparable Multiple |  | EBITDA Multiple |  | 12.7x - 12.7x (12.7x)
|  |  |  |  | TCF Multiple |  | 23.8x - 23.8x (23.8x)
| 64.0 |  | Other(1) |  | N/A |  | N/A
Bonds | 594.9 |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 46 - 105 (88)
Loans | 5,043.4 |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 0 - 100 (91)
| 11.8 |  | Discounted Cash Flow |  | Discount Rates |  | 0% - 9% (1%)
| 248.7 |  | Discounted Cash Flow |  | Discount Rates |  | 7% - 10% (8%)
| 37.4 |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 97% - 98% (97%)
| 11.1 |  | Consensus Pricing |  | Indicative Quotes (% of Par) |  | 91% - 91% (91%)
Other | 0.5 |  | Other(1) |  | N/A |  | N/A
| 6,378.4 |  |  |  |  |  |
Investments in CLOs |  |  |  |  |  |  |
Senior secured notes | 462.1 |  | Discounted Cash Flow with Consensus Pricing |  | Indicative Quotes (% of Par) |  | 67 - 100 (93)
|  |  |  |  | Discount Margins (Basis Points) |  | 170 - 1,800 (386)
|  |  |  |  | Default Rates |  | 2% - 3% (2%)
|  |  |  |  | Recovery Rates |  | 50% - 70% (60%)
Subordinated notes and preferred shares | 64.0 |  | Discounted Cash Flow with Consensus Pricing |  | Indicative Quotes (% of Par) |  | 0 - 82 (40)
|  |  |  |  | Discount Rate |  | 15% - 25% (20%)
|  |  |  |  | Default Rates |  | 2% - 3% (2%)
|  |  |  |  | Recovery Rates |  | 50% - 70% (60%)
Other investments: |  |  |  |  |  |  |
BDC preferred shares | 76.9 |  | Market Yield Analysis |  | Market Yields |  | 11% - 11% (11%)
Aviation subordinated notes | 2.5 |  | Discounted Cash Flow |  | Discount Rates |  | 21% - 21% (21%)
Total | $6,983.9 |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |
Loans payable of Consolidated Funds: |  |  |  |  |  |  |
Senior secured notes | $5,303.3 |  | Other(2) |  | N/A |  | N/A
Subordinated notes and preferred shares | 188.3 |  | Discounted Cash Flow with Consensus Pricing |  | Indicative Quotes (% of Par) |  | 21 - 96 (38)
|  |  |  |  | Discount Rates |  | 15% - 25% (20%)
|  |  |  |  | Default Rates |  | 2% - 3% (3%)
|  |  |  |  | Recovery Rates |  | 50% - 70% (60%)
Total | $5,491.6 |  |  |  |  |  |
(1)Fair value approximates transaction price that was in close proximity to the reporting date. (2)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 Company and (ii) the carrying value of any beneficial interests that represent compensation for services. The significant unobservable inputs used in the fair value measurement of investments of the Company’s consolidated funds are indicative quotes. 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 Company’s investments in CLOs and other investments include indicative quotes, discount margins, discount rates, default rates, and recovery rates. Significant decreases in indicative quotes or recovery rates in isolation would result in a significantly lower fair value measurement. Significant increases in discount margins, 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 Company’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. Significant decreases in recovery rates or indicative quotes in isolation would result in a significantly lower fair value measurement.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration