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,
2025202420252024
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:
AssetsLiabilities
NotionalFair ValueNotionalFair 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 swaps197,550 17,327 — — 
Options and futures39,001 — (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 swaps15,207 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,
 20252024
Net Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on InvestmentsNet Realized Gain (Loss) on InvestmentsNet 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 swaps488 230 — 7,860 
Options and futures1,738 638 822 — 
Commodity swaps1,389 243 923 (217)
Total$2,306 $12,558 $2,391 $(12,458)
Nine months ended September 30,
20252024
Net Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on InvestmentsNet Realized Gain (Loss) on InvestmentsNet 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 futures1,836 2,107 584 1,600 
Commodity swaps1,389 243 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) PresentedGross Amounts Not Offset in Statements of Financial ConditionNet Amount
As of September 30, 2025Derivative 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 swaps17,327 — — 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) PresentedGross Amounts Not Offset in Statements of Financial ConditionNet Amount
As of December 31, 2024Derivative 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 swaps15,771 — — 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)