v3.26.1
FAIR VALUE
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Fair Value of Financial Assets and Liabilities
The Company’s other financial assets by fair-value hierarchy level are set forth below. There were no other financial liabilities as of March 31, 2026 and December 31, 2025.
As of March 31, 2026As of December 31, 2025
Level ILevel II
Level III
TotalLevel ILevel IILevel IIITotal
Assets
Corporate investments$— $315,927 $— $315,927 $— $310,956 $— $310,956 
Total assets$— $315,927 $— $315,927 $— $310,956 $— $310,956 
Fair Value of Financial Instruments Held By Consolidated Funds
The short-term nature of cash and cash-equivalents held at the consolidated funds causes their carrying value to approximate fair value. The fair value of cash-equivalents is a Level I valuation. Derivatives may relate to a mix of Level I, II or III investments, and therefore their fair-value hierarchy level may not correspond to the fair-value hierarchy level of the economically hedged investment. The table below summarizes the investments and other financial instruments of the consolidated funds by fair-value hierarchy level:
As of March 31, 2026As of December 31, 2025
Level ILevel IILevel IIITotalLevel ILevel IILevel IIITotal
Assets
Investments:
Corporate debt – bank debt
$— $151,480 $1,644,749 $1,796,229 $— $116,518 $1,626,609 $1,743,127 
Corporate debt – all other
— 191,435 165,932 357,367 — 209,394 80,128 289,522 
Equities – common stock
192,100 99,032 1,811,636 2,102,768 197,832 91,815 1,559,531 1,849,178 
Equities – preferred stock
2,045 — 765,139 767,184 1,678 — 776,932 778,610 
Real estate
— 74,210 272,935 347,145 — — 352,540 352,540 
Total investments
194,145 516,157 4,660,391 5,370,693 199,510 417,727 4,395,740 5,012,977 
Derivatives:
Foreign-currency forward contracts
— 20,539 — 20,539 — 7,800 — 7,800 
Swaps— 719 — 719 — 1,270 — 1,270 
Total derivatives (1)
— 21,258 — 21,258 — 9,070 — 9,070 
Total assets$194,145 $537,415 $4,660,391 $5,391,951 $199,510 $426,797 $4,395,740 $5,022,047 
Liabilities
Derivatives:
Foreign-currency forward contracts
— (39,054)— (39,054)— (47,032)— (47,032)
Swaps— (686)— (686)— — — — 
Options and futures
— (3,020)— (3,020)— (1,861)— (1,861)
Total derivatives (2)
— (42,760)— (42,760)— (48,893)— (48,893)
Total liabilities
$— $(42,760)$— $(42,760)$— $(48,893)$— $(48,893)
(1)    Amounts are included in derivative assets under “assets of consolidated funds” in the condensed consolidated statements of financial condition.
(2)    Amounts are included in derivative liabilities under “liabilities of consolidated funds” in the condensed consolidated statements of financial condition.
The following tables set forth a summary of changes in the fair value of Level III investments:
Corporate Debt – Bank DebtCorporate Debt – All OtherEquities – Common StockEquities – Preferred StockReal EstateSwapsTotal
Three months ended March 31, 2026    
Beginning balance$1,626,609 $80,128 $1,559,531 $776,932 $352,540 $— $4,395,740 
Transfers into Level III
42,205 2,467 628 4,829 — — 50,129 
Transfers out of Level III
(54,887)— (129)— (65,495)— (120,511)
Purchases335,035 89,199 167,054 6,661 10,477 — 608,426 
Sales(209,098)(29)(32,365)(31,697)(11,283)— (284,472)
Realized gain (losses), net(27,697)(15)13,644 24 1,311 — (12,733)
Unrealized appreciation (depreciation), net(67,418)(5,818)103,273 8,390 (14,615)— 23,812 
Ending balance$1,644,749 $165,932 $1,811,636 $765,139 $272,935 $— $4,660,391 
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period$(85,179)$(3,742)$113,686 $55,452 $(13,776)$— $66,441 
Three months ended March 31, 2025     
Beginning balance$1,936,315 $111,552 $1,187,023 $606,141 $206,181 $15,771 $4,062,983 
Transfers into Level III
136,694 624 — 37 6,806 — 144,161 
Transfers out of Level III
(93,836)— (6,806)— — — (100,642)
Purchases776,462 11,768 28,361 133,007 70,382 1,575 1,021,555 
Sales(1,044,105)(7,617)(50,403)(81,903)(5,181)— (1,189,209)
Realized gain (losses), net10,954 7,585 19,861 6,344 592 — 45,336 
Unrealized appreciation (depreciation), net(43,814)(6,325)(6,580)(1,907)16,197 — (42,429)
Ending balance$1,678,670 $117,587 $1,171,456 $661,719 $294,977 $17,346 $3,941,755 
Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period
$(43,676)$(6,325)$3,582 $(1,907)$6,035 $— $(42,291)
Total realized and unrealized gains and losses recorded for Level III investments are included in net realized gain on consolidated funds’ investments or net change in unrealized appreciation (depreciation) on consolidated funds’ investments in the condensed consolidated statements of operations.
