v3.25.1
INVESTMENTS
 3 Months Ended
Mar. 31, 2025
Investments [Abstract]  
INVESTMENTS INVESTMENTS
Corporate Investments
Corporate investments consisted of the following:
As of
Corporate InvestmentsMarch 31, 2025December 31, 2024
Equity-method investments:
Funds$306,982 $317,256 
Companies1,109,723 1,203,004 
Total corporate investments$1,416,705 $1,520,260 
Equity-method Investments
The Company’s equity-method investments include its investments in funds and companies that are not consolidated, but for which the Company is deemed to have significant influence. The Company’s share of income or loss generated by these investments is recorded within investment income in the condensed consolidated statements of operations. The Company’s equity-method investments in Oaktree funds principally reflect the Company’s general partner interests in those funds, which typically do not exceed 2.5% in each fund. The Oaktree funds are investment companies that follow a specialized basis of accounting established by GAAP. In connection with the 2024 Restructuring, the Company determined that it is no longer the primary beneficiary of Oaktree Capital I and deconsolidated the entity, which is accounted for as an equity method investment beginning with the third quarter of 2024.
On June 27, 2023, the Company entered into a contribution agreement with Brookfield Corporate Treasury Ltd. and acquired the equity ownership in certain entities which beneficially own shares in Brookfield Real Estate Income Trust. The Company accounted for the acquired interests as equity method investments with fair value election. The fair value option has been elected to simplify the accounting for the investment in OCG NTR Holdings, LLC, a wholly owned subsidiary of the Company (“NTR”). Changes in the fair value and cash dividends received from the investment in NTR are included in investment income. During the three months ended March 31, 2025 and 2024, the Company recognized an equity investment loss of $7.9 million and $17.7 million. Please refer to note 14 for the detailed description of the transaction.
Each reporting period, the Company evaluates each of its equity-method investments to determine if any are considered significant, as defined by the SEC. As of March 31, 2025, or for the three months ended March 31, 2025, the Company determined Oaktree Capital I met the significance criteria. No other individual equity method investment met the significance criteria.
Summarized financial information of Oaktree Capital I is set forth below.
Three months ended March 31,
Statements of Operations2025
Revenues / investment income$48,907 
Interest expense(9,792)
Other expenses(18,087)
Net realized and unrealized gain on investments(8,405)
Net income$12,623 
Summarized financial information of the Company’s remaining equity-method investments is set forth below.
Three months ended March 31,
Statements of Operations20252024
Revenues / investment income$42,434 $1,041,837 
Interest expense(14,525)(141,221)
Other expenses(31,700)(270,030)
Net realized and unrealized gain on investments10,129 1,146,042 
Net income$6,338 $1,776,628 
Other Investments, at Fair Value
Other investments, at fair value has primarily consisted of (a) investments in certain Oaktree and non-Oaktree funds, (b) noninvestment grade debt securities, (c) equities received as part of our sponsorship of SPACs and (d) derivatives utilized to hedge the Company’s exposure to investment income earned from its funds.
The following table summarizes net gains (losses) attributable to the Company’s other investments at fair value:
Three months ended March 31,
20252024
Realized gain (loss)$— $7,535 
Net change in unrealized gain (loss)— 6,470 
Total gain (loss)$— $14,005 
Subsequent to the 2024 Restructuring, with the deconsolidation of Oaktree Capital I, the Company no longer holds any other investments at fair value.
Investments of Consolidated Funds
Investments, at Fair Value
Investments held and securities sold short by the consolidated funds are summarized below:
Fair Value as ofFair Value as a Percentage of Investments of Consolidated Funds as of
InvestmentsMarch 31, 2025December 31, 2024March 31, 2025December 31, 2024
United States:    
Debt securities:    
Communication services$145,649 $171,325 3.0 %3.6 %
Consumer discretionary168,804 134,403 3.4 2.7 
Consumer staples21,634 40,195 0.5 0.8 
Energy33,175 34,498 0.7 0.7 
Financials146,307 133,904 3.1 2.7 
Health care173,136 182,525 3.6 3.7 
Industrials131,930 180,469 2.8 3.6 
Information technology41,502 45,702 0.9 0.9 
Materials32,018 32,448 0.7 0.7 
Real estate41,930 54,475 0.9 1.1 
Utilities33,214 19,707 0.7 0.4 
Other590,675 828,223 12.4 16.7 
Total debt securities (cost:$1,597,324 and $1,792,830 as of March 31, 2025 and December 31, 2024, respectively)
1,559,974 1,857,874 32.7 37.6 
Equity securities:    
Communication services59,608 59,897 1.1 1.2 
Consumer discretionary40,589 37,185 0.9 0.8 
Consumer Staples23,567 — 0.5 0.0 
Energy479,711 503,018 10.1 10.2 
Financials245,100 347,839 5.1 7.0 
Health care37,522 57,337 0.8 1.2 
Industrials461,706 532,096 9.7 10.8 
Information technology70,215 55,413 1.5 1.1 
Real Estate5,455 10,275 0.1 0.2 
Utilities109,230 7,367 2.3 0.1 
Total equity securities (cost: $1,338,003 and $1,362,953 as of March 31, 2025 and December 31, 2024, respectively)
1,532,703 1,610,427 32.1 32.6 
Real estate:    
Real estate57,149 15,036 1.2 0.3 
Financials20,895 — 0.4 — 
Total real estate securities (cost: $73,907 and $26,966 as of March 31, 2025 and December 31, 2024, respectively)
78,044 15,036 1.6 0.3 
Fair Value as ofFair Value as a Percentage of Investments of Consolidated Funds as of
InvestmentsMarch 31, 2025December 31, 2024March 31, 2025December 31, 2024
Europe:  
Debt securities:    
Communication services$6,800 $7,018 0.1 %0.1 %
Health care88,901 76,817 1.9 1.6 
Industrials4,516 4,316 0.1 0.1 
Materials4,524 4,335 0.1 0.1 
Real estate44,219 35,768 0.9 0.7 
Other33,498 32,735 0.7 0.7 
Total debt securities (cost: $175,959 and $161,153 as of March 31, 2025 and December 31, 2024, respectively)
182,458 160,989 3.8 3.3 
Equity securities:    
Communication Services103,668 81,124 2.2 1.6 
Consumer discretionary45,414 48,995 1.0 1.0 
Financials65,060 58,329 1.4 1.2 
Industrials133,792 119,058 2.8 2.4 
Materials24,282 24,282 0.5 0.5 
Real estate44,992 43,698 0.9 0.9 
Total equity securities (cost: $304,688 and $295,630 as of March 31, 2025 and December 31, 2024, respectively)
417,208 375,486 8.8 7.6 
Real estate:
Consumer discretionary57,853 60,960 1.2 1.2 
Real estate159,080 130,185 3.4 2.6 
Total real estate securities (cost: $221,154 and $191,470 as of March 31, 2025 and December 31, 2024, respectively)
216,933 191,145 4.6 3.8 
Asia and other:
Debt securities:    
Consumer discretionary46,488 45,686 0.9 0.9 
Consumer staples18,980 18,204 0.4 0.4 
Industrials17,787 — 0.4 — 
Materials152,418 243,021 3.3 4.9 
Real estate368,995 357,934 7.6 7.2 
Other12,079 — 0.3 — 
Total debt securities (cost: $640,080 and $680,671 as of March 31, 2025 and December 31, 2024, respectively)
616,747 664,845 12.9 13.4 
Fair Value as ofFair Value as a Percentage of Investments of Consolidated Funds as of
InvestmentsMarch 31, 2025December 31, 2024March 31, 2025December 31, 2024
Asia and other:
Equity securities:    
Consumer discretionary$17,319 $— 0.4 %0.0 %
Financials11,078 — 0.2 — 
Industrials94,694 30,827 2.0 0.6 
Real estate32,916 32,916 0.7 0.7 
Utilities9,010 7,317 0.2 0.1 
Total equity securities (cost: $140,426 and $55,638 as of March 31, 2025 and December 31, 2024, respectively)
165,017 71,060 3.5 1.4 
Total debt securities2,359,179 2,683,708 49.4 54.3 
Total equity securities2,114,928 2,056,973 44.4 41.5 
Total real estate294,977 206,181 6.2 4.2 
Total investments, at fair value$4,769,084 $4,946,862 100.0 %100.0 %
As of March 31, 2025 and December 31, 2024, no single issuer or investment had a fair value that exceeded 5% of the Company’s total consolidated net assets.
Net Gains (Losses) From Investment Activities of Consolidated Funds
Net gains (losses) from investment activities in the condensed consolidated statements of operations consist primarily of realized and unrealized gains and losses on the consolidated funds’ investments (including foreign exchange gains and losses attributable to foreign-denominated investments and related activities) and other financial instruments. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments. Upon disposition of an investment, unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.
The following table summarizes net gains (losses) from investment activities:
Three months ended March 31,
 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
Investments and other financial instruments
$68,510 $(101,214)$(55,747)$111,713 
CLO liabilities (1)
— — 35 1,362 
Foreign-currency forward contracts (2)
5,455 (25,471)(351)5,735 
Total return and interest rate swaps (2)
(627)716 — 633 
Options and futures (2)
1,239 (1,880)(206)(388)
Commodity swaps (2)
— — 4,493 (1,581)
Total$74,577 $(127,849)$(51,776)$117,474 
(1)    Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under the CLO measurement guidance. Please see note 2 for more information.
(2)    Please see note 7 for additional information.