XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.25.3

DERIVATIVES AND HEDGING | 9 Months Ended
--- | ---
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING Realized and unrealized gains and losses arising from freestanding derivatives were recorded in the condensed consolidated statements of operations as follows:
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Investment income | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,634 |
General and administrative expense (1) | — |  |  | — |  |  | — |  |  | (8,188) |
Total gain | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 446 |
(1) To the extent that the Company’s freestanding derivatives are utilized to hedge its foreign-currency exposure to investment income earned from consolidated funds, the related hedged items are eliminated in consolidation, with the derivative impact (a positive number reflects a reduction in expenses) reflected in consolidated general and administrative expense. Subsequent to the 2024 Restructuring, with the deconsolidation of Oaktree Capital I, the Company no longer holds any freestanding derivatives. Derivatives Held By Consolidated Funds Certain consolidated funds utilize derivatives in their ongoing investment operations. These derivatives primarily consist of foreign-currency forward contracts and options utilized to manage currency risk, interest-rate swaps to hedge interest-rate risk, options and futures used to hedge certain exposures for specific securities, and total-return swaps utilized mainly to obtain exposure to leveraged loans or to participate in foreign markets not readily accessible. The primary risk exposure for options and futures is price, while the primary risk exposure for total-return swaps is credit. None of the derivative instruments are accounted for as a hedging instrument utilizing hedge accounting. The fair value of derivatives held by the consolidated funds consisted of the following:
| Assets |  | Liabilities
| Notional |  | Fair Value |  | Notional |  | Fair Value
As of September 30, 2025 |  |  |  |  |  |  |
Foreign-currency forward contracts | $ | 1,087,884 |  |  | $ | 26,724 |  |  | $ | (227,938) |  |  | $ | (70,705) |
Total-return and interest-rate and credit default swaps | 197,550 |  |  | 17,327 |  |  | — |  |  | — |
Options and futures | 39,001 |  |  | — |  |  | (17,239) |  |  | (160) |
Total | $ | 1,324,435 |  |  | $ | 44,051 |  |  | $ | (245,177) |  |  | $ | (70,865) |
As of December 31, 2024 |  |  |  |  |  |  |
Foreign-currency forward contracts | $ | 797,475 |  |  | $ | 17,578 |  |  | $ | (81,625) |  |  | $ | (8,513) |
Total-return and interest-rate and credit default swaps | 15,207 |  |  | 15,771 |  |  | (203,533) |  |  | (19) |
Options and futures | — |  |  | — |  |  | (13,435) |  |  | (4,853) |
Total | $ | 812,682 |  |  | $ | 33,349 |  |  | $ | (298,593) |  |  | $ | (13,385) |
The impact of derivatives held by the consolidated funds in the condensed consolidated statements of operations was as follows:
| Three months ended September 30,
| 2025 |  | 2024
| Net Realized Gain (Loss) on Investments |  | Net Change in Unrealized Appreciation (Depreciation) on Investments |  | Net Realized Gain (Loss) on Investments |  | Net Change in Unrealized Appreciation (Depreciation) on Investments
Foreign-currency forward contracts | $ | (1,309) |  |  | $ | 11,447 |  |  | $ | 646 |  |  | $ | (20,101) |
Total-return and interest-rate and credit default swaps | 488 |  |  | 230 |  |  | — |  |  | 7,860 |
Options and futures | 1,738 |  |  | 638 |  |  | 822 |  |  | — |
Commodity swaps | 1,389 |  |  | 243 |  |  | 923 |  |  | (217) |
Total | $ | 2,306 |  |  | $ | 12,558 |  |  | $ | 2,391 |  |  | $ | (12,458) |
| Nine months ended September 30,
| 2025 |  | 2024
| Net Realized Gain (Loss) on Investments |  | Net Change in Unrealized Appreciation (Depreciation) on Investments |  | Net Realized Gain (Loss) on Investments |  | Net Change in Unrealized Appreciation (Depreciation) on Investments
Foreign-currency forward contracts | $ | 3,043 |  |  | $ | (53,045) |  |  | $ | 411 |  |  | $ | (14,189) |
Total-return and interest-rate and credit default swaps | (139) |  |  | 877 |  |  | — |  |  | 11,448 |
Options and futures | 1,836 |  |  | 2,107 |  |  | 584 |  |  | 1,600 |
Commodity swaps | 1,389 |  |  | 243 |  |  | 8,151 |  |  | (8,658) |
Total | $ | 6,129 |  |  | $ | (49,818) |  |  | $ | 9,146 |  |  | $ | (9,799) |