Transfers out of Level III are generally attributable to certain investments that experienced a more significant level of market trading activity or completed an initial public offering during the respective period and thus were valued using observable inputs. Transfers into Level III typically reflect either investments that experienced a less significant level of market trading activity during the period or portfolio companies that undertook restructurings or bankruptcy proceedings and thus were valued in the absence of observable inputs.
The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of March 31, 2026:
Investment TypeFair ValueValuation Technique
Significant Unobservable
Inputs (1)(2)
Range
Weighted Average (3)
Credit-oriented investments:
  
$940,141 
Discounted cash flow (6)
Discount rate
3% - 35%
14%
153,792 
Recent transaction price (4)
Quoted pricesNot applicableNot applicable
364,695 
Recent market information (5)
Quoted pricesNot applicableNot applicable
168,713 
Market approach
(comparable companies) (7)
Multiple of underlying assets (9)
1.0x - 1.0x
1.0x
35,052 
Expected Recovery (11)
Not applicable
Not applicableNot applicable
124,353 
Market approach (comparable companies) (7)
Earnings multiple (10)
2.3x - 9.8x
9.5x
23,935 
Market approach (comparable companies) (7)
Revenue multiple (8)
0.8x - 1.1x
0.9x
Equity investments:
225,351 
Recent transaction price (4)
Quoted pricesNot applicableNot applicable
343,196 
Discounted cash flow (6)
Discount rate
12% - 20%
14%
822,076 
Market approach (comparable companies) (7)
Earnings multiple (10)
1.3x - 15.9x
9.8x
113,255 
Market approach (comparable companies) (7)
Revenue multiple (8)
1.1x - 2.3x
2.3x
12,611 
Expected Recovery (11)
Not applicable
Not applicableNot applicable
3,948 
Black Scholes (12)
Not applicable
Not applicableNot applicable
58,952 
Recent market information (5)
Quoted pricesNot applicableNot applicable
997,386 
Market approach
(comparable companies) (7)
Multiple of underlying assets (9)
0.8x - 1.0x
1.0x
Real estate-oriented investments:
215,998 
Discounted cash flow (6)
Discount rate
12% - 33%
20%
56,937 
Market approach
(comparable companies) (7)
Multiple of underlying assets (9)
1.0x - 1.0x
1.0x
Total Level III
   investments		$4,660,391 
The following table sets forth a summary of the valuation techniques and quantitative information utilized in determining the fair value of the consolidated funds’ Level III investments as of December 31, 2025:

Investment TypeFair ValueValuation Technique
Significant Unobservable
Inputs (1)(2)
Range
Weighted Average (3)
Credit-oriented investments:
$953,783 
Discounted cash flow (6)
Discount rate
5% – 21%
11%
315,845 
Recent market information (5)
Quoted pricesNot applicableNot applicable
129,453 
Recent transaction price (4)
Quoted pricesNot applicableNot applicable
11,409 
Expected Recovery (11)
Not applicableNot applicableNot applicable
225,284 
Market approach (comparable companies) (7)
Multiple of underlying assets (9)
1.0x – 1.0x
1.0x
2,860 
Recent market information (5)
Quoted pricesNot applicableNot applicable
39,736 
Market approach (comparable companies) (7)
Earnings multiple (10)
2.5x – 9.8x
8.5x
28,367 
Market approach (comparable companies) (7)
Revenue multiple (8)
0.9x – 1.6x
1.2x
Equity investments:
189,154 
Recent transaction price (4)
Quoted pricesNot applicableNot applicable
862,816 
Market approach (comparable companies) (7)
Multiple of underlying assets (9)
1.0x – 1.3x
1.0x
819,606 
Market approach (comparable companies) (7)
Earnings multiple (10)
3.7x – 15.1x
8.9x
99,431 
Market approach (comparable companies) (7)
Revenue multiple (8)
2.1x – 2.1x
2.1x
333,767 
Discounted cash flow (6)
Discount rate
11% – 20%
14%
10,201 
Recent market information (5)
Quoted pricesNot applicableNot applicable
14,844 
Expected Recovery (11)
Not applicableNot applicableNot applicable
6,644 
Black Scholes (12)
Not applicableNot applicableNot applicable
Real estate-oriented:
292,809 
Discounted cash flow (6)
Discount rate
12% – 33%
18%
59,731 
Market approach (comparable companies) (7)
Multiple of underlying assets (9)
1.0x – 1.3x
1.0x
Total Level III
   investments		$4,395,740 
(1)    The discount rate is the significant unobservable input used in the fair-value measurement of performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments and real estate loan portfolios. An increase (decrease) in the discount rate would result in a lower (higher) fair-value measurement.
(2)    Multiple of either earnings or underlying assets is the significant unobservable input used in the market approach for the fair-value measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling interest in the underlying issuer, equity investments and certain real estate-oriented investments. An increase (decrease) in the multiple would result in a higher (lower) fair-value measurement.
(3)    The weighted average is based on the fair value of the investments included in the range.
(4)    Certain investments are valued based on recent transactions, generally defined as investments purchased or sold within six months of the valuation date. The fair value may also be based on a pending transaction expected to close after the valuation date.
(5)    Certain investments are valued using vendor prices or broker quotes for the subject or similar securities. Generally, investments valued in this manner are classified as Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or restrictions.
(6)    A discounted cash-flow method is generally used to value performing credit-oriented investments in which the consolidated funds do not have a controlling interest in the underlying issuer, as well as certain equity investments, real estate-oriented investments and real estate loan portfolios.
(7)    A market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling interest in the underlying.
(8)    Revenue multiples are based on comparable public companies and transactions with comparable companies. The Company typically applies the multiple to trailing twelve-months’ revenue. However, in certain cases other revenue measures, such as pro forma revenue, may be utilized if deemed to be more relevant.
(9)    A market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the net book value of the portfolio company. The Company typically obtains the value of underlying assets from the underlying portfolio company’s financial statements or from pricing vendors. The Company may value the underlying assets by using prices and other relevant information from market transactions involving comparable assets.
(10)    Earnings multiples are based on comparable public companies and transactions with comparable companies. The Company typically utilizes multiples of EBITDA; however, in certain cases the Company may use other earnings multiples believed to be most relevant to the investment. The Company typically applies the multiple to trailing twelve-months’ EBITDA. However, in certain cases other earnings measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant.
(11)    Certain investments are valued based on expected recovery, generally representing the estimated value that can be recovered in the event of liquidation or winding down.
(12)     The fair value of options/warrants is estimated using the Black-Scholes-Merton valuation model. The Company uses the following methods to determine the underlying assumptions: expected volatilities are based on the historical and implied volatilities of comparable companies or the subject company if the subject company is publicly traded; expected term is based on the shorter of the expected hold period for the option or the contractual term; and the risk-free rate is based on the yields on U.S. Treasury bills or bonds issued with similar terms to the expected term of the option.
A significant amount of judgment may be required when using unobservable inputs, including assessing the accuracy of source data and the results of pricing models. The Company assesses the accuracy and reliability of the sources it uses to develop unobservable inputs. These sources may include third-party vendors that the Company believes are reliable and commonly utilized by other marketplace participants. As described in note 2, other factors beyond the unobservable inputs described above may have a significant impact on investment valuations.
During the three months ended March 31, 2026, the valuation techniques for one credit-oriented investment was changed from market approach (value of underlying assets) to discounted cash flow, one credit-oriented investment was changed from market approach (comparable companies) to expected recovery and one credit-oriented investment was changed from discounted cash flow to market approach (comparable companies). During the three months ended March 31, 2025, the valuation techniques for three credit-oriented investments were changed from recent market information to discounted cash flow, two equity investments were changed from market approach (comparable companies) to recent market information and one credit-oriented investment was changed from discounted cash flow to market approach (comparable companies).