Balance Sheet Offsetting The Company recognizes all derivatives as assets or liabilities at fair value in its condensed consolidated statements of financial condition. In connection with its derivative activities, the Company generally enters into agreements subject to enforceable master netting arrangements that allow the Company to offset derivative assets and liabilities in the same currency by specific derivative type or, in the event of default by the counterparty, to offset derivative assets and liabilities with the same counterparty. While these derivatives are eligible to be offset in accordance with applicable accounting guidance, the Company has elected to present derivative assets and liabilities based on gross fair value in its condensed consolidated statements of financial condition. The table below sets forth the setoff rights and related arrangements associated with derivatives held by the Company. The “gross amounts not offset in statements of financial condition” columns represent derivatives that management has elected not to offset in the condensed consolidated statements of financial condition even though they are eligible to be offset in accordance with applicable accounting guidance.
| Gross Amounts of Assets (Liabilities) Presented |  | Gross Amounts Not Offset in Statements of Financial Condition |  | Net Amount
As of September 30, 2025 |  | Derivative Assets (Liabilities) |  | Cash Collateral Received (Pledged) |
Derivative Assets: |  |  |  |  |  |  |
Derivative assets of consolidated funds: |  |  |  |  |  |  |
Foreign-currency forward contracts | $ | 26,724 |  |  | $ | — |  |  | $ | — |  |  | $ | 26,724 |
Total-return and interest-rate and credit default swaps | 17,327 |  |  | — |  |  | — |  |  | 17,327 |
Total | $ | 44,051 |  |  | $ | — |  |  | $ | — |  |  | $ | 44,051 |
Derivative Liabilities: |  |  |  |  |  |  |
Derivative liabilities of consolidated funds: |  |  |  |  |  |  |
Foreign-currency forward contracts | $ | (70,705) |  |  | $ | — |  |  | $ | — |  |  | $ | (70,705) |
Options and futures | (160) |  |  | — |  |  | — |  |  | (160) |
Total | $ | (70,865) |  |  | $ | — |  |  | $ | — |  |  | $ | (70,865) |
| Gross Amounts of Assets (Liabilities) Presented |  | Gross Amounts Not Offset in Statements of Financial Condition |  | Net Amount
As of December 31, 2024 |  | Derivative Assets (Liabilities) |  | Cash Collateral Received (Pledged) |
Derivative Assets: |  |  |  |  |  |  |
Derivative assets of consolidated funds: |  |  |  |  |  |  |
Foreign-currency forward contracts | $ | 17,578 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,578 |
Total-return and interest-rate and credit default swaps | 15,771 |  |  | — |  |  | — |  |  | 15,771 |
Total | $ | 33,349 |  |  | $ | — |  |  | $ | — |  |  | $ | 33,349 |
Derivative Liabilities: |  |  |  |  |  |  |
Derivative liabilities of consolidated funds: |  |  |  |  |  |  |
Foreign-currency forward contracts | $ | (8,513) |  |  | $ | — |  |  | $ | — |  |  | $ | (8,513) |
Total-return and interest-rate and credit default swaps | (19) |  |  | — |  |  | — |  |  | (19) |
Options and futures | (4,853) |  |  | — |  |  |  |  | (4,853) |
Total | $ | (13,385) |  |  | $ | — |  |  | $ | — |  |  | $ | (13,385) |

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

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 182 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-182 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 185 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-185 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 184 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-184 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 181 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-181 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 15 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480960/815-15-50-3 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 183 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-183 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4I -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4I Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4F -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4F Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 26: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 27: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 28: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 29: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent Reference 30: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 31: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